Table of Contanss

Wives iu _
SS Fwy mis)
HD. ee
242 Krowledga Managarnent- pie
Chaser 1) introduction ta inferuation Syatems (IS)
* we (952 Security Needs m E-comm@rO8. ne ce | S72 Denstitsof CRM
V1 fo 1-92 242 Orting1g Forces For behind Knowiedge Management
2.44 :
453 Threatsto Ecommerce... -~— 47 | 57.3 Banslits of CRM to Business Functions a BND
gy! 14
Mt nrechon _ we > r ighge Management. | gg ta ee eee ere |
(Gena of Raoeinne
REA, t 254 Secumty Technologies oe pense ent
VAs Knowledge Menagerent_____p. ene NA
Aifeemason CoreaA Reeves Ne Chaban
245 of u 46 Secunty in Appications..
Information 48 | gay Components of E-business... ae
rebecge Menegemernt 2
ae Wnterseanoen: Systuen j25) 12
Booty or Pe 461 Dam Seanty.......... In E-business .
5.82 — Markel Participants
124 Eleernts of intonation Syrian os
= a)
Chapter 3: Business loteligens® Site3s fz Database Secuny... 583 Features ol E-business ..
19 Freee @ aration Syemn _ V6 BY bnroetion ——apnnnennr nn nnn 463° Secumty Tachniques.... saa Function Electonic Business,
131 | Operators Spout Syste a 14 emcee e 47 Security Managemen! in a Network 58 E-Commorce or Electronic Commerce... —
32 What Ip Business inietgenca?..
132 Marezemest Socped Syaten end 33 Purpote of using Buscwoss Ininligante... ag | 47.1 Network Securty Thats. cee mt Aidveeiages of Econ
129° tormanon Syemm Actimes NT YE asses 472 Network Security Mathods..... 5.9.2 Types af E-commerce Models...
aA Sthattaig Dusrassinetiges wie ; ¥
TAs The Eananding Role of Information Syston In Business. Orpa 46 Cyber Secutty.. -
aaron? " 5.10 Moblio Commerca (M-cammarce) . .
a —
Orpereratcre __ oan = eB ech ee 481 Types of Cyber Security Treats...
3 Tools ena Tacneiques ot OLAP) ea 5,101 Applications of M-commerca
ta impact of bfonration Syatem on Organizations... 1-0 7 4) 40.2 Cyber Security Meagurgs oem :
em q 5.10.2 92g of M-commerce. os).
i 6-1 to 5-21
1s ingact
of Information Systecn
on Society 440, 302 — Market Gasket Analyte -oan34 [Chapter 61 Socio! Computing
Chaptor 6; Camputer Networks 6-1 10 6-23
16 Row of intornaton Syren in Framing Organizational 363 Dats Mining a . wd) : i 5 invoucton..
SERA af fienging Corrpettive Advantages... VAT a7 Process of Bl System Creation Bit) Social Computing ae IntrodUELGE sonar oven coed
= 61.1 What la Computer Notwork?...
7 Charectunstes of @ Good Information System 112 3.8 impact of Business Intaliganca on Functional Unit. 8 Fy > Gena cp eee
; : 1543 01.2 How doos a Network Work? ve 2
Chapter 2: Data end Knowledge Management 2.0.) Impact of Bucinas Intaligence on Daolsion Making 3 Senate ks Oromazasona..
2-10 2-19 29 Business intetigence Tools _ Me :
Osx) Worts ere W900 (FW nenersie a2 Advantages and Disaaventages of a Computer Network
i q 62
2) wanda a ve te Bl 30.1 Business tntelligance Sofware amine Bs Web 20 bee
6.3 Applications of Computor Network .
ayy Dom _ ~ a“ erretecastteattoeine at 3a? How t Choose the Right Software: Ss sas Koy 45 of Web 2.0_
64 Network Components emilee ae
S42 Furaacentai Concepta of Data 22 310 Stes to Implement Bi System 38 sss; jeawweaio Pincpes
38 , 66 Typos of Natwork......
22 Database Managenient System (OBMS) . -.... M4 2.111 Protioms bien Faced
Fei «7o B? implemartotio 1 mane — 4
66 Computer Notwork Architecture..
——————— 5.3.3 of Web 2.0
Five Major Features nse
221 Furctons
of a DEMS fo 25 Chapter 4: Ethical Issues and Privac 4-1 to 4-15 7
sac rrr pia isvantagesoleh 20ers 68.1 — Peor-To-Peor Nowak...
aee Managhig Data Resouces (Daia managembnt).... 2% ay Wwireducton pS Web 3.0... ~ 6.6.2 CllonSorver Natwark ......
ait ‘Whst are Business Efticy? (540 Featuros that can help us understand Web 3.0........5-6
P23 Typesol dtabason et BS oT Network Topotogy ........

23 Oxia waynes a. 6 442 Ethics and Information System... $8 Social Computing In Shopping ..__ 50 | 674 PolntTo-Point
es) Tyose
of Qnia Warehouses — 2 419 Emical 8008. 551 Major Catagories of Social Shopping .6:7 | 672 Bus Topology......
42 Introguction ta informathan Seourtty 8 enn 55.2 ‘Components of a Social Shopping Websita .... 6.7.3 ‘Star Topology...
232 Comparets of Data Warehouses —._ a OP

232 Who saem Tuna Warehouse — mn coninenens OB

421 Information Secunty. . 495.3 Banefts tor Buyers. 67 | 674 — Alng Topology
422 Principies of Intormaton Security 64 — Benslits for Sellars... 67.5 Trap Topology.
234 Appication Areas at Data Warehouse enncnan eee BD
43 Secunty Threats — = 56 Social Computing In Markoting... 67.6 Hytnd Topalegy,......
225 Advannages
of Data Warwnous 2. . ~~
44 Contrating Sacumty Threats to bntormaton — Ht 5.6.1 Businsss Benetits of Social Marketing... use | oS Notwork Davices ...
TIA —_Desactvantages
of Data Warehouse BZ
44.1 Objectives... roe 55.6.2 Marketing Banefits of Soclal Media. 69 Wired and Wiralass Network
237 Data Mining nn ee ee
442 Soourty Threats Cantal Measures. . 57 Customer Relationship Management (CFM)... 610 884 twos
Wired Netirag
2a Knowledge Managermant Approach ne 2)
4s Information Securty
m €-pomengroe— a 571 Types
of CRM... 54 692 Wireless Network...
par Krowhetgs
and its Reever. anne B10
451 E-commerce... ~ Transmissign Media.

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NMC se

MIS (MU)
HRIS Functions.
610.7 Guided Transmission Media...

Unguidad Transmission...
HRIS Advantages:
6.102

6.41 Computing f System for Accounting...

6.11.1 Application Aras...
Introduction to Information
Financial Management System.
612
6.12.1
Cloud Computing...
Advantages of Cloud Computing...
Applications....... oe
Building Blocks of an FMIS.. Systems (IS) J
6.122 — Typss ol cloud computing . . Advantages of a Financial Management Information
6123 Types of Cloud Services SYSTEM sane
6.124 Usage of Cloud Computing . . Enterprise Resource Planning (EAP)... Syllabus
History. Infarmation Systems, impact of JT on organizations}
Chapter 7: Information System within Organization Introduction to Information Systems (IS) : Computer-Based
IS.
Importance of IS to Society, Organizatlonal Strategy, Competitive Advantages and
7-1 ta 7-24 a
Need
of ERP...
mW Introduction... aaa TA Features of EAP
71.1 Transaction Processing System. 74 ‘Scope of EAP . 1.1__ Introduction
7.12 Transaction Processing Cycle... 72 Advantages and Disadvantages of EFP...........
that knowledge to record various activities. The
Since the time people learnt how to read and write, they started using
7.1.3 Features. 74
Benefits of Implamenting ERP Sottware tor an 2 learn about the past and develop further from there. This motive remained with
aim was to use the records to
7.1.4 Storing and Retrieving Data... Organization... became more Important.
generatlons. Then the world started developing Itself commercially and the records
7.2 Information System for Business Functional Areas .... 7-4 ‘Types of ERP Architecture. various business activities,
The records were collected, organized and then analyzed to get useful information about
73 Marketing information System... ERP Software Examples . .
workers, customers, environment, ete. Slowly information became lifeblood for understanding businesses, customers,
System Development Life Cycle (SDLC).... out for
7.3.) Components of Marketing information System: markets and their surroundings. In short, information became indispensible. Business people constantly looked

73.2 Advantages of Marketing Information Systems... The Sevan Phases of the System-Development Lite Cycle newer ways to collect, organize and analyze information. This led to the development of Information System. Information
system was further revolutionized by the introductian of information technology.
74 Manufacturing System...
A continuous upgradation of technology kept on developing the information system fer better which brought a
7.41 Benefits of Mamfactunng Information Systems........... 7-7
paradigm shift in the way businesses were done.
TAZ — Applicaton... wnraeneiine
We are in the 21" century and the Journey continues. The world has become globalized and highly competitive.
75 HR Information System ..... Accurate, timely, relevant and complete Information about various business aspects has become vital to stay ahead. Every
business organization Is compelled to develop a strong information system to be relevant in the ever changing business
world,

An effective and efficient Information system is the need of the hour as it helps organizations not only stay relevant In
the business but also stay ahead of competition. This calls for a thorough study and understanding of infarmation system
by business organizations.
Apart from Impacting businesses positively, Information system has left a deep impact on society tao. it has brought
revolutionary changes In our lives. There Is hardly any sphere of life that has not been Impacted by it, Information on just
any subject Is available Just on the click of a mouse. E-commerce, E-banking, online training and education have made a
huge change In the way we live our life. it has developed the general awareness of the peaple and taken It to a new level
whlch has a great Impact even on businesses,

As Information system driven by Information technology has penetrated and been proven effective far societies as
well as each and every organization irrespective of its nature of business around the world, it has become essential for
people from every walk of life to gain and develop its better knowledge.

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}
ie

_Misimu) Us Introductian to Information Systam :

=
The study of information system calls for learning its core called database which is a collection of records which Itself
F} _MIS(MU) Invoduction to Information System
is a collection of interlinked data, Apart from that, the study also encompasses a variety of topics Including system analysis 4 Itcan also be defined as any organized combination of people, hardware, software, communication networks, data
and desig, computer networking, information security, database management and data support system. Management — + resources, pollcles and procedures that store, process, retrieve, transfer and disseminate infarmaticn in an organization
Informacion System (MIS) is another important field of study within the boundary of information system. It is effectively
| Today people In their personal lives as well as within organizations rely heavily on modern information systems to
used today for decision making and for the co-ordination, control, analysis and presentation of information In an
search relevant Information and communicate with one another.
organization. It is the study of people, processes and technology In the context of an organization.
Awell-designed and developed information system helps an organization in managing its operations, interacting with
Thus, on an optimistic note let us begin our study of information system with a clear and firm aim of learning and 3 its customers and suppliers and competing in the marketplace.
developing its expertise in an attempt to help organizations take its advantages and remain competitive.
| For example, organizations use their information system to process financial data, to manage their human resource
1.1.1 information : Concept & Relevance ) and to Identify and reach thelr potential customers.
Information since ancient times has been playing a very important role in the life of a person as well as in that of an _| Many major companies today are built around Information systems. These include Amazon, Flipkart, Google, Alibaba,
organization. It helps in gaining knowledge which becomes vital in decision making particularly for leadership.
Leading
etc. Alot of companies today are offering cloud services which are purely based an information system.
without information is like fighting in the dark. As a result, measures and systems are out in place to collect information. Computer-based Information system uses modern technologies such as computer hardware, software and
We can define Information as a collection of deta processed (organized) as per certain pre-defined communication networks to collect, process, store and exchange information all around. The use of computer has
format in order to
understand a subject better. significantly improved the effectiveness of an information system and has proven to be a boon for all the organizations.

The creation of information is done through a system called data

It offers many advantages such as :
processing where data is collected and then
processed and presented in a useful format that is helpful to everyone. a. Efficient storage of the information

Input
rn Output
"| b.
| c
Safety and security of the information
Quick retrieval
of the information
d. Fast information processing and distribution anywhere in the world at a very low cast
Fig 1.1.1 ; Data processing system
| €. Better analytical capabllity that helps in making the decision-making process highly effective
Fer any information to be useful, it must possess the following characteristics: -
Thus a computer-based information system has become an essential requirement for every organization be it a small
1s tt must be relevant.
|| ora large one. With continuous upgradation in technologies, this system has become very powerful aver the years.
“2. It must be accurate.
1.2.1 Elements of Information System
ES Jt must be complete,
An information system is designed with the help af the following key elements:
qIt must be obtained timely.

me. above characteristics bring many benefits such as :

sich information is indisputable.
ithelps create strong strategies, Information system:
is necessary for optimization of performance,

‘Telecommunication

Software
ration System |s a mechanism designed to collect, process, store and distribute information within and outside ;
Fig. 1.2.1: Elements of IS
ation jin order to improve organizational effectiveness and efficiency,

wy TechKanel

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WF mis(Mu)
14 Introduction lo Information System
1, rdware: Every organization or individual
Computer hardware: Pan
today uses one or other form of computer hardware. It offers
advantages Introduction to Information System
van a as mentl oned above and isI the core element on which i the entire
i Information system Is built. Quick, easy,
2.3 Advantages of Inf i
secure and Cost-effective are key features of computer hartlware.
2, “cornputte Soiewire + : ormation System
a Software today rules the world through hardware devices. Milllons of apps An Information system gives i
available today for Biev mang ovemagss 2 to etary 7onpaetiton
everyae human
rurer and b usiness activity have empowered both the customers as well as the organizations. Customized and roves busi
patie oth kinds of sokware are availabe today to sult every tosnecs eddoncerah nes mr
aged - | processes 2ndsoon aperationthatmanagement:
Procedures, prevents the information systemgetting
operations from offersdeviated.
key information relatedoccurred
Any deviation to business plans,
1s recorded
sem cumeation ;
i
|} and reported for correction. i
networks : Communication networks have converted the world into a global village with almost every
Business decision nm making:
making: infInformation system greatly supports decision making
individual and organization connected with each other round the by providing useful and timely
clock. All the new as well as ald Information today is
th available
instantly lable for
foi access fram m remote
rem i:
locations. Organizations either use a public network or set up thelr own to
information related to the concerned problem. The available information helps the management analyze the problem
Ich 7
remain connected with customers, suppliers and distributors on real-time better which enables it to take right decisions at the right time.
basis.
Database : The core of any Information system Is data and a huge collection of inter-related Creating a strong and effective database: Information system helps an organization to build a strong, effective and
data is called a database,
Organizations spend a lot of time, effarts and resources in creating, processing, storing and analyzing their databases. comprehensive database that takes care of every business need and helps management in formulating business plans

Simply put, they make businesses more effective and efficient.

and policies.
5. People : People’s ability ta build an effective and efficient information system decides how far it is going to succeed,
Developing an effective communication system: An effective communication system helps the management and the
People are the creators as well as users and the ultimate beneficiaries of any information system. Employees and
employees exchange necessary information like the business needs, plans, objectives, problem areas and the
respective roles and responsibilities. It also helps the organizatian communicate well with the autside world.
customers they both need effective understanding of the information system to take advantage of it.
Customer Information: Today, Information about customer needs, wants, problems and buying behavior Is critical to
1.2.2 Objectives of Information System ‘
business plans and an Information system helps the organization immensely.
aiace

Business organizations today Invest heavily in developing an effective and efficient information system to achleve the Real-time Information: Information system offers real-time information enabling the management to take quick
following objectives: decisions to grab opportunities or solve problems.
Achieving operational excellence: Efficiency, productivity and improvements in business practices, policies and Cost reduction: Information systems has replaced the old manual system thus reducing the cost of productian, which
management are Important for any organization to grow. in turn Impraves the profit ratlo and competitiveness of the organization.
Identifying and designing new products and business models: In a globalized and compet
titive business world, newer Better customer service: Customer service in all the areas has improved drastically with the help of Information
models that maintain flow of
product designs that satisfy customers’ and needs and wants, and upgraded business system. Customer problems are recarded online and are salved within the given time through effective monitoring.

income are essential. . Reduced risk of errors: Information systems today are designed in such a way that there is minimum risk of errors in
are core to the
and suppliers: Customers and suppliers both
: data processing, which leads ta better efficiency and decision making.
Establishing regular communication with customers
ng ant da long term
with them ensures a better understandi Safety and security of data: Information system has an effective safety and security mechanism ta protect data and
survival of a business and a regular com munication
relationship. Thus they are important objectives.
information from getting stolen and manipulated.
of
management actlvity and the success
is a regular and a very imp: ortant Gives competitive advantages: Relevant, timely and accurate information provided by Information system gives
Improving decisio! in making: Decision making
and accurate decision making.
great extent depends on timely competitlve advantage to every organization,
for
only for the growth but also
marketplace is a must, not
me ges: Competitivene: 55 in the always @ Types of Information System
Getting competitive advanta competiilve advantage Is
in every | industry and place. Thus, getting
the surviival, as competition ts Intense Information systems that are used in today’s business world can be broadly classified into two types:
.
primary objective to achieve 7 . There are plenty ©
ensuring sustai inability Is always 2 challenge 1. Operations Support System
In an unc ertain business world, of Information
Ensuring sustainability: one of the important objectives
factor s that creat e hurdles for businesses. Therefore, 2. Management Support System
of environmental that sustai nabili ty is ens ured,
esses In 5! uch a way
syste m is to prepare the busin
st
Ap hotettaas
reotieg
SF natonaietet
faite

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Introduction ta Information System
@ MIS(MU) i
Ww_mismu)
information systems are categorized this way to describe the major roles they play In thebrie
operations
look at and
sch managemen,
informatiog
. systems. Let's's have have a
of a business. Fig. 1.3.1 iustrates this classification of information Jntroduetion to
Infor
1.3.2 Management Support System System
system categories:
When information system focuses
on Providing information and
they are called management support systems. Support for effective decisio,
It is a complex task. Several major types of ki
Nn makin;

WT Ee
varlety of decision-making responsibilities such infarmat BY managers,
as Management inform: . lon
Systems support a
(DSS), Executive Information Systems (EIS). ‘ation Systems (Mis), Decision Sup
Supports Management port sys
Operation support [Supports business panagerial cuppa system
tems
system operations decision making] Management Information System

ET
(MIS) provides ; information in the
professionals, For example, sales form of Feports to managers and
managers use their computers bush
usiness
to receive instant ‘displays about
their products and then access the sales results a of
*
Specialised !
Process lalized |
their corporate intranet for daily sales analysis reports that
processing control
Executive eran each salesperson. evaluate sales made b
Y
f, wis pss 18 rocessing }
system systam ye i Decision Support Systems (DSS) give direct
support to managers durin Ig the decis
ion-making Process. For exampl
advertising manager may use a DSS to perform an analysis as p: jart e, an
of the decision to deter
advertising budget; a production mine how to Spend
manager may use a OSS to decide
how much Product to manufacture
expected sales and the availability of the raw materials, based onthe

Transaction |, Enterpnse Executive Information Systems (EIS) provide

processing [| | collaboration} critical Information from a wide varie ty
Of internal and external sources
system | system f to the executives and managers. For example, top executi
ves can Instantly view computer
displays that highlight key
areas of organisational and competitive Performance.
Fig. 1.3.1: Types of IS 1.3.3 Information System Activitles
1.3.1. Operations Support System
Irrespective of the type of information system,
certain similar basic information- SYSTEM activities take place. Let’s take
Information systems have always been required
to process data Benerated by and used In business a closer look at these activities,
operations.
Operation support systems Produce a variety of
information for both internal and external use.
However, they do not provide the Specific Control of system performance:
information that can be used best by managers
for analytical decislon-
making purposes. Management support system
is usually used for such purposes,
The role of operations support system is to
process business transactions, conirol industrial processes, support
enterprise communications and collaborations
and update corporate database efficle | Processing” e a
ntly.
Transaction Processing systems are important ‘| “yp tala Into
{information eritenatee:
examples of o| eration support system
that record and Process the [
data collected from business transactions. For
example, point-of-sale (POS) systems
electronic cash register terminals to at many retall stores use
capture and transmit sales data electroni
cally over telecommunication network
ei enee

to computer centres for processing.

Pracess contro! systems monitor and control

physical processes in any organization.
tefinery uses electronic sensors linked to For example, a petroleum
computers ta monitor chemi: ical proces Fig. 1.3.2 ; Information system activities.
ses continuously and make
adjustments to control the refinery process. instant
Input activity :
Enterprise collaboration systems focus
on enhancing team and work-; ‘group Data about business transactions and other events are collected and entered
communications and Product
Include applications that are sametimes ivity and for processing by the Input activity, Input
called as office automation syst tem. Is entered in the form of data entry activities such as recording
For example, members ina Project and editing. Users usually enter data directly Into a
use e-mall to send and receive any team
messages or use video conferer ncing computer system,
la hold meetings to co-ordinate
eet

activities. their

1-55
Tach Knowindgs
revueattens

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Introdut tem
Misi) ue Intreducton to Information Systam
We OMIS(MU)
Decision support: 1970s-1980s
Processing: sorting, classifying and summarizing,
comparing, — Decision-support systems
such ascalculating,
proce: ssing activities, rms tion. The quality of any data stored
Data are then entesed into them i into
n t o info
i t
organi ze, analyz e, and
: manipulate
: osert
data, and conv
es.
= Interactive ad hoc support of the managerial decision-making process
These activit ies al ind updatingacti
viti
ined by continuously correcting Management reporting: 1960s-1970s
in an information system is mainta
Output activity: — Management Information systems
ut activity. The goal of
to them In theout
to end users and mai de available ;
Informati ‘an in various forms is transmitted images.
— Management reports of pre-specified information to support decision making
graphic
on appropriate reports, forms and
information systems Is the producti of Data processing: 1950s—1960s
Storage of data; Electronic data processing systems
nized manner for
em component of information system: .s
In which data are retained in an orga :
i ic Transaction processing, record keeping, and traditianal accounting applications
organized into a variety of data elements ani d databases. This organization facilitates
use. octiee
later cs are commonly
Stored dataees
their later use in processing or retrieval as output wh en needed
by the users ofa system. 1.4 Impact of Information System on Organizations
Control of system performance ; Information system has made a huge impact on business organizations. tt has brought a paradigm shift in the way
us have a look at some of the
An Important-Information systern activity is the control of system performance.
An information system produces “businesses are done. Organizations can no longer afford to ignore information system. Let
and evaluated to determine
feedback about its Input, processing, output, and storage activities. This feedback is monitored areas where it has made a difference:
whether the system Is meeting the established performance standards. If deviations occur, appropriate system activities — Better flow of information: Information system has streamlined the flow of information within the organization.
are adjusted so that proper information is produced. Information related with the status of a particular work, productivity and the performance of the workforce Is

1.3.4 The Expanding Role of Information System In Business Organizations available easily. There Is clear and quick information on the market conditions, government policies and laws, and
competitor's next move. All this facilitates better action on the part of the management.
Enterprise resource planning and business Intelligence: 2000s-2010s
- Improves transaction processing: Information system has resulted in better transaction pracessing, which not only
Enterprise-wide common-interface applications, data mining and data visualization, customer relationship
saves valuable time but also improves the accuracy of data and information and that too at reduced cost All the
management, supply-chain management.
transactlons of any nature are instantly recorded and processed which help the organization in getting useful
Electronic business andcommerce: 19905-2000
Information about business processes.
— _ Internet-based e-business and e-commerce systems — Supports decision making: One of the best advantages of information system Is the improved decision making.
~ Web-enabled enterprise and global e-business operations Relevant, accurate and timely information helps the management in better analysis of a problem which results into
and electronic commerce on the internet, intranets,
extranets and other networks taking right decision at the right time. Right decisions help an organization in overcoming problems and grabbing
‘
Strategic and end-user support: 1980s-1990s opportunities.

— End-user computing systems — Supports workgroup and team activity: Information system provides centralized information to workgroups and
— Direct computing support for end-user teams at the right time. It facilitates better communication and information sharing between members. E-messaging
productivity and workgroup collaboration
— Executive Information systems and video conferencing help a team discuss problems and plans without physical presence of all the members at one
place.
— Gitleal information for top management
— — Expert systems — Improves quality of goods and services: Availability of information all the time helps an organization in having better

— Knowledge-based expert advice for

Contral over the praduction of goods and services to the customers and clients. The production scheduling (s
end users maintained In such a way as to avold delays. Services are offered at the right time, which improves customer
—. Strategic information systems
satisfaction.

se |
Strategic praducts and services

pa
for competitive advantage Provides executive Support: The top executives of an organization always have the required Information about
different business aspects, be it the production status or sales condition or problem areas, All this helps them analyze
conditions better, and take corrective measures and plan their next step. ;
Py peoliea
Teanaesiot
tne
Wim

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Introduction to Information System
¥ MIS(MU, )
4-10 w_misimy)
effective data management: Informati
on 4 systems store and process a va
riety of data related to business,
- Lack of Job security: , au troduction to informat
ion System
ravi
Provides The growth of Informatio
n s ystem has reduc
allows the manag! ement to Identify critical areas of business. Data resulted Into people being remov
ed large number
of traditional Jobs,
The data are then analyzed In various ways which : iffe ed from their jobs, ; Aithou; Bh It has which hi as
plan action In di rent conditions. ben resulted iin the i,
management helps in formulating the right policies and In number. So, there is a lack of job creation of new
lobs, they are less,
security today.

Improves competitiveness: Information system helps an organization In becoming

more effective and efficient, jt — Security threat: The security threat
to People’s valuable data has grown
helps in utilizing the available resources be! tter which Improves the overall operations
making them more cost being leaked or stolen by
Manifolds. There are numero
US Ca:
people and organizations.
Organizations are trying hard
effective. All this improves an organization’s competitiveness. have not reduced security threats to zero. to improve security ne
—_
1.5 Impact of Information System on Society 1.6 Role of Information System In Framing Organizational Strate
Competitive Advantages .
Over the last two decades particularly, information system has made a huge Impact on the people. There Is hardly any SY and Bringing
aspect of life which has not been affected directly or indirectly. From searching any information to communicating Competition Is Inevitable in any business
anywhere in the world. Competitors
share a natural, and often healthy,
anywhere anytime and shopping online, and making transactions are some of the benefits that people today have. At the rivalry. Thus, It requires a constant effort to
gain competitive advantage in themarketp
lace. The-competitive forces Present
same time it has also resulted in some negative Impact on the society. Let us have a look at both of them all the time engage significant resources of a firm in order to deal with them.

Positive Impact Not only do firms need to compete with other firms
in the marketplace for survival, but they must also
work to stay
ahead of them in competition. Although these competit
Effective communication system: E-mail, online chatting, social media are some of the widely used applications by ive forces have always been difficult to Manage, a business
organization must guard itself agalnst them. °
people all over the warld. Such applications have brought people closer taday. It has made a huge Impact on society,
How can business experts use Information system
Availability of information: Information system has improved the general awareness of the people to a great extent, to support an organization’s competitive strategie
s? Information
system can help a business implement some basic
You can find any information on any subject Just at the click of your mouse. Data warehouses In large numbers are competitive strategies. Let’s have a lock at these
key strategies
implemented with information system.
belng created everyday to maintain huge amounts of information. The level of education of the people has Improved
greatly. They include: engaging customers or Suppliers, building switching costs, raising barriers to entry, and utilizing
investment in information system technology.
Smproving globalization and reducing cultural gap: Information system today connects people across the world
through data and information. — _ Investments in Information system can allow a business
Even customer-to-customer business model has improved a lot. Large number of to engage customers and suppliers by developing
valuable
people specialized in different areas promote themselves and get a business relationships with them. These business relations
for themselves using Information system hips should be so valuable to them that they don’t even
think of
apallcations. switching to Its competitors. Attempts are these days
made by organizations to use information systems technolog
y
to focus on significantly improving the quality of
~ Getting better services: Due to the wide and improved use of information service to customers and suppliers.
system, organizations have improved thelr
services to the customers, Customer today (s the king. — Another Important strategy used these days Is to put
His choice and feedback can make or break a business. a major emphasis in Information systems to find ways
Thus, to create
Customers are the ultimate beneficiaries of Information high switching costs in the relationships between
system. an organization and its customers or suppliers. In
other words,
— investments in information systems can make customer
Getting @ range of onfine services: Large number s or suppliers dependent on the continued use of innovativ
of online services available today such as online e
education, medication, consultation, bill payments, shopping, banking, and beneficial Information system. Thus, the benefits
which the customers or suppliers get will become costly
ete. have made people’s lives easy, It saves if they
fora large number of people,
time as well as money switch to the competitor.

— Another strategy Is ta Invest in information system

Negative (mpact to Improve the quailty of operations. By doing thisa
firm can ralse
~ Availabili
barriers for new entrants by discouraging or delaying other companies from entering a market. These barriers
of ty
too much information: The Pace of growth Increase the amount of Investment required to compete with
of Information System Is so high that the existing organization, which discourages the new
Problem of too much information. Fake people today have the
Information can be harmful to the entrants,
Controlling them often becomes society. Rumors too spread like wildfire
difficult. .
— Investing in Information system technology helps a firm to Improve its capabilit
~ Increasing fraud: Technology ies to take advantage of opportunities
used In Information system has, on one hand
on the other hand it has also increa given a lot of benefits to when they come. For example, investment in advanced computer-based Information systems can
the soclety, but improve the
sed online frauds Immensely,
Billions of Jollars are fost every efficiency of an organization's own business Processes. This way the organization can utilize Investment In
online frauds. year because of
Information system technology by developing new products and services
that wauld give them a competitive edge.

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1-10 Introduction to Information System MIS(MU)
We MIS(MU) ¥ 4-14
of data relates ‘d to busi; ness, Introduction to Information System
Information systems store and process a variety
i - Lack of Job security: The growth of Information system
= Pravid es effective data management: has red: luced large numb
er of traditional jobs,
which allows the management to Ide! tify critical areas of business. Data resulted into peaple being removed from their jobs. Although It ha: which has
The dsta are then analyzed in various ways S resulted in the creat
condltiot ion of new jebs, they are
plan action in different
i Itions, lecs
management helps In formulating the right pollcles and In number. So, there fs a tack of job security today.
efficient. iy
Improves competitiveness: Infor mation system helps an organization In becoming mare effective and - Securlty threat: The security threat to people’s valuable
data has grown manifolds. There are numerous cases of
helps in utilizing the avallable resources better which improves the overall operations making them more cost being leaked or stolen by people and organizations. Organizations are - mes of data
trying hard to improve 2 security
ty spmem: ‘s but
effective. All this Improves an organization’s competitiveness. have not reduced security threats to zero.

1.5 Impact of Information System on Soclety 1.6 Role of Information System In Framing Organizational Str; and Briringing
Competitive Advantages ategy
Over the last two decades particularly, information system has made a huge impact on the people. There Is hardly any
aspect of life which has not been affected directly or indirectly. From searching any Information to communicating Competition Is Inevitable in any business anywhere In the world.
Competitors share a natural, and often heathy,
anywhere anytime and shopping online, and making transactions are some of the benefits that peaple today have. At the rivalry. Thus, it requires a constant effort to gain competitive advantage in the marketplace.
The-competitive forces present
same time it has also resulted in some negative impact on the society, Let us have a look at bath of them all the time engage significant resources of a firm in order to deal with them.

Positive impact Not only do firms need to compete with other firms in the marketplace for Survival,
but they must also work tostay
ahead of them In competition. Although these competitive forces have always been difficult to manage, 3 business
- Effective communication system: E-mail, online chatting, social media are some of the widely used applications by
organization must guard itself against them."
people all over the world. Such applications have brought people closer today. It has made a huge impact on society.
How can business experts use information system to support an Organization’s
~ Availability of Information: Information system has improved the general awareness of the people to a great extent, competitive strategies? Information
system can help a business implement some basic competitive strategies. Let’s have
‘You can find any information on any subject just at the click of your mouse. Data warehouses in large numbers are a lock at these key strategies
Implemented with information system.
being created everyday to maintaln huge amounts of Information. The level of education of the people has Improved
greatly. They Include: engaging customers or suppliers, building switching costs, raising barriers to entry, and utillzing
Investment in information system technology.
— Waproving globalization and reducing cultural gap: Information system today connects people
across the world
through — Investments in Information system can allow a business to engage
date and information. Even customer-to-customer business model has Improved a lot. Large number customers and suppliers by developing valuable
of
people specialized In different areas promote themselves and get a business for themselves using information system relationships with them. These business relationships should be
so valuable to them that they don’t even think of
applications. switching to its competitors. Attempts are these days made by
organizaticns to use information systems technology
to focus on significantly improving the quality of service to customers and suppliers.
— Getting better services: Due to the wide and improved use of Information system, organtzations
have improved their
Another important strategy used these days Is to put a major
services to the custamers. Customer today Is the king. His choice and feedback can make or break emphasis in Information systems to find ways to create
a business. Thus, high switching costs in the relationships between an organization
customers are the ultimate beneficiaries of information system. and its customers or suppliers. In other words,
investments in Information systems can make customers
~ Getting a range of online services: Large number of online services avallable today such or suppliers dependent an the continued use of innovative
as online shopping, banking, and beneficial information system. Thus, the benefits
education, medication, consultation, bill payments, etc. have made people’s lives easy. which the customers or suppliers get will become costly
It saves time as well as money if they
switch to the competitor,
for a large number of people.
Another strategy is to invest in Informatian system to
improve the quality of aperations. By doing this a firm
Negative Impact can ralse
barrlers for new entrants by discouraging or delaying
other companies from entering a market. These
barriers
— Availability of too much information: The pace of growth of Information system increase the amount of investment required
Is so high that people taday have the to compete with the existing organization,
which discourages the new
Problem of too much information. Fake information can be harmful entrants,
to the soclety. Rumors too spread like wildfire.
Controlling them often becomes difficult. Investing in information system technology helps a firm
to improve its capabilities ta take advantage of opportunitie
s
— Increasing fraud: Technology used in information system has, on one
hand given a lot of benefits to the society, but when they come, For example, investment In advanced computer-based information systems can
on the other hand it has also increased online frauds immensely.
improve the
Billions of dollars are lost every year because of etficiency of an organization’s own business processes. This way the organization can utilize Investment In
online frauds. Information system technology by developing new praducts and services that
would give them a competitive edge.

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Introduction to Information System,
1-42
Ww wsana
em
7 Characteris' ics of a Good Information Syst
Data and Knowledge
ture and it plays an important ‘ role in the
infrastru
information system is an im component of an organlzation’s
d In such a
ore, it Is import ant that the information system Is designe
rae ef Theref
advantages.
success end in gaining competitive
ri its ob Jectives. The following are
the characteristics of a goo’ d
information system:
Management
r receive s from an IS impacts his dec sions. - Thus, 7 the
_— eri caof information ; The informati on a
Relevance
manage
origin so that it is relevan t to the cause.
information received must have night
Is the accuracy
effectiveness of an information system
‘Accuracy and reliability of information A key measure of the
the calaula tions it applies , genera lly determine Syllabus
‘end reliability of its informatioThe n. accuracy of the data it uses and

the effectiveness of the resulting information. Database Approach, Big Data, Data Warehouse and Data Marts, Knowledge Management
t and accurate, but it is
2 manager receives from an IS may be relevan
Usefulness of information : The information
ns he has tomake.
only useful if it helps him with the particular decisio
2.1 Introduction _
ement has to make decisions about the future of the
Timeliness of information : |S output must be current Manag
data, the better these decisions. When the
organization based on data from the present. The more recent the In the previous chapter, you learnt about the fundamentals of information system. Information system has become an
the IS must take into consideration its potential inaccuracies integral part of today’s business world. Every organization has implemented it in numercus ways to stay competitive. There
collection and processing of data delays itsavailability,
ranges of error.
due to age and present the resulting information accordingly, with possible is a continuous attempt by IS experts to make it more effective.

information for a particutar

Completeness of Information : An effective IS presents the most relevant and useful In this chapter, you are going to learn about the core element of information system ie. data. Data and its
can either add management make an effective information system. Data when processed results into information and analyzing, using
decision. If some information is not available due to missing data, It highlights the gaps. Management
the missing data or make the appropriate decisions while being aware of the missing information. An incomplete or and sharing Information creates knawiedge which when used judiciously takes an organization on the path of growth.
partial presentation of information can lead to decisions that do not have the desired results. . Today management of knowledge more popularly known as knowledge manogement has become an important area of
Investment
for all the organizations. It is going to be another area of focus for you in this chapter.

2.1.1 Data
Answer the following questions In short
Data are the main raw material of information systems. Data constitute valuable arganizational resources that must
— Whatis information system? be managed effectively to benefit all stakeholders in an organization. The increasing importance of data as a valuable
Q > ~— Whatare the elements of information system? organizational resource has brought a varlety of changes in the organizations everywhere.
©. —_ Explain the types of information system with neat and labeled diagram. Data that are generated as a result of various transactions are now stored, processed, and analyzed using software
a What are theadvantages of information system? applications like Database Management System (DBMS).
Q. — What are the characteristics of a good information system? They show relationships among various organizational entities such as sales, customers, competitors, and markets. In

Answer the follawing questions In long : today's globalized world running on communication network, data are protected with the
same energy as the cash In a
bank vault.
a cplain with necessary diagrams elements, objectives and types of information system.
Q. —_ Explain the types and activities of information system in detail, Data have become the lifebload of today’s organizations, and the effective and efficient management of data is
Considered an integral part of organizational strategy.
Q. Whats the impact of information system on organizations and sociely?
a. Explain the role of information system in framing organizational
strategy and bringing competitive advantages.
~
Data today are avallable In many forms such as

Traditional alphanumeric data composed of numbers, letters, and other characters that describe business transactions |
and other entities
god Text data, which consist of sentences and paragraphs used in written communications

Image data, such as graphic shapes and figures or photographs

— Video and audio data

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Data and Knowledge Management
Wise) 22 a y_misimuy 23
Data used as an Input to the Information systems are organized, stored, and accessed *y Data and Knowledge Wt :
~ Fer example, in Facebook, Google, or YouTube,
— Databases
jatabases that
cee b
- data
that store processed and organized . businesses
cases about
ch as facts, rules, and
addresses, and everything else are stored as flelds, allrecords,
of the pictures, videos, son 8S Messages, chats, |
fi les in large databases,
, » chats, Icons, e-m;
- Knowledge bases that store knowledge in a variety of forms, that there Is an easy access to it, it can be shared by its respe, Ctive The data are Store ena
d
—
su
For example, data about product sales is stored, processed, and shared by a databi
ase management system for sales
access or use. Fig. 2.1.1, 2.1.2, 2.1.3 give the
owners, and tt can be pretected from Inunaut
such a way
horlzed
or give
details of databa:se elements and inter
cer
analysis by managers. Knowledge bases are used by knowledge management SYS tems to share knowledge nected files.
Database Approch
expert advice on specific subjects.
hysical activities or business
Data and Information: Data are raw facts, figures or observations, particularly about phys
transactions. For example, the sale of an automobile generates a lot of data describing the process. bata are identifed b
Its types
"
and attributes. Far example: people, places, things, events, they all
are data.
People often use the terms dota and information interchangeably. However, there \sa difference. Data is a raw fact or
figure that after processing results into Information.
We can further define information as 4collection of
Processing is converted into something meaningful and useful to various specific entities such as data that after) , .
organizations and people,
Data by itself does not provide any understanding of the context in which It was recorded. Fer example a list of Fig. 2.1.4
numbers or names simply doesn’t reveal anything. In fact, the same list could berecorded
In a variety of contexts. In Terminology associate
contrast, for information, both the context of the data and the motive of the person accessing the data become essentlal, with a database
d
Th © same data may be valuable information to one
person and completely irrelevan t to the other.
Flla/Table:€:9 Telephone Directory Fietd Rae
2.1.2 Fundamental Concepts of Data . . Name Telephone = Placecoce SeccorGt. Ne
Before we go any further, It is important to leam about some fundamental concepts about
how data are organized in 2 eae
Information systems. na Eeeaaies ia
kK. Ram’ 223435, NIg — a3 Tucia
Data are logically organized into data types, fields, records, files, and datoboses: D. Nath 223425, Ntg & 30
T. Gogol Ta a 10
Data types: Every data has a type by which it is identifled. This could be a character,
a number, an alphanumeric or
any other symbol. For example, Rohit, 25, 5A
Column Field Value
— Field : It is also called a data attribute. A field symbolizes the category to which Attribute
the data belongs. In other words, a
data field represents an attribute (a characteristic or quality) of some data
(object, person, place, or event). For
example, in the above data, ‘Name’ could bea field name for Rohit; ‘Age’
could be a field name for 25; and ‘Address’
could be the field name for SA. Every data has a field name and all the
data belonging ta the same field are called its
domain.
- Record : Generally, fields are organized in such a way that they represent
same logical order. For example, first_name,
last_name, address, city, state, and zip code. All of the fields used to describe
the attributes of an entity are grouped
together to form a record. Thus, a record represents a collection
of attributes that describe a single entity.
— Flle+ A group of related records is a data file is also referred
to as a toble. When it Is independent of any other data
files related to it, a single table may be referred to as a flat file which refers to
any database that exists in a single file
In the form of rows and columns. Thus, an employee file
would contain the records of the employees of a firm. Data
files are of different types. For example, a transaction file
is a kind of file which contains records of all transactions
Occurring during a particular period. A master file Is another kind of file
which contains Permanent records and Is
updated periodically by transaction files. A history file is an obsolete transaction or mast
er file retained for backup
purposes or for long-term historical storage.
— Database : A database fs an integrated collection of logically related data elements.
4 database consolidates records
previously stored in separate files into a common pool of data elements thatProvide:
's data for many applic
ations. The
data stored in a database are independent of the application programs using them a
ind of the type of storage devices
on which they are stored. Thus, databases contain data elements describing entitles
and relationships among
them.
Fig. 2.1.3

,
Pins

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EES as
gement
Data and Knowledge Mana W_MIs(Mu) : 25
24 Data and Knovdedgs Management
We MIs(Mu) 2. Data manipulation Language (DML) - Tool to write procedures for automating various DBMS functions.
(DBMS)
Database Management System of data ina
It can be used with other high level languages.
t, and retrieval
the organization, storage, manage! update and retrieve a 3. Structured Query language (SQL) - Allows user to request the infarmation in the mast natural way
controls cs
A DBMS Is a sat of software prog rams that used to store ,
or type: s. They are
their data structures and Instructs the operating system to transfer
Transaction mechanism
database. DBMS are categorized accor’ ding to
ee

accepts request s for data from the application program A database transaction mechanism ensures data integrity, despite concurrent user accesses (concurrency control),
database. The DBMS
the appropriate data. and faults (fault tolerance). It also maintains the integrity of the data in the database. The DBMS can maintain the integrity
on's information
systems can b e changed much
more easily as the organizati of the database by not allowing more than one user to update the same record at the same time. The DEMS can
help
When a DBMS fs used, Information ption to the existi ng system.
ad ded to the database
wi thout disru prevent duplicate records via unique index constraints; for example, no two customers with the same customer numbers
requirements change. New categories of data can be
move the detail onto another (key fields) can be entered Into the database.
transaction process! ing and then
Organizations may use one kind of DBMS for daily are
and an alysis. Overall systems design decisions
computer that uses another DBMS better sulted for random inquirles 2.2.1 Functlons of aDBMS
datab; ase design is performed by database
networked
Creation / modification / deletion of tables, which may be physically located at one computer or different
systems analysts. Detalled
performed by data administrators and —
administrators. computers
them
DBMS bullding blocks Manipulation of records in tables by sorting/ filtering
transaction
data structure, database query language, and
‘A DBMS Includes four main parts: Modeling language, Searching of desired recards & updating / deleting them
mechanism. Mathematical /logical operations on the values
in the fields
Modelling language Design of user Interface to link and automate various modules of application
hosted in the DBMS, according to the DBMS database pre-designed reports form.
A data modeling language defines the schema of each database Processing of user querles and presentation of results (n tabulated farm or
model, network model, relational model, and
model. The four most common types of organizations are the: Hierarchical
= Linking with other databases
object madel
The optimal structure depends 2.2.2 Managing Data Resources (Data management)
A given database management system may provide one or more of the four models,
(which include transaction rate like other important business assets.
on the natural organization of the application's data, and on the application's requirements Data are vital assets for an organization therefore they need to be managed
their internal operations and external
ive. speed, reliability, malntainabillty, scalability, and cost). Today's business organizations cannot survive or succeed without quality data about

Data structure environment.

applies Information systems
Organizations need to practice data management which is a managerial activity that
A data structure Is a way of storing daca in a computer so that it can be used efficiently. It Is an organization of
and other data management tools to
technologies like database management system, data warehousing, dota mining
mathematical and logical concepts of data. Often a carefully chosen data structure will allow the mast efficient algorithm
their businesses. This sectlon will
manage an organization's data resources so that they can meet the information needs of
to be used. The choice of the data structure often begins with the choice of an abstract data type. A well-designed data
data to meet
show you different data resource management technologies and. methods to manage an organization’s
structure allows a variety of critical operations to be performed using few resources reducing both execution time and
business information requirements
‘memory space. Data structures are implemented by a programming language.
Database query language 2.2.3. Types of Databases

there has been continuous development in information technology and Its business
A database query language and report writer allows users to interactively interrogate the database, analyze its data Over last several decades
and
mee update It according Ez to the users’ , privileges on data. It also controls the security of the database. Data security prevents applications which have resulted in the evolution of several major types of databases. Some of them are given below:
eeuew orized ated
users from viewing ig or updating
in the database, Using i passwords, users are allowed access to the entire Dist :
database.
Gee sets of It.Fer For example, = an employee
ployee dat:database can contaln all the data about an individual
ft employee, but
ee ao ers may be authorized to view onl, ly payroll data, while others are allowed access to only work history
and
iedical data. Following languages are used:-
1. Data
° Definition Languay
guage (DDL) - Defines
efines structure
structure and id —. provi
provides link between logical and physical
hy vilew! s
TachMnomiedps
Tech Knealied pt
rapticarien

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26 Data and Knowledge Management
wr is(Mu) 27 Data and Knowledge Management
‘ent business processes and
— used to store data which are
needed indetails to support differ (tls a central source of the data that have been cleaned, transformed,
Operational databases are se, Inventory
the exampl es are a custom er database, human resource databa and cataloged= so that the
can br tee by
managers and other business professionals for data mining, online analytical processing, and other ‘eines
Some ol fF
operations of a company. nt business operations. of busi
n data genera ted by differe
ses that contai analysis, market research, and decision support. nes
database, and similar other databa
each employee and his or her work time,
human resource database may indude, data identifying Data warehousing Is core for business intelligence (B!) system which is built for data analysis and reporting. It
. provid jes
, training and developm ent status, and other related human resource anew design which reduces response time and helps to enhance the performance of queries for reparts and anatpes
A ion, ben
compensat benefits, performance appraisals
using Microsoft
s can be created and managed for a small business
data. Some of the common operaticnal database How It works
Access database management software.
Adata warehouse works as a central depository where information arrives from one or more data sources and merges
on net twork servers on the World Wide Web, on
Distributed database is another type of database which resides Into one comprehensive database. It Is then processed, transformed and ingested so that users can access data through
corporate intranets or extranets, or on other company networks. different tools like SQL clients, spreadsheet, etc. By merging all the Information, an organization Is able to analyze data
s or hypermedia databases, or any other
Distributed databases contain copies of operational or analytical database more holistically which ensures that it has considered all the information available.
nce at users’ end. Olstributed
type of database, Replication and distribution of databases improve database performa
2.3.1 Types of Data Warehouses
databases are regularly updated.
1. Enterprise data warehouse: It is a centralized warehouse which provides decision support service across the
Distributed databases have both, advantages and disadvantages. One primary advantage lies with the protection of
organization. It also has the ability to distinguish and classify data according to different subjects and also gives access
valuable data. If all the data of an organization is stored on a single server, there is a chance of heavy loss In case a
accordingly.
physical damage is done to the database because of fire, stealing or any other harmful event. By having databases
2. Operational data warehouse: It stores data which is preferred to be used far routine activities like storing the records
distributed in multiple locations, the damage can be minimized.
of the employees. It is refreshed in real time.
Another advantage of distributed databases Is their storage requirement. Often, a large database system Is distributed
3. Data marts: It Is a subset of the data warehouse designed specifically to cater a particular line of business such as
Into smaller databases based on some logical relationship between the data and the location. sales, finance, operations. Here data are directly collected fram the sources. tt focuses on the specific aspects of a

For example, a company with several branch operations may distribute its data so that each branch operation location business by offering specific information.
is also the location of its branch database. Since multiple databases in a distributed system are jolned together, each 2.3.2 Components of Data Warehouses
branch has not only control of its local data but also has access to other databases present in other branches.
Figure 2.3.1 illustrates the components ofa complete data warehouse system.
Web-based database: The growth of Web sites on the internet, intranets and extranets has rapidly increased the
Operationas} | * = ‘Analytical
demand and use of web-based databases. A website stores Information in the form of a hypermedia database. Such a pademal, data store
database is a collection of hyperlinked pages of multimedia based information (text, graphic, Images, video clips, database. “ag
Dala Enterprise
audio segments, and so on), Management| warenousa
Figure 2.2.2 shows how you might use a web browser on your PC io connect with a Web network server. This server
runs Web server software to access and transfer the Web pages you request. The Web server software
acts as a
database management system to manage hypermedia files for downloading.

Fig.222

2.3 Data warehouses

Fig. 2.3.1
Data warehousing Is defined as a technique for collecting and ~ Operational, external and other databases : These are different
managing data from various sources to provide sources from where data are collected and
meaningful business Insights. It stores data that have been extracted transferred to the data warehouse.
from the various Operational,
databases of an organization.
external, and other D: ‘ata acquisit
‘ ‘ ion center : After data from various operational and external databas are
es captured, they are cleaned
and transformed into data that can be better used for analysis. The acquisitian process includes activities like
Consolidating data from several sources, filtering out unwanted data,
correcting incorrect data, converting data ta
New data elements, or aggregating data Into new data subsets.

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Mis)
Data and Knowledge Management 28 Data and Knowledga Management
-8 som which they 629 be moved into}
Weie MIS(Mu) 2
eran types of analysis. 2.3.5 Advantages of Data Warehouse
= pata management: These data are then stored in the enterprise dat Tan
mare use! ful form for
data marts or to an analytical data store that holds data In 2 Ina metadata - Data warehouse allows business users to quickly access critical data from various sources all in one pla ce,
e. Data are stored
: It Is the data that define and describe the data Int he data warehous
Metadata Data warehouse provides consistent information on various cross-functional activities.
repositary and maintained by a metadata directory.
tools which help to query, report, mine, and analyze — Data warehause helps to integrate many sources of data to reduce stress on the production system.
Data analysis system : It is a set of variety of analytical software Data warehouse helps to reduce total turnaround time for analysis and reporting.
the data for delivery.
the end u: sers via Internet
the final Information to Restructuring and Integration of data make It easler for the user to use It for reporting and analysis,
Web Information system : It is the final component used t 0 display Therefore, it sa
l data fram a number of sources in a single place.
and Intranet. Data warehouse allows users to access critica , TE saves
user's time of retrieving data fram multiple sources.
2.3.3 Who needs Data Warehouse
Data warehouse stores a large amount of historical data, This helps users to analyze different time periods and trends
— | Managers who make decisions based on mass amount of data to make future predictions.
information from multiple dal ta sources
— Users who require and use customized, complex process to obtain 2.3.6 Disadvantages of Data Warehouse
and a systematic approach to access data for making decisians
People who wanta simple technology
or charts It Is not an Ideal option for unstructured data.
Users who want fast performance on a huge amount of da ta which Is necessary for creating reports, grids
grouping Creation and Implementation of data warehouse Js time consuming.
People who want to know and analyze hidden and minute patterns of data flow and
Data warehouse can be outdated relatively quickly.
2.3.4 Application Areas of Data Warehouse
— {tls difficult to make changes in data types and ranges, data source, indexes, and queries.
these days: 2
Following are the most common areas where data warehouses are extensively used — — Organizatlans need to spend lots of their resources for training and implementation purpose.
Airline : In the airline system, It is used for operation purpose like crew assignment, analysis of route profitability,
frequent flyer program promations, etc, 2.3.7 Data Mining

Banking : It is widely used in the banking sector to manage effectively the resources available
on desk, Few banks also Data mining is a major use of data warehouse databases and the static data they contain. In data mining, the data ina
use it for market research, performance analysis of the product, and operations. data warehouse are analyzed to reveal hidden patterns and trends in historical business activity.

Healthcare : Healthcare sector use data warehouse to make strategies and predict outcomes, generate
patients’ This analysis can be used to help managers make decisions about strategic changes In business operations to.gain
treatment reports, share data with Insurance companies, medical aid services, etc. competitive advantages in the marketplace.
Public sector: In the public sector, data warehouse is used for Intelligence gathering. It helps government agencles to Data mining can discover new correlations, patterns, and trends in vast amounts of business date stored in data
maintain and analyze tax records, and health policy records, for every individual, warehouses. Data mining software uses advanced pattern recognition algorithms, as well as a variety of mathematical and
statistical techniques to extract previously unknown strategic business information.
Investment and insurance sector : In this sector, the warehouses are primarily used to analyze data patterns,
customer trends, and to track market movements. Many companies use data mining to:

Retail chain : In retail chains, data warehouse Is.widely used f for distributlor
ribution and marketing.Ing It also helps to track - Perform market analysis ysistoto Identify
Identifynew products
pr that can be launched
items, customer buying pattern, promotions and is also used for deter ig pricing policy. ~ _ Find root causes of quality or manufacturing problems
| Finance: - »p revent customer attrition and acquire new customers
a - Profile customers with more accuracy

> Data
“ warehouse ~

| Accounting

2 Management evaluation

ss
f » Feporting Fig. 2.33

iii
Fig. 2.3.2

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2 Knowledge Management Approach 2.4.3 Driving Forces behind Knowledge Management
z

.é
In today’s tough and challenging business world, KM Is a necessity
2.4.1. Knowledge and Its Relevance due to various forces which drive KM. They are
both external and Internal.
fe
different i
situations, Ip
, anticipate results and ¥2
Knowledge is a set of information which provides capability to understand
judge their effects, offer salutions or clues to handle the situation. External forces:
ital rol role in Its growth
Whether it Is a person or an organization, knowledge plays a vital ity toanduse development.
and mienage ItIn gives
today’s
a External forces are business environmental factors which are often beyond control. An
organization’s Success depends
challenging, tough and competitive business environment, having knowledge and capability on how it deals with these forces and still grows. The forces in external environment are the following:
edge. ;
- Globalization of business; With loosening of trade barriers and advanced internet technologies,
‘i businesses today
Data forms the basis of information. Data when organized in the right context becomes it om ls rma
Information operate beyond the local and national boundaries. It has a bigger market to tap and more sources
when shared utllized and applied at the right time and right place to sort out problems becomes knowledge. and resources to
bank upon. But there is a stiff competition everywhere. Overcoming them is a pre-requisite for success.
In short, knowledge is the capability to handle a complex situation. More the knowledge, higher Is the capability.
— Changing custamers and their demands: Customers today easily access information about product and
services, and
Knowledge-based capability has three elements - visualization of right options to handle complex situations,
are now more knowledgeable to demand more value at the least cost. They drive your business by demanding better
anticipatian and assessment of its result and forecasting its effect in terms of benefits, cost, lasses and damages. quality, new features, quick response and delivery.
Knowledge further develaps wisdom which Is the abillty to decide when and where knowledge Is truly applicable to
- Innovative competitors: Competition is no longer limited to quality and cost but extended to providing value-added
resolve the complex prablem situation.
services using technologies and best practices. This puts a heavy demand on organizations to compete with the same
Knowledge is of three types: explicit, tacit and intellectual, Explicit knowledge is the knowledge and skill that can be force.
easily articulated and understood and which can be modeled and transferred to others. Software products are examples of
~ Resourceful vendors: Vendors continue to increase their capabilities by use of technologies, innovative product
explicit knowledge. Tacit knowledge is intangible and cannot be articulated and transferred easily such as body language or
features and better logistics and the organizations have to match them.
innovative thinking. The consultants and experts possess tacit knowledge, Intellectual knowledge could be tacit or
explicit
These external forces compel business organizations ta be more effective, be more knowledgeable
and Is owned by somebody. It is also termed as Intellectual capital. on customer
needs, be in learning mode all the time to remain competitive and get into collaborative partnership
Knowledge Is not a static entity. It improves and also gets obsolete after sometime. arrangements with
resourceful vendors,
In a business, knowledge plays a key role today. Regardless of industry, all organizations today rely on the power
of Internal forces:
knowledge. They alm to build In processes to stare, Brow and share knowledge to Increase knowledge base
of the overall
workforce. There are forces Internal to organizations which too impact business
operations although they are within control.
Today businesses are also affected by the pace of the change. The change Is rapid, innovative and path breaking. The Some of these internal forces are the following:
product life cycles are shorter and organizations have to improve products and services to remain competitive, Effectiveness: Organizations’ effectiveness in
handling operations, and seizing opportunities, plays an important role
in thelr success, Effectiveness Is anticipating the change
To manage this shift, knowledge Is the key resource of the organization and workplace.
Due to this critical Importance in marke! t and environment requiring pro-active actlans to
deal with it.
of knowledge, business economy is today termed as knowledge economy.
Technological capability: Businesses need technology to bring in efficiency and effectiveness. Businesses must
2.4.2. Knowledge Management Operate through collaborative work, high end informatio
n mana gement and technology. All this put together defines
Knowledge management is the planned and systematic management of knowledge related an organization's technological capability.
activities, practices,
Programs and policies within an organization to create a big knowledge database Effectiveness of human resource: People and
and then share it with others and organization behavior affects effectiveness
of the business enterprise,
Improve continuously its contents and quality, Knowledge about its human resourc
e In terms of understanding their mental models
and associations, which affect
them and the decision making Is essential,
Knowledge management relies on an understanding of knowledge. KM initiative is the result of this requirement.
The core Boal of knowledge management is 10
connect those with knowledge and those seeking knowledge These forces require organizations
so that ultimately it Increases the knowledge within an to work with knowled, lg¢, calling for formal implementati
on of KM with initiatives
organization. on number of technology
fronts, behaylor and information management.
To be competitive In today’s challenging environment organizatio
ns are always motivated by several goals and they 2.44 Benefits of Knowledge Management
evolve strategies to achieve them. In such an environment,
It becomes essentlal for business organizations to manage
knowledge systematically through knowledge managemen Itincreases collaboration among different business
t. The objective Is to develop the best avallable units and also helps in idea generation
make people and enterprise capable knowledge 12
as a whole so that they act effectively to implement
various Strategies. optimizes a culture of knowledge sharing within the organization.

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212 Ww MIS(MU) Data and Knowledge Management
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llectual capital
tabase protectsinte
The repository of knowledge as a central da feel respected for thelr
which makes employees
knowledge management system treats human capital as an asset,
Solved Questions
knowledge
the future workforce Answer the following questions In short
— The system captures and stores knowledge which proves quite be neficial for
1. Define data.
24.5 Challenges of Knowledge Management Data are raw facts, flgures or observations, particularly about physical activities or business transactions. For example,
Organizations
This Is one of the most significant challenges of KM.
Creating a flexible culture and collaboration:
the sale of an automobile generates a lot of data describing the process. Data are identified by its types and attributes,
want to For example: people, places, things, events, etc. they all are data.
by nature tend to resist change. Employees generally
struggle to implement new policies, because people Why Is data Important for an organization?
protect thelr skills and knowledge, or are reluctant to learn from their peers.
Data constitute valuable organizational resources. Data have become the lifeblood of today’s arganizations, and the
intellectual
— Security: This Is another challenge as it {s important not Just to protect sensitive information but also the effective and efficient management of data Is considered an integral part of organizational strategy.

capital. KM is based on sharing and storing of knowledge by individual employees. What Is the difference between data and Infarmation?
People often use the terms data and information interchangeably. However, there is a difference, Data Is a raw fact or
Measuring knowledge: At times, it fs difficult to define a system to measure the knowledge within your organization,
figure that after processing results into information, Data by itself dees not provide any understanding of the context
especially for tacit knowledge that cannot be easily quantified. * In which It was recorded. In contrast, for information, both the context of the data and the motive of the person
- Document storage and management: Knowledge will have to be stored and organized in some form which is never accessing the data become essential.

easy, Document management is a challenge for many companies. Documents must be well organized otherwise, it will
Describe the logical organization of data.
Data are logically organized into dota types, flelds, records, files, and databases.
be Impossible ta locate and use the knowledge you have stored.
Describe database.
Disseminating knowledge: You'll need to devise 2 process where once you store knowledge ather team members can
A database is an integrated collection of logically related data elements. A database consolidates records previously
access it. This Is complicated both theoretically and tactically. So many organizations opt for a software system stored in separate files Into a comman pool of data elements that provides data for many applications, The data
designed specifically for this purpose. stored In a database are independent of the application programs using them and of the type of storage devices on
which they are stored. Thus, databases contain data elements describing entities and relationships among them
Continuous improvement: You should continuously improve upon the knowledge management system that you
What Is Database Management System (DBMS). Give any example
implement. Periodic reviews of delicate resources must be done to continuously improve your process.
A DBMS |s a set of software programs that controls the organization, storage, management, and
retrieval of data In a
24.6 Working of Knowledge Management database, DBMS are categorized according to their data structures or types. They
are used to store, update and
retrieve a database. The DBMS accepts requests for data from the application program and Instructs the operating
Knowledge management approach suggests that In order to make the best business decisions, the workforce system to transfer the appropriate data. For example: MS-Access, Oracle,
must be etc.
as educated and skillful as much as possible. This practice ensures not only that Define data structure
existing knowledge Is codified and stored,
but it can be dispersed among other employees so that peaple can continue to develop A data structure is a way of storing data in a computer so
skills, that it can be used efficiently. It is an organization of
mathematical and logical concepts of data. A well-designed data
There are three main ways that people approach knowledge management: structure allows a variety of critical operations to be
performed using few resources reducing both execution
time and memory space.
— People-centric: KM is centered on people, relationships, and
how people form learning communities and develop What Is a query language?
other informal ways of knowledge sharing.
: ee query language is a part of DBMS which allows users to interactively
Interrogate the database, analyze its
_ 7 Tech-centric: Here the focus is on the technology lata and update it according to the users’ privileges on
that facilitates knowledge storage and transfer, data. It also controls the security of the database.
and aims to create
technology systems that encourage knowledge sharing. , State any two functions of DBMS.
— Pracess-centric: This approach focuses on
developing standard Processes under KM, Creation / modifications / deletion of tables, which may be physically located at one camputer or different
prothe
which Include thi duction networked
ces organizat
sesional hierarchy
, , and the cultural framework. & prod computers :
Manipulation of records in tables by
sorting / filtering them

Searching of desired records & updating / deleting them

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as body language or Innovative thinking. The consultants and experts possess tacit knowledge. Intellectual knowledge
manage! ment?
10. . What do you mean is a data
by managerial activity that applies Information systems technologies likedatabase management could be tacit or explicit and is owned by somebody.
organization's data resources What are the benefits of knowledge management?
other data management too! Is to manage an
7 mining and

od
data worehousing, data

re
system,
Oe don yore
of their businesses. It increases collaboration among different business units and also help in idea generation.
go that they can meet the Information needs
It optimizes a culture of knowledge sharing within the organization.
iL What Is a distributed database?
It contains copies of operational or
pF

Distributed database is a type of da tabase which resides on network servers. users,

The repository of knowledge as a central database protects intellectual capital
various
other type of database which are shared among
analytical databases or hypermedia databases, or any 2 State any two challenges of knowledge management.

S
1 What Is data warehouse? Security: This is another challenge as it is important not just ta protect sensitive information but also the intellectual
various so
s

Data warehousing Is defined as a technique for collecting and managing data from
urces ta provide
capital. KM is based on sharing and storing of knowledge by individual employees.
from the varius operational, external, and other
meaningful business insights. It stores data that have been extracted
Measuring knowledge: At times, it is difficult to define a system to measure the knowledge within your organization,
databases of an organization.
especially for tacit knowledge that cannot be easily quantified.
13. What
Is data mart?
sales, finance, Answer the following questions In detail
itis a subset of the data warehouse designed specifically to cater to a particular line of business such as
by
operations, Here data are directly collected from the sources. It focuses on the specific aspects of a business 1 Describe the Importance of data in today’s business environment.
offering specific information. Data are the main raw material of information systems. Data constitute valuable organizational resources that must
. Define metadata. be managed effectively ta benefit all stakehalders in an organization. The increasing Importance of data as 2 valuable
It is the data that define and describe the data in the data warehouse. Data are stored In a metadata repository and organizatlonal resource has brought a variety of changes in the organizations everywhere
maintained by a metadata directory. Data that are generated as a result of various transactions are naw stored, processed, and analyzed using software
State any two application areas of data warehouse. applications like Database Management system (OBMS).

Following are the most common areas where data warehouses are extensively used these days: They shaw relationships among various organizational entities such as sales, customers, competitors, and markets. In
today’s globalized world running on communication network, data are protected with the same energy as the cash in
Airline: In the airline system, it is used for operation purpose like crew assignment, analysis of route profitabillty, a bank vault.
frequent flyer program promotions, etc. Data have become the lifeblood of today's organizations, and the effective and efficient management of data is
Banking: it is widely used in the banking sector to manage effectively the resources available on desk. Few banks also considered an integral part of arganizational strategy.
use it for the market research, performance analysis of the product and operations. Explain the organization of data.

. What Is data mining? Data are logically organized Into Data types, fields, records, files, and datobases:
Data mining is a major use of data warehouse databases and the static data they contain. In data mining, the data ina Data types: Every data has a type by which it Is Identified. This could be a character, a number,
an alphanumeric or
data warehouse are analyzed to reveal hidden patterns and trends in historical business activity. any other symbol. For example, Rohit, 25, 5A.
This analysis can be used to help managers make decisions about strategic changes in business operations to gain _ It is also called a data attribute. A field symbolizes the category to which
the data belongs. In other words, a
competitive advantages In the marketplace. ata fleld represents an attribute (a characteristic or quality} of some
data {object, person, place, or event). For
. Describe knowledge. example, in the above data, ‘Name’ could be 3 field name for Rohit, ‘Age’
could be a fleld name for 25, and ‘Address’
Knowledge is a set of information which provides capability to understand different situations, anticipate results and oo the field name for 5A. Every data has a fleld name and all the data belonging to
the same field are called Its
Judge thelr effects, oHer solutions or clues to handle the situation. lomain.

Whether It is a person ar an organization, knowledge plays a vital role In its grawth and development. R lecord; :
Generally, fields are organized in such a way that they represent some logical order,
For example, first_name,
L What Is knowledge management? ee tame, address, city, state, and zip code. All of the fields used to
describe the attributes of an entity are grouped
Knowledge management is the planned and systematic management of knowledge related activities, practices, ‘ogether to farm a record, Thus, a record represents a collection of attributes
that describe a single entity.
Programs and pollcles within an organization ta create a big knowledge database and then share it with others and
ne A group of related records Is a data file also referred to as a cable. When itis Independent af any other data files
Improve its contents and quality continuously. re. ated to It, a single
P table may be referredto as a flat file which refers to any database that exists in a single file In the
1 What are the types of knowledge? form of rows and columns. Thus, an employee file would contain the records of the employees
=

of a firm.
knowledge is of three types: explicit, tacit and intellectual. Expllcit knowledge Is the knowledge and skill
that can be Database; A database Js an Integrated collection of logically related data elements. A
database cansolidates records
easily articulated and understaod and which can be modeled and transferred to others, Software products
are Previously stored In separate files into a common pool of data elements thar provides data for many applications.
examples of explicit knowledge. Tacit knowledge fs Intangible and can not be articulated and transferred easily such
te Kaewledgs
Peniicritues
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are Its bullding blocks? Desi
icribe. “nets and veto otdaa
3. Describe database management system. What Distributed database Is another type of database which
Y a mens updete afd resides on network servers on the Warld
BMS is a set of software program s that controls the organization, storage, manage! Wide Web, on
: are us 5 corporate intranets or extranets, or on other company networks.
ng to their data structures ar types. They
dorabose, DBMS are categorized accordi i id instructs the operatin, g
data from the application program ani Distributed databases contain copies of operational or analytical
retrieve a database. The DBMS accepts requests for databases or hypermedia databases, or any other
system to transfer the appropriate data. type of database. Replication and distribution of databases Improve database performance at users
end.
DEMS building blocks . 4 transact Web-based database: The rapid growth of websites on the internet, Intranets and extranets has rapidly increased the
structure, database query language, ant ransactior n demand and use of web-based databases. A website stores infarmation in the form of a hypermedia database.
A DBMS includes four main parts: Modelling language, data Such a
database Is a collection of hyperlinked pages of multimedia based infarmation (text, graphic, images, video clips,
mechanism:
audio segments, and so an)
Modeling language
What Is data warehouse? Explain Its different types.
to the DBMS database
A data modeling language defines the schema of each database hosted in the DBMS, according
Data warehousing is defined as a technique for collecting and managing data from various sources to provide
model. meaningful business insights. It stores data that have been extracted. from the various operational, external, and cther
Data structure . databases of an organization.
It is a central source of the data that have been cleaned, transfarmed, and cataloged so that they can be used by
A data structure Js a way of staring data In a computer so that it can be used efficiently. It is an organization of
managers and other business professionals for data mining, online analytical processing, and other farms of business
mathematical and logical concepts of data.
analysis, market research, and decision support.
Database query language
Types of data warehouses
A database query language and report writer allow users to interactively interrogate the database, analyze its data
1, Enterprise data warehouse: It Is a centralized warehouse which provides decisian Support service across the
and update it according to the users privileges on data. It also controls the security of the database. Following languages organization. It also has ability to distinguish and classify data according to different subjects and also gives access
are used: - accordingly.
1 Data Definition Language (DDL)—It defines the structure and pravidesa link between logical and physical views of the Operational data warehouse: It stores data which is preferred to be used for routine
activities like storing the records
database of the employees. Itis refreshed in real time.
2. Data manipulation Language (DML)—It is 3 tool to write procedures for automating various DBMS functions. {t can be | Data marts: itis a subset of the data warehouse designed specifically
to cater ta a particular line of business such as
used with other high level languages. sales, finance, operations. Here data are directly collected
from the sources. tt focuses on the specific aspects of a
3. Structured Query language (SQL) — ft allows the user to request information in the most natural way. business by offering specific information.
7. Describe data warehouse components.
Transaction mechanism
Components of data warehouses
A database transaction mechanism ensures data integrity, despite concurrent user accesses (concurrency control),
and faults (fault tolerance).
tt also maintains the integrity of the data in the database. Following are the camponents of a complete
data warehouse system.
4. Write the importance of data management. Operational, external and other database
s: These are different sources from where data are collected and
Data are vital assets for an organization therefore they need ta be managed like other important business assets. transferred to the data warehouse.
Today's business organizations cannot survive or succeed without quality data about their internal operations and Data acquisition center: After
data from various o; perational and external databases
external emironment. . and transformed Into data that can are captured, they are cleaned
be better u sed for analysis. The acquisition
Organizations need to practice data management which is a managerial activity that applies information systems consolidating data from several sources process includes activities [ke
technologies like databese management system, data warehousing, data mining and other data management tools to , filtering out unwanted data, correcting incorrect
new data elements, Or aggregating data, converting data to
manage an organization’s data resources so that they can meet the information needs af their businesses. data into new data subsets,
Data management: These data
5. Explain differenttype of databases In detail 2 are then stored in the enterprise data
warehouse, from which they can be moved into
data marts or ta an analytical data store that hol Ids data In a more useful form
Over the last several decades there has been continuous development in information technology and its business for certain types of ana lyses.
applications which have resulted In the evolution of several major types of databases. Some of them are given below: Metadata: It Is the data that
define and describe the data
h In the data warehouse. Data are stored in a metadata
— Operational databases are used to store data which are needed repository and maintained by a metadata directory.
In detailsto support different business processes and
Data analysis system: It is a set of ,
operations of a company. Some of the examples are a customer database, human resource varie tY of analytical software tools which help to query,
database, inventory
the data for delivery. report, mine, and analyze
database, and simila
other databases
r that contain data generated by different b Operations.

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to the end users via Internet
fir component used to display the final information
It is the the final - Effectiveness of human resource ; People and organization behavior affects effectiveness of the business enterprise.
— Web in formation system: i
Knowledge about its human resource in terms of understanding their mental models and associations which affect
and intranet nce for a busine:
i significa
fro m information? What [s its i ness firm?
BD efine inowledge. . How is It different
them and the decision making Is essential. KM initiative is the result of this requirement.
results ang
O1
which provides capability to understand different situations, ant icipate
Kno wladgeige is a set of information
For 10, Describe the challenges faced by KM.
or clues to handle the situi ation.
judge their effects, and offer solutions Challenges of knowledge management
ed and
Informat on when shared, utilized
. Informati app! al «the
and applied
oi jata wher organized in the right% context becomes information
mation.

ne om ee
— Creating a flexible culture and collaboration : This Is one of the most significant challenges of KM. ‘Organizations
problems becomes knowledge .
right time and right place to sort out struggle to implement new policies, because people by nature tend to resist change. Employees generally want ta
Whether it 1s a person or an organization, knowledge plays 2 vital
role in its growth and development. In today’s protect their skills and knowledge, or they are reluctant to learn from their peers.
the capabllity to use and manage it
challenging, tough and competitive business environment, having knowledge and Security : This is another challenge as It is important not just to protect sensitive information but also the intellectual
gives en edge. in a business, knowledge plays 2 key role today. Rega
rdless of industry, all organizations today rely on
capital. KM Js based an sharing and storing of knowledge by Individual employees.
the e power of knowledge. - They aim to build processes to stare, grow and share knowledge to increase knowledge
Measuring knowledge : At times it is difficult to define a systern to measure the knowledge within your organizatian,
base of the overall workforce.
especially for tacit knowledge that cannot be easily quantified.
path breaking. The
Today businesses are also affected by the pace of the change. The change is rapid, innovative and
product life cycles are shorter and organizations have to Improve products and services to remain competitive.
Document storage and management : Knowledge will have to be stored and organized in some form which is never
easy. Document management is a challenge for many companies. Documents must be well organized otherwise, it will
To manage this shift, knowledge is the key resource of the organization and workplace. Due to this critical importance
be impossible ta locate and use the knowledge you have stored.
of knowledge, business economy Is today termed as knowledge economy.
Disseminating knowledge : You'll need to devise a process where once you stcre knowledge other team members can
9. What Is knowledge management? What factors have led ta its development?
access it. This is complicated both theoretically and tactically. So many organizations opt for a software system
Knowledge management Is the planned and systematic management of knowledge-related activities, practices, designed specifically for this purpose.
programs and policies within an organization to create a big knowledge database and then share It with others and
improve its contents and quality continuously. Unsolved Questions
In today’s tough and challenging business world, KM is a necessity due to various forces which drive KM. They are Answer in short
both external and internal. How do we identify data? (Refer section 2.1.1)
poeo0nn9909P0

External forces How do wa get information? (Refer section 2.1.1)

The forces in external environment are the following: State two advantages of information (Refer section 2.1)
What is use of database for an organization? (Refer section 2.2)
— Globalization of business : With Iaosening of trade barriers and advanced Internet technologies, businesses today
Operate beyond the local and national boundaries. It has a bigger market to tap and more sources and resources to Name the components/building blocks of a database management
system. (Refer section 2.2)
bank upon. But there is a stiff competition everywhere. Overcoming them Is a pre-requisite for success, Name any two DBMS. (Refer section 2,2)
— — Changing customers and thelr demands : Customers today easily access information about product and Dafine data definition and data manipulation languaga (Reter section
services, and 2.2)
are now more knowledgeable to demand more value at least cost. They drive What do you mean by management of data?
your business by y demanding better (Refer section 21)
quallty, new features, quick response and delivery. State any three benefits of data warehouse.
(Refer section 2.3.5)
— Innovative competitors : Competition is no longer limited to quality and What Is the function of data mining? (Refer
cost but extended to providing value added section 2.3.7)
services using technologies and best practices. This puts a Explain the relevance of knowledge managem
heavy demand on organizations to compete with the same ent for an organization, (Refer section 2.4.1)
force. Long Questions
Internal forces Q What is a database managament systam? Describe
its functions. (Refer section 2.2)
Effectiveness : Organizations effectiveness in handling Q. — Whatis a distributed database? How is it benaficta
operation: IS, selzing opportunities play an Important
success, Effectiveness is anticipating the change
role In thelr l? How is it differant trom operational database?
In market and en vironment requiring pro-active {Refer section 2.2.3) :
It.
actions to deal with
Qa What is data warehouse? How does it work? Describe.
Technological (Refer section 2.3)
capability : Businesses need technology
to briny e In efficiency and
operate through collaborative work, high effectiveness, Businesses must” Explain advantages and disadvantages of data
warehouse. {Reter sections 2.3.5 and 2.3.6)
end information mana Bement and
an organizatlon’s technological capabllity,
technology, All this put together defines What is KM? Describe iis Working In detall.
(Refer section 2.4)

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Business Intalligence
UNIT <1 IBM researcher Hans Peter Luhn Is credited with
coining the term Business Intelligence in a 1959 article,
He defines Bt
as “the ability to apprehend the interrelationships of.presented facts in such a Way as to guide
action towards a desired
goal."

Business Intelligence
Forrester further develops this idea with the following broad definition: “Business Intelligence Is a set of
methodologies, processes, platforms, applications, architectures, and technologies that transform raw data into
meaningful and useful information used to enable more effective strategic, tactical,
and operational Insights and decision

ar
making."
U
Building upon this idea, Howard Dresner in 1989 (later a Gartner Group analyst) proposed "Business Intelligence" as
an umbrella term to describe “concepts and methads to Imprave business decision making by using fact-based support
Syllabus
systems.”
Managers and Decision Making, Business Intelligence for Data Analysis and Presenting Results
BI is made up of several related activities like:

1. Data mining
3.1 Introduction 2. Online analytical processing (OLAP)

In the previous chapters, we have discussed data, information and knowledge concepts, 3. Querying
We have illustrated how they
are used In design and development of an information system. 4, Reporting.

The concepts that we have discussed so far work well when a business organization
is small. Even if It is large, its 3.3 Purpose of using Business Intelllgence
Processes are routine and the business model is simple. Business Processes are
not distributed, rather they are centralized,
But as the globalization expanded and liberalization unified the global market, the The purpose of business Intelligence In a business is to help corporate executives, business managers,
business grawth has taken arapid and other
pace. Organizations have expanded their aperations both vertically and horizontally. operational workers make better and more Informed business decisions. Companies also use
business Intelligence to cut
costs, Identify new business opportunities, and spot inefficient business processes.
The number of operating units has spread nationally and Internationally.
Business strategies and objectives are
governed by market conditions and customer requirements of a country.
Transactions are more specific to the tax system 3.4 Benefits of Business Intelligence
and corporate laws ofa country.
The following are the benefits of business intelligence programs:
Today aperating units of business organizations differ with each
other in thelr business madels, revenue madels, data
1. It accelerates and improves decision making within organization
models, software and their application areas and business strategies. s.
2. BI optimizes Internal business processes by improving
In short, we can say businesses are no’ more routine work methods and focusing on activities critical to the
activities. Survival
and then grawth have become key
considerations. Under these circumstances, Business Intelligence(B!) has | processes,
become a key system to resolve many of the
above [ssues. 1 3. It increases the operational efficiency of each functional
unit within the organization by modifying processes,
Building
ij
business intelligence for organizations is seen as a 4. Bl revises organizational Processes, identifles new
solution to meet the complex Strategic decision making, work areas and ‘opportunities that also creates
new revenue models
competitive challenges and never ending requirem
ents
for better Operational efficiency and effectiveness, i for the organization.
§
Hence, building Bi for an organization becomes the { 5. By analyzing the data and Information collected from
next natural extension of informatio within and outside the organization, BI helps the
nN system, You are going to organization in
learn more about BI in the following sections : ; galning vital competitive advantages
over business rivals.
3.2__What Is Business Intelligence? t 6. The data analysis done by BI helps an organization
in Identifying market trends that help it make better
f decisions.
i 7. Blis quick In Spotting business problems
Business Intelligence (Bl) is a set of tools, that need to be addressed.
technologies, applications, and practices
used to collect, integrate, analyze,
and present an organization’s raw data In
order to create insightful and actionable
business Information. t
As per Wikipedia: "Business intelligence
(Bl) Is a set of theories, methodologies,
technologies that transform raw data Into meaningful processes, architectures, and
amounts ofS information; to help identify
and useful information for business purposes, BI
can handle large |
and develop new opportunities, Making
ust 2 of new opportunities and
Implementing an effective strategy can provide a competiti
ve market advantage and fong-term stabllity.
” }
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33 WW MIS(MU) 34 Businass Intalligence
3.6.2 Market Basket Anatysis
3.5 : How Is BI used in Organizations?
iil iitt ha’ has on Pp performance, projects, :
on organization's peopleina sirnilar way as The term market basket analysis refers to investigative research on buyer behavior. The buyer behavior often reveals
Business Intelligence has a positive impact
data into useful informal tion for leadership, management, information like graup of products purchased together which suggests new promotion campaigns. The store is made to
and decisions. Business intelligence Is used to convert
Business Intelligence. keep in line the Items that are picked together to save buyers pick-up time. Discount schemes on products which are
, it is impartant to learn how to use
organization and decision making. For every organization
bought in association, developing cross-selling schemes and so on are designed based on the available information on
The following are some of the ways business intelligence is used In organizations:
buyer behavior,
to make decisions at the right time
- Byanalyzing customer behavior, buying patterns and sales trends
business strategles
3.6.3 Data Mining
— By measuring, tracking and predicting sales and financial performance to support
likely sales and Data mining Is a major use of data warehouse databases and the static data they contain. In data mining, the data Ina
~— By budgeting and doing financial planning for different processes, projects and forecasting the
data warehouse are analyzed to reveal hidden patterns and trends in histarical business activity.
business growth
an atternpt to This analysis can be used to help managers make decisions about strategic changes In business operations to gain
— By tracking the performance of marketing campaigns so as to analyze the positives and negatives in
competitive advantages in themarketplace.
plan further
; Data mining can discover new correlations, patterns, and trends in vast amounts of business data stored in data
— By optimizing the processes and operational performance in order to boost productivity and take corrective measures
warelouses, Data mining software uses advanced pattern recognition algorithms, as well as a variety of mathematical and
Ifrequired
statistical techniques to extract previously unknown strategic business information.
— By Improving delivery and supply chain effectiveness of the organization, which have the potential to imprave the
Many companies use data mining to:
market presence that Is as critical as the product itself
— Perform market arralysis to identify new products that can be launched.
— By doing web and e-commerce data analytics to better cater to the online customers which are fast growing
— Find root causes of quality ar manufacturing problems.
— By focusing on and improving customer relationship management which Is a vital focus area for every organization
— Prevent customer attrition and acquire new customers.
— By doing risk analysis which ts so important for organizations operating in an uncertain market environment.
~ Profile customers with more accuracy.
Simply put, business intelligence helps people make better business decisions by showing present and historical data
with/n its business cantext. It offers performance benchmarks to make the business run smoother and mare efficiently. It 3.7___ Process of BI System Creation
helps people spot market trends to increase sales or revenue. If used effectively, just about any aspect of business can be
Business Intelligence is created with the help of data, structured and semi-structured, from different domains and
Improved through business intelligence.
sources which Is searched and passed through a process through different BI processing tools. The entire process is termed
BI technology Is used In a number of applications where customer Is treated as special. For example, In manufacturing
as ETL (Extraction, Transformation and Loading). Following are the steps af the process:
for order shipment and customer suppori, in retail for customer profiling to target grocery coupons during check out, In
1 Data acquisition: Data structured or unstructured are captured fram various domains and sources
financial services for claims analysis and fraud detection, in tourism Industry for proactively identifying tourists choices and
2, Integration: The collected data Is then integrated for the mext step
Re Se as

offering them least prices.

3. Cleanup data: Since the data are collected from varlous sources, domains and applications, they may have different
3.6 Tools and Techniques of BI formats, models and incompleteness. Therefore, such data need to go through cleanup, alignment and formatting to
3.6.1 Ontine Analytical Processing (OLAP) make It ready for BI processing

4, Search related data: in this step, Data which ore related with your problem solving and decision making requirements
OLAP is a technique by which the data collected from a data warehouse or data mart is visualized and summarized to
are searched as only they are needed.
provide multi-dimensional view across multiple domains. OLAP tools help to accomplish these tasks.
5. Analyze the data: in this step, analysis of the data Is done for two Purposes, one to get insight of the problem and
LAP works on data or business information stored in data warehouse, which is a repository of data and Information
Second to go far Identification of relevant data and information to solve the problem,
selected and stored for specific information-support objectives. OLAP tools enable aggregation of data, and partial or total
Identify relevant data: The analysis of relevant data and Information helps you find most relevant Information which
»

view across several dimensions through Info-Cube application. OLAP tools also provide Options to drill-down the data from
will serve the purpose which Is solving the problem.
one hierarchy to another exposing its details for Insights into Its generation.

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Business Intelliganog
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wisi) = ‘ hat it theie user finds it e: as\ ,> Business Intelligence
7, Format data: Relevant Information needs to be presented In the right format so tha a 2 Data visualization b
or a spreadsheet.
understand. The format could be a word document, PDF Data visualization done In a carrect format Is very Important,
. ta warehi . as this facilitates better understanding of the data. For
Load in data warehouse: This isthe last step. Formatted datas delivered to the users through Bl = aa example, month-on-month sales could be represented in the
form of a line graph rather than just words or verbal
LAP.) | communication. Similarly, a component-wise contribution
could be best represented with a ple chart, Only when data
Is represented in the correct format can any useful Insight be extracted from it.

‘Data mining Connection to databases

Business intelligence helps analysts to fetch Information by cannecting to different databases and web services, so
Meat rat Create data that they get access to the right information Irrespective of its source.
Warehouse -g9t relevant “Business | With the right information, helpful
of data
relevant"1 1 businass analytics. recommendations can be made that will help an organization grow.
= problems © |
Predictive analytics

Historical data and high-end algorithms, which are part of BI help in making certain predictions, such as the chances af
customers coming back for repeat business, expected revenue, expected region-wise sales, machine failure, and so
‘on, This can help a company
to be proactive.
Fig. 3.7.1 : Process of converting data Into BI
Application integration

3.8 Impact of Business Intelligence on Functional Units A business Intelligence tool is easily integrated with your existing application or software regardless of whether It Is
developed in Java, C, Ruby, PHP, or any other platform. That gives an advantage of inter operability. Data can be
Today, business intelligence has a huge direct or indirect impact on every department within an organization, For |
exchanged across the platforms helping do better analysis.
example:
Mobile business intelligence
ithelps the marketing department analyze the results of their campaign and promotional yields, and it helps them fine «
With the growing use of mobile phones and more and more workforce going mobile and handling tasks on the move,
tune thelr spending to get better ROI.
they need to have the right Information on their mobile devices. So, all reports dashboards and graphs should
be
Business Intelligence helps the sales department to find the best path and best practices, the cost and length of
compatible with mobile devices. It helps in taking Instant decision.
customer acquisition, process improvement, and year-by-year analysis of turnover and sales.
3.9 -Business Intelligence Tools
Business intelligence helps the human resource department track and manage Important areas of concern like
employee turnover, attrition rate, recruitment process, and so on. Business
intelligence tools are very important to effectively measure the organizational
performance using key
performance indicators and metrics across all levels of an organization,
3.8.1 Impact of Business Intelllgence on Decision Making in all industries. Business intelligence tools allow
companies to see and analyze both historical and current
data in context, which helps in better decision making and
According ta a survey, a decision made based on data analysis has 79% chances of success more than ane made based predicting development depending on your business
objectives.
on pure intuition, Business intelligence helps businesses take a more structured look at data, which helps the experts in
having its right Interpretations. That greatly improves decision making. Further, real-time and interactive access to the
3.9.1 Business Intelligence Software
data, and analysis of important corporate information, help them make better declslons, Let's have a look at some of the Business Intelligence software is the tools that make It
possible to create value from big data. Some examples
of business
techniques used by BI that help in decision making: Intelligence technologies include data warehouses
, dashboards, ad hoc reporting, data discovery tools and cloud data
1 Improving interactivity services.

BI facilitates a high level of Interactivity between the dashboard and the difference report. For example, Jf ‘Someof the popular BI software are the following:
a ‘
employee Is analyzing the total sales report, some interaction should be involved. This helps the person go further Slsense
deep into the report to figure out region- wise, product-wise, time perlod-wise sales to have a more holistl¢ Slsense is a business Intelligence software that lets users collect,
analyze, and use information that they require to
understanding of the data. The more the level of Interaction, the more the volume of vital information
that will be make better and more Intelligent business decisions and
prepare workable plans and strategies,
retrieved which in turn will help make better decislons that will be made.
:
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Business Intelligence
ess I intelligence apps. This busines|
on the list of top 40 businness
Sisense currently occupies one of the high est spots data,
you one of the i ways to create Insights and busi ines: alue from complex
easiest
3.10 Steps to Implement BI System Y
intelligence solution gives
}
implementing Bl successfully In your organization 's an important pracess. Doing it successfully wil ensure
2 Looker the right
department. It's 2 data-discovery app that provide| result. Following are the steps taken while implementing 81 In the organization
Looker is anather BI application software with Insights for every
interface that business users can utillze to tap Into th :
an Intultive approach to data exploration. It offers a web-based The first and foremost step is to make sure the data is accurate, relevant and complete,
expertise of thelr data analytics team. i
Users of the BI application must be well trained so that they understand the entire BI functions.
they're asking
They can build and share reports on the fly, so other functional groups can benefit from the questions Once decided, BI should be deployed quickly, Later on, newer adjustments can be made as you go on. Care should be

enlace alee
and the knowledge they've created. Thus, Looker can help all companies use data to drive their business decisions ang! taken not to spend too much time up front developing the “perfect” reports because needs keep evolving as the
activities In the right direction. business evolves. Deliver reports that provide the most value quickly, and then tweak them.
3. Datapine Take an integrated approach to building your data warehouse from the beginning. Make sure you're not locking

Datapine Is a popular Bl and data visualization application that helps you make sense of your organization’s data. With yourself Into an unworkable data strategy.

its capabilftes, you'll be able to create action plans and you can make smart business decisions, craft and implement, Define Return on Investment (ROI) clearly even before you start BI implementation, Outline the specific benefits you
effective strategies, and realize corporate goals in the most efficient manner. expect to achleve and then review the BI outcomes every quarter or six months.

This application offers limitless dashboards, intuitive drag and drop interface, and a large selection of charts to help It is important
to focus on achleving business objectives out of Bl.

you dig deep into your data and visualize it. Datapine’s centralized data management allows you to connect every Dan’t buy business intelligence software because yau think you need it. Deploy BI with the Idea that there are data
Source of data In your company, whether internal and external, or consolidate them in one location. | there that you need to find, and process.

Zoho Analytics 1 3.11 Problems Faced In BI Implementation

-

Zoho Analytics Is the data analytics app in the Zoho software family. It was formerly known as Zoho Reports which was User resistance : Employees by nature resist any change out of fear and cultural differences. They do not learn the right
reengineered into a more robust cloud-hasted platform which comes complete with online reporting, drill down ways to use It.
analytics, and self-service business Intelligence. The software is designed ta process big data, track KPls, identify, Irrelevant and poor quality data : The success of BI outcomes depends on how accurately you collect
data. Standard
trends, and discover insights. J data gives accurate Insights. Therefore, it Is important to get your data in good working
order before extracting and
Zoho Analytics provides tools and capabilities to give you a complete picture of your business’ health and performance
acting on Insights.
across the varlous units in your organizations. It is able to consolidate data coming from different sources and give yov BI tools : Choosing the right Bl is equally important. Wrong selection of BI application will not give
the right resutt.
reports through dashboards and visualizations. The software comes with a smart assistant named Zila which harnesses: Then, the core of BI Is reporting, not process management. So, you should be careful not to confuse
business
Al natural language processing to give you answers through reports and KPI widgets in response to your questions. intelligence with business analytics,
Companies don’t understand thelr business processes well
enough: A lot of organizations don’t have the standard
3.9.2 How to Choose the Right Software ma magement i theirbe business
practices. So, they fail to Identify bach processes and actlvities well enough. Therefore, It is
my portant to understand .
As there is a large number of applicetions software available it is not easy to choose one that suits your requirement all the activities that make up a particular business pracess
before starting a Bl project.
Therefore, following are certaln steps that help decide the right software. 3
Exercises
— First of all you need to analyze how executives in your organization make decisions.
Answer the following questions
— Then identify what information executives need in order to facilitate quick, accurate decisions. In short
t
Q. What Is business Intelligence? (Refer section 3.2)
- [tis important to pay attention to data quality.
Q. What is the purpose of using BI? (Refer section 3.9)
— You should devise the performance metrics that are most relevant to the business,
Q. State any two benefits of using BI, (Refer section 3.4)

lel
— Then Identify the factors and the context that influence performance metrics. Q. Descnbe OLAP. (Refer section 3.6)
Q, What is market basket analysis ? (Refer section
'
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section 3.8)
Qa, Stata impact of BI on functional units, (Reber
(Refer section 3.9)
a What are BI tools?
Name any two. (Flefer section 3.9-1)
a ie Gaica UNTER= tL
Q. What Bl software?
a
the right Bl software? (Refer section 3.9.2)
How do you choose
ut Ethical Issues and Privacy
a
3.
Qa Suite the problems faced in the implementation of Bl. (Refer section
Answer the following questions In long
Qa. What is B17 Describe its banefits. (Refer section 3.2& 3.4)
U
Describe the steps in une Bl In an organization. (Reter eaction 2-6)
eepo

Describe the process of BI creation. (Refer section 3.7) Syllabus

Explain the Impact of BI on decision making. (Refer section 28.1)
Information Security, Threats to IS, and Security Controls
Describe the steps used in the implementation of BI. (Rafer section 3.10)
9

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4.1 Introduction
As Information system use becomes more widespread and more individuals and organizations rely on the internet asa
means of conducting business, It becomes ever more Important to assure that the Internet is a place where privacy
protected.
Additionally, as organizations rely more on Information systems, they became vulnerable to attacks on these precious
technologies. These are Just some of the ethical issues professionals face when dealing with Information systems and
emerging technologies. Although often overlooked, ethical decision-making is an important Issue for all organizations and
Individuals In the arena of Information technologies. In order to better understand the ethical dilemmas faced
by
professionals and private citizens and appreciate thelr consequences, researchers, practitioners and
academics do a lot of
© thinking and practice concerning ethics and Information systems.
The chapter discusses the ethical issues and Privacy concerning information system
which Is constantly threatening
this era of Information technology. You are golng to learn about all kinds
of security threats, their causes and prevention
management systems.

_ 4.1.1 What are Business Ethics?

“Business ethics s moral rules, standards, codes, or Principles
which provide guidelines for right and truthful behavior In
« Specific situations”, According to this definitian, ethical
codes are more than a tool to support ethical behavior,
4.1.2 Ethics and Information System

Technology of some type has always been used to

control the content and flow of information, but the
technology
> Itself Is ethically neutral, It is critical for information
systems professionals to understand this concept and
realize that It ls
the users of the technology who make the ethical decisions.
When Information systems personnel engage In unethical
behavior, the entire organizavon suffers. Ethical dilemmas
regarding conflict of Interest, theft, equal oppartunlty, and
environmental impact cut across Professions
.
4.1.3 Ethical Issues

Information systems confront soclety with a variety of ethical

issues. Ethics are required in Information systems to
© Overcome the following ethical issues:

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4-3 Ethical Issues and Privacy
Privacy ; What information about one's self or one’s associa! tions must a person reveal to others, under whay- > - Confidentiality: It means Information Is not to be disclosed
tg to unautharized individuals, entities and processes, For
conditions, an:nd with what safeguards? What things cen people keep to themselves and not be forced to reveal example, If| have a password for my Yahoo
account, but someone sees it while 1 was
ezhers? Performing a login into my
Yahoo account. In that case, it will be said
that my password has been compromised and
Similarly, who is to be helg ; confidentiality has been
‘Accuracy : Who Is responsible for the authenticity and accuracy of information? breached,
accountable for errors in information?
Integrity
: It means maintaining accuracy and completeness
of data. This means data cannot be edited in an
Property : Wino owns information? What are the just and fair prices for its exchange? Who owns the channels, unauthorized way. For example if an employee leaves an organization then
in that case data for that employee in all
especially the airways, through which information is transmitted? How should access to this scerce resource be departments like accounts, should be updated to reflect
status to JOB LEFT so that data Is complete and accurate.
In
allocated? addition to thls only authorized person should be allowed to edit employee data.
Accessibility : What information does a person or an organization have a right or a privilege to obtain, under what j Availability : It means information must be available when needed. For
example if one needs ta access information of
conditions and with what safeguards? a particular employee to check whether the employee has already crossed the number of leaves,
in that case it
Ethics in information system seek to protect and safeguard individuals and society by using information systems requires collaboration from different organizational teams to know the actual status. Denial
of service attended is one
responsibly. Most professions usually have defined a code of ethics or code of conduct guidelines that all professionals of the factors that can hamper the availability of information.
affllated with the profession must adhere to. Apart from this there some more principles that govern Information security programs. They are
Throughaut this chapter we ere going to address such challenges that are posed by information systems and what can Non-repudlation : It means one party cannot deny receiving a message or a transaction nor can the other party deny
be done to minimize or eliminate the risks.
sending a message or a transaction. For example in cryptography it is sufficient ta show that message matches the
digital signature signed with the sender’s private key and that sender could have a sent a message and nobody else
4.2__ Introduction to Information Security
could have altered it in transit. Data integrity and authenticity are pre-requisites for nan-repudiation.
In the previous chapters, we have learnt about information systems, thelr applications and impact Authenticity : It means verifying that users who access Information are the authcrized ones and that each Input data
on business and
society. The progress of information systems driven by information technology
has taken place at a fast speed and Is still arriving at destination is coming from a trusted source. This principle if followed Properly ensures that only the valid
going on. Organizations around the world too have grown with it. and genuine message is received from a trusted source through a valid transmission, For example, in the above
But the growth has brought with it threats also and the more the growth the example sender sends the message along with a digital signature, whichwas generated using the hash value of
more has been the threat. We are facing
major threat to our information and Information systems. Particularly in message and private key. Now at the receiver side,this digital signature is decrypted using the public key generating a
the era of Internet, information threats and Its
security have become a vital area of concern. Every year billions of dollars hash value and message is again hashed to generate the hash value. If the 2 values match then
are lost by organizations and people around the it is known as a valid
world due to security breaks and lapses. Therefore, organizations transmission with authenticity or we say 2 genuine message was received at the recipient
have become quite concerned of It and have been end.
focusing hard on building strong security systems to prevent ~ Accountability : It means that it should be possible to trace the actions of
and minimize damages. an entity uniquely to that entity. For
4.2.1 Information Security example, as we discussed in integrity section not every employee should be allowed to make changes
in another
employee's data. For this there is a separate department in an organization that
is responsible for making such
information security can be described as a set of Strategies
for managing the processes, tools and policies which are changes. When they receive request for a change the request letter must be
signed by a higher authority. Once it is
necessary to prevent, detect, document and counter threats
to digital and non-digital information. Information security done the change in data will be made after verifying his biometrics. This way
Is time stamp with the user (making the
responsible for establishing a set of business Processes that
protects Information assets regardless of how the Information changes) details gets recorded. Thus we can say if a change goes like this
then it will be possible to trace the actions
Is formatted or whether itis in transit, is being
processed of is at rest instorage, uniquely ta an entity.
Today, many large organizations employ a dedicated
security group to Implement and maintain the At the core of any information security Is information assurance, which means
organization's the act of maintaining CIA of
Information security Program. The security group
is generally responsible for conducting risk information, ensuring that information Is not compromised in any way,
management, a process
through which vulnerabilities and threats to

meee
information assets are continuously assessed,
and the appropriate protective The field of information security has grown and evolved significantly in recent years.
controls are decided an and applied, The value It offers tmany areas for
of Information for an organization Is Immense ; Specialization including securing networks and allied Infrastructure, securing applications and databases, security testing,
becomes critical for business Operetions, and therefore Its security
as well as its credibility and earning the i

FO a
trust of all [tsstakeholders, Information systems auditing, business cantinulty planning, etc.
4.2.2 Principles of information Secur
ity
‘ 43° Security Threats
information security systams are built keeping three objectives In
mind, which are popularly known
Confidentiality, Integrity, Avallability. as CIA |e. The security threats are posed from Internal as well as external sources of the organization. Following are the reasons
' which affect the security of the information and Information systems.
| whens
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44 Ethical Issues and Priva oy
Wr _MIS(MU) 45 Ethical Insues and Privacy
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An information security management system Is a set of policies and procedures for systematically managing an
= Destruction
organization's sensitive data. The goal of ISMS is to minimize risk and ensure businesscontinulty by pro-actively limiting the
— Deletion '”* impact of a security breach.
Bug infections
4.4.1 Objectives
- Theft
identification of threat sources and possibilities of their occurrence
- Corruption
systems could be accidental or
malicious, and it could be generateg Protection of the information and Information systems from unauthorized access and its potential misuse
The threat to Information and Information are not
an authorised access or from personnel who
organization who have Minimization of the loss of physical and information assets
purposel by the personnel fram within In this case. A bank employee
who
of N jeerav Modi is a good example
The famous case Ensuring system Integrity and reliability of data
authorised, to access the system. (LOC) that allowed him to siphon off
.d him Letter of Credit
the system regularly issue
had access and authorization to Ensuring the privacy of individual and personal Information
money abroad. system on track
the security problems In the Providing methods and systems to recover from damage and to put the Infarmation
and vulnerability to get better Insight into
We now go more Into the details of threats The real
The security management system therefore has the goal of controlling the impact of security threats.
organization to design and implement it effectively to prevent, limit and protect data and
to the users. Hardware challenge in security management system Is
times fail causing non-avallability of the system
— failure : Hardware, software or network at information but at the same time to not violate the right
to privacy of an individual.
and poor
Software fallure may occur due to Its bad quality
fallure may occur due ta poor handling or maintenance.
having power
Sometimes, system failure Is also caused by not 4.4.2 Security Threats Control Measures
maintenance or Incorrect and incomplete user actions.
to misuse
Telecommunication networks, sometimes, fail due
backup devices to contro! power and voltage varlations. Some of the common ways of controlling Information security
threats are as follows:
by network administrator, system developers, computer operators, maintenance staff, and end
and mishandling
Develop a data security plan/policy
users.
It’s Important to have a
Their acti ions could go wrong accidentally It [s Important to have a data security policy when you are looking to improve data security.
Human actlon: Information systems are also vulnerable to human actions.
employees need and have access to
with the Intention of theft, copying, damaging and corrupting the Information system. The result of such plan in place when threats may occur at any time and a plan that determines which
or purposely
access rules that are strictly
human actions Is non-avallability of the system, data and Information, for usage. The
loss and theft of data to benefit data. Thus, these sorts of policies can keep employees in line and organized. By having data
competitors for affecting the business is also a possibility at times. enforced, you better protect your data on a day-to-day basis.

‘As most of the Information systems today work on the Internet and we know that internet security can be breached, Secure the IT Infrastructure
plan. It Is
there is an Increasing risk of system data and information falling In the hands of unauthorised persons. Organizations need a firm infrastructure to build the foundation of a strong and resilient data security
IT
Another source of failure Is Information system's quality problems due to developer's actions in the process of important to make sure all the computers and devices are protected against cyber-attacks and security threats. The
software development. If sufficient care Is not taken In the development of design and architecture of the software team must update the systems with the latest operating systems, anti-virus and filtering software. The organization must
|
the quallty assurance would fail frequently while in use. ensure that every software Installed on the computer is up to date.

Natural disasters : Information systems are also insecure In the event of destruction due to natural disasters such a5 i Know and protect your most Important data
fire, earthquake, floods and so on. in such events, impact on the system can be very large. {t may result in the total
It’s important to take the time to identify what you consider the most valuable data and work on protecting that first.
. loss of both hardware and software data files and reports. The effect of such Impact Is not easily manageable for the
Commonly referred as the “crown jewels” of data, this type of data usually makes up 5-10 percent of the company’s data.
system to make up and run for the users,
Any breach to them causes the most damage to the company. Once Identified, you should work on procedures to not only
,
4.4 Controlling Securlty Threats to Information secure the data but also limit the amount of employees that have access to It.

In response to the ever growing security threats to Information, It Is important to control It before It damages an
Manage file access permissions
of employee error.
organisation badly. To contral the threats and the degree of vulnerabllities in the existing system, it Is important for an Although data breaches from external attacks get the headlines, data loss is often a result
your staff should have to print, email,
organisation to Invest in developing proper security systems. A comprehensive information security management system Therefore, you must define who needs to have access ta specific data and the rights
Is
a stop solution to prevent and protect information, export or save documents outside of your software.

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4-6 Wy MIS(MU) 47
We oMIS(MU) Ethical issues and Privacy
Access control : Access control ensures only those with authorized access to resources
Use stronger passwords password related policies at
are given access.
izations must Implement
5 away fram any network, Organizatior
attackers are Just one password
Confidentiality : When Information Is copied or read by someone not authorized to do so, the
result is known as loss
shouldn't be allowed, Employees must
a5 8 simple alphabetical or numeric password of confidentlality. Confidentiality or privacyis a very important attribute.
work. Easy to guess passwords such t ‘o secure access Is to
the most efficient ways
@ specific time pt eriod. One af Authentication ; In e-business, computing and information security, it ts necessary to ensure
be required to change thelr passwords after ds are hard to crack that the data,
al passwor d Such passwor
with 3 biometric o1 ; behaviar
replace the regular password code option transactions, communications or documents are genuine. It (s also very important for authenticly to validate that
because they are almast impossible to recreate. both partles Involved are who they claim to be.

Regularly backup data Non-repudiation : In law, non-repudiation means one’s intention to fulfill thelr obligations to a contract. It also means
loss af data Is a serious issue, and
basis. In addition to hacls, | that one party of a transaction cannot deny having received a transaction nor can the other party deny having sent a
It’s Important to backup your data on a regular
As a business, get In the habit of
elther automatically or manually iransaction. E-commerce uses technology such as digital signatures and encryption to establish authenticity and non
organi; zations need ta be prepared for the unexpected.
repudiation.
backing up data on a weekly or daily basis.
Regular audits Integrity : Integrity is particularly important for critical safety and financial information used for activities such as

organizations to Identify toapholes in the electronic funds transfers, air traffic control, and financial accounting. Information can be erased or can become
‘A data security plan is not complete without regular audits. Audits allow
Inaccessible, resulting In a loss of availability. This means that persons who are authorized to get Information cannot
breach. That
current system. Data collected in a post-attack audit can help understand the shortcomings that lead to the
get what they need.
policies.
Information can prove vital in the development of a stronger data security plan and more effective data securlty
Availability : Far any Information system to serve its purpose, the information must be available whenever it Is
Staff awareness courses should be conducted annually
needed. This means that the computing systems used to store and process the Information, the security controls used
Two af the biggest threats organizations face are phishing and ransomware, both of which are caused by human error, to protect that information, and the communication channels used to access it must be functioning correctly.
If employees who receive phishing emails are unable to spot them, the whole organization is at risk. Educating staff helps
‘organizations turn one of thelr biggest vulnerabilities into an area of strength. Training courses should be given ta
45.3. Threats to E-commerce
employees during thelr Induction and then repeated annually. 1. Authentication attacks

4.5 _ Information Security in E-commerce These types of attacks occur when a user changes system resources or gains access lo system information without
authorization by either sharing logins or passwords or using an unattended terminal with an open session.
4.5.1 E-commerce
Integrity attacks
Electronic Commerce (E-cammerce) refers to the buying and selling of goods and services via electronic channels,
In this type of attack, data or information Is added, modified, or removed in transit across the network.
primarily the Internet. The applications of £ commerce includes online book store, e- banking, online ticket
reservation(rallway, airway, movie, etc.,), buying and selling goods, online funds transfer and sa on. During E-commerce Confidentiality attacks
transactions, confidential Inform. n is stored In databases as well communicated through network channels. So security Because network computers communicate serially and contain limited Immediate buffers, data and
Information are
is the main concern in E-commerce. E-commerce applications are vulnerable to various security threats. This resulls in the transmitted In small blacks or pieces called
packets. The hackers use a variety af methods known collectively
as social
loss of consumer confidence. So we need security taals to counter such security threats. engineering attacks. With the use of dozens of shareware and freeware packet sniffers available,

RE Or eererm wee
which do not require
the user to understand anything about the underlying protocols, the attackers would Capture
45.2 Security Needs In E-commerce all network packets and
thereby the users’ login names, passwords, and even
accounts,
The six security needs In E-commerce applications are ; Virus
= Access control Viruses are computer programs designed to
replicate themselves and Infect specific computer
- Confidentiality

—
s when triggered by a
specific event. The effects of some viruses are
relatively benign and cause annoying interrupti
ons such as displaying
— Authentication the comical message when striking a certain letter on the
keyboard. Other viruses are more destructive and cause
= Non-repudiation . Such problems as deleting files from a hard disk or slowing down a
system.
— — Integrity
Database threats
E-commerce systems store users’ personal data and
- — Avallability retrieve product information from databases connected
to the
Web-server, Besides product Information, databases
connected ta the web contaln valuable and private
information
ip Tech tnemictys
Puntication

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W_ ism)
Some databases store username ang |
If I it were altered or disclosed. = data security
that could Irreparably damage a company can
If some one obtain s user. authen ticationon information, then he/ she
password palrs In a non-secure way. ‘4 database security
and reveal private and costly Information.
masquerade as a legitimate database user — application security
4.5.4 Security Technologies
4.6.1 Data Securlty
1, Symmetric encryption the data
Security of the data Is always of prime concern. The best way to provide security Is to take regular backup of
Symmetric encryption algorithms can be extremely
In this, a single key Is used both to encrypt and decrypt messages. collected from varlous sources, Data loss whether accidental or due to any third party is always
a heavy cost and risk to the
fast and less complex which allows for easy Implementation in hardware. business.
2. Asymmetric encryption
4.6.2 Database Security
symmetric
It Is also known as public-key cryptography or a two key encryption, Asymmetric encryption differs from
encryption primarily In that, two keys are used: one far encryption and other for decryption. Adatabase Is a collection of inter-related data and a strong security needs to be built around the database. A database
of the information stored. The database [5
Is considered to be secure if it shows confidentiality, Integrity and avallability
3. Secure socket layer
Insecure due to the following reasons:
Secure Socket Layer (SSL) ls a commonly used protocol for managing the security of a message transmission on the
1. Data tampering
Internet. When yau have SSL, you as well as your customer are protected, The server ~ whlch Is basically another
one
name for a computer that stores information about your website for viewing by the customers and others — must The confidentiality and integrity of information can be at risk due to its tempering during its transmission fram
have a digital SSL certificate. SSL provides these certificates and is able to read them. SSL certificates come from a location to another.
trusted third party that can guarantee encryption process. The SSL certificate Is a proof thal the server Is what It says It 2. _ Data theft :
is. Identify such weak links to
Data theft Is always a possibility particularly from an organization's people if they can
Digital signature crack.
»

Based on the public-key cryptographic method, digital signatures are implemented to verify the origin and contents of Falsifying user Identity
»

the online transaction, translating to consumers proving thelr identity to vendors In the transaction and providing Identity theft is one of the greatest threats to individuals in the internet environment. In a distributed digital
non-repudiation features. A digital signature functions for an electronic document like a handwritten signature does environmentit becomes increasingly possible for a person to falsify an identity to gain access to Information.
for printed documents. A digital signature actually provides a greater degree of security than the handwritten
4. Password related threats
signature. The reciplent of a digitally signed message can verify both that the message originated from the person
In large systems, application users generally manage multiple passwords by selecting easy to guess passwords such as
whose signature Is attached and that the message has not been modified either intentionally and accidentally since It
was signed. fame, date of birth or a word from a dictionary for same code numbers. All of these methods compromise password
security and service availability.
5. Digital certificates
5. Unauthorized access to data
Digital certificates provide a means of praving a person's identity in electronic transactions, much like a driver license
or a passport does in face-to-face interactions. With a digital certificate, you can assure business associates, The database may contain confidentlal tables for confidential data available to all the database users who are
friends
and’ online services that the information they receive from you is authentic. Digital certificates bind an Identity to 2 authorized to access the database. In such a case the risk of accessing the confidentlal data Is very high if access
‘pale of electronic keys that can be used to encrypt and sign the digital information. control by selective control is absent.

4.6 Information Security In Applications 4.6.3 Securlty Techniques

Terme
Application means application software systems developed for data
Database authentication
Processing, transaction processing, web
applications, and database applications and so on. Each of these applications Authentication Is the process by which the database server recognizes the Identity of the user to allow
has its own design and architecture. Some
him the access. Today, databases use multiple authentication methods like database authentication, external
have their own data storage.
authentication, global authentication for recognizing users before the access permission.
in applications system securlty management, attention Is given
from the development Stage so that the application |s
not under threat by unauthorized individual attackers. The focus of the security Is on Backup and recovery plan
, Every database should have a proper backup and recovery plan. It is also important to have these plans
tested In a test environment. x

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Auditing of relevant Intormation How do I benefit from network security?
Ethical Issues and Privacy
Auditing Is a feature that allows the database administrators t o track what
‘ions users are actually doing,
necessary to keep the Digitization has transformed our
Audit functions should be specific and limited to monitoring the data and acl world. How
we live, work, play, and learn have
we fants to deliver the services demanded by customers and e all changed. Ev ery organizathtion that
database secure. employees must orctectcl its network. 7 Network securityLy also
helps you protect proprietary information from attack. al
Ultimatelyit protects your reputation.
Secured operating system
4.7.1 Network Security Threats
‘The security of the database also depends on the operating system on which itis running. Therefore, it Is Important to
secure the operating system from unauthorized users. An unsecured operating system could cause damage to the Network security threats fall into two categaries
database and files of the database, 1, Passive threats
Application tevel attacks often cannot be prevented or detected by infrastructure security components. The business {a) Release of message contents
impact of a successful application level attack can be significantly greater than that of a successful Infrastructure attack,
(b) Traffic analysis
The best way to ensure your application security ts by making security principle an essential component of the design,
Further, software testing should be done In the applications for potential risks. Personnel involved in the software testing 2 Active threats

process also need to be trained on application security testing to develop the ability ta test the design from security angle. fa) Masquerade

4.7 Security Management in a Network (b) Replay

{c) Modification of message contents
In atime, when the whole world is networked and huge amount of data and Information get transferred all the time
(d) Denial of service
through these networks, network security becomes a vital area of concern for all the users and experts. Network security Is
the practice of preventing and protecting against unauthorized intrusion into corporate networks.

it con be defined as the process of taking physical and software preventative measures to protect the underlying
networking infrastructure from unauthorized access, misuse, malfunction, modification, destruction, or improper disclosure,
thereby creating o secure platfarm for computers, users, and programs to perform their permitted critical functions within a
secure environment.
A networked system Is vulnerable for continalng attacks it
Reloase of Modification
~ Aweakness in security is present enabling unauthorized network access, message Traffic Masquerade Denial of
Repiay of messai
content analysis E cm senda
— Defect exploitation by hackers Is allowed to continue undetected.

— System defects are known and can be exploited. Fig. 4.7.1: Passive threats

To secure the information system, a network security. focuses on: Passive threats
- Protection : Here, focus Is on configuring the systems and networks Sometimes referred to as eavesdropping, they involve attempts by an attacker to obtain
as correctly as possible. information relating to
communication.
~ Detection ; The experts must be able to Identify if the canfiguration changes or there
Isa sudden Increase in network
traffic indicating a problem. a. Release of message cantents

~ Reaction : After identifying problems quickly, one must respond

to them and feturn to a safe state as rapidly as A telephone conversation, an e-mail message anda transferred file may contain sensitive or confidential information.
possible. b. Traffic analysis
How does network security work?
Its a kind of attack dane on encrypted messages. The hackers might be able to observe the paitern of such encrypted
Network security combines multiple layers of defence in Message. They could also determine the location and identity of communicating hosts and could observe
the network. Each network security layer Implements policies the frequency
and controls. Authorized users gain access to the network resources, butmalicious and length of messages being exchanged.
programs are blocked from carrying out
threats.
Active threats

They involve some modification of the data stream or the creation of a false stream.

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We Mis(Mu) 4-12 We MIS(MU) 413 Ethical issues and Privacy

Mobile device and wireless security : Wireless devices have all the potential
security flaws of any other networked
usuallylly includes one or the Other
masquerade attack gadget — but also can connect to just about any wireless network anywhere, requiring
takes place when someone pretends to be a different entity.
extra scrutiny.
It. eplayed after - @ valid authentication
and rep!
henticatlon sequences can be captured
i attack. For e.g, authentica’
forms of active fi fe privileges to obtain extra privileges by 4.0 Cyber Security
sequence has taken place, thus enabling an authorized entity wit
Impersonating an entity that has those privileges. Cyber security Is important because government, military, corporate, financial, and medical, almost all the
organizations collect, process, and store huge amounts of data on computers and other devices. A significant portion of
b. Replay
duce an unauthorized effect, that data can be sensitive Information, such as intellectual property, financial data, personal information, or other types of
retransmission to pro
It involves the passive capture of a data unit and its subsequent data for which unauthorized access or exposure could have negative consequences. Organizations transmit sensitive data
¢«. Modification of message across networks and other devices In the course of doing businesses. They may be vulnerable ta attacks.
unauthorize
Ized effect, As the cyber attacks grow, companies and organizations, especially those that are tasked with safeguarding
It means some part of a message Is altered, or messages are delayed or rendered, to produce an
information relating to national security, health, or financial records, need to take steps to protect their sensitive business
d. Dental of service
and personnel Information.
an
A denial of service attack takes place when the availability to a resource is Intentionally blocked or degraded by
Cyber security Is the practice of protecting systems, networks, and programs from cyber attacks. These cyber
attacker. In this way the normal use or management of communication facilities is blocked. This attack may have a specific
attacks are usually almed at accessing, changing, or destroying sensitive Information, extorting money from users, or
target. For e.g. an entity may suppress all messages directed to a particular destination.
Interrupting normal business processes.
Another form of service denial is the disruption of an entire network, either by disabling the network or by
A successful eyber security approach has multiple layers of protection spread across the computers, networks,
overloading it with messages so as to degrade performance.
programs, or data. in an organization, the peaple, pracesses, and technology must all complement one another ta create
4.7.2 Network Security Methods an effective defence from cyber attacks.

Access control ; You shauld be able to block unauthorized users and devices from accessing your network. Users that Implementing effective cyber security measures is particularly challenging today because there are more devices than
are permitted network access should anly be able to work with the limited set of resources for which they've been people, and attackers are becoming more innovative.
authorized, The threats countered by cyber-security are three-fold:
— Anti-malware ; Viruses, worms, and Trojans attempt to spread across a network, and can infect machines for days or ~ Cyber crime : it includes an individual or groups targeting systems for financlal gain.
weeks, Security effort should be made to prevent Initial infection and also root out malware that does make Its
way - Cyber war : It often involves information gathering and is politically motivated
onto your network.
— Cyber terror : Ir is Intended ta undermine electronic systems and cause panic or fear.
— Application security :Insecure applications are often the targets by which attackers
get access to a network
Therefore, It Is advisable to employ hardware, software,
and security processes to lock those apps down.
4.8.1. Types of Cyber Security Threats .
~ Behavioral analytics : Focus should be to know what normal network behavior looks ~ Ransomware : It Is a type of malicious software. It is designed to extort money
ilke so: that you can spot by blocking access to files or the
anomalles or breaches as they happen. computer system until the ransom Is pald. Paying the ransom does
not guarantee that the files will be recovered or
> Bata loss prevention : Human beings are the weakest security link. You need the system restored.
to implement technologies and
pr rocesses to ensure ure th: that employees
t don't 't delideliberately ©r unintentionally send sensitive data
outside the network. ~ Malware : ir is a type of software designed to gain unauthorized
access Or to cause damage to a computer.
— Email securityied : Phishing
. ing IsIs one one ofof th the most common ways for the attackers to gain
access to a network. Emall Soclal engineering : It is a tactic that attackers use to trick users
Security t tants can block both Incaming attacks and outbound Into revealing sensitive Information. They can solicit a
messages with sensitive data. Monetary payment or gain access to your confidential data.
Social engineering can be combined with any of the
~ Firewalls : They are perhaps the most important tools for network security. They follow
the le rul defined to threats IIsted above to make you more likely to click on links,

UPR eee
Permit or deny a message at the border between . rules as download malware, or trusta maliciaus source,
your network and the interr
trusted zone and the outside world. They don’t preclude the need for a de net, establishing a barrier between you! ~ Phishing : It is the practice of sending fraudulent emails that resemble
emalls from reputable sources. The aim Is to
Tense-in-depth strategy, but they're stl Steal sensitive data like credit card numbers and login Information.
must for your network. It’s the Most common type of cyber attack. You
can help protect yourself through education or a technology
— * Intrusion detection and prevention : These systems scan solutian that filters malicious emails,
network traffict
‘
correlating network activity signatures with databases of known attack techniqueto Ident fy and block attacks, ofte! in by
S,

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4.8.2 Cyber Security Measures Wihat is e-commerce? (Refer vection 4,5)
ocols used to encrypt emails, files ang Oe.
Cryptographic protocols : Cyber security relies on eryptographic Prot

np ppp
dsagainst lose or theft. = Hom is e-commerce wuinerabls to security threats? (Refer section 4.5.1)

Pees
critical data. This not only protects Information that is transmitted but also BU=T : What is virus? How does it Gamags information
system? (Pister section 453)
End-user security software : It scans computers for pieces of malicious code, qu arantines this code and then r, eM What la data ererypticn? (Refer section 454)
it from the machine. Define digital siqnatura. (Refer section 4.5.4)
Electronic security protocols : They focus on malware detection in reat time. What are digtal certificates? (Refer section 4.54)
Heuristic analysis : it evaluates the behaviour of a progrem in addition to its coce which helps in defending ag, State
ary causes of threats to datzbase securty. (Refer section 4.6.2)
viruses or Trojans that can change thelr sh2pe with each execution. What is auditing in information security management? (Refer section
46.2)
Following are some ways to protect 2 business from cyber attacks: Vihat is network security? (Refer section 4.7)
Install @ firewall : A computer firewall blocks unwanted infarmation end people from entering a business’ compu. eS
What are network secunty threats? (Refer section 4.7.1)
system fram the Internet. Once the firewall is in place and working, never tum it off of any computer in the busines;
PepeA

What are firewalls? (Refer section 4.7.2)

Set up an access control fist : This sllows system administrator ta control which employee has
access to the Compute Define cyber security. (Refer section 4.8)
v

system or certain parts of the computer system and whether they can log in remotely or only from the office.
What is a ransomware?
(Refer section 4.8.1)
Establish security roles and responsibilities : identify which employees need to have access to the Busines: What is phishing? (Refer section 4.2.1)
information end set up responsibilities for those employees.
What is cryptogrepny? (Refer section 4.2.2)
Establish policies for internet and social media usage : The orgenizetion
must limit the use ef the internet and sce
media to break time but make sure the employces know the Answer the fallawing questions in short
policy.
a Hew important are ethies and privacy in information system? Expiain the ethical issues that en orgewzstion deals
Use a web-fittering system : These programs cen block harmful
‘Stes as well as sites that may be Inappropriate fr woh
(Refer section 4.1)
viewing during company time.
‘What are the principies on which information securty is besed? (Refer section
Use internet security programs on each computer 4.2}
: The programs work in addition to the firewall to
help bica Describe mejor security threa’s to information system. (Refer section 4.3}
malicious scitware from ettzcking the computer and
compromising dete,
Describe the measures taken to conzol information seaurity threats. (Refer
Keep the most critical data offiine 2 Organize section 4.4)
your business’ data and keep the most critical
information—such= Describe the security needs of e-commerce. (Reter section 4.5)
customers’ persanal information —ofline.
Describe the security technoiogies usen to secure e-commerce (Refer section
4.5)
Wet are appications? What are the security threats to appicatons?
(Refer section 4.5)
Answer the following questions In short Describe tha measures taken to improve network securty. (Refer
section 4.7)
a Defne business ethics. (Refer section 4.1.1) Describa the types of secunty treats to cyber secunty. (Refer section
4.8)
Qa How are ethics important in information Discuss the measures to improve cyber securty. (Refer section
syeam (Refer section 4.1.2) 4.8)
a. Describe in trie! the etnical issues in ntonration system.
(Reter section 4.1.2)
a Winat is rtorration security? (Reter section 4.2.1)
aa3
Qa State the importance of information Securty. (Refer
section 42)
Qa Vitel is norerepxtaion? (Refer section 422)

a List some mejor seourty threats lo IS. (Reter section 4.5)

How do hurmen ectons esate information

a sccutty provtems? (Refer Section 4.3)
State the object
a of information
ives securty. (Refer section 441)
a. Explain any tno seourty control measures. (Refer section 44.2)
Tews ARBRE
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Social Computing
5.1.2 Benefits
Cat] It offers a technology-based platform that
lowers the cost for individuals to create and
distribute contents.
It gives the combined effect of TV, radio and Magazines
for getting and exchanging information.
There Is an Increasing acceptance of informati
on coming out from non-autheritative Sources
such as social media site,
blogging and micro blogging sites.

It offers people to form their awn community for raising support for any issue, developing a concept, sharing
information for mutual benefits. 7

‘Syllabus s. allows people to showcase their ability by promoting themselves and creating
a market for themselves.
Web 2.0 and 3.0, Social Computing In Business-Shopping, Marketing Operational and Analytical CRM, Benefits for Organizations
E-business
and E-cammerce ~ B2B B2C, Moblle Commerce
1. Increased collaboration
The collaborative exchange of Ideas is essential to the success of
chaflenging business initiatives, including software
5.1 Introduction architecture and design, project management and organizational
transformation. Tools such as social networking
sites, discussion groups and wikls enable people to connect
Human beings are social by nature. Living and learning together, with one another virtually while enhancing and extending
communicating with and helping each other have
been the hallmark of human society. We are at our best face-to-face interaction.
when In groups that we feel comfortable with, and at our worst
When we see those around us as “different” in some Organizations see improved collaboration surrounding creation of user
way. We can not live in isolation. It is perhaps then
unsurprising that groups and complex design. In each case,
Our use of computing and computer tools has partielpants from otherwise isolated parts of the organization
turned to the social elements of our lives as share problems and solutions, reducing redundancy and
well, In fact, If we look at the
world Bround us we find people using electronic medium more increasing common functlorvality.
to get socially connecte d.
Intemet was a revolution, It introduced web technologies which have Enhanced Innovation
»

brought a huge change in the lives of people

everywhere. Billions of people hooked to
It, make it the bi legest society on earth. From
an initial stage when it was a Use of social computing creates a new stage for innovation, where Ideas are more
platform to exchange messages through e-mails easily exposed and patterns
and searchf for Infor mation (static in nature) Fecognized. As communities discuss new
It has reached
: a stage of sacial Ideas in public forums, innovative thinkin;
media, shopping, transactions, information ig emerges. For example, Amazon
avallabllity in every for rm and about uses socialcomputing (especially wikis) extensively in the
just anything. The benefits are so much development of new features for Amazon.com,
so many that we cannot afford ta
miss it Businesses are quick to and
see and avail a huge Opportunity which Better productivity
offers. this new world
2

The social computing bullds the collective Intellig

ence of the community which leads to Increase
change their fortunes. d productivity as a
ofa project and simplifies future iterations. the early stages
5.1.1 Soclal Computing
Better employee relations
>

Social computing is an area

of computer science Conc Social computing
erned with
computational system. It is basic
ally the use of computer an
the coll boratlon of social behavior and allows employees to connect more
®asily with one another and
internet allows users to interact
the Internet for social Purposes. In social sonnections enhance face-to-face
Interactions and a sense of belongi
with the corparation, Shared
with each other through many '¥
mediu ms, Before the int computing, the Tum for the vice of the employ
ng. Social hetworks, blogs and
wikis create a
as tools for Increasing productivity. ernet, Computers were ee to be heard, As 3 result there
The internet introduced Social largely used is a lower rate of attrition, and
Publish personal insights and use their comput clemen t where users could network, share interes Senerally more productive and have
a better sense of tl he overalll object
employees are
ers for more than just doing ts, ives of the company.
social network services, wikis and other services {us a job taster Better promotion and public relati
are the mei dia throug h which people in . Blogs, e-mails, Instant messaging ons
Soclal computing can also teract with each Many organizations today use Public-facing soctal com
benefi
t businesses to great athe
r. puting as a means of Projecting
computing can be used extent if | Its brand. From executive blogs
to market products and Is used for business Purposes, For example, social to cansumer communities, Organiz
Promote customer rela ations are trying their hand at Increasing custom
"pes of promotional advertising “ons: Ontne marketing and viral marketing are ta
er loyalty In Innovative ways,
that have grown oUt of social comp ng.
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w_wis(Mu) 54 Social Computing
Interpersonal computing : tt involves person-to-person interactions provided by websites that enable collaborative
World Wide Web (WWW)
d I in HTML and accessed via HTTp, The content creation, sharing and manipulation.
The World Wide Web (WWW) is 3 network of online ©
content that is formatte The World Wide Web was Originany
the internet. Web services : It involves application-to-application data and service exchanges facilitated by autormated connections
term refers to all the interlinked HTML pages that can be accessed over seed to simply a8 "the Web."
between web servers and other Internet technologies.
e
| Development phases of Web
The Warld Wide Web Ismost often referres
designed In 1991 by Tim Berners-Lee.

Ing th
Software As A Service (SAAS) : It involves human Interactions with digital content through applications delivered over

eb, representing the the web freeing the user from locally installed software.
= Phase 1 (Web 1.0}: According to Tim Bemers-Lee the first implementation of the wi pl ” . ; feb 10,
Welcome to the exciting world of web 2.0 |
could be considered as the “read-only web.” The average internet user's role was limited ta reading the information
which was presented to him in the form of static web pages. There wes very fittle in the way of user interaction or
—t~
|
content contribution.

— Phase 2 (Web 2.0}: The lack of active interaction of common users with the web lead to the birth af Web 2.0. Now ;
even a non-technical user can actively interact & contribute to the web using different blog or social platforms,
According to Berners-Lee’s, the Web 2.0, or the “read-write” web has the abllity to contribute content and interaq | My web 2.0 Groups:
with other web users. This Interaction and contribution has dramatically changed the landscape of the web. This era { Discussion Boards Documents ( Bookmarks ~ \
empowered the common user with a few new concepts like Blogs, Social-Media & Video-Streaming. Publishing your
content is only a few clicks awayl Examples are Twitter, YouTube, Facebook, etc, ©) Discuss currant Share documents Bookmark
topics with members win members of interesting sites and
a

Phase 3 (Web 3.( |: Today in 2019, we're living in this phase. Web 3.0 technalogy Is becoming part of our everyday Iife. ‘of your groups. Post your group. Writs share them with your
a question, provide collaboratively with group.Research a
The Web 3.0 would be a “read-write-execute” web. The Web 3.0 promises the potential for applications that can your expertise or members to create lopic by searching
speak to each other directly, and for broader searches for infarmation through simpler interfaces. just read along naw documents group bookmarks

Phase 4 {Web 4.0): The next step is actually an alternate version of what we already have, Mobile technology
led uso
experience the social web in a completely different way...from lap-top Fig. 5.3.1 : Web 2.0
to always on. The web needed to adapt to its
aN STS

mobile surroundings, Web 4.0 technology is a mobile version of web 2.0

The interpersonal computing aspects of Web 2.0 are most commonly associated with the development of wikis, blogs,
5.3 Web 2.0 social networking sites, and viral video sites.
<

Web 2.0 means the internet applications which Wikis are websites that allow visitors to easily add, remove and edit cantent, hence enabling the collaborative
allow sharing and collaboration o,
els See

Pportunlties to peaple and help them

to express themselves online. authorship of comprehensive documents. The best example of a wiki is the multi-lingual, web-based
. encyclopaedia Wikipedia
“Web 2.0 is the business revolution in the computer
Industry caused by the move to the Internet as a platform,
an attempt to understand the rules for success and Blog Is a chronological, Journal-style website which its author or "blogger" maintains like an online diary. There are
on that new platform."~Tim 0° Reilly,
Web 2.0 is an improved version of the Now a whole host of websites that enable anybody to start their own blog, such as Word Press or Blogger. You can
- web 1.0, characterized Specifically by the
change from im static to dynamic ot also “micro blog” using Twitter
user-generated content and also the growth ¥ static
of social media, Web 2.0 concept focuses
oriented architecture and social web. i mn b Soclal Networking Sites (SNS) enable peaple to build social networks online. Groups established within such
oneh web apaliatons wi communities are existing friendships and teams and are facilitated by online toals for sending individual messages, file
Web 2.0 examples are Google Maps, Google Docs,
Flickr), YouTube, wikis blogs, i
micro-blogging apps like Twitter, podcasting like Podcast Alley & ¢ SICES, social networking like Facebook rk, sharing (particularly photo sharing), discussion forums, and online chat. The mast popular social networking sites
Is
Ontent hosting services and many mare. Facebook.
5.3.1 Key Aspects of Web 2.0 . Viral video sites are websites that allow anybody to post videos online. The significance of viral video sites Is that they
At a conceptual level, Web 2.0 Is concerne Provide a place to put videos where It is likely that at least some ather people will actually find them. The giant of viral
d with establishin,
services and information. Web 2.0 defines the three key aspects
7 6 and maintainii
ne online cannections between peor video sites Is YouTube.

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The use of web 2.0 technologies and tools attracts
greater Participation In pri jects and idea sharing,
5.3.2 Core Web 2.0 Principles thus ideally
é new business and com feading to better designs and more efficient production, strengthening bonds with
many
Web 2.0 developments present both individuals and organizations withrinciples: Puting communications with partners.
Customers and Improving

cpportunities. O'Rellly suggests that the core of Web 2.0 is the following seven prin
5.4 Web3.0
= The web to be used as a new platform for content development and sharing
i etworking e sites, wikis, » bl blogs ang
= Hamessing collective intelligence by aggregating more and better content via social n Web 3.0 Is an intelligent web technology that provides third generation of internet-based services The term was

viral video coined by John Markoff in 2006. He explained, “There is no easy consensus about how to define what is meant by Web 3.0,
associated with data and it but It Is generally seen as a reference to the semantic Web. While it is not that much more precise a phrase, the semantic
— Data as the next Intel inside which suggests that value will increasingly become
Web refers ta technology to make using the internet better, by understanding the meaning of what people are doing, not
management
Just the way pages link to each other.”
— The end of the software release cycle which will be as a consequence of continually updated SAAS application,
Web 3.0 Is supposed to be more connected and intelligent with the use of major emerging technology trends Uke
accessed online.
semantic web, data mining, machine learning, natural language processing, artificial intelligence and other such
- Lightweight programming madels which relates to the increased use of more open and more flexible online
technologies. So Web 3.0 is the idea of a web that will store information In such a way that computers and other devices
programming tools and languages in systems development will understand on their own. FB app and Google Voice search, Apple's Siri are some of the examples of web 3.0.
— Software above the level of a single device which refers to a world in which all data, web services and Sass
Chances are that you are pretty familiar with the concept of Web 3.0 already. Every tme you buy something on
applications will become accessible fram any desktop or mobile computing device that has wired or wireless internet Amazon; the website's algorithm will look at the other items that people who have purchased your product went on to buy
access and then recommends that to you. 50, think about whar Is going an here. The website is learning from other users what
~— Alch user experiences which reflect the increasing trend for audio, video and interactive online content your preferred choices can be and then use it ta recammend to you what you may like. In essence, the website itself Is
learning and becoming more intelligent.
5.3.3 Five Major Features of Web 2.0
5.4.1. Features that can help us understand Web 3.0
1 Free sorting of information permits users to retrieve and classify the information collectively.
= Semantic web: The evolution of the Web 3.0 involves the Semantic Web. The semantic web improves web
2, Dynamic content that is responsive to user input.
technologies to create, share and connect contents through search and analysis based on the capability to
3. Information flows between site owner and site users by means of evaluation & online commenting.
comprehend the meaning of words, rather than on keywords or numbers.
4. Developed APIs to allow self-usage, such as by @ software applicatlo — Artificlal Intelligence(Al): Combining artificial Intelligence capability with natural language processing in Web 3.0,
5. Web access leads to connect different, from the traditional internet user base to a wider variety of users. computers can distinguish information human being wants in order ta provide faster and more relevant results. They
become more intelligent to fulfill the requirements of users.
5.3.4 Advantages of Web 2.0
3D graphics: The three-dimenslonal design is being used widely in websites and services in Web 3.0, Museum guides,
— Available at any time, any place
computer games, e-commerce, geospatial contexts, etc. are all examples that use 3D graphics.
— Varlety of media Cannectlvity: With Web 3.0, information Is more connected thanks to semantic metadata. As a result, the user
— Ease of usage - experience evolves to another level of connectivity that leverages all the avallable information.
— Learners can actively be involved in knowledge building, Ubiquity: On the web, content is accessible by multiple applications that every device Is using. The services can be

— Can create dynamic learning communities used everywhere using these devices and applications.
— Everybody is the author and the editor, every edit that has been made can be tracked. 5.5 Social Computing In Shopping
— User friendly
Social computing In shopping
Is the combination of social media and e-commerce. it uses all of the key aspects of the
-— Updates in wiki are immediate and it offers more sources for researchers, social web like frlends, groups, voting, comments and discussions and focuses them on the world's favorite activity which is

- Pravides real-time discussion shopping to create social shopping.

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s found in physical mall and stores, 1, ls
4, They can interact directly with brand representatives easily and quickly.
Social shopping attempts to use technology to replicate the social Interaction
like bringing your frlends with you on the web while you shop. vk devoted to shopping, or Product Wy 5.5.4 Benefits for Sellers
Social shopping can take many forms like This Next, a social netw 0
1, [timproves the overall sales unit productivity.
a wiki devoted to product reviews and price comparisans.
it f products into one place. No mo, re
Social shopping beats old-fashioned web shopping because It brings all types of P' Italso increases revenue growth per customer.

D
skipping around fram site ta site searching for that hard-to-find item. moont Sellers can galn feedback from new customers, which is very important.

ke
Social shopping also has advantages aver going to an actual store to shop. With oeial i”shopping,
she aeyou ne
are one ¢|ns
The sellers learn from customers through varying experience
away from comparing prices, and you can easily find out what other people are saying abo! at
It Increases customer loyalty and trust.
Alenis Bittar necklace. And above all, It's fun. If you like shopping, you will love social shopping.
24 It has the capacity to quickly liquidate overstocked or obsolete merchandise.
5.5.1 Major Categories of Social Shopping
5.6 Social Computing In Marketing
Social shopping can have a wide range of categories but can largely be divided into five categories:

L Group buying Social computing often called social networking or social media is used ta describe the way people share their
thoughts, opinions and insights online using interactive technologies.
Companies like Group on and Living social encourage group of people to buy together at wholesale prices or at special
deal of the day. Social marketing is an application of social media. It is the way companies tap into social media to build brand

2. Shopping communities awareness, customer loyalty and sales.

Soclal marketing aims to develap and integrate marketing concepts with sacial media to Influence behavior of the
it brings like-minded together to discuss, share, shop and help communities. Many sites
allow users to create custom
people and communities for the greater social good.
shopping lists and share them with friends.
3. Recommendations Significance of Social Marketing

Recommendations engines allow buyers provide advice to fellow buyers and According to Forrester, the three tenets of Sacial Computing make its collaboration with marketing relevant. The
friends thraugh conversations, three
4, Social shopping markets places tenets are:

They bring sellers and buyers together to connect and transact. This
Communities driving innovation
way y it performs the role of e-commerce
facilitator, Institutions facilitating experiences shaped and owned by communities
Shared shopping mechanism for catalog-based sites ; These allow shoppers to form Communities taking power from institutions
ad hoc collaborative shopping
“

Broups in which one person can drive an online shapping

experience for one or more other people 5.6.1 Business Benefits of Social Marketing
5.5.2 Components of a Social Shopping
Website 1 Consistent audience growth
_ 1 Visual sharing
Every day, thousands of new users join social media sites around the
world, One of the most Important considerations
2. Online discussions for any business Is how to reach and sell to its target customer audience. For companies that use social
3. Haw to use product marketing, thelr followings are continuously growing and accessible.

4. Guides Higher search engine ranking

»

5.5.3 Benefits for Buyers Engagement on social media can lead to more than just direct transactions. tt has
been Proven that soclal media
commerce actually increases traffic to your website which will eventually Influence
i. They can get good deals via group buying, your ranking on search engine
daily specials and more, - results,
2. They can socialize while shopping and
receive saclal Support and rewards tao, More authentic engagement and traffic

SC
3, They can know about products/services which

ee
never existed for them, As already stated, actlvely working to grow your social media audience |s a great first step In eventually making ©
Conversions, One of the most significant benefits of social marketing Is the engagement and
reach that businesses can

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get whenever they share content. By showing upin more likely to recammeng — You may have to face legal problems if you don't follow privacy legislation and the laws regarding spam,
copyright and
contact with a cor
a powerful branding opportunity. People who have regular
ather online issues.
1 Key social media services
that company.
a. Cus tomer loyal
yalty and id retention
retenti ‘: .
Different types of social media are good for different marketing activities. The key social media services are:
ote ¥
ur products/services, but you ary
In using social marketing for your business, you are alming to sell ‘and promote
YO!
— Facebook - a social networking site that allows you to have conversations with customers,
to to eni age with prospects, a company post photos and videos,
ips with peopl e. By using thisi opportunity promote special offers, and more "
build good relationsh
almingandto maintain create: s customers that are happy ang
also build
can relationships that deepen tr ust and loyalty. This in turn
satisfled with your service, who wll kely remain clients who make repeat purchases. Twitter - a 'micro-blogging’ service that allows you to send and receive short messages from customers and potential
customers

5. Business metrics from social media marketing , hive ROL Soci j _ YouTube - an online video-hosting service that lets people share their videos
it you should analyze your efforts, and see if the results providea positive
With your sacial marketing, bud ROI. Social mediy |e: — Blogs - internet sites that contain“ a series of entries
- or ‘posts’ about topics of Interest to the author, much like an
marketing makes it easy to measure and evaluate performances. Facebook pages, Instagram business accounts anq online ‘diary’
; ;
tweets on Twitter have built-in metrics for impressions, engagements and reach. Coupon sites - websites that offer discount coupons for goods, services and events
5.6.2 Marketing Benefits of Social Media Online photo-sharing services - websites that allow users to store, organize and share their photo collections
of all sizes. You can use social media to:
Social media present great marketing opportunities for businesses
Location-based marketing sites-. websites that deliver targeted marketing messages to customers In particular

~ : and business
Promote the name of your brand
locations, through mobile devices such as smart phones and tablets
Customer review sites - websites that feature customer reviews of goocs and services.
— Tell customers about your goods and services

~ Find out what customers think of your business 5.7 Customer Relationship Management (CRM)
— Attract new customers CRM is an approach for managing an organization's relationships and interactions with current and potential
- Build stronger relatianships with existing customers. customers. It uses data analysis about customer's history with the organization to Improve business relationship. A CRM
system helps companies stay connected to customers, streamline processes, and improve profitability. CRM helps users
Social media marketing advantages
. . focus an their organization's relationships with individual people including customers, service users, colleagues, or
— Social media can reach millions of people all around the world suppliers.
— Many y forms ms of of social media
s (e.g,B. Facebook, Twitter,
i i groups, often In
Instagram) allow businesses to target specific CRM Is used as
particular locations
Technology
— Many forms of social media are fres for business, ;, and
and paidpalt options are usually |
Social media all to 'y low-cost, CRM Is used as a technology product that teams use to record, report and analyse interactions between the company
—
allow you to communicate on a personal basis with individual customers and groups and customers. This is also called a CRM system or solution.
— You can quickly distribute information to many people
rategy
Strat
— + séanlan
You don't tarot
need high-level skills nites
should have quipment
or computer equi to participate in social med i
la. The average person with @ . = Is also uss : a busines
7 strategy to formulate how relationships with customers and potential customers
mpob ;
Should be develaped and maintained.
Risks of using social media Pi rocess
Marketing through social media also has itsits ririsks. These Include: q As a process CRM helps businesses nurture ond manage relationships,
- Wastage of time and money for little or no tangible return
CRM Software
~The rapid spread of the wrong kind of information about 0 :
CRM software Is used to record custamer contact information such as email, telephone, website social media profile,
by you, negative reviews posted by others) Your business (e.g, Incorr ect Information accidentally posted
and more. It can store details such as a client's personal preferences on communications. The software then organizes this
Information to give you a complete record of in dividuals and compantes, so you can better understand your relationship
Over time.

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CRM software improves customer relationship management conversations with customers, =
interactions with the business, and by surfacing the i information needed
tohave The function of an. alytical CRM is to manage the processes of customer
acquisition and retenti
of customer details, This fs heloful for companies
panies thatthat want to collect and anatyze a large
Why is CRM important? amount of .
data.
service users, colleagues, Partners and supptior, The three main functions of an analytica) CRM system are:
CRM helps a business to strengthen its relationships with customers,
+ acquisition and retention. CRM nit,
It is Important for customet Customer acquisition
and also keep track of prospects and customers. stomer’s previaus history with you, the
that can tel you acu
everything in one place — a simple, customizable dashboard Here, the alm is to turn prospects into customers.
status of their orders, any outstanding customer service issues, and more. Customer retention
single largest revenue area of spending in enterprise
Gartner predicts that by 2021, CRM technology will be the Ithelps in keeping current customers happy and coming back for more.
strategy-
software. For forward-thinking businesses, CRM is the framework for that
Managing data
5.7.1. Types
of CRM
It tracks customer interactions and other information that can improve your bettom fine.
(1) Operational CRM The more data your business gathers on consumer behavior and pattems the better you can teilor your marketing and
(2) Analytical CRMs sales strategies to new and existing customers.

(3) Collaborative CRMs Collaborative CRM

This CRM system is designed to improve the customer experience. Collaborative CRM features streamline
communication far all parties, between the customer and your company and between verious departments and
stakeholders. It enables companies to track and share customer data with everyone from vendors and suppliers to tech
support and marketing managers.

Making this information available internally net only strengthens the relationships but also keeps customers happy.
5.7.2 Benefits of CAM
Analytical Cotlaborstve
The benefits and advantages of CRM include:
Fig. 5.7.1 : Types of CRM
L Enhanced contact management : Every call, question or negotiation from prospects and clients is recorded and made
Operational CRM
accessible to the entire team with a centralized contact management system. This gives both sales, marketing, and
An operational CRM assists businesses in managing their day-to-day activitles such as marketing, sales, and customer customer service teams a boost in terms of tracking, pipe progression and client history.
service operations. This fs the mast common type of CRM and is popular among businesses in a wide range of industries.
2 Cross-team collaboration ; A CRM system helps people from different parts ofa business to work together. A sales
‘Some of the operational areas it takes care of are team can collaborate with a product team to produce quotations, while a marketing campaign that generates a lead
— Marketing automation tools allow you to automate your marketing, so that you can more effectively target can help a salesperson to have a more informed, tailored conversation with the prospect.
customers at various stages of the sales process. For instance, an operational CRM initiates a predictable task like
3. Increased productivity : With a CRM, follow-up emails can be auto-generated and tested for effectiveness,
initiating an email campaign whenever a new prospect enters the system
management can easily access the most recent details of a customer meeting, and customer service administrators
Sales force automation is a major component af many CRM systems. This feature help an organization manage can learn the background of a customer without leaving the call.
pipelines, develop leads and acquire new customers. This might Involve automatically trackin m tact and updating
. cantact an 4. Effective sales management : CRM empowers sales managers with data to analyze customer relationships, treck
its status from prospect to qualified lead once he has completed mobilize extra help when needed, and provide teams with real-time
certain actions or met 5] Pecific
she criteria.
‘i sales-related activity, assess deal viability,
Service automation Is designed to provide 2 higher level of customer service, A CRM with ion ca" Updates. All thls improves sales effectiveness.
: i foolvia email, text message, or a phone helpline depending
. on ci to
wit service auto! matio!
vnieeet
provide helpful information easier for sales managers to make
Accurate sales forecasting : A single source of right information makes it much
only creates 3 more consistent customer experience, but it also frees up Your te: enon: breferenets forecast the future through historical data, while
‘aM members to focus 07 more accurate forecasts. Sales teams are able to lea from the past and
pressing tasks. bi ig data to anticipate future customer behavior.
Predictive analytics makes use of Insights from

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6. Reliable reporting : CRM helps get an at-a-glance
- simple to spot it potential proble, ms,
view of its sales pipeline1 makining itgatime :
that would once have bars 5,8 E-business Social Computing
and sort them cut In the Initial stage. Reports improve team productivity
by savingni
spent pulling data manually or laboriously creating pivot tables in spreadsheets.
usiness Is a buz
zword tod; 3¥-
= CRM Its also called online
i way by that rea lly matter. / CR;
7. Improved sales metrics : If you nurture the right prospects in a timely and effici ot eee
inat ‘cient place ordine with the
help of the Internet. busin @5. E-business is a kind
data and reporting systems provide insights into conversion effective lous P'
. ness at various E-business Is an abbrev of business transactions
that take
sellers doing business transactio iation for electronic busine
ns with out actually meeti ss. So there ar
opportunitities @ buyers and
better understands its customers, up selling and cross-selling
i arise ing personally.
business custamer
aIncreased In today’s world, We are exposed to various
8. satisfaction and retention: Having an easily
‘ accessible view
ji of a customer'stor interactions
customer makes
on It forms of e-business. Since its emer Bence in
easier to anticipate issues and deal with complaints. Thisi creates a
and bounds. Some predict that it may very soon 1996, it has grown by jeaps
i
more positive expel rience for who niio Overtake brick and mortar
seen, we cannot ignore the Immense role stores completely. While that remai
ns to be
longer have to move around between departments. it plays in the current global economy.
Since the late 90s, or even
9, Boosted marketing ROI: Effective tracking of customers earlier, the develo,
helps businesses to understand what marketing activities pment of digitalization not only led
campalgns are effective making it easier for marketers to maximize their
and but also in the economy. Since then, the Focus h to major structural chan
2s shifted ta the information s ector. The systematic ees in society
budgets and deliver greater ROI.
collect and utillze information use of technology to
10. Better products and services : A CRM system gathers Information laid the foundations of a so-calle
d “information economy,” in which
from a huge variety of sources. This gives insight achieved through knowledge Superiority. competitiveness Is
Into how customers feel and what they are saying
about an organization. So businesses can im| prove what
they offer,
Spot problems early, and identity gaps. 5.8.1 Components of E-business

5.7.3 Benefits of CRM to Business Functions The core components of e-business are
information, communication and transacti
networks to go thraugh business on. Business partners use digital
Sales teams can use CRM to understand Processes. They use ir nnovative technologies to improve business efficiency
their sales pipeline better by galning access
to reliable information about the areas are pacticularly important for e-busine . Three key
progress of individual team members ss:
in achieving their sales targets and see
how well individual sales teams, products E-procurement
and campaigns are performing too.

Marketing teams can use CRM to make itis concerned with the electronic sourcing
forecasting simpler and more accurate, of products and services by companies
They can clearly see every opportunity which help them in reducing costs
or lead, and map out the and efforts,
whole customer journey fram en: Quiry
to sale giving them a better underst
pipeline or prospective work coming in.
anding of the sales Online stores
Custamer service teams can effecti The most visible part of e-business is
vely track Conversations across online stores. The electronic sale of Products and services takes place via
channels. Without a common platform for appropriate platforms, such as
customer interactions, communications can be missed ar online stores.
lost in the flood of information
response toa valued customer. — leading to an unsatisfactory Online marketplaces
Supply-chain, procurement
and partner management teams
can Manage relationship
This includes electronic commerce which Is done usiny
s better, They can iB digital networks to connect the buyers
Meetings with suppliers and Partne track Products and services, and suppliers of
rs, record requests made, add
uset ul notes, schedule
expected next steps. follow-ups and stay on top of There are also two further areas of e-business:
The HR team can use CRM to acceler Online communiti
ate the recruitment process and track es
employee performance, CRM can
HR function by speeding up the
process of Managi help the
ng ci ‘andidates, analyzing This consists
8aps, and supporting the Pursui resourcing needs and of large number of Individuals who
t of staff retention targets, Identifying skills are prospective customers in this business
. An electronic
communication network Supported by data and knowledge sharing connects
Just imagine, how convenient
it would be to consolidate allthe
these individuals and organizations,
service staff, marketers and social
media and
Streams of data coming from sales teams, Online companies
translate them
into actionable business Information, customer
you manage these streams of Information
across channels without CRM platform lets They are electronic business corporations whlch offer goods and services to the consumers,
traditional Organization and store but present They are like any other
beyond an integrated view, losing tack, and gives sales, service, marketi online on Internet.
ng, and
5.8.2 Market Particlpants In E-business
E-business Can take place between a large number of market participants: Between businesses and consumers,
Yrl0Us private individuals, public administrations, and other organizations such as NGOs,
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ree that has the aim of Improving communication between diffe ferent
Generally, these varlous market participants can be divided into th consumers and suppliers, °
— Business (8) Dep ending iB on whi ch type of value a company decides to pursue, they
can choose one or more value activities - for
— Consumer (C) example thecollection, structuring, pre-selection, summary, or distribution of information.
— Administration {A) sinh market The electronic value creation process involves
the following steps:
a vithin *
or service provider w’
All three categories can play the role of elther buyer Collecting large quantities of Information to Identify data
relevant to the product

5.8.3 Features of E-business Processing the information and transforming it into a product

Some of the features of e-business are as follows: Transferring the final information product to the customer
peating this process wh new information Information products are not static and must
— Itis easy to set up.
be kept up to date.
= There are no geographical boundaries.
Examples of e-business
— Running the business is much cheaper than traditional business.
There are countless examples of different e-business activities, but here is a brief selection.
— There are flexible business hours.
The e-procurement sector is an important part of e-business. It includes the follawing activities:
Implementing marketing strategies cost less to the organization.
Implementation of a computerized (application-based) purchasing system that supparts the whole procurement
Ontine business receives benefits also from the government.
process, such as checking stock availability and handling the order and payment
Acomprehensive IT infrastructure takes care of security and integrity issues.
Constructing and operating an online marketplace for products and services
There Is no personal touch and therefore no personal biases.
Integrating various electronic supplier catalogs into its own Enterprise Resource Planning (ERP) system to support
Buyer and seller don’t meet personally, which saves time. procurement, warehouse management, order processing, production management, and logistics
Delivery of products takes time although the logistics have vastly improved. The e-commerce sector includes the following activities:
— There is a transaction risk involved although security system Is continuously being Improved.
Designing and maintaining an Internet presence and an online store which includes products or services accessible
—. Anyone can buy anything from anywhere at anytime and for anyone. A person can buy something for other and can from anywhere at all times, multiple payment options, automatic e-mail notifications on orders, and customer
get(t delivered at his address. support (live chat, hotlines, or help centres)

5.8.4 Function of Electronic Business. Developing and provisloning additional content, such as an informational blog or comparison portal
The most important function of electronic business is to create electronic Expanding online marketing and targeting advertising to customers, for example by using big data from cookies,
value. The forms of electronic added value
are usually distinguished In the following way: Purchase behaviour, and customer data
Structuring : it means making avallable an 5.9
overview of a large quantity of Information E-Commerce or Electronic Commerce
onli
online.
Selection: |t means providing specifici database Inform ation upon
request by th e users/
customers E-commerce is a popular term for electronic commerce or even Internet commerce, The name is self-explanatory. E-
~ Matching : This function makes it possible to match the Inqulries don commerce is the meeting of buyers and sellers on the internet. This involves the transaction of goods and services, the
by supplier so that buyers make up their mind, e by
¥ the customers with the product offers eve"
transfer of funds and the exchange of data.

Examples of e-commerce
choosing the appropriate payment methods.
Coordination ; This function adds value to the product by Amazon

product/services Filpkart

eBay
Fiverr
‘Teck Macnledya
Pewliterions

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Soclal Computin MistIS(MU) 5-18 Social Computing
we mis(Mu) Better sales : Ani| Improved supply chain management process along
with collaborative
i approach Increases customer
loyalty which in turn leads to Improved
— Upwork sales,
_ Lower cost : Due to an effective supply chain management process, thls model
- ON leads ta lower cost of business.

- Quikr e-commerce transaction, Here You Data-centric model : Another advantage Is that it relies on effective and factual data to streamline
the whole process,
ssici exam le of an In this way, errors can be avoided and proper
forecasts can be done.
> nae text, address for delivery etc. and then you make
Logging into your Amaton app and purchasing 1 res,
Interact with the seller (Amazon), exchange data in the form of pictul Disadvantages of B2B model
the payment.
och ‘onomy. As per Oo! ne estimate, Htit Brows - _ Umited market : Compared to B2C model, this business model has limited market base as it deals in goods that sult
Asof now, e-commerce Is one af the fastest grawing. industries in the wlobalecf this decade. other organizations,
end of
nearly 23% every year. And It is projected to be a $27 trillion industry bythe
Lengthy decision : Here, majority of the purchase decisions take a lengthy process. The process is lengthy generally
5.9.1 Advantages of E-commerce because of the Involvement of multiple stakeholders and decision makers.
and buyers
They remove the geographical barrier. Now sellers
— E-commerce provides the sellers with a global reach. Inverted structure : Compared ta other models, here, the buyer has more bargaining and decislan making power than
can meet in the virtual warld, without the hindrance of location. sellers. This may demand customizations and lower price rates
costs that are required in
= Electronic commerce substantially lowers the transaction cost. It eliminates many fixed Marketing challenges : 828 companies face significant marketing challenges in camparison to B2C as digital marketing
maintaining brick and mortar shops. This allows the companieto s enjoy a much higher margin of profit.
is specially challenging. Social media is mostly used to promote B2C_
are also
It provides quick delivery of goods with very little effort on part of the customer. Customer complaints 2. usiness to Consumer (B2C)
addressed quickly. It also saves time, energy and effort for bath - the consumers and the company.
BusIness to consumer e-commerce alsa known as B2C model is the most popular e-commerce model. In this model,
One other great advantage is the convenience it offers. A customer can shop 24x7. The website is functional at all
goods and services are directly sold to Individual customers over the internet. The internet users can use the shopping cart
times, it does not have working hours like a shop.
for everything they need. Payment is mostly done through anline payment options.
Electronic commerce also allows the customer and the business to be in tauch directly without any intermediaries.
This allows for quick communication and transactions, It also gives a valuable personal touch. Most internet users are familiar with the B2C model. The model offers easy steps to the consumers to buy just
anything. Customers these days prefer this model as they get a lot of products in varying ranges at one place along with
5.9.2 Types of E-commerce Models different kinds of offers. Apart from that, the consumers don’t have to physically visit the stores.
Electronic commerce can be classified into six major categories. The basis for this simple classification For business organizations, this model offers a lot of advantages and allows them to cater to a huge market where
is the parties
that are invalved in the transactions. Here, the two most basic electronic
commerce models given: customers are available with varying needs and demands.
1. Business To Business (B2B) Advantages of B2C model
Business to business model is more popularly known as B28 model.
It is the largest e-commerce model based on This model provides the sellers with a huge market in the form of glabal reach.
revenue and involves transactions of trillions of dollars. in this fodel
both - the buyers and seers - are business
organizations. Electronic commerce substantially lowers the transaction cost which allows the companies to enjoy a much higher
B2B describes commerce transactions between businesses,
such as between a facturer and 4 margin of profit.
Ra

wholesaler, or between a wholesaler and a retailer

or between two manufa turers. The main ai me i 1 is to
Increase business efficlency and revenue of the retailers, aln aim of this made! "provides quick delivery of goods with very little effort on part of the customer.
The volume of B2B transactions is much higher than the Itsaves time, energy and effort for both the consumers and the company.
1

volume828of transact
reason for thisis i is that in a typical supply chain there will be many transactio ns of any other model, The prima’ ry
A customer can shop 24x7; the website Is functional at all times.
materials, and only one B2C transaction, specifically sale ofthe finished brodict ens Involving sub components of f¥
fo the end c1 Electronic commerce also allows quick communication and transactions
between buyers and sellers.
Advantages of 82B model ‘ustomer,

— Better market prediction : Compared to ather business Strateg

Challenges otp2c
ie
strengthen
rH the online pi presence and bi usiness opportunities,
i *: thls model has more ps 10
market stability. This help: High consumer traffic often becomes a big problem as It slows down the searching process,
Alot of consumers are hesitant to submit their personal data to websites due
to safety reasons.

1 feataraneys

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Soclal Com iting vw MIS(MU)
5-19 — 520 Social Computing
mis(Muy The costs of the company are
ral, Customers 5 hift to a different on}; ne
also reduced. This is due to the
streamlined processes, low transaction cost, |
Customer retention is a big challenge as there is no customer loyalty in gen®! carrying cost and low order processing cost as well
ickly. pisadvantages of M-commerce
stora.quichiy of nly when such offers are
customers to buy
— Fi
The promotional offers and discounts have developed a habit i in the most of the B2C companies are
"
to malntaln i
profitability. AS of now, - Thee xistingiB technol‘logy to set up an m-commerce business is very expensive, It has great start-up costs and many
present. This puts pressure on the companies
complications arise,
suffering losses.
In many countries, the networks and service providers are not reliable. It is nat
the most suitable for data transfer.
5.10 Mobile Commerce (M-commerce) a,
There Is also the Issue of security. There are many concerns about the safety of the customer’s private information,
merce Is the use of
M-commerce is a kind of e-commerce transaction done with a mobile phone. So M-com mobile and the possibllity of a data leak Is very daunting.
phones to conduct any type of business transaction. It takes the help of the e-commerce background and WAP technology,
The use of wireless technology (WAP) to conduct sales of gaods, provide services, make payments and other financial
transactions, the exchange of infarmation, etc. is the basis of mobile commerce
Answer the following questions in short
M-commerce is actually a rapidly growing sector of e-commerce. Nearly 70% of the online transactions that occur in
What is soclal computing? (Refer section 5.1.1)
india happen from mobile phones. Globally, it is a 700 billion dollar industry.
oD

Give some examples of SC, (Refer section 5.1.1)

M-commerce is about exploiting new opportunities made available to us thanks to e-cammerce. So it involves the
State the benefits of social computing. (Refer section 5.1.2)
advent of new technologies, services, business models and marketing strategies. It differentlates itself In many ways from
HP HH

e-commerce. This is because mobile phones have different characteristics than desktop computers. It has opened so many What is WWW? (Refer section 5.2)
windows of opportunities for businesses
to exploit. Define web 2.0 (Refer section 5.3)

What are the key aspects/components of web 2.0? (Refer section 5.3.1)
5.10.1 Applications of M-commerce
HHP

What Is blog? (Refer section 5.3.1}

Other than the straightforward m-commerce transactions of buying and selling of goods and services, they have so
many applications. Let us take a look at a few examples. What are the features of web 2.07 (Reter section 5.3)
DBP

Define web 3.0 (Refer section 5.4)

— Mobile banking : Usinga mobile application you can perform all your banking functions, {t is one step ahead of online
banking and has become commonplace these days. For example, in India, there is substantial increase in banking What Is semantic web? (Refer section 5.4.1)
transactions happening cn mobile phones. What Is the use of social computing in shopping? (Refer section 5.5)
2770

— Mobile ticketing and booking ; Making bookings and recelving your tickets Deserlbe the major categories of social shopping. (Reter section 5.5.1)
on the mobile has become very common
today. The digital ticket or boarding pass Is sent directly to your phone after you make
the payment. Even in India, What are the benefits of soclal shopping? (Refer section 5.5.)
IRCTC and other services pravide m-ticketing services.
What is social marketing? (Refer section 5.6)
PPeHR

— _ Eblills ; This includes mobile recharge, electricity, water, gas and many more bills which
are easily pald today using Name some key social media service providars along with their contents. (Refer section 5.6)
mobile phones.
Qefine CRM, (Refer section 5.7)
~ _Auetlans : Online auetions have row been developed to be made available va
mobile phones a s well,i What ls CRM software? (Refer section 5.7)
— Stock market reports and even stock market trading takes place over mobile
applicatio: ns.
Describe e-business (Refer section 5.8)
PPP

5.10.2 Advantages of M-commerce

Describe e-commerce (Refer section 5.9)
— It provides a very convenient
and easy-to-use system to conductbusiness transact Describe mobile commerce. (Refer section 6.10)
lons,
— Mobile commerce has a very wide reach. A huge part af the world's Population ha Answer tha following questions In detall
S am so
the sheer size of the market is tremendous. ‘obile phone in their pocket.
a Describe how social computing Is beneficial to organ: izations. (Refer section 5.1.3)
- M-commerce also helps businesses target customers according to their location, servi
. ce 2. Waite the core principles and advantages of Web 2.0 (Refer section: 3 5.3.2 and 5.3.4)
they use and various other criteria, This can be a good marketing tool, ‘S¢ provider, the type of dev lc
i rit

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a

Social Computing
MIS(MU) 5-21

|
Describe web 3.0 with its features (Refer section 5.4.1)

What is the significance of social computing in marketing? Explaln. (Refer section 5-62)
Describe the benefits of CAM. (Refer sectlon 5.7.2)

|
Explain different types of CRM with exarsples. (Refer section 5.7)
Descnbe the features and Junctions of e-businass. (Refer sections
5.8.3 and 5.8.4)
Computer Networks _
Describe the advantages end disadvantages of e-commerce (Refer section 5.9)
Describe B28 and B2C madels wih their respective advantages. (Refer section 8.5)
(Refer sections 5.10.1 and 5.10.2)
‘What are the applications and advantages of mobile commerce?
Gao Syllabus

Wired and Wireless Technology, Pervasive Computing, Cloud Computing Model

6.1 Introduction

Information technology has made a huge impact everywhere be it the life of a person, society, organization or a
nation. |T began with the development of computers. Till 1950, computer was mainly used in industries to control different
Ae

Industrial processes. With the advent of micro computer, it started making an impact everywhere. After 1990, the growth
picked up pace and microprocessor started changing the whole camputer industry. Then came the biggest revolution inthe
form of camputer network particularly of micro computers.

The rest is an impactful history. The grewth and development in computer network, computer hardware and software
at

have been phenomenal. We are living in an era where we cannot imagine our life without these networks. We are part of

this network on 24x7 basis. There is hardly any area of our life where IT doesn’t have a role to play. You have already learnt
HLSa Wh NI,

about it In the previous chapters. Businesses around the world not only use IT systems but also are constantly upgrading
the entire IT infrastructure to make more Impact in the business world.

This chapter Is about computer network and its basies. Your understanding of information system Is nat complete
without adequate understanding of this IT system that provides the backbone to [S.

61.1 What Is Computer Network?

A computer network is simply an Interconnection of two or more computers. The purpose Is to exchange Information
with each other electronically and within no time. A computer network Is now easy to set up just anywhere whether it is

Your home, office or a factory.

factors
The development of computer network has erased distance between two places. One of the most important
4 behind globalization has been computer network, Millions of computer networks exist today in this world. They exist
®verywhere- on land across the world, In water, in space.
, Businesses have become dependent on computer network for improving thelr effectiveness and efficiency.
An

better equipped with IT Infrastructure has taken edge In this highly competitive business world.
organization
:
:

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; 63 Computer Networks
ww MIS(MU) The initial cost of setting up a computer
netw
to the cost,
adds ork Is high and there is continuous upgradation required which further
It provides a platform for people to also Spread
he governments
wron| & News and rumors easily causing a trouble for the soctety and
the

Applications of Computer Netw

6.3 ork
Computer network Is nowadays used almost everywhere, It has numerous applications. Some of them can be
categorized In the following ways:

1 Business : !t has many applications in business such as

(a Sharing information, programs, files, software and resources like hardware by employees and branches located at
Fig. 6.1.1 ; Computer Network distant places.

6.1.2. How does a Network Work? (©) The employees can access the organization's remote database during their day-to-day operations. This benefits

networking them In taking right decisions, handling a problematic situation or availing an opportunity.
Acomputer network Is first set up by bringing two or more computers together. The computers use some
devices and a physical medium ta get connected with each other. The networking devices could be network interface ( Organizations promote e-business and e-commerce with the help of computer networks.

cards, modems, routers, switches, ete. and the physical medium may be wired or wireless, Then a special software called (d} Organizations are able to Integrate all tkelr operations with the help of computer network, which improves their
protocol is used to ensure communication between two computers, The camputers then get connected and exchange of overall effectiveness and efficiency.
messages and information takes place. (e) IT-enabled services have prospered very fast during last two decades mainly to better communication systems
and computer networks.
6,2 _ Advantages and Disadvantages of a Computer Network
Education : Because of computer network, today education system has changed a lot. A student can search for the
: Advantages right institution for admission, apply for admission and then take admission even without actually visiting the campus
1. Computer network helps people exchange and share messages and information at a fast speed and at a fraction of the personally. Online course allow students to attend classes from their homes and appear in online tests too. A
cost. computer network offers them vast amount of reading material for studies.
It provides 2 medium of communication to the people in different forms such as text, graphics, voice and video. Onlime banking : People today don’t require to visit their bank branches every now and then or carry ¢ash in their
M

3. It acts like a centralized information system that people and organizations use to access informatian of all kinds from pockets all the time. Online banking allaws people to pay hills, book tickets and transfer money at the click of a
anywhere and anytime. Mouse. It not only saves time for people but also promotes cashless transactions which boost the ecanomy.

4. It provides security and confidentiality to the Information stored in it which otherwise is very difficult Social media has been a great revolution and the credit goes to computer networks
on a stand-alone
machine.
Communication ; Computer network has brought a huge change in the way we communicate with others. Today, we
tthelps users across the world to share and develop software and applications.
Can communicate with others present anywhere In the world using text, vaice calls ar videa conferencing.
w

8. It also provides sharing of files and hardware devices by different users.

It Saves cost of using multiple devices. For
example, a printer in an office is shared by many computers.
64 Network Components
7, It connects people and organizatlons located anywhere in the world, 4 Hardware devices
Disadvantages (a) Server : A server is the most powerful computer in a network. It performs many functions such as —
1
(1) ” acts. as a medium to interconnect two users. Recelves message from one and then forwards it ta the other
Acomputer network may break down ceusing all the work activities ta
stop.
2 There Is always a security threat. Hackers are active and always user access data of
try to steal Informati on 0 take control of a network of (ii) Acts as a centralized database system and stores user's data and Infarmation and lets a
computer.
hls cholce by giving the required authority.
users to get access to the data and
Pravides data security and confidentiality by nat allowing unauthorized
3. Destructive programs like virus and malware put the data and information in
danger, (li)
damage.
Information, Also recovers data in case of loss or
‘Tech Manele

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om

9 _MisiMu)
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ch anges also If required and bein — 55 Computer Networks
epl piec' ¢ of informatio
B hardware device like printer, software like an application program, or
[iv) Allows many users to share
the sam
varlous devices in LAN are connected to central devices call data. The size of LAN I
done by an authorized user. pyauserto perform different tasks. A user may or May nop ‘ed hub or switch using a cable. stray sal Te
puter used bY Nowadays LANs are being installed
using wireless techi indlogies, Such
al purpose com a system makes use of access point or APs to
(b) Cllent/Node: It Is a gener transmit and recelve data. One of the computers in a network
can become a server serving all the temaining computers
=z

choose to store his data on hisnode. es used bY computers to transfer data and
us hardware devic called cients.
Network devices: Network devices ices 3 re
are varial a, Suite es, Router, Modems, Ethernet, etc, We wil
( For example,
ple, aa lilibrary can have a wired or wireless LAN network for users to interconnect local networking devices
these de
2

programs to eac h other. Some of

eg., printers and servers to connect to the internet.
discuss them in the next section. signal transfers from one computer
dium t hrough which a data LAN offers high speed communication of data rates up to 100 megabits
are the physical me per second (Mbps). !EEE, which creates LAN
(d) Communication media: These wired and wireless. The wired medium wires for
i in two categories —
to another. These media mainly fall in «air ag the medium
oe ane standards, is working on Standardization of 100 Giga bit/s. LANs Network may have connections with other
of communication. We will discuss them in the
interconnection while wirel
less medium use: LANs Network via leased lines, leased services.

following sections. Types of LAN

2 Software There are basically two types of local area networks namely: ARCnet and Ethernet
computer.
essential componentof each
Software, as you know, Is an ARCNET is one of the oldest, simplest, and least expensive types of local-area network protocol, similar in purpose to
operating system ll ke Windows 10 server is used on the server. It controls Ethernet or Token Ring. ARCNET was the first widely available networking system for microcomputers and became popular
(a) Network operating system : + Anetwork
all the functions of a server. in the 1980s for office automation tasks. ARCnet was introduced by Datapoint Corporation in 1977. The specification is
system Installed. ANSI 878.1. It can have up to 255 nodes per network.
(b) Local ope! rating system : On every node, there is an operating
Ethernet Is a family of computer networking technologies.
for local area networks commercially introduced in 1980.
protocol is required. The protocol defines the network
(ce) Protocol : For 2 network, a separate sof ftware called
Standardized in IEEE 802.3, Ethernet has largely replaced competing wired local area network technologles. Ethernet uses a
architecture. It describes the stepsof data tra nsmission between two computers. There are many protocols In
bus or star topology network and supports data transfer rates of 10 Mbps.
on a standard networ
different computer networks but the most common is called TCP/IP. It is based
Ethernet network uses the CSMA/CD access method to handle simultaneous demands. It is ane of the most widely
architecture mode! called OSI, which describes the structure of a network. Implemented LAN standards. A newer version of Etnernet network, called 1008ase-T (or Fast Ethernet), supports data
transfer rates of 100 Mbps. Ethernet is a physical and data link layer technology for local area networks (LANs).
6.5 Types of Network

On the basis of distance, computer network has been divided into three types
1. Local Area Network (LAN)

2. Metropolitan Area Network (MAN)

3. Wide Area Network (WAN)

Local Area Network

Fig. 6.5.1 : Types of Network
Fig. : 6.5.2: LAN
1. Local Area Network (LAN)
2 MAN (Metropolitan Area Networks)
A Local Area Network is a privately owned computer n office
2 home It Is one of the types of network, MAN Is larger than a local area
or groups of buildings, e.g. a school Metwork. etwork covering a small geographical area, like MAN stands for Metropolitan Area Networks.
A LAN Is devices 7 and frequently
.
that the devices can communicate with eath other t
usec to connect the computers and other netwo rk Network and as Its name implles, covers the area of a single city. MANs rarely extend beyond 100 KM
ta comprise of a combination of different hardware and transmission media. It can be a single network such as a cable
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Organizations SUPPorting WANs Using th
TV network, or It is a means of connecting a number of LANs into @ larger netwark 50 ered
Intern
LAN to LAN as well as device to device.
form the core of the internet, t Protocol are known as Network Service Providers (NSPs). These
ring the entire city or 2 Broup of several
as cable TV network, covel
A MAN can be created as a single network such WP wy, WANS together using
r also, By connecting the Nsp
Local Area Networks (LANs). In this way, resource can be shared from LAN to LAI
Nand from computer to compute ing lilinks at Internet Packet interch
across acity. aglobal communication infrastructure i ‘peering points")
its various branches
MANs are usually owned by large organizations to interconnect WANS (wide area netwo
is formed,
is
MAN is based on IEEE 802.6 standard known as DOB (Distributed Queve Dual Bus). paoe uses two unidirectional rks) generally utilizediffer
en:
{Local Area Networks). Key tech t and much mare expensive networking equipment than do LANs
3 specialized device that initiates the
cables (buses) and all the computers are connected to these two buses, Each bus has on the right hand side of the
nolo, Bles often found iin WANs (wide area networks) include SONET, Frame Relay,
and ATM,
the computer
transmission activity. This device is called head end. Data that is to be sent to
to the left hand side of the sender is transmitted on lower bus.
sender is transmitted on upper bus. Data that is to be sent
The two most Important components of MANs are security and standardization. Security Is important because
is necessary to ensure reliable data
information is being shared between dissimilar systems. Standardization
communication.
A MAN usually interconnects a number of local area networks using @ high-capacity backbone technology, such as
fiber-optical links, and provides up-link services to wide area networks and the internet.

aA
a
~\ ey
6.6 Computer Network Architecture

Computer network architecture is defined as the physical and logical design of the software, hardware, protocols, and
Network2 media of the transmission of data. Simply, we can say, that is how computers are organized and haw tasks are allocated to
the computer

MAN
The two types of network architectures are used
Peer-To-Peer network

Fig. 6.5.3 : MAN Client/Server network

Wide Area Networks (WAN) Types of

computer network
4 wide area network {WAN) is a telecommunication network. A wide area network is simply 3 LAN of LANs or network
of networks. WANs connect LANs that may be on opposite sides of a building, across the country or around the world.
WANs are characterized by the slowest data communication retes and the largest distances, WANs can be of two types: an Peer-to-pect
network
enterprise WAN and global WAN.
types
Computers connected io wide area networks are often connected through public networks,
i,
such as the
as the
telephone Fig. 6.6.1 : Network architecture
system, They can also be connected through leased lines or satellites. The largest WAN In existence isis the internet. Some
the internet.
segments of the internet, like VPN based extranets, are also WANS In themselves. Finally, G many WAN: Is are corpora’ te oF
8.81 Peer-To-Peer Network
are linked together with equal privilege and
research networks that utilize leased lines. network is a network In which all the computers
+ eer networl
Peer-to-p
Tesponsibilities far processing the data.
tfumerous WANs have been constructed, including public packet networks, 7 large corporate networks,
ks, mi military up to 10 compute:ters.
for small environments, usually
networks, banking networks, stack brokerage networks, and airline reservation networks. Peer-to-peer network is useful

Tock Kas ieeye

Peoneaiett

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It also Increases the speed of the sharing resources,
Peer-To-Peer network has no dedicated server. If the
r for sharing the resources,
but this can lead toa problem pisadvantages of client/server network
= :
Special permisslons are assigned to each compute
~ Client/Server r network Is expensive as it requires a server with large memory.
computer with the resource Is down.
- A server has a Netwoy <i
Advantages of peer-to-peer network wieh "k Operating System (NOS) to provide the resources to the elients, but the cost of NOS Is very
ign.
— Itisless costly as it does not contain any dedicated server.
_ Itrequires a dedicated network administrator
to manage all the resources.
working,
— \fone computer stops working other computers will not stop

— itis easy to set up and maintain as each computer manages: itself.

Disadvantages of peer-to-peer network

system. Therefore, it cannot back up the data
= Imthe case of Peer-To-Peer network, it does not contain the centrallzed
_as the data |s different
in different locations.
= Whasa security Issue as the device is managed Itself,

Gy—Gl
J | \
Gl\ Gs4 1
Fig. 6.6.3 : Cllen/Server network

6.7 _ Network Topology

|
Network Topology is the way in which computer systems or network devices are connected with each other.
Topologies may define both physical and logical aspect of the network. Both logical and physical topologies could be same
Fig. 6.6.2 : Peer-to-peer netwark
or different in a same network.
6.6.2 Client/Server Network There are many topologies. Some are discussed below:

-— Client/Server network is a network model! designed for the end users called clients, to access the resources such as
6.7.1 Polnt-to-Point
songs, videos, etc. from a central computer known as server.
— The central controller is known asa server while all other computers in the network are called elients, Point-to-paint networks contain exactly two hosts such as computer, switches or routers, servers connected back to
back using a single piece of cable, Often, the recelving end of one host is connected to sending end of the other and vice-
— Aserver performs all the major operations such as security and network management,
versa,
— Aserver is responsible for managing all the resources such as files, directories, printer, etc,
Data flow
— All the clients communicate with each other through a server. For example, if client 1 wants d data to
sends the res lo sen om jataee
i server for the permission. The server
*
cllent 2, then it first sends the request to the
Ponse to the clie
to initiate its communication with the client 2. Fig. 67-4
Advantages of cllenVserver network
§7.2 Bus Topology ;
— Adiient/server network contains the centrallzed systern. Therefore,
we can back Up the ata easily.
problem while
In case of bus topology, all devices share sin} gle communication line or cable, Bus topology may have
— Actient/server network has a dedicated server that improves the overall perfo bus topology either uses CSMA/CD technology or recognizes one
Tmance of the whole system. ™ultiple hosts sending data at the same time, Therefore,
— — Security is better In client/server network as a single server administers the shared res, ources, host as bus master to solve the Issue. It Is one of the simp le forms of networking where a failure ofa device does not affect
the other devices, But failure of the shared communication
line can make all other devices stop functioning.

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Fig. 6.7.2 : Bus Topology Fig. 6.7.4 : Ring Topology
Is sent In only one direction and as soon as it reaches Failure of any host results in failure of the whole ring. Thus, every connection In the ring is a point of failure. There are
Both ends of the shared channel have line terminator. The data
the extreme end, the terminator removes the data from the line. methods which employ one more backup ring.

6.7.3 Star Topology 67.5 Tree Topology

connection,
All hosts In star topology are connected to a central device, known as hub device, using a point-to-point Also known as hierarchical topology, this is the most comman form of network topology in use presently. This
can be any of the following:
That Is, there exists 2 point-to-point connection between hosts and hub. The hub device topology imitates as extended star topology and inherits properties of bus topology.

— Layer-1 device such as hub or repeater This topology divides the network ito multiple Jevels/layers of networks. Mainly In LANs, a network is bifurcated Into
three types of network devices. The lowermost is access layer where computers are attached. The middle layer is known as
— _ Layer-2 device such as switch or bridge
distribution layer, which works as mediator between upper layer and lower layer. The highest layer is known as core layer,
Layer-3 device such as router or gateway and is the central point of the network, Le. raot of the tree from which all nodes fork.

Fig. 6.7.3 : Star Topology

As in bus topology, hub acts as single point of failure. If hub falls, connectivity
of all hosts to all other hosts fails.
communication between hosts, takes place through the hub only. Star topology Every
is n expensive as to connect Fig. 6.7.5 ; Tree Topology
host, only one cable Is required and configuration Is simple. one more
e
6.7.6 Hybrid Topology
6.7.4 Ring Topology
in ring topology, each host machine connects to exactly two other A network structure whose design contains more than one topology is said to be hybrid topology. Hybrid topology
m, ach
When one host tries to communicate or send message to a host which i
s not hy Creating a circular network structure- inherits merits and demerits of all the incorporating topologies.
Intermediate hosts. To connect one more host in the existing structure,
he
t sem {0 it, the data travels through all
cable,
‘ MStrator may need only one more extra

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Ww MIS{MU) Routers I :layerA router js 4 do -
5. dew device like a switch that routes data packets based cn thelr IP '
addr sses. Router Is mainly a j
network layer device. Routers narmally connect LANs eee :
ri

table based on which they make decisions on routing th

and WANs ti
fogether and have 3 dynamically updating routing
connected through h, g the data packets. Router divides broadcast domains of hosts
cE
a

6 , svferent
Gateway networkin
: A gateway, as. the name name suggests,
st , |is a passage to connect two networks together that may work
a
orm
;

upon
i vrenser te i Models. They basically work as the messenger agents that take data from one system, intergret
Sas -B it , and tra 10 ai nother system, Gateways are also
called protocol converters and can operate at any network
layer. Gateways are generally more complex than switch or router,

Switch 2

=
Fig. 6.7.6 : Hybrid Topology

of star, ring and bus

The above picture represents a hybrid topology. The combining topologies may contain attributes
are mostly star
topologies. Most WANs are connected by means of dual-ring topology and networks connected to them
topology networks. Internet is the best example of largest hybrid topology
6.8 Network Devices
In a network, many devices other than computers are used. They play significant roles in network communication.
Following are the common devices:
1 Repeater: A repeater operates at the physical layer, its job is to regenerate the signal aver the same network before
Fig. 6.8.1 : Network devices
the signal becomes too weak or corrupted so as to extend the length to which the signal can be transmitted over the
signals aver analog telephone lines. Thus,
same network, An important point to be noted about repeaters is that they do not amplify the signal, When the signal 7. Modem : Modems (modulators-demodulators) are used to transmit digital and transmitted to a modem at
Into analog signals of different frequencies
becomes weak, they copy the signal bit by bit and regenerate it at the original strength. It is a 2 port device.
digital signals are converted by the mod jem a cigital output to 2
g modem perform s the reverse transformation and provides
Hub:A hub is basically a multiport repeater. 4 hub connects multiple wires coming from different branches, for the receiving lacation. The receivin
data ts usually transferred to or from the modem over
3
device connected to a modem, usually a compucer. The d igital for
example, the connector In star topology which connects different stations. Hubs cannot filter data, so data packets af many cable operaters use modems as end terminals
serial lIne, Many telephone companies offer DSL services: 27
\d
sent to all connected devices. Also, they do not have intelligence to find out best path for data packets which leads tO
personal users.
inefficiencies and wastage. Identification and recognition of home and
ion. An AP
either a wired or wireless connect
(AP ) is a wireless device involved In
oni
Bridge : A bridge operates at data-link layer. A bridge is a repeater with add-on functionality of filtering content bY & Access point : An Access Point wired network to wireless devices
or as a router passing data
connec ting a stan dard
Operates either as a bridge
ss point to another
reading the addresses of source and destination, It is also used for interconnecting two LANs w ki iE on
‘orking the the same
output port, thus making ita 2-port device. transmissions from one ace: create a Wireless LAN
protocol, it has a single input and single ceiver | transceiver) dewice used to
i cof a transmitter and fe: with a built-in antenna, transmitter and adapter. APs
Points (WAS) cont re device: 5
Switch : A switch is a multi port bridge with a buffer and a design that can boost irs efficiency (large ber ofo| ports
number Wireless Access ically are separate Networ ‘ed Ethernet
before forwarding data that makes It VY (WLAN). |. Access points typically between WLANs and a wir
imply less traffic} and performance, Switch can perform error checking selectively to c at : _ S ' mode f0 P rowikSai ne nat paint
ide a cannection
4 to support additional clients, Depending
on
that have errors and forwards good packets Use the wireless infrastructure network
efficient as it does not forward packets ‘orrect port only- LAN. They also have several ports, giving YOU a way 10 Exe.
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AP is This n 35 become very pogul
access to more wireless clients and to expand the range of the wireless network. Eact ironme
lon 31 nowadays due to easy setup features and no cablin 8 involved, You can connect
| conditions bety; computers anywhere in Your home withous the need for wires
an \d environmental en
range. The actual distance depends on the wireless standard, the obstructions The two main components
are wireless router of access
the client and the AP. paint and wireless clients,
Wyo 1 want to ser
SP any wired wetwori,y you just need
ta get a wireless router and attach ito cable or DSC modem.
You then set Up wireless client by adding wirsless
card to each computer and form a simple wireless networt. Wireless
router of access INS. sho
points should be install,
ed Ina way that man mizes coverage as well as throughput. Larga areas usually
require more than one access point in order to have ad
equate coverage. Yau can also ad¢ an access point to your existing
a 7 wireless router to improve coverage
| Repeater | Bub : Bridge Switch
Wireless operating mode

The |EEE 802.11 standards specify two Operating modes: Infrastructur

e mode and ad hoc mode.
ae: | SS are Infrastructure mode is used to cc: NeCt COMBUtETs with wireless network ada}
ters, also known as wireless clients, to
an existing wired network with help from the wirall SS router cr access point.

| Router Gateway Modem | Access Point Ad hoe made Is used to connect wireless clients dirsesiy together, without the need for a wireless router or access
point. An ad hac netwark consists of up to 9 wireless clients, which send their data directly to #ach ather.
Fig. 6.8.2 : Shows different network devices
Benefits of a wireless network
6.9 Wired and Wireless Network
Convenient to use : You can access your network resources from any fecation within your wireless nétwork’s coverage
6.9.1 Wired Network area or from any Wi-fi hotspot.

Awlred computer networkis a traditional network of computer and other devices connected \mproves mobility : When you have a wired connection you're not tied te your desk. You and your employees can go
with each other through
cables of one or another kind such as co-axial, twisted pair or optical online In conference room meetings, You can pertorm every job while you are on the move.
fiber, Though in Computing terminology, the term
“wired” [s used to differentiate between wireless connections
and those that involve cables. Increases productivity : Wireless access to the Internet and to your company's key applications and resources helps
A wired network is a common type of wired configuration your staff get the job done and encourages collaberatian.
. Mast wired networks use Ethernet cab! es to transfer data
between connected PCs. in @ small wired network, a single
router may be used to connect all the computers. Easy ta set up : You don't have to use cables, so Installauan can be quick and cost eMective. |t's ke plug and play.
Larger
networks often involve multiple routers or switches that connect
to each other, One of these devices typically connects to
3 cable modem or cther type of internet connectian that Expandabillty : You can easily expand wireless networks with existing equipment. whereas a wired network might
provides internet access to all devices connected to the
network. require additional wiring.
While most of the networks are now wireless, some users stlll prefer wired devices, since they have a few benefits
Over their wireless networks. For example, 2 wired connection Is not prone to signal interference that can Security : Advances In wireless networks provide robust security protections,
slaw down Wi-
Fi connections. Additionally, wired network connections
are often faster than wirel SS Ones,
which allows for faster data ~ Cost : Because wireless networks eliminate or reduce wiring expenses, they can cost less to operate than wired
transfer rates.
networks.
Setting up a wired network requires network components
and architecture that we have
sections. So, here our focus will be more on learning about
already discussed in above 8.10 Transmisslon Medla
wireless network.

6.9.2 Wireless Network {n network communications, a transmissian medium is a physical connection between two computers.

Wireless network is a computer network set up using electromagne There are two major categories of transmission media:
tic waves w:
communicate among computers and other network devices. orking at radio signal frequency 1° Guided or wired
Sometimes it’s al Se Feferred to as Wi-Fi network
wireless local-area network connects devi or WLAN. A
ces such as laptops and mobile Phones to the Unguided ar wireless
internet and t © your busin
bu ess
network and its applications. When you connect to a Wi-Fi hotspot at a cafe,
@ hotel, an alrport lounge, her public
place, you're connecting to a wireless network, " OF another Pp

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3, Optical fibres r
6.10.1 Gulded Transmission Media
Optical fibre transmits signals in the
(tisi mainly of three types: form of light waves, These cables are well-sulted for voice, data and vid
This medium uses cables to connect devices with each ather. transmissions. Optical fibre is the most secu
@ of all the cable media. Installation and maintenance
costly. are difficulti and
ane
1. Twisted pair cables stly. Fibre ptic optic cables have greater utransmission speed, high
inly i i: bandwidth, and the signal can travel longer distances,
Twisted pair cables have been around for a Jong time. They were mainly invented for _ice sitransmia i
Using when compared to coaxial and twisted pair cables.
in lighter,
it is lig! cheaper, more
telephones. Twisted pair is a widely used medium in networking, particularly in LAN as
flexible, easy to install and provides greater speeds than coaxial cables.
Types of twisted palr cables

Unshielded Twisted Pair (UTP)

Shielded Twisted Pair (STP)

Fig. 6.10.3 : Optical fiber

6.10.2 Unguided Transmission

An unguided transmission transmits the electromagnetic waves without using any physical medium. Therefore it is
also known as wireless transmission. in unguided media, air is the media through which the electromagnetic energy
can flow easily,

Fig. 6.10.1 : Twisted palr Unguided transmission Is broadly classified into three categories:

2. Coaxial cables (a) Radio waves

_ The coaxial cables have a central copper conductor, surrounded by an Insulating layer, — Radio waves are the electramagnetic waves that are transmitted in all the directions of free space.
a conducting shield and the
‘outermost plastic sheath. Thus, there are 3 insulation layers for the — Radio waves are omni directional, Le. the signals are propagated in all the directions.
Inner copper cable. There are two basic modes of
data transmission in coaxial cables: baseband mode that has dedicated
bandwidth, and broadband mode that has - An example of the radio wave is FM radio.
distributed cable bandwidth.
Advantages of radio transmission
Cable TV and analog televisions mainly use coaxial
cables, Coaxial cables ha ve better resistance to cross talk than
Radio transmission Is mainly used for wide area networks and mobile cellular phones.
twisted pair cables. The coaxial cables are used for long di istance
early days, 8 communication, It was used in computer network in
Radio waves cover a large area, and they can penetrate the walls.
Plastic
lacket Radio transmission provides a higher transmission rate.

() Microwaves ‘
PTFE Microwaves are of two types
dielacite
1. Terrestrial microwave transmission

© Metalic 2. Satellite microwave communication

shield
Terrestrial microwave transmission
Core
Fig. 6.10.2 : Co-axiat cable — Terrestrial microwave transmission Is technology that transmits the focused beam of a radio signal from one
Bround-based microwave transmission antenna to another. ,

~ Microwaves are unidirectional as the sending and receiving antennae are ta be aligned, ie, the waves sent by the
sending antenna are narrowly focused.

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Features
direct sight of each
e mounted on the towers are the
= It works on the line-of-sight transmission, l.e, the antenna Pervasive computing iB consists ofOf inexcensive
i ‘
microprocessors embedded in everyday objects and environments. It
other.
creates an environment w "here
computers have the capability
il to obtain information
i from the environment in which it
Advantages
is embedded and utllize it dynamically,
— Terrestrial transmission Is cheaper than uslng cables.
- Pera sive CI ‘Omputing devices
levices a
are nat personal computers as we tend to think of them, but rather small electronic
installation of cables.
= tls free from land acquisition as it does not require any land for the mobile embedded devices In almost any type of real world object, including cars, tools, watches, household
as the installation of cables in terrain is quite a
— Terrestrial transmission provides easy communication in terrains appliances, clothes, and so forth—all communicating through Increasingly interconnected networks.
difficult task. = This Is a new dimension of personal computing that Integrates mobile communication, ubiquitous embedded
Satellite Microwave Communication computer systems, consumer electronics, and the power of the internet. Camera phones are sometimes seen as a
»

step toward “smart” phones becoming successful pervasive computing devices that allow users to communicate via
= Asatellite is a physical object that revolves around the earth at a known height.
audio, video, still images, e-mail, and the Internet witheut having to stop and deal with issues such as connectivity and
— Satellite communication is more reliable nowadays as it offers more flexibility than cable and fibre optic systems,
technical issues.
— We can communicate with any point on the globe by using satellite communication.
— In pervasive computing environment, all these devices communicate with each other over wireless networks without
Advantages
any interaction required by the user.
— The coverage area of a satellite microwave is more than the terrestrial microwave.
6.11.1 Application Areas
— _ The transmission cost of the satellite is independent of the distance from the centre of the coverage area.

Satellite communication is used in mobile and wireless communication applications. Health

are
The application of pervasive computing in health is called u-Heaith or pervasive health. The applications
commonly cantered in hospital routine management, patients’ monitoring or well-being. For example, the treatment of
of these diseases Is continuous,
Ground wave non-communicable diseases (NCDs) can benefit from u-Health technologies. The treatment
Furthermore,
$0 the patients must always be aware of their condition, follawing the treatment planned by the doctor.
themselves and
patients of NCDs should be engaged in the treatment, because some activides are performed daily by
depend on thelr habits and lifestyle.
Accessiblity
Since the computing Is
The term pervasive accessibillty indicates a new technology appreach to support accessibility,
shifting from personal workstations to pervasive computing, accessibility shauld be thought accordingly with this new
Terrestrial microwave transmission ‘Satellite Mics computational paradigm. In this sense, the u-Accessibilty has emerged as 2 way to Improve the quality of life of people
Fig. 6.10.4: Microwaves owave Transmission
with disabilities and the elderly.
6.11 Pervasive Computing
Learning
It is a computing environment that proposes a proactive interaction The application of mobile and pervasive computing in the improvement cf learning strategies has created two
between devices a nd environment with the goal Increasing learners’
of making technologies transparent to the user. It goes beyond the realm of Personal Tesearch fronts called mobile learning and pervasive learning. Mobile learning is fundamentally about
4 comy uters. It is a kind of embedded evolution of e-learning, and
technology where any device can be imbedded with chips and get connected to Capability to carry their own learning environment along with them. M-learning is the natural
an infinit en , fetwark
of other devi has the potential ta make learning even more widely accessible. In m-learning model, mobile computers are still not
The goal of pervasive computing, which combines current network technology es w Taevces obtain information about learner
recognition, Internet capabillty and artificial intelligence, €mbedded in the learners’ surrounding environment, and as such they canmot seamlessly
Context,
embedded in such a way that the connectivity is unobtrusive and always avallable
On the other hand, pervasive fearning refers to learning supported by the use of mobile and wireless communication
It is also known as ubiquitous computing, which work together to Integrate ; learners with thelr
which Is the study how computPURINE can be in tegrated Into the king mechanisms,
and_ locatlon/tracking
environment In a way that makes it easily accessible to users. It Includes anof emphasis
oj ; ‘ethno logi es, , in order to support a
N ea: 5¢ and naturalness
of use. Environments, Pervasive learning systems connect virus | and real cbjects, people and events
ren, Pee
THN 7‘ontinuous, contextual and meanineful learning.
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amically supports the learning process by Greater scalability : The benefits of cloud
com; puting services include bility te
il i ing tem dyn pervasive learning Is to realize which i
While the learner is moving with mobile device, the syst the right amount of IT resource when it is
need, led and from the right geographic
i it at, The ferent of and places, and to link thisi data wth
essence fos cowi location. e ee
communicating with embedded computers in the environme ~ Improves
see ae productivity : On-site data centres typically
in di 7 cL a lot of infrastructural requirements like hardware,
require
information can be presented throughout the learners’ daily tasks, si -. me-consuming
TTA i IT management
chores. Cloud computing removes the need for
many of these
the leamers' educational process. tasks, so IT teams can spend time on achieving
more important business goals.
Logistics : Better r p performani ice : The biggest i services run on a worldwide network of secure
igges cloud computing
ang
to control flows of resources, goods data centres, which
Transport (s strategic in the supply chain Integration, because It can be use are regularly upgraded to the latest generation of fast and efficient computing hardware. This offers several benefits
thus; its management 1s relevant to enhance
products. In addition, transport Is @ significant part of the logistics costs, over a single corporate data centre
companies have used curren! t technologies to obtain precise
efficiency and flexibility in fleet operation. In this sense,
Global Posi itioning System and Its use to Implement - _ Rellabllity : Cloud computing makes data backup, disaster recovery and business continuity easier and less expensive
Information to support this management among which stands out the
because data can be mirrored at multiple redundant sites cn the cloud provider's network.
location systems and monitoring/tracking systems
security: Many cloud providers offer a broad set of policies, technologies and controls that strengthen your security
Several research works have addressed the use of pervasive technologies to improve the transport logistics. This
(aS LAN

from the original path. posture overall, helping protect your data, apps and infrastructure from potential threats.
enables the users to identify whether a vehicle is following a planned route or deviating

Commerce : 6.12.2 Types of Cloud Computing

The use of mobile devices and pervasive technologies to support commerce is commonly classified as context-aware
Clouds of several different models, types and services have evalved to offer the right solution for your needs. There
commerce or ubiquitaus commerce {so called u-commerce). There are three prerequisites for the success of u-commerce:
are three different ways to deploy cloud services: on a public cloud, private cloud or hybrid claud.
(1) always be connected with the clients; (2) always be aware of clients' contexts (where they are, what they are doing and
Public cloud: These clouds are owned and operated by a third party cloud service provider to deliver the services over
what is available around them); and (3) always be proactive, identifying real-time opportunities to meet client needs,
by the cloud
the internet. All the supporting hardware, software and other imfrastructure is owned and managed
Pervasive computing technologies are used ta Identify business opportunities for users as clients or suppliers. In
provider. You access these services using your browser.
addition, It offers a generic approach to support trade in goods and services without domain restrictions.
may be located at the
Private cloud: It refers to the cloud services owned by a single organization for its own use. It
6.12 Cloud Computing organization’s data centre.
by technology that allows data and
Cloud computing is the delivery of computing services such as servers, storage, database, networking, software, - Hybrid cloud: Hybrid clouds combine public and private clouds, bound together
ta move between private and public
analytics, etc. aver the internet. Using cloud computing services users are able to access software and
applications from applications to be shared between them. By allowing data and applications
helps optimise your
wherever they are; the computer programs are hosted by an outside party and reside in the cloud. This means that
users clouds, a hybrid cloud gives your business greater flexibility, more deployment options and
do nat have to worry atzout things such as storage and power. Moreaver, you pay existing infrastructure, security and compliance.
only for the’services you use, thus
lowering your operating costs.
6.12.3 Types of Cloud Services
6.12.1 Advantages of Cloud Computing
as a Service (laaS), Platform as a Service
Most cloud computing services fall into four broad categories: Infrastructure
Cloud computingis a big shift from the traditional way of using IT resources. Following are the advantages (Paas), Serverless and Software as a Service (52a).
organizations get out of cloud computing: e computing services, With laa, you take on
Infrastructure as a Service (laaS): This Is the most basic category of cloud
~ Cast saving : Cloud computing eliminates the capital expense of buying hardviare and sofp networks, operating systems from a cloud
rent IT infrastructure like servers and virtual machines. (VMs), storage,
: ware ai d up an d
running IT infrastructure such as data centres, servers, electricity for Power and cooling, the | ne seeing . Provider on payment basis
the infrastructure,
'
All this result in cost cutting. & » the the IT experts for managinging Platform as a Service (Paas): Platfo rm ag a service refers to cloud computing" services that supply
an on-demand

~ High speed : Most cloud computing services are offered on demand, for develaping, delivering and managing software applications,
testing, ” PaaS ” is designed to make It
so even » vast environment
Yes a amounts of computing resources apps, without worrying about setting up or managing
the
can be made avsilable in minutes giving businesses a lotof flexibly and taking th developer to quickly create web or mobile
easier for ‘or developers
'@ pressure off, and databases needed for development.
underlying infrastructure of servers, storage, network

+ Serverless es on building app functionality without spending time on managing

computing focus
Serverl capacity planning and server
the servers and infrastructure required to do s0- The loud provider handles the setup,
i d
ee a
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management for you. Servertess architectures are highly scalable and eve

soso
specific functlon or trigger occurs.
ing sofoware applications over the Internet Differentiate bridge
~ Software as a Service (SaaS): Software as a service Is a method for delivering softwa! ang Gateway. (Refer
age the software applica . Section 6.8)
on demand and typically on a subscription basis, With SaaS, cloud providers What is router? (Ref
er Section 6.8)
host and manag atching. a Users connes

Pp DD
and underlying infrastructure and handle maintenance, like software upgrades and security p: Nnect What is an acesss
point? (Refer sect
ion 6.8)

peop
to the application over the internet, usually with a web browser on theiri phone, tal blet or PC. Differentiate between guid
ed ang ongulded media.
(Refer section 6.10)
6.12.4 Usage of Cloud Computing What Is optical flbre
? Write its advantages.
(Refer Section 6.10)
You are probably using cloud computing right now, even if you don’t realise it. If you use an onlineservice to send What Is pervasive computin
g? (Refer section 6.11)
email, edit documents, watch movies or TV, listen to music, play games or store pictures and other files, It is likely What is cloud computin
that g? (Reter section 6.12)
cloud computing is making It all possible behind the scenes.
Answer the following questions in long
Here are a few examples of what is possible today with cloud services from a cloud provider:
Describe the applications of computer network, (Refer
section 6.3)
— Create new apps and services: Quickly build, deploy and scale applications for web, mobile and API
oD

on any platform, Describe the hardware and softwara component of a computer

nr

Access the resources you need to help meet performance, security and network. (Refer section 6.4)
compliance requirements.
Describe and differentiate LAN, MAN and WAN. (Refer section 6.5)
— Test and build applications: Use of claud services reduce
fn

application development cost and time by using cloud

Infrastructures. Dascribe the types of network architecturs. (Refer section 6.6)
ppefne

— Stare, back up and recover data: Protect your Describe any four network topologies. (Refer section 6.7)
data mere cost-efficiently—and at massive scale—by
transferring your
data over the Internet ta an offslie cloud storage Describe and differentiate betwaen wired and wireless network technology
system that is accessible from any location (Refer section 6.5}
and any device,
~ Analyse data: Unify your data across teams, Describe wireless/unguided transmission media, their usage and advantages.
divisions and locations in the cloud. Then (Refer section 6.10)
use cloud services, such as
machine learning and artificial intellige
nce to uncover insights for more informed Describe the applications of pervasive computing. (Reter section 6.11)
decisions.
— Stream audio and video: Connect
with your audience anywhere, anytime, Explain different types of cloud computing services. (Refer aectlan 6.12)
on any device with high-definition
and audio with global distribution, video
Describe the advantages of cloud computing, (Refer section 6.12.1)
Exercises
Answer the following questions 9000
in short
Define computer network. {Refer section
6.1)
How does a computer network work?
(Refer section 6.1.1)
Pop pS

Write any four advantages of compute

r network. (Refer section 6.2)
What is online banking? (Refer section 6.3)
What is server? State two of its Junction
s, (Aefer sectlon 64)
Qa. What is protocol? Give an exampla. (Refer
section 6.4)
Qa Define LAN. Write its advantages. (Refer
section 6.5)
Q. Define WAN. (Refer section 6.5)

Q, What is Ethernet? (Refer section 6.5)

Qa. Describe client/servernetwork. (Refer section

6.6.2)
Qa. What is network topology? (Refer section 6,7}

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72 :
Information System i Omanizatio
within
Transactlons are events that Occur as part of doin,
and payments. Think, for ex 8 business, such as sales, purchases, deposits, withdrawals, —
refunds,
.‘ample, , of the dat: 3 Sénerated
Be whenever a business‘ i to a customer on credit.
sells something
ether in a retail store or an e-commerce site on the webs,
Wf n, Is Data about the customer, product, salesperson, store, . and
in
Information System with
ol
captured and processed. This ne:
" changes, and| £9 prompts additional transactions, such as credit checks, customer billing,
Inventory Bes, increases in accounts receivable balances, which generate even more data

Organization
Thi us, transactlon Ld processi INg activities
viti are needed to Capture and pracess such data, or the operations of a business
would erind toa halt. Tr ansactions ensure that data-oriented resources are nat permanentiy updated unless all operations
within the transactlonal unit complete successfully. ay combining a set of related operations into a unit that elther
completely succeeds or completely falls, you can simplify errar recavery and make your application more reliable.
Therefore, transaction processing systems playa vital role in supporting the operations of mast companies today,
Transaction processing systems capture and process data describing business transactians, update organizational
Syllabus
databases, and produce a variety of information products. They consist of computer hardware and software hosting a
Transaction Processing Systems, Functional Area Information System, ERP and ER
P Support of Business Process.
transaction-oriented application that performs the routine transactions necessary to conduct business.
Development Life Cycle Models
Acqulring Information Systems and Applications: Various System
To ensure predictable behaviour, all transactions must possess the basic ACIO properties. The following list contains a
definition and a description of each ACID property:

7.1__ Introduction — Atomic: A transaction must execute exactly onc2 and must b2 atomic—either all of the work Is done or none of it Is.
Operations within a transaction usually share a common intent and are interdependent. By performing only a subset
This chapter introduces the fast-changing world of information system applications used within the organizations. Atomicity eliminates the
of these operations, the system could compromise the overall intent of the transaction.
Many companies today are using information technology to develop integrated cross-functional enterprise systems that
chance of processing only a subset of operations.
cross the boundarles of traditional business functions in order to reengineer and improve vital business processes all across
data into
the enterprise. These cross-functional enterprise systems are used as a strategic way to use IT to share information = Consistent: A transaction must preserve the consistency of data, transforming one consistent state of
resources and improve the efficiency and effectiveness of business processes, and develop strategic relatlonships with another consistent state of data. Much of the responsibilty for maintaining consistency falls to the application
customers, suppliers, and business pariners. Companies first moved from functlonal malnframe-based systems to
developer.
integrated cross-functional applications. These changes introduced applications based on transaction processing which
behave as if each
later gave way to enterprise resource planning, supply chain management, and customer relotanship management = fsolated: A transaction must be a unit of isolation, which means that concurrent transactions should
of isolation can limit the number of
software. Such enterprise software focuses on supporting integrated business processes involved in the operations of @ were the only transaction 4 unning In the system. Because a high degree
business. ons reduce the isolation level in exchange for better throughput

sineEn's pun ad se ome Lee Fr ee te ca

concurrent transactions, some applicati
a transaction commits, the system
- Durable: A transaction must be recoverable and therefore must have durability. If
pment lifecycle. You are golng to learn the steps of immediately after the commit, Specialized
system/application develagpment. guarantees that its updates can persist even if the computer crashes
the transaction, making
logging allows the system's restart procedure to complete unfinished operations required by
7.1.1. Transaction Processing System
the transaction durable.
Many companies today are using information technology to develop Integrated cross-functional enterprise systems In 7.1.2, Transaction Processing Cycle
order to reengineer and improve vital business processes all across the enterprise, These organizations
F . anizations vi view ¢r0ss* 1. Data entry
functional enterprise systems as 2 strategic way Lo use IT to share information resources and i ‘
improve the he efficient
efficiency and
of business data. For example, transaction data may be
effectiveness of business processes, J and develop strategic relationshi ps With customers, suy ni
Suppliers, and business partners The first step of the transaction processing cycle is the capture
card readers at a retail store or
Companies all acrass the globe are using the World Wide Web and their intranets and collected by point-of-sale terminals using optical scann ing of bar codes and credit
, Transaction ext ranets as a tec! nology
n commerce website on the internet.
platform for their cross-functional and enterprise Information systems.
e cross
other business. Transaction data can alsa be captured at ar &
Processin
functional information systems that process data resulting from the occurrence ofbusi systems (TPS) ar
Iness tran sactlons, 2. Transaction processing
Transaction pracessing systems process data in two basic
ways:

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Information System within Organization mis(MU)
We MIS(MU) 7-3 aad
ally, Inquiry processing 74
o id of time
i and proces: sed perlodicall, Information System within Organ
ion data are accumulated over @ peri 6 ion
(a) Batch processing: Here transact
Examples are Many transaction processing systems allow
You to use th,
database monagement query languages to make inquir @ Internet, Intranets, extranets, and web browsers or
Cheque clearance
processing activity. Typically, responses are dink Suiries and receive responses concerning the results of transaction
to an account
Written order asking a bank to transfer an amount of money check on the status of a sales order, the
splay
ene Variety of pre-specified formats. For example,
balance Ince jin an account, or the amount you m| ight
People deposit them Into their account Immediate responses at your pc, of stock in Inventory a
Ind receive
Involves checking whether the person has the correct funds(takes up to 3 days)
713 Features
Money Is withdrawn when cheque has been cleared
Rapid response; The response time Of
Bill generation a transaction
ford to have their cust 0 : Processing system (TPS) Is important because a business cannot
a mers waiting for long Periods of time before
making a transaction.
- — Involce is given to a customer for supplied goods or service
Rellabllity: A good TPS must be very rellable because if it were to break down, businesses
— Generated at a scheduled time so the user can effectively manage their time could lose a huge portion of
revenue because customers would not be able to purchase
their products.
- Done asa group

(b} Reaktime processing (also called online processing): Here data are processed immediately after a transaction
~ _Inflexibility: The TPS rust work the same way for every transaction as long as the TPS Is being used. The formality and
structure should never change.
occurs. All online transaction processing systems Incorporate real-time processing capabillties. Many online
- Controlled processing; The TPS must be able to allow authorized employees
systems also depend on the capabilities cf foult tolerant computer systems that can continue to aperate even if to be able to access it at any time.

parts of the system fall. Examples are 7.1.4 Storing and Retrieving Data
Reservation systems
ATPS must be able to easily be accessed by authorized employees so that information in the TPS can be retrieved.
The
- Used In.any type of business involved In setting aside a product or server for a customer(Ex. train tickets): information that goes through a TPS must never be deleted so that there will not be any confusion of what orders have
- Requires an acceptable response time gone through It. It is a good idea to have a back up hard drive so that older informatian can still be stared, but will nat slow

Point of sale terminals down the server which houses the TPS.

— Used by retall stores to sell goods and services Transactlon processing Is supported by programs that are called transaction Pracessing systems. Transaction
processing systems provide the following functions:
~ Minimizes the cost of batch handling by converting the data to a form that can be easlly transmitted through a
communication system - System runtime functions

— Correct price of the product Is received once the product number Is entered Transaction processing systems provide an execution environment that ensures the integrity, availability, and security
of data, They also ensure fast response time and high transaction throughput.
Database maintenance
s

System administration functions

An organization's databases must be updated by its transaction Pracessing systems so that
they are always correct
and up-to-date. Therefore, transaction processing systems serve to assist in maintaining the corporate databases Transaction Processing systems provide administrative support that lets users configure, monitor, and manage their
of an
Organization to reflect changes resulting from day-to-day business transactions. For example, credit sales made to transaction systems.

customers will cause customer account balances to be Increased and the amount of Inventory an hand Application development functlons
to be
decreased. Database maintenance ensures that these and other changes are eflecied In the data records stored
In Transaction processing systems provide functions for use in custom business applications, including functions to
the company's databases.
access data, to perform inter-computer communications, and to design and manage the user Interface.
4. Document and report generation

Transaction processing systems

42 Information System for Business Functional Areas
produce a variety of documents and feports. Examples of transaction documents
include purchase orders, paychecks, sales receipts, Invoices, and
customer statements. Transactlon reports might take Business managers are moving fram a tradition where they could avoid, delegate, or Ignore decisions about {T to one
the form of a transaction listing such as a payroll register, or edit feports that describe errors detected Where they cannot create a marketing, product, international, organization, or financial plan without IT. There are as many
during
problems to Be
processing.
“8 to use information technology in business as there are business activities to be performed, business
‘ved,
/ and business opportunities ta be pursued. Tata
Praueettets

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Information System within Organizatlon Mi WS(MU)
—— 746 Information System within Organization
_Mis(mu) Zs Marketing intelligence system : The marketing intelligence system provides the data about the happenings in the
systems are used to
ding of the major WAYS information e 7
As a business professional, you should have a basic underst:
andin|
in this section, we will discuss Functionay market, |.e. data related to the marketing environment which is externa! to the organization. It includes the
any company. Thus,
support each of the functions of business accomplished in information about the changing market trends, competitor's pricing strategy, change in the customer's tastes and
business systems, rmation, decision support, and so an) support the preferences, new products launched in the ‘market, promotion strategy of the competitor, etc.
Information systems {transaction processing, management infa
and human resource " management. As a Marketing research ; The marketing research Is the systematic collection, organization, analysis and interpretation of
operations management,
business functions of accounting, finance, marketing,
ies affect a the primary or the secandary data to find aut the solutions to the marketing problems. Several companies conduct
have a specific understanding of how Information
business professional, it is also important that you
marketing position
For example, someone whose career objective Is a marketing research to analyze the marketing environment camprising of changes in the customer's tastes and
particular business function or a particular Industry.
systems are used In banking and how they support the preferences, competitor's strategies, the scope of new product launch, etc. by applying several statistical tools.
In banking should have a basic understanding of how information
marketing activities of banks and other firms. Marketing decision support system : It includes several software programs that can be used by the marketers to
analyze the data, collected so far, to take better marketing decisions. With the use of computers, the marketing
Thus, information systems in this section will be analyzed according to the business function they support by looking
at a few key examples in each functional area. managers can save the huge data in a tabular form and can apply statistical programs to analyze the data and make
the decisions in line with the findings.
7.3 Marketing Information System
7.3.2 Advantages of Marketing Information Systems
The business function of marketing is concerned with the planning, promotion, and sale of existing products in existing
markets, and the development of new products and new markets to better attract and serve present and potential Organized data collection : Lots of data can be collected from the market. But the main word here is “organized”.
customers. Thus, marketing performs an essential function In the operation of a business enterprise. Business firms have ‘Organizing data is very important else the data is meaningless. Thus MIS helps you to organize your database thereby
Increasingly turned to information technology to help them perform vital marketing functions in the face of the rapid
improving productivity.
changes of today’s environment.
Storage of important data : Several times in pharmaceuticals, when one drug is being produced they may need data
The Marketing Information System refers to the systematic collection, analysis, interpretation,
v

storage and
dissemination af the market information, fram both the internal and external sources, of another drug which was produced years back. Similarly in media, photographs are stored in archives. This storage
to the marketers on a regular,
continuous basis. of important data plays a crucial role in execution and thus proves again that MIS is not important only for information

The marketing information system distributes the relevant information but also for execution.
to the marketers who can make the efficient
decisions related to the marketing operations viz. pricing, packaging, new product Avoldance of crisis : The best way to analyse a stock (share market) Is to see its past performance. Top websites like
development, distributlon, medla,
promation, etc. ” *
Moneycontrol thrive on MIS. Similarly MIS helps you keep track of margins and profits. With an amazing information
7.34 Components of Marketing Information System system established, you can know where your organization Is moving and probably avert a crisis long before It has
taken place. Ignoring hints received from MIS reports Is foolhardy.
Co-ordination = Consumer durables and FMCG companies have a huge number of processes which needs to be co-

Ordinated, These companies depend completely on MIS for the proper running of the organization. There are
dedicated people for marketing information systems in such organizations. This is mainty because of the speed

required to access Infarmation and Implement It.

Analysis and planning : MIS is critical for planning. You cannot do planning without information. For planning, the first
thing which Is needed Is the organizations capab! es, then the business environment and finally competitor analysis.
fi ‘Matketing
‘ Research e ' @ proper MIS, all these are present by default and are continuously updated. Thus MIS Is very important for

Fig. 7.3.1 Components ot marketing Is

Planning and analysis.

— Internal records : The company can collect information thraugh its intemal re
Control : Just like MIS can help in a crisis, In normal times It provides control as you have information of the varlous
a sense of control.
database, product database, financlal data, operations data, etc. ‘Cords i
Comprising of sales data, customer Processes going on and what Is happening across the company. Thus, it provides you with

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&_Mistwu) 77
Information System within,Organization
zsMIS(MU) 7-8 !nformation System within Organization
- 7.4.2 Applications
7.4 Manufacturing System mr ecne duce paca
del |. They built 100 or 190,000 of ap
sformation systems is to
create flexible, agile, Manufa
There was a time when manufacturers operated on a simple build-to-stock mo nd made more of the item once
cturing processes that
fe highest quality. Implementi
item and sold them via distribution networks. They kept track of the stock of inventory ar furan options j ng such manufacturing concep
to respond to ani d Fulfill customer Tequlrements quickly ts prepares a company
with high-quality products and service
inventory levels dipped below a threshold. Rush jobs were both rare and expensive, and configu , Prtons limited, — Manufacturing informatian system
s,
Now, things have changed for the better, Concepts like just-in-time Inventory, bulld-to-order (8TO) manu acturing, end-to. to produce products of all
s help companies simplify, automate,
and integrate many of the activities neaded
end supply chaln visibility, the explosion in contract manufacturing, and the development of web-based e-business tao\, kinds. For example, computers
ar @ used to help engineers design better products
both computer-aided engineering (CAE) using
for collaborative manufacturing have revolutionized plant management. and computer-aided design (CAD) systems,
and better production processes
with computer-aided processplanning.
Manufacturing Information Systems (MIS) support the production/operations function af an organization that
- They are also used to help plan the types
Includes all activities concemed with the planning and control of the processes producing goods ot services. Thus, the of material needed in the production process,
which is called material
productlon/operations function Is concerned with the management of the operational processes and systems of all requirements planning (MRP), and to Integrate MRP
with production scheduling and shop floor operations,
which is
business firms, known as manufacturing resource planning.
‘
Information systems used for operations management and transaction processing support
firms plan, monitor, and - Many of the processes within manufacturing resource planning systems are
included In the manufacturing module of
control Inventories, purchases, and the flow of goods and services. Therefore, firms such as transportation enterprise resource planning (ERP) software.
companies,
wholesalers, retailers, financial institutions, and service companies must use productian/operati
ons information systems to — Computer-aided manufacturing (CAM) systems automate the Production process. For example,
plan and control their operations. this could be
accomplished by monitoring and controlling the production Process in a factory or
A variety of manufacturing information systems, many of by directly controlling a physical

Manufacturing (CIM). The objectives of computer-based

them web-enabled, today support Computer-Integrated process, a machine tool, or robots.
systems in manufacturing are to:
~ ~ Manufacturing Execution Systems {MES} are performance-monitoring information
Simplify productian processes, product designs, and factory organization creating a vital foundatio
systems for factory floor
n for automation Operations. They monitor,
and integration. track, and control the five essential components involved in'a Production process: ~
materials, equipment, personnel, instructions and specifications, and production facilities. MES includes shop floor
— Automate production processes and
the business functions that Support them
with computers, machines, and robots. scheduling and control, machine contral, robotics control, and process contral systems. These manufacturing systems
~ Integrate all production and support
processes using computer networks Monitor, report, and adjust the status and performance of production components to help a company achieve a
, cross-functional business software
other information technologies. , and
flexible, high-quality manufacturing process,
7.4.1 Benefits of Manufacturing Inform
ation Systems Process control is the use of computers to control an ongoing physical process. Process control computers control
1. Itstreamlines the product Production physical processes in petroleum refineries, cement plants, steel mills, chemical plants, food praduct manufacturing
system,
2. It reduces costs, waste, and re-work
which results insavings.
Plants, pulp and paper mills, electric power plants, and so on. A process control computer system requires the use of
3. Special sensing devices that measure physical phenomena such as temperature or pressure changes, which are
Increased efficiency in set-up times helps avold then
delays. converted to digital forms and relayed to computers for pracessing.
4. Assessment of correct order priority
helps in delivering products on time,
5.
Assignment and feassignment ~ Machine cantrol is the use of computers to control the actions of machines. This is also popularly called numerical
of Inventory are done. as per
the Necessity. Contro/, The computer-based control of machine tools to manufacture products of all kinds (s a typical numerical
6 — Ithelps evaluate the Optimal
times to turn machines on and
off. Control application used by many factories throughout the warld.
7. Scheduling and rescheduling of equipm
ent is done better,
&. It Improves the reaction time within 7.5 HR Information System
the supply chain management process,
5. Ithelps in the timely movement The Human Resource Management (HRM) function involves the recruitment, placement, evaluation, compensation,
of Inventory from one worksta
tion to another,
10. it helps in managing Suppliers
on the right time and at the right
price, and development of the employees of an organization.
1L It Improves operational efficiency. The goal of human resource management is the effective and efficient use of the human resources of 8 company.
Human Resource Information Systems (HRIS) play an important role in achieving
12. It increases transparency In record-keeping processes, r this goal, They are designed to support

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Information System within Organization = 7:10
W_MIS(MU) 79
7.5.2 HRIS Advantages
— HR planning to meet the current and future personnel needs of the business

— Planned employees development

to Its full potential

- Controlling and shaping of all personnel policies and programs.

wide Web 'b toto Invi + messages ‘
rite Job seekers, posting in selected internet Newsgroups, and communicating with job
Originally, businesses used computer-based information systems for limited and routine functions like applicants via e-mail. The internet has a wealth of information and
contacts for both employers and job hunters.
— Producing paychecks and payroll reports HRIS
allow companles to process mast common HRM applications over their
corporate intranets.
— Maintaining personnel records, and - Employee services : HRIS allow the HRM departments
to provide around-th ve-clock services to thelr employees. They
- Analyzing the use of personnalin business operations. can also disseminate valuable information faster to the concerned employees and departments.
But, now many firms have gone beyond these traditional personnel management functions and have developed
Training : Another benefit of the HRIS is that it can serve as a superior training tool, Employees can easily download
human resource information systems that also support
instructions and processes to get the information or education they need. In addition, employees using new
— Recruitment, selection, and hiring technology can view training videos over the intranet on demand. Thus, the HRIS ellminates the need to loan out and
- Jobplacement track training videos.

= Performance appraisals - Talent management ; Employees are the most valuable resources in any organization. However, the process of talent
— Employee benefits analysis management which Is attracting, recruiting, engaging, developing, and retaining employees is a complicated process,
Also, employee turnover cost is expensive. An HIS with an exclusive talent management system will help the
— Training and development
organization take better care of their employees.
— Health, safety, and security
- Time and absence management : An HAIS solves the problems associated with leave and time management with a
7.5.1 HRIS Functions . comprehensive set of features such as:
Operational: A human resources information system functlons © — Auto-capture and submit timesheet entries
as a Productivity too! for HR operational processes.
Increased speed and accuracy result when MR transactions
are performed with computer software rather than
manually, and routine transections such as employee
© Workforce scheduling
headcount, payroll tracking and time and attendance
reporting
become automated and more cost-effective. © Leave tracking and management

~ Managerial: An HRIS functions as a managerial Informatio © Drlll-down and drill-through analytics

n system to gather and Provide key data about staffing
tumover, benefits and regulatory compliance issues. Human resources personnel can © Integrations with payroll, accounting, etc.
pravide reports on total number
of employees, Cost to hire, vacant positions, benefits costs, required potential to stir up a lot of trouble. Mishandled
reports and cost of ralses and bonuses. HR If not handled properly, timesheets and vacation requests have the
managers can more easily present analysis of compensatio
accidents and injuries.
n, recruiting,
time-off requests can leave a bat \d impression on the quality of life In the organization, and reduce employee |
Emecutive: A company’s HRIS functions as an executive Infor the manual errors an
mation system to a Baregate high-level data for long-range Satisfaction. So, streamlining the tim esheet and time-off process with an HRIS can control
Planning such as succession planning. The system provides executive planning Information for strategic needs such as
forecasting, steffing needs assessment and employee skills Prevent possible disasters.
assessment. it hard to keep thelr employee-related dara updated. Employee
~ Office automation: An HRIS also can
~ Employee Self-Service(ESS}:
Se : Organizations often find
to view and manage their personal
function as an office automation system
to design employ fee management t . , ‘ Is an e' fective way to manage this problem. Giving employees access
cas “Service
documents such as applications and job requisitions, to scheduleshared resources and schedule | tasks,
and track employee Information (profile, time off, benefits, or payroll can reduce the time HR staffs spend on mundane cerca
training and recognition. HR reports can be automat ed and set to run and
distribute right from the
Information to the people that need It in real time. An HRIS reduces the system, getting By extending a self-service option to their employees’ organizations can:
amount of tine the
staff Spends on daily
transaction activities, such as tracking employee status changes, and
frees them to work on more © Empower employees
strategy aligned with corporate goals. planning and
© — Decrease clerical tasks
9 Cut down admin time

© Improve employee engagement

Reduce HR paperwork
WY Pemticatteat
ettaantets

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ey_MIS(MU)
Information System within Organization
&_Misimy) as . will become more el ficient. If the
- Witha self-service portal, every HR process from employee on boarding to reporting
d and retrieve
edit, all wor k-related
it Information rig ht from
HRIS has multi-channel accessbility, employees can view,
i
changes, accounting inform, lation systems now
Monitor and track
their mobile phones. The interactive natu business activity.
re of online accounti
— Centralized database: With an automated database that collects, stares, and displaysisplays up-to-date, consistent
rally breakup sine n, 8 Systems calls for new forms of tran
i: * mt procedures, and
saction docum: ents,
Information about the personnel, policies, and procedures in an organization, HR leadel rs Janene
can ait
controls. This particularly applies to systems [i ke orderProcessing, inventory control
payable. These systems are , accounts receivable, and account
directly Involved in the proces: s
spreadsheets and paper files. Storing all confidential information in a centralized cloud-base 5 sing cf transactions between a busines
suppliers. So naturally, many companies are us s and its customers and
ing internet and other network links to
© Promote data integrity these trading partners for such
online transaction processing systems,
o Reduce process and data redundancy
7.7__ Financial Management System
co Improve productivity
© Enhance efficiency of HR staff and Computer-based financial management systems
Support business managers and professionals in decisions
concerning
© Reduce cost - The financing of a business

A centralized database that is seamlessly integrated with other HR modules will offer great accessibility to all end = The allocation and control of financial
resources within a business
users. Any updates or changes made to the master database will reflect immediately across all
modules, saving a Major financial management system categories
considerable amount of time and effort HR staff put into matching and duplicating all records include ca: sh and investment management, capital budgeting, financial
manually.
forecasting, and financial planning.
Payroll: Several organizations stil use a stand-alone system to manage their payroll process.
However, an HRIS
software can manage the payroll process end-to-end with its broad range of features that: 77.1 Applications
“0 _Automate payout pracess The capital budgeting process involves evaluating the profitability and financial impact of proposed capital
© Auto-compute taxes expenditures.
© Ensure statutory compliance Long-term expenditure proposals for facilities and equipment
can be analyzed using a variety of return on investment
2 Deliver automated reminders (RO!) evaluation techniques. This application makes heavy use of spreadsheet
models that incorporate present value
Extend employee self-service aptions analysis af expected cash flows and Probability analysis of risk to determine
the optimum mix of capital projects for a
business,
7.6 Information System tor Accounting
Financial analysts also ‘typically use electronic spreadsheets and other
financial planning software to evaluate the
Accounting Information systems are Present and projected financial performance of a business. They also help determine
the oldest and the most widely the financing needs ofa business
used. Information systems in
recard and report business transact business. They and analyze alternative methods of financing. Financial analysts use financial
ions and other economic events. Computer forecasts concerning the economic
-| based accounting systems
report the flow of funds through an record and situation, business operations, types of financing available, interest rates, and stock
organization and Produce important and bond prices to develop an
financial Statements such as balance sheets and
Income statements. Optimal financing plan for the business.
Such systems also produce forecasts of future Electronic spreadsheet Packages, DSS software, and web-based groupware can be used
conditions such as Projected financial statem to build and manipulate
A firm’s financial performance is measured against ents and financial budgets
such forecasts by other analytical accounting Financial models. Answers to what-if and goal-seeking questions can be explored as financlal analysts and managers
reports,
Operational accounting systems emphas Evaluate their financing and investment alternatives.
ize te, Bal and historical record
-kee; Ping and the production
financial statements, Typically, these of accurate
control, accounts receivable, account
systems Include transaction Process
ing syste. ms such as order
Processing, inventory 772 Building Blocks of an FMIS
s Payable, payroll and general ledger
systems,
Management accounting systems There are many elements that make up an FMIS, each with its own function. Some of them have to do with the
focus on the Planning and control
of business Operations
accounting reports, the development
of fi nancial budgets and
, They emphasize
cost counting func tlons of the organization; others are concerned with planning, others analysis, and others reporting. The
projected financial statements
comparing actual to forecasted performance. , ar nd analytical reports Following are th @ main elements you will find in most financial management information systems:

The general ledger.

The accounts Pay
able.

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Information System wilhin Organization
_MIs(MU) +/ 8 Enterprise Resource Planning (ERP

— The accounts receivable. enterprise Resource Plann

: ing (ERP) Systems help unk leas, A
management processes. It is an the true Potenti i
— Abudgetary accounting module. integrated, , real-time
al of companies by integrating business and
ransaction framework that
- Apayroll system. supports all the |
ab is a shared datab
— Aprocurement module. aa ase eri/
javefitory managesn that su Pports lt le funct
ana control, multip
produ ction,ions used by diffe
Srent business units such
~— Aproject ledger module. as sales order
. . d distributio
that employees in different divisions—for example, accounting and ea ” planning, and finance. In practice, this means
- Anassel module. i
ales—cai in rely on the same
specific needs. information for thelr

7.7.3 Advantages of a Financial Management Information System

Faster decision-making process

It Is timely, Strategic anae
The information provided by the financial management information system has some important qualities:
‘operational
reporting
reliable, accurate, and verifiable. That makes it much easier and faster to make decisions. Because of the financial planing
the
capabilities of the financial management information system, it helps the management of the business to evaluate
economic advantages and disadvantages of various business strategies they are trying out. This brings about more Manufacturing _
certainty to the Implementation of business strategies and decisions.
ot ial

Helps In planning

Having an FMIS system implemented increases your capacity to schedule and forecast. With that capabillty, the (Materials
management
process of allocating financial resources become much more effective, and the targets set become more realistic. Capacity
to plan realistically allows you to achieve your goals much faster,
SR

More efficient business

With a financial management information system, your business stands a chance ta become much more efficient. The
Fig. 7.8.1: ERP system
a1

system gives you all the information and control you need to prevent the misuse of the business’s financial resources while
giving you the ability to mitigate potential risks that you cannot foresee. Because of its reparting capabilities, a financial 781 History
EL

management information system also allows you to use past performance to inform your current as well as future
The term ERP was coined in 1990 by Gartner, but its roots date to the 1960s. Back then, the cancept applied to
strategies. and contral in the manufacturing sector. Software engineers created programs ta monitor
Inventory Management
Competitive advantage ventory, reconcile balances, and report on status, By the 1970s, this had evalved into Material Requirements Planning

With a financial management information system, your business will have a competitive advantage over other (MRP) Systems for scheduling production processes.
many to call it MRP-II or
businesses. An FMIS is simply a way to bring more productivity to the business and more satisfaction to the customer. The
In the 1980s, MRP grew to encompass more manufacturing processes, prompting
business will be able to see everything that is going on in a financial sense and respond in a timely manner to remain a step
Manufacturing Resource Planning, By 1990, these systems had expanded beyond inventory control and other operational
setting the stage for ERP as we've come to
ahead of its competitors at all times. po to other back-office functions like accounting and human resources,

Integration Ow it,

With a financial management information system, the process of integration becomes much easier, The
functions and 782 Need of ERP
resources of the business can all be contralled within a single system. This makes it easler and faster to process ERP;
RP is Very helpful in the following areas -
transactions and convey financial information. Redundant activities are eliminated, and shared Services are centralized to
a Usiness integration and automated
save on operational costs. The end result is a more efficient business with a more robust bottom line. data update
and easy flowof integratition
Unkage between all core business processes
Fi exibility In business operations and more agility te the company

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Info!
mation System within Organization IS(MU)
7-16
_MIS(MU)
gisk of implementation failure Information System withIn Organization
Better analysis and planning capabilltles pifficulty in [mplernenting changes
= Critical decision making
Risk In using one vendor
- Competitive advantage

= Use of latest technologies 7.6 Benefits of Implementing ERP Software for an Organization
7.8.3 Features of ERP organizations become more competitive

The following are the features of ERP — it’s a fact that ERP software requires 2 major investment, but there’s als:
‘0 an even bigger cast In not making the
= Accommodating varlety Investment. While some manufacturers choase to stick to the tried and true tradi
itlonal methods, others seak technological
solutions. Manufacturers cannot afford to put off an
ERP package Implementa tion while their competitio invests in ERP
- Seamless integration n
and starts achieving the many benefits we'll tauch on below.
— Resource management
- — Integrated management information
Efficiency Improves
An ERP solution eliminates many repetitive processes and greatly reduces the need to manually enter information.
— Supply chain management
This system will also streamline business processes and make it easier and more efficient for companies to collect data, no
- Integrated data madel
matter what department they‘re working in.
7.8.4 Scope of ERP
Better forecasting
— Finance : Financial accounting, managerial accounting, treasury management, asset management, budget control,
Enterprise resource planning software gives ta users, and especially managers, the tools they need to create more
eA WL Nh ter

casting, and enterprise control,

accurate forecasts In business activities. The information within ERP is as accurate as possible. Businesses can make
— Logistics : Production planning, material management, plant maintenance, project management, events management,
reallstic estimates and more effective forecasts,
ete.
Collaboration in the organizational functions
— Human resource : Personne! management, training and development, etc.
Nobody wants to run a business with each department functioning separate from the other. Collaboration between
— Supply chain : Inventory contro\, purchase and order control, supplier scheduling, planning, etc,
~ Wark flow ; Integrate the entire organization with the flexible assignment of tasks and responsibility to locations,
departments is a crucial task and often necessary part of the business processes. With the data entered Into ERP systems
position, jobs, etc. being centralized and consistent, there is no reason why departments cannot work together. The ERP package also touches
on almost every aspect of a business, thus naturally encouraging collaborative efforts.
7.8.5 Advantages and Disadvantages of EAP
Scalability Improves
=ae Advantages
>
‘ A structured ERP system allows the addition of new users and functions to grow the initially implemented solution
is — Reduce your overhead costs by folding a number of business Over time, When your business is ready to grow or needs extra resources, enterprise resource planning software should be
= tools and applications into one system

2 — Cause individual operatlons/departments (warehouse, accounting, ableto facilitate that

KR, etc.) ta work faster growth.
a — Automate specific processes that would otherwise require manpower Integrated Information
= to complete
:
= ~ Improve business data analytics for better, more accurate and
actionable inslghts No more issues with data spread across separate servers: all information will be
housed at a single location. We cen
= accurate, and unique. ERP facilitates
— Positively impact customer relationships by being an overall
faster, more efficient company to work with Integrate platforms lke CRM software with the ERP system, keeping data consistent,
ny
Be customized to focus on the aspects of your business
that are most aligned with your current Boals and
ind needsne d:
SW Your customer, their orders, and your inventory, all in: one piace
'
4
Disadvantages Cost Savings
+
a lows ma nufacturers
With one source of accurate, real-time Information, ERP software reduces operational costs. It al
i
= — Expensive and time consuming in implementation
aa Difficulty In Integration with other system Proactively manage Its operations, preventing disruptions, delays and breaking up of Information.
:
4s WP Tekaeetetet
=
navies rp rrattrraictss
:;

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Information System within Organization
19 Sys tem Devetopment Life Cyeje (SDL¢) Information System within Orgeriaaien
the systems development life cycle, als: 0
7.8.7 Types of ERP Architecture referred to as th
insys © application dev
ir i i tern engineering, Information systems and software engin, elopment le-cycfe
Currently ERP systems are divided into two categories: monolithic and postmode m. Each type
¥P has its o wn & engin ering ta descrite , is 2 term used
ste. and deploying an information system, a process for plan
The systems develo, ning, creating,
characteristics and different levels of flexibility. a pment lifecycle con,
oftware configurations, as a system Cept applies ta a range
can be Composed of hard, ware of hardware
Monelithic systems only, software ondy,
Gr a combination of both.
191 The Seven Phases of the System-D
These systems have all the needed business management tools in one suite or application. They are developed with a evelopment Lite Cycle
single tech stack and by a single vendor. This way, users always know whom to contact if there's any performance issue. So {, Planning
despite their Implementation cost, traditional systems were able to find their customers, gaining a significant market share,
This is the first phase in the systems
development Drocess. It identifies whether
But nowadays business owners have no interest in monolithic ERP systems that seem complex and are not flexible to or net there is 3 need for a new
system to achieve a business's strategic objectives. The Purpose of this step is to find
business changes. In addition, small companies cannot afford to replace the whole ERP suite with each new process update out the sco pe of the problem
as the system requires. and determine solutions. Resources, costs, time, benefits an: 'd cther items sheu'd be considered
at thissage.
Systems analysis and requirements
Postmodern suites
rp

Postmodern suites are more simple and user-friendly, compared to their predecessors. They are agile and do The second phase is where businesses will work on the source of their
not Sroblem er the need fora change. In the event
contain lats of redundant tables end other complex solutions that were required for scalabillty In monolithic of a problem, possible solutions are submitted and analyzed to identify the best fit for the ultimate
systems. And geal(s) of the
unlike traditional systems, postmodern ERPs are based on a few applications, not a single suite. project. This is where teams consider the functional requirements of the project or solution. It is also where
systam
They da have core ERP modules, but they can be easily extended with external solutions. analysis takes place. Systems analysis is vital in determining what 2 business's needs are, as well as how they
For example, basic madules can be
would cover financial and order management, while additional solutions can help with HR or service quality management. met, who will be responsible for individual pieces of the project, and what sort of timeline should be expected.
Postmodern suites are moving with the mes so they are driven by social media, mobile trends and cloud-based Systems design
solutions.
o

7.8.8 ERP Software Examples The third phase describes, in detail, the necessary specifications, features and operations that will satisfy the

SAP ERP functional requirements of the proposed system which will be in place. This is the step for end users to discuss and
determine their specific business information needs fer the proposed system. it’s during this phase that they will
SAP SE Is the largest European software enterprise based
in Germany, and its most popular product is SAP ERP consider the essentlal components (hardware and/or scftware) structure (networking capabilities), processing and
software. The system collects and combines data from various
modules and ensures accurate enterprise resource planning.
Its main modules inchude financial and asset accounting, Procedures for the system to accomplish its objectives.
QA management, HR Management, product planning
other. It’s also possible to customize the ERP suite and many
Development
>

according to the business needs ofacompany.

Infor LN fhe fourth phas rogrammi
phase is when the real work begins when a programmer, network rk engineer
engi i database developer are
and/or
Infor is an enterprise software company with headquarters in brought on ¢ ‘© do the major work on the project. This work includes usinging a flow chart to ensure that the process of
New York, the USA. Their InforLN ERP solution is :
designed to autamate business processes in companies workin; 1g with high-te the system is properly organized. The development phase marks the end of thi 1 cease
initial section of the process.
eadiysecma
ch manufacturing as well as with
logistics systems. complex Additionally, this phase signifies the start of production. The development
stage is also character!
Main modules include financlals, and change.
HR management, purchasing Management,
management, QA management, product Inventory and manufacturing
technology, etc. Customization Is also allowed, Integrator in and testing
=

ut by a Quality Assurance (QA) professional

Oracle ERP Cloud ;
The fifth phase involves systems integration ing carried 0
and system testing specifically to
Oracle Corporation (USA) is famous for its CRM solutions ‘9 determine if the proposed design meets the initial set of busine ss goals. Testing may be repeated,
and fl ‘agship Oracle database. But their acceptable.
an important role in the company’s success. Oracle
Enterprise Resaurce Planni
ERP systems also play check for errors, bugs and interoperability. formed until the end user finds it
ng Cloud is used for financ This testing wabhere 's successful
management, risk management, pracurement, and e, project hich will help ensure the program
architecture and can be easily customized.
other eve! Tyday business activit
ies. The system has cloud Another part of this phase Is verification and validation, both of wi
ERP ‘ompletion,

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_Misimu) Information Systam within Organization
78 ve SDLC Model Int jormation
i System
within Organization
6. Implementation
erat
E
the Ite ative SDLC model does not need the full
list of requirements,
The sixth phase is when the majority of the code for the program is written. Additionally, this phase Involves the y start with the requirements to the Ents oe
before the Pe Starts. The development
functional part,
which can be rele
actual installation of the newly-developed system. This step puts the project into production by moving the data and make. new versions of the product St.
The process is repetitive,
components from the old system and placing them in the new system via a direct cutover. Both system analysts and alowine €°
e development of a separate component
for every cycle. Every iteration ( which last fram two to
of the System, and after that, t his Sik Weeks) includes
end-users should now see the realization of the project that has implemented changes. setoped earlier. Speaking with math termino comp onent is added to ti
logy, the iterat ve Mode
l is :a realization af
he functi ional
the sequential
method; that means a gradual closeness to the planned final p roduct shape
7. Operations and maintenance
approximation
The seventh and final phase Involves maintenance and regular required updates. This step is when end users can fine-
‘tune the system, if they wish, to boost performance, add new capabilities or meet additional user requirements.

7.9.2 SDLC Models

Waterfall SDLC Model
Waterfall — is a cascade SOLC model, in which development process looks like the flow, moving step by step through
the phasés of analysis, projecting, realization, testing, implementation, and support. This SDLC model includes gradual
execution of every stage completely. This process is strictly documented and predefined with features expected to
every
phase of this software development life cycle model.
Implementation
emer
analysis
| Fig. 7.9.2. ; Iterative SDLC model

System Design Advantages

- Some functions can be quickly developed at the beginning of the development lifecycle

- The paralleled development can be applied

- The progress |s easily measurable

Olsadvantages

~ Iterative model requires more resources than the waterfall model

Constant management is required

'ssues with architecture or design may occur because not all the requirements are foreseen during the
Fig. 7.9.1. : Waterfall SDLC model short planning
Advantages
stage
— Simple to use and understand Spiral SDLC Model
.
~ Management simplicity thanks to Its rigidity: every phase has ination of the
a defined result and process review Spiral model — is SDLC model, which combines architecture and prototyping by stages it ts a'combl
— Development stages
go ane by one kterative and waterfall SDLC models with the significant accent on the risk analysis, The maini Issue of he the spl spiralAte
model -i5
Cefinin, th liminary set time frames are recomme! a
Disadvantages ~ NB the right moment to make a step into
i age. The preliminary "
Soluti
the‘ next stag the plan, even if the work on the previous stage isn’t
~The software is ready only after the last stage is over q
n to this Issue. The shift to the next stage is done according to the pI
a from the personal
M8 yet. The plan is introduced basing on the statistic data, received during the previousious proj projects evel
+ High risks and uncertainty
eV
— Nat the best choice for complex and object-ori
ented projects
Sloper's experience.

W TechRaauledgs

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= MISs(MU) 7-24 information System within Organization

1 Determine Objectives ————_| —_— Acoaplancg

2 Identify Risks
Testing

High Level
Design Integration i
e8ting

Low Level
Requirements, ‘Operational Design
Review plan prototype
oct cane
Concept ot | Concept ot
operation | Requirements Requirements Detailed
design
Development ferification
Code Fig. 7.9.4. : V-shaped SDLC model
plan and validation

Verification
pdvantages
Test pli
est p'29 | and valldation _ fvery stage of V-shaped model has strict results so it’s easy to control
implementation _ Testing and verification take place in the early stages
Release ‘
4 Plan the Next tteration 3 Development and Test — Good for the small projects, where requirements are static and dear
.
Fig. 7.9.3. : Spiral SDLC model Disadvantages

Advantages - lack of the flexibility

Lifecycle is divided into small parts, and if the risk concentration Is higher, the phase can be - Bad choice for the small projects
finished earlier to address
the treats. — Relatively big risks

The development process Is precisely documented yet scalable to the changes. Agllé SDLC Model
The scalability allows to make changes and add new functionality even at the relatively late stages. mer Isi able to see the 1 esult and understand
In the agile methodology after every development iteration, the custo
es of the agilei software develJopm op ent life cycle model. One
Disadvantages This is one of the adva ntag
Hels satisfied with itor he Is not. F imate the resources and deve lopme
Is dlsadvantages Is that with the absence of defined requirements it Is difficult to estimate
eid

model consists of sha

rt wel
— Can be quite expensive basis of su ch
of the practical use of the agile madel. The i
‘st, Extreme programming Is one
CS teh AM

The risk control demands Involvement of highly-skilled professionals,

Mestings - Sprints which are the part of the Scrum approach.
- Can be Ineffective for small projects

fy
V-shaped SOLC Made!

V-shaped SDLC model is an expansion of classic waterfall model and

it’s based on assoclated test stage for every
development stage. This is a very strict model and the next stage is started only after the previous
phase. This Is also called
=6S Design,
“validation and verification” model, Every stage has the current process control, to make sure that the conversion to the Test and Feadback =
next stage is possible,

Development :
As

. 7.9.5. « Agile SDLC made!

SS

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iS(MU) 7-24
M ie ot information system in éecountn Informen
YF Mis(mu) R Information System within Organization
7-23 Information System within Organization piscuss the role 9. (Refer section 7.6) —=.
5 expla the advantages of financial
Advantages management information
system,
a. What are the banefits of implementing EAP In an Organization? (Reter(Refer
sectionsection
iH 7)i
- Corrections of functional requirements are implemented into the development process to provide competitiveness
Describe the phases of system development lifecycle, (Refer Section 7.9) '
— Project Is divided by short and transparent iterations a

— Risks are minimized thanks to the flexible change process

Disadvantages
- Difficulties with measuring the final cost because of permanent changes

— The team should be highly professional and client-oriented.

~ New requirements may conflict with the existing architecture.

-. Exercise:
Answer the fallowing question in short

Q. Whatis a transaction? Give an example. (Refer section 7.1)

Q, Define a transaction prooessing system. (Refer section 7.4)
Q. Whats ACID? Explain. (Refer sectlon 7.1)
Q. What are the functions of Transaction Processing systems? (Refer section 7.1)
Q. What is marketing Information systam? (Refer section 7.3)
Q. Whats the use of information system in manufacturing? (Refer section 7.4)
Q. Define HR information system. (Refer section 7.5)
Q. How doas HAIS help in office automation? (Refer section 7.5)
Q. Explain the role played by HRIS In training. (Refer section 7.5)
Q. What is the role of financial management system? (Refer section 7.7)
Q. What ere the building blocks of financial management system? (Refer section 7.17)
Q. . Describe the role of tinanclal management system in bringing competitive
advantage. (Refer section 7.7)
Q. What is ERP? (Refer section 7.8)
©. What are the needs of HAP in an organization? (Refer section 7.8)
Q. State the features of ERP. (Reter sectlon 7.8)
Q. State any four advantages of EAP. (Refer section 7.8)
Q. How does ERP save cost of an organization? (Refer section 7.8)
Q, What is monolithic system? (Reter section 7.8)
Q. Define system development litecycle. (Refer section 7.9)
Q. Describe waterfall model of SOLC, —(Refer section 7.9)
Answer the following question in long
Q. Explain the transaction processing cycle, (Refer section 7.1) ~ ~
Q, What are the advantages of Information system in marketing? Explain, (Refer section
7.3)
Q. Discuss the applications of information system In manufacturing. (Refer
section 7,4)
Q, What are the advantages of HRIS in HR management? Explain, (Refer sectlon
7.5)

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