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Information System

“Information is the collection of input, people , procedures , hardware, software files and information required to accomplished organized set of instructions “ OR The largest growth in most economies is coming from 'information' industries. The success of such knowledge-based organizations lies in their information systems. Also, forced by technological change and globalization of markets, many manufacturing industries are also placing increasing emphasis upon information systems. Information systems are more than just computer programs. Though information and communications technologies are playing an increasing role in meeting organizations’ information needs, an information system is a much more general concept. It refers to the wider systems of people, data and activities, both computer-based and manual, that effectively gather, process, store and disseminate organisations’ information.

Information system resembles to the information system due to the word Information and System and their vagueness. 1. Information system is the complete science while Management information system is one area of study. 2. Information system is the socio-technical system. 3. Sometimes it is defined as the system that is concerned with the manipulation of the signs. 4. An information system is mediating construct between actions (humans) and technology. 5. Information system is used to refer the interaction people, process, data technology.


6. Sometimes the it is understood that there is a difference between Information and communication technology (ICT), but in fact ICT is a component of the information system. 7. Information system is also not a process it is different from the business process actually it helps to control the efficiency of byusin4ess process. 8. An information system is the work system whose activities are devoted to processing (capturing, transmitting, storing retrieving, manipulating and displaying) information.

Components of information systems
The main components of information systems are  Computer hardware  Computer software  Databases  Telecommunications systems  Human resources  Procedures.

Computer hardware
Today even the smallest firms, as well as many households, own or lease computers. These are usually microcomputers, also called personal computers. Large organizations typically employ multiple computer systems, from a few powerful mainframe machines (or even more powerful supercomputers) and minicomputers to widely deployed personal computers. Together with computer peripheral equipment, such as magnetic disks, inputoutput devices, and telecommunications gear, these constitute the hardware of information systems. The cost of hardware has steadily and rapidly decreased, while processing speed and storage capacity have increased vastly.


routes. as well as “vertical” applications that serve a specific industry segment—for instance. have begun to rent specialized application software on a per-use basis over the Web. The principal system software is known as the operating system. files. Telecommunications Telecommunications are used to connect. A database is a collection of interrelated data (records) organized so that individual records or groups of records can be retrieved that satisfy various criteria. Typical examples of databases include employee records and product catalogs. Wide area networks (WANs) 3 . known as application service providers (ASPs). Anyone who has ever purchased something with a credit card —in person. Particularly valuable are customer databases that can be “mined” for information in order to design and market new products more effectively. or network. Databases Many information systems are primarily delivery vehicles for databases. Various computer network configurations are possible. Some companies. most commonly via a graphical user interface (GUI). depending on the needs of an organization. Application software is programs designed to handle specialized tasks. Larger firms often develop their own application software or customize existing packages to meet specific needs. and other system resources and provides a systematic and consistent means for controlling the computer. It manages the hardware. and tracks package deliveries.Computer software Computer software falls into two broad classes: system software and application software. computer systems and transmit information. Local area networks (LANs) join computers at a particular site. or over the Web—is included within some of the numerous customer databases. Examples include general-purpose spreadsheet and word processing programs. by mail order. many of these programs are sold as ready-to-use packages. such as an office building or an academic campus. an application that schedules.

and maintaining an information system are part of its documentation. connecting millions of computers located on every continent. such as large databases. personal computer users gain access to information resources. computer programmers. operating. and computer operators. systems analysts and designers.connect machines located at different sites. Hundreds of millions of people around the world are learning about information systems as they use the Web. and to human resources. Procedures for using. Through networking. and often within different organizations. The Internet is a network of networks. 4 . and who has access to the output. who is authorized to run it. workers in an organization must be trained to utilize the capabilities of information systems. Human resources and procedures Qualified people are a vital component of any information system. In addition. Technical personnel include development and operations managers. For example. including when to run it. procedures need to be established to run a payroll program. such as coworkers and people who share their professional or private interests.

These systems accumulate information in databases that form the foundation for higher-level systems. or value chain. produced. In today’s leading organizations.Types of information systems Information systems support operations. production. and management in organizations. and delivered. through which a firm may add value to its goods and services. knowledge work. and human resources—are integrated into what is known as an enterprise resource planning (ERP) system. For example. finance. the information systems that support various functional units—marketing. marketed. ERP systems support the entire sequence of activities. an individual or other business may submit a custom order over the Web that automatically initiates “just-in-time” production to the customer’s 5 . The overall structure of organizational information systems is shown in the figure Operational support At the operational level are transactions processing systems through which products are designed.

and knowledge management systems. marketing. as an infrastructure for electronic commerce is emerging on a global scale. Support of knowledge work A large proportion of work in an information society involves manipulating abstract information and knowledge. Along with helping to integrate a firm’s own value chain. For example. Other systems deliver information. Professional Support System 6 . Three general categories of information systems support such knowledge work: professional support systems. Yet other systems serve to support the search for products with desired attributes. and delivering the goods and services—from raw materials to final delivery. Many transaction processing systems support electronic commerce over the Internet. inter organizational information systems are essential to supply-chain management. and entertainment on demand. it also automatically sends a restocking order to the appropriate supplier. music. price discovery (for example. banking. and delivery of products in an electronic form (software. Among these are systems for on-line shopping. This involves sending orders to the firm’s warehouses and suppliers to deliver materials just in time for a custom-production run. transaction processing systems can also serve to integrate an organization’s overall supply chain. Such work is called knowledge work. rather than directly processing.exact specifications through an approach known as mass customization. A growing array of specialized services and information-based products are offered by various organizations on the Web. and billing is initiated. or delivering tangible materials. or greeting cards). This includes all of the various firms involved in designing. via an auction). purchasing an item at a Wal-Mart store generates more than a cash register receipt. Suppliers can also access a retailer’s inventory database over the Web to schedule efficient and timely deliveries. and securities trading. Finally. Thus. educational services. producing. office information systems. movies. manufacturing. financial accounts are updated accordingly.

and is often accessed by using software originally developed for the Internet. automotive engineers use computer-aided engineering (CAE) software together with “virtual reality” systems to design and test new models for fuel efficiency. such systems accomplish this by continually sending updated documents —such as business proposals. a private network that is closed to the general public. and voice mail. is used to route relevant documents automatically to all appropriate individuals for their contribution. facsimile. For example. Indeed. These individuals and their computers need not be located in the same office or even the same building. Known as groupware. and stored for easy retrieval—enables individuals to access information on demand. and passenger protection before producing prototypes. Another category of office information systems allows different individuals to work simultaneously on a shared project by using networked computers. and later they use CAE in the design and analysis of physical tests. or progress reports—to each collaborator’s computer. known as a workflow system. new designs. Office Information System The main objectives of office information systems are to facilitate communication and collaboration between the members of an organization and to facilitate them between organizations. Biochemists use special three-dimensional modeling software to visualize the molecular structure and probable effect of new drugs before investing in lengthy clinical tests. indexed. Placing an organization’s documents and messages in an electronic format—which can be classified. Investment bankers often employ financial software to calculate the expected rewards and potential risks of various investment strategies. 7 .Professional support systems offer the facilities needed to perform tasks specific to a given profession. Groupware is usually deployed over an intranet. One type of office information system. handling. specialized support systems are now available for most professions. Other types of office information systems handle digital messages in the form of electronic mail.

describes how information systems are used to assemble reports and reach executive decisions. To prevent information overload. rather than projecting future performance. Generally.Knowledge management systems Knowledge management systems provide a means to assemble and act on the knowledge accumulated throughout an organization. these reports focus on past and present performance. best practices. from those in charge of shortterm schedules and budgets for small work groups to those concerned with long-term plans and budgets for the entire organization. Management reporting systems provide routine. Management support. Access to an organization’s knowledge is often provided via an intranet equipped with specialized search software. and voluminous information reports specific to each manager’s areas of responsibility. Those systems rely on data obtained by transaction processing systems. so these systems must also direct users to members of the organization with special expertise. suppliers. detailed. and customers. Such knowledge may include the texts and images contained in patents. Management support Management reporting systems A large category of information systems comprises those designed to support the management of an organization. design methods. and similar sources. Organizational knowledge is often tacit. competitor intelligence. rather than explicit. The next section. as well as data acquired outside the organization (such as business intelligence gleaned on the Internet) and data provided by business partners. Information systems support all levels of management. 8 . reports are automatically sent only under exceptional circumstances or at the specific request of a manager.

Another category. in order to establish a selling price for a new product. and intelligent agents. By looking at a geographic distribution of mortgage loans. the cost of goods. The primary objective of data-driven decision support systems is to analyze large pools of data. the sales manager may use a marketing decision support system. such as expert systems. The two principal varieties of decision support systems are model-driven and data-driven. For example. however indirectly. and the promotion expense—to the projected sales volume over the first five years on the market. geographic information systems. An important category of decision support systems enables a group of decision makers to work together without necessarily being in the same place at the same time.” in a process known as data mining. Data mining searches for significant patterns. with which decisions can be made. can help analyze and display data by using digitized maps. the manager can compare predicted results and select the most profitable selling price. for example. a preprogrammed model is applied to a limited data set. By supplying different product prices to the model. These group decision systems include software tools for brainstorming and reaching consensus. In a model-driven decision support system. followed by a new dinner table) and clusters (large families and van sales). but decision support systems are expressly designed for this purpose. such as a sales database for the present quarter. one can easily establish a pattern of discrimination. 9 . Such a system contains a preprogrammed model relating various factors —the price of the product. accumulated over long periods of time in “data warehouses. an analyst or sales manager will conduct a dialog with this decision support system by specifying a number of “what-if” scenarios. During a typical session.Decision support systems All information systems support decision making. such as sequences (buying a new house. neural networks. Data-driven decision support systems include a variety of statistical models and rely on various artificial intelligence techniques.

telecommunications. Once the need for a specific information system has been established. 10 . and system software may be purchased or leased from vendors. Senior managers characteristically employ many informal sources of information. and the board of directors to monitor the performance of the company. this decision is not quite so simple. so that formal. this assistance is important for the chief executive officer. Other projects may be given a higher priority owing to their strategic role or greater expected benefits. Although the hardware. and possibly unique. Therefore. It is rarely possible to buy exactly the right information system. Acquiring information systems Information systems are a major corporate asset. the system has to be acquired. assess the business environment. essential applications are identified and project priorities are set. Nevertheless. computerized information systems are of limited assistance.Executive information systems Executive information systems make a variety of critical information readily available in a highly summarized and convenient form. certain projects may have to be carried out immediately to satisfy a new government reporting regulation or to interact with a new customer’s information system. way that a particular organization operates. executive information systems give their users an opportunity to “drill down” from summary data to increasingly detailed and focused information. with respect both to the benefits they provide and to their costs. senior and executive vice presidents. An information system must model the specific. The fundamental decision is: buy or make. information systems generally require a customized approach. however. and develop strategic directions for the future. For example. these executives need to compare their organization’s performance with that of its competitors and investigate general economic trends in regions or countries for potential expansion. On the basis of long-term corporate plans and the requirements of various individuals from data workers to top management. organizations have to plan for the long term before acquiring and deploying information systems. Often relying on multiple media. Actually. In particular.

in which customers pay for the use of only the software modules that they actually need. The most common method is to purchase or lease a software package that is usually customized internally or by an outside contractor. Instead of an expensive purchase or rental. This practice is particularly popular with very expensive packages. Finally. a firm that makes applications available over the Web. such as those for enterprise resource planning.Acquisition from external sources There are three principal ways to acquire an information system from outside the organization. an organization may decide to use the services of an application service provider (ASP). a number of firms outsource day-to-day running and development of their information systems to a specialized vendor. 11 .

results in an extensive blueprint for how the 12 . Large organizational systems. such as transaction processing systems and management reporting systems. and operation and maintenance.In-House development When an information system is developed internally by an organization. system design. the system enters another development life cycle. Following a period of use (with maintenance as needed). In the case of a major upgrade. system analysis. System analysis provides a detailed answer to the question. the last stage involves longterm exploitation. system design. The first five stages concern system development proper. one of two methods is used: life-cycle development or rapid application development (RAD). known as a system life cycle that consists of six stages: feasibility study. the information system may be either phased out or upgraded. installation. programming and testing. are generally developed and maintained through a systematic process. what will the new system do? The next stage. The principal objective of a feasibility study is to determine whether the system is desirable on the basis of long-term plans. as the figure shows. and a cost-benefit analysis. strategic initiatives.

is built quickly and inexpensively. the individual software modules of the system are developed. if a large system takes 2 years to develop. after which life-cycle development takes over. With RAD a preliminary working version of an application. in some instances. for its failure to fulfill the user’s requirements at the end of the long development road.new system will be organized. During the programming and testing stage. it will typically be used and maintained for some 5 to 10 years or even longer. After an installed system is handed over to its users and operations personnel. Increasingly. but inevitably some maintenance involves correcting design errors and exterminating software “bugs” as they are discovered 13 . their reactions are collected. life-cycle development has been replaced by a process known as rapid application development. Most maintenance is to adjust the system to the organization’s changing needs and to new equipment and system software. it will almost invariably be modified extensively over its useful life in a process known as system maintenance. For instance. and integrated into a coherent operational system. or prototype. Installation includes final testing of the system in the work environment and conversion of organizational operations to the new system. This prototype is turned over to the users. tested. Sometimes RAD and lifecycle development are combined: a prototype is produced to determine user requirements during the initial system analysis stage. Further levels of testing ensure continuing quality control. Life-cycle development is frequently faulted for its long development times and voluminous documentation requirements—and. albeit imperfectly. The later stages of development include such implementation activities as training users and modifying the organizational processes in which the system will be used. suggested modifications are incorporated. and successive prototype versions eventually evolve into the complete system.

information systems frequently incorporate the use of general information and telecommunication utilities. transformations. In decentralized structures the central unit is responsible only for planning and maintaining the infrastructure. Creating and maintaining such a complex infrastructure requires extensive planning and consistent implementation to handle strategic corporate initiatives. Organization of information services An information services unit is typically in charge of an organization’s information systems. and acquisitions. acquiring.Managing information systems Information system infrastructure and architecture A well-designed information system rests on a coherent foundation that supports modifications as new business or administrative initiatives arise. Known as the information system infrastructure. Clearly. an organization’s long-term general strategic plans must be considered when designing an information system infrastructure and architecture. When organized into a coherent whole. mergers. operating. software. the foundation consists of core telecommunications networks. and knowledge work constitute the system architecture of an organization. while business and administrative specialists provide systems and 14 . Where information services are centralized. hardware. such as the Internet. management. an organization’s infrastructure often crosses many national boundaries. Managed by various specialists. databases. the specific information systems that support operations. and maintaining information systems for the entire organization. and procedures. Owing to business globalization. this unit is responsible for planning.

a variety of intermediate organizational forms are possible. 15 . information systems are headed by a chief information officer (CIO). Additionally. Information systems security and control. The activities of information services are usually supervised by a steering committee.services for their own units. As described in the next section. a vital responsibility of information services is to ensure uninterrupted service in the face of many security threats. In many organizations. consisting of the executives representing various functional units of the organization.

Most organizations in developed countries are dependent on the secure operation of their information systems. The relationship between security measures is shown in the figure . 16 . which require strict controls as countermeasures and regular audits to ensure that the system remains secure. Information systems are vulnerable to a number of threats. In fact. Financial institutions could not survive a total failure of their information systems for longer than a day or two. Information systems are at the heart of intensive-care units and air-traffic-control systems. Electronic funds transfer systems (EFTS) handle immense amounts of money that exist only as electronic signals over telecommunications lines or as magnetized spots on computer disks.Information systems security and control Information systems security Information systems security is responsible for the integrity and safety of system resources and activities. the very fabric of societies often depends on this security.

A logic bomb consists of hidden instructions. Impersonation. Trojan horse attack. human error is estimated to cause greater losses in information systems operation. Disasters such as earthquakes. Similar to 17 . as the name implies. and fires are the particular concern of disaster recovery planning. when his name was later deleted from the company’s employee database. the entire database was erased Computer viruses are a particularly common form of attack. often introduced with the Trojan horse technique. that stay dormant until a specific event occurs. Although instances of computer crime and abuse receive extensive media attention. In a Trojan horse attack. floods. In one well-known case. A contingency scheme is also necessary to cover the failure of corporate servers or telecommunications networks. Some of the more widespread security threats related to computer crime or abuse include impersonation. at which time the instructions are activated. which is a part of a corporate business continuation plan. from which they may spread to other computer systems. the malefactor conceals unauthorized instructions within an authorized program.. Computer crime and abuse Computer crime—illegal acts in which computers are the primary tool—costs the world economies many billions of dollars annually. Computer abuse does not rise to the level of crime. a programmer placed a logic bomb in his company’s human resources system. involves gaining access to a system by impersonating a legitimate user—a feat that usually requires knowing or guessing a legitimate user’s password. These are program instructions that are able not only to perform malicious acts but also to insert copies of themselves into other programs and e-mail and onto diskettes placed in the “infected” personal computers. yet it involves some unethical use of a computer. and computer viruses and worms. logic bombs.

which rely 18 . may access systems from any unattended computer within an organization or from virtually anywhere over the Internet. or signature). worms are complete computer programs that replicate through telecommunications networks Information systems controls To ensure secure and efficient operation of information systems. Many systems combine these types of measures—such as automatic teller machines. regularly archiving copies of various databases. these controls limit the damage that any individual employee or employee impersonator can do. Users. Application controls are specific to a given application and include such measures as validating input data. As a result. One security measure is to require some form of physical authentication. as well as interlopers.viruses. The most important general controls are the measures that control access to computer systems and the information stored there or transmitted over telecommunications networks. Information systems are safeguarded through a combination of general and application controls. such as in hospital information systems or securities marketplaces. are designed to control and isolate problems so that the system can continue to function. retinal pattern. an organization institutes a set of procedures and technological measures called controls. hand geometry. General controls include administrative measures that restrict employee access to only those processes directly relevant to their duties. Another common security measure is to assign a unique password to each legitimate user. General controls apply to information system activities throughout an organization. Faulttolerant computer systems installed in critical environments. and ensuring that information is disseminated only to authorized users. such as an object (a key or a smart card) or a personal characteristic (fingerprint. Securing information Controlling access to information systems became profoundly more difficult with the spread of wide area networks (WANs) and the Internet.

A type of ant tampering code can also be attached to a message to indicate interception or corruption. operational audits are used to evaluate the effectiveness and efficiency of information systems operations. and sometimes encryption is used to ensure the purchaser’s anonymity. For example. A different way to prohibit access to information is via data encryption. only the intended addressee has the key needed to decrypt messages. To ensure confidentiality. In other words. which has gained particular importance in electronic commerce. 19 . Information systems audit The effectiveness of an information system’s controls is evaluated through an information systems audit. Information systems are designed so that every financial transaction can be traced. Some messages require additional attributes.on a combination of a personal identification number (PIN) and a magnetic-strip identification card. an audit trail must exist that can establish where each transaction originated and how it was processed. It is a part of a more general financial audit that verifies an organization’s accounting records and financial statements. Furthermore. Security measures placed between an organization’s internal network and the Internet are known as firewalls. Aside from financial audits. authentication of both parties in an electronic transaction is possible through the use of digital signatures—an additional code attached to the message to verify its origin—and by digital certificates issued to both parties by a trusted third party. electronic cash is a type of message as well. Similar means are available to ensure that parties to an electronic exchange cannot later repudiate their participation.

help partnering organizations to facilitate the interaction of widely dispersed business units. long-term corporate partners supply goods and services to and through a central firm. Success depends on both the skill with which information systems are deployed and the availability of other assets. at the core of such an organization may be nothing more than a single entrepreneur supported by only a few employees. information systems do not uniformly lead to higher profits. a network of small companies can present the appearance of a large corporation. Two notable forms are a network organization and a cluster organization. This has led many organizations to concentrate on their core competencies and to outsource other parts of their value chain to specialized companies. Nevertheless. the way organizations are structured. “virtual” organizations have emerged that do not rely on physical offices and standard organization charts. using automatic electronic forms as sales orders are received. Thanks to information systems. In a network organization. The capability to communicate information efficiently within a firm has also led to the deployment of flatter organizational structures with fewer hierarchical layers.Impacts of information systems Organizational impacts of information systems Information systems bring new options to the way companies interact. Wide area networks and the Internet in particular. use of network-based information systems can significantly lower the costs of communication among workers and firms and enhance coordination on collaborative projects. Indeed. 20 . In particular. product specifications in an electronic form can be modified during computerized video conferences between employees throughout an organization—after which supplies can be secured and distribution coordinated. and the way workplaces are designed. In general. Together.

are greatly assisted in their work by the use of corporate intranets and groupware. government and business organizations do need to collect data in order to facilitate administration and exploit marketing opportunities. Employees who work in virtual workplaces outside their company’s premises are known as telecommuters. Team members. not the place you go to. Information systems built around portable computers. it is widely believed that such a relationship exists.In a cluster organization. several ethical and social issues have moved into the forefront.” has become the slogan of the emerging new workplace. Although studies have yet to show a relationship between the deployment of information systems and higher productivity. While invasion of privacy is generally perceived as an undesirable loss of autonomy. who are often widely dispersed around the globe. universal access and free speech. and groupware have enabled employees to work not just outside the corporate offices but virtually anywhere. and mobile offices of people such as insurance adjusters. regional work canters. mobile telecommunications. In addition to investing in other information systems. property rights. as personal information is routinely collected and disseminated in a largely 21 . network-based information systems have been a factor in the growth of international business and corporations. customers’ premises. Virtual workplaces include home offices. The most important are issues of individual privacy. Information systems in the economy and society Along with the global transportation infrastructure. Electronic commerce presents a particular challenge to privacy. a large and growing number of organizations have embraced electronic commerce over the Internet. information accuracy. Individual privacy involves the right to control personal information. As the use of information systems has become pervasive in advanced economies and societies at large. the principal work units are permanent and temporary teams of individuals with complementary skills. “Work is the thing you do. and quality of life.

and malicious computer viruses. Individuals must cooperate in reviewing and correcting their files. such essentially intangible goods can be easily copied and transmitted electronically over the Web for unlawful reproduction and use.unregulated manner. books. such as ant piracy encryption and electronic watermarks. such as computer software. is protected. or they can be used to eliminate jobs and subject the remaining workforce to pervasive electronic surveillance. are partially successful. and organizations must ensure appropriate access to and use of such files. credit bureau records. livelihood. music. Intellectual property. Open access to the Internet as a medium for human communication and as a repository for shared knowledge is treasured. and everyday life. or government files—as misinformation can adversely affect personal safety. such as the World Wide Web. by patents. many people consider free speech a universal human right and the Internet the most widely accessible means to exercise this right. Combinations of legal statutes and technological safeguards. trade secrets. it is necessary to avoid the emergence of “digital divides” between nations and between social and ethnic groups. information systems can be deployed to eliminate tedious tasks and give workers greater autonomy. 22 . Indeed. Access to public information systems. However. and copyrights. In the workplace. Information systems have affected the quality of personal and working lives. Of concern to everyone is the accuracy and security of information contained in databases—whether in health and insurance records. In particular. Yet legitimate concerns arise about protecting children without resorting to censorship. Technological solutions. are emerging. such as software that filters out pornography. intercepted credit card numbers. is increasingly necessary for full participation in modern society. Consumers can use the Internet to comparison shop for everything from manufactured goods to financial services or even to participate in auctions—but at the cost of contending with spam (unsolicited e-mail). albeit imperfectly. Preventing abusive invasions of privacy is complicated by the lack of an international legal standard. and movies.

and distant viewing of current and historical government documents and photographs. direct deposit of government checks.Information systems can expand participation by ordinary citizens in government through electronic elections. social. electronic filing of taxes. and polls and also provide electronic access to government services and information—permitting. for instance. 23 . It remains for society to harness the power of information systems by strengthening legal. Yet information systems have also conjured Orwellian images of government surveillance and intrusion into private lives. referendums. and technological controls.

Provides input to be used in the managerial decision process. as well as IT capabilities. The information system Substitutes computer based processing for manual procedures. Consequently. It could be supports to decision makers in situations that are not well structured. Typical information requirements can be anticipated. Requirements of an information system are to do with the people and organizations that the system must serve. the field is a multidisciplinary one. and the professional skills and knowledge to make the former work for the latter. the world of organizations and people for whom the system must process information. Includes record keeping applications. Deals with well structured processes. Deals with supporting well structured decision situations. Provides information to managers who must make judgments about particular situations. 24 .Summary The value of the information systems professional stems from a breadth of knowledge and skills. which requires specialist knowledge of the computer world.

The information system Substitutes computer based processing for manual procedures. Typical information requirements can be anticipated. . Deals with supporting well structured decision situations. .Conclusion The value of the information systems professional stems from a breadth of knowledge and skills. Deals with well structured processes. 25 .

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