What is MIS? Define the Function and characteristics of MIS?

Management information system is a set of systems which helps management at different

levels to take better decisions by providing the necessary information to managers.
Management information system is not a monolithic entity but a collection of systems
which provide the user with a monolithic feel as far as information delivery, transmission
and storage is concerned.

The different subsystems working at the background have different objectives but work in
concert with each other to satisfy the overall requirement of managers for good quality
information. Management information systems can be installed by either procuring off the
self systems or by commissioning a completely customized solution. Sometimes,
management information systems can be a mix of both, i.e., an 'off the self system but
customized as per the need of the organization. 

However, before we precede any further we must have a clear understanding of what
managers do in an organization and why they need management information systems. The
former issue has already been dealt with at length in the previous sections. Only a brief
overview is given here.

Managers are the key people in an organization who ultimately determine the destiny of
the organization. They set the agenda and goals of the organization, plan for achieving the
goals, implement those plans and monitor the situation regularly to ensure that deviations
from the laid down plan is controlled. This set of activity ensures the smooth functioning of
the organization and helps it attain its objectives. Hence, these managers are vital for a
successful organization. The managers in turn conduct these activities collectively
management functions. They decide on all such issues that have relevance to the goals and
objectives of the organization. The decisions range from routine decisions taken regularly
to strategic decisions, which are sometimes taken once in the lifetime of an organization.
The decisions differ in the following degrees,

 Complexity
 Information requirement for taking the decision
 Relevance
 Effect on the organization
 Degree of structured behavior of the decision-making process.

The different types of decisions require different type of information as without

information one cannot decide. 
They have common characteristics and even though their actual implementation in an
organization may differ according to the needs of the organization, their basic
characteristics remain the same. The information technology platform on which
management information system is based may also vary in terms of complexity and scale
but the technology component does not change the broad characteristics of management
information system. Technology is only the medium through which the solution is
delivered. Management information systems may consist of a set of information systems
working towards the common goal of achieving greater efficiency in management decision-
making for each level of management. Typically, management information systems deal
with information that is generated internally. The in-house data is processed
(summarized/aggregated) to create reports, which helps the management at different levels
in taking decisions. Today's management information systems have a data repository at the
core, which is mostly in the form of a relational database management system. All in-house
data (mostly transaction related) are saved in this database, which is itself designed on the
basis of set rules. Over this data repository lies several tiers of logic and/or business rules
which helps in creating an interface and the various reports for use of managers at
different levels. The management information system is normally designed in order to
achieve an information flow that is based on a 'need to know' principle. This means that
any manager would be given only that type and kind of information for which he is entitled
and for which he has any use. This means, that a shop floor supervisor may get the
personal details of all people working under him but will not get to view the salary details
of the CEO as he/she is not entitled to know such information. The floor supervisor will not
get to see the personnel details of all employees working in the human resource department
as he has no use for such information. This hierarchical rule-based information delivery to
the different levels of management is put in place to avoid both information overload and
to enable information security.

Many modern systems have come up in recent times to help the manager in their tasks, like
enterprise-wide resource planning systems that is, basically, transaction processing/
support systems but comes inbuilt with a lot of best practices of the industry and helps in
generating integrated scenarios for the managers at different levels. Customer relationship
management systems help in the management of customers by creating profiles and
making available complex analytical tools for processing customer data to the managers.
Similarly, there are systems to help managers deal with supply chain data called supply
chain management systems. All these modern systems help in achieving greater efficiency
by making the job of management decision-making better and therefore, fall under the
category of management information system.

Conceptually, management information systems and information technology are two very
different things. Management information system is an information management concept.
Indeed technologies will change and have changed in the past but management information
system and its requirement and characteristics will broadly remain the same. Only MIS
with changing time and technology regimes will have different technology platforms. In the
early seventies MIS was mostly run on mainframe computers with COBOL programs. In
the eighties and nineties that changed to a personal computer based solution using
networking and with databases and 4GL tools. Today MIS runs on advanced computer
networks with wireless connectivity with hugely advanced software tools but the broad
characteristics of MIS have remained the same. In the sixties and seventies it was
instrumental in providing information which helped in management decision-making just
like it provides today. Only the degree and quality of information has improved. However,
the character of MIS has not changed with changing technology. Technology has always
been and will be a platform for MIS, However, the technology intervention to provide the
platform for MIS has increasingly grown over time and some confuse MIS with the
technology on which it runs. Technology has become an integral part of MIS but one must
appreciate that MIS is a much larger concept, critical to management decision-making.

The nature of MIS is passive it only supplies information to managers. It does not actively
lead the managers to a decision. The managers take decisions with the support of the
management information system. The system only supplies the background information on
which such decisions are based. The system does not provide active decision support. It
does not have models to mimic the real life scenarios as a proactive system like the one the
decision support system has. Even though this role of providing information is very
important it is only an enabler for better decisions.

Managers take decisions based on several triggers and in several ways. Some managers are
optimists and take an optimistic view of any situation, be it a problem or an opportunity.
While others take a completely different view in the sense that they are pessimists at all
times. They look at only the negative side of decisions. Some managers take decisions based
on instinctive reaction. Some take decisions based on analysis of data. These data driven
managers rely wholly on information systems to provide them with the necessary data and
information in the form of reports. Nowadays, the prevailing view is that the data driven,
analytics driven way of taking decisions delivers greater value to the organization than the
instinctive feeling based decisions. In the instinctive feeling based decision-making
approach, the judgment and experience of the manager plays the most important role in
his choosing an alternative. This factis often misunderstood by the proponents of 'gut
feeling' based decision-making supporters and has been beautifully described in a book
written by Malcolm Gladwell titled 'Blink'.

Hence, the contemporary wisdom suggests that managerial decisions must be taken on the
basis of solid rationale and information. If the manager has complete information about a
problem or opportunity, then he can take an appropriate decision. On the other hand, his
decision will be based on gut feeling or judgment which is prone to personal bias and
hence, is likely to be inaccurate. Therefore, managers in today's world are more and more
data driven rather than instinct driven.

MIS Functions

The broad functions of MIS are as given below:

To improve decision-making: MIS helps management by providing background

information on a variety of issues and helps to improve the decision-making quality of
management. The fast and accurate information supplied by MIS is leveraged by the
managers to take quicker and better decisions thereby improving the decision-making
quality and adding to the bottom line of the company.

To improve efficiency: MIS helps managers to conduct their tasks with greater ease and
with better efficiency. This reflects in better productivity for the company.

To provide connectivity: MIS provides managers with better connectivity with the rest of
the organization.

                                      

Characteristics of MIS

Management information being a specialized information system conforms to certain

characteristics. These characteristics are generic in nature. These characteristics remain
more or less the same even when the technology around such management information
system changes:

Management oriented

One important feature of MIS is that MIS is designed top-down. This means that the
system is designed around the need felt by the management at different levels for
information. The focus of the system is to satisfy the information needs of management.

Management directed

Since MIS is 'for the' management it is imperative that it also should have a very strong 'by
the' management initiative. Management is involved in the designing process of MIS and
also in its continuous review and up gradation to develop a good qualitative system. The
system is structured as per directions factored by management. This helps in minimizing
the gap between expectations of management form the system and the actual system.

Integrated

MIS is an integrated system. It is integrated with all operational and functional activities of
management. This is an important characteristic and- requirement for a system to qualify
as MIS. The reason for having an integrated system is that information in the managerial
context for decision-making may be required from different areas from within the
organization. If MIS remains a collection of isolated systems and each satisfying a small
objective, then the integrated information need of managers will not be fulfiller. In order to
provide a complete picture of the scenario, complete information is needed which only an
integrated system can provide.

Common data flows

Through MIS the data being stored into the system, retrieved from the system,
disseminated within the system or processed by the system can be handled in an integrated
manner. The integrated approach towards data management will result in avoiding
duplication of data, data redundancy and will help to simplify operations.

Strategic planning

MIS cannot be designed overnight. It requires very high degree of planning which goes into
creating an effective organization. The reason for this kind of planning is to ensure that the
MIS being built not only satisfies the information need of the managers today but can also
serve the organization for the next five to ten years with modifications. Sometimes when
the planning part is done away with, systems tend to perform well in the present but they
tend to become obsolete with time. Planning helps to avoid this problem.

Bias towards centralization

MIS is required to give 'one version of the truth', i.e., it must supply the correct version of
the latest information. There is a requirement for the data repository to be centralized.
Centralized data management helps MIS to exercise version control as well as provide an
integrated common view of data to the managers. In a non-centralized system, data will get
entered, updated and deleted from the system from different locations. In such a case it
becomes difficult to provide correct information to managers. For example, in a
decentralized System if a person superannuates from an organization and his
superannuating is only recorded in the human resource system but not communicated to
the finance department system, then it is quite likely that his salary may be generated by
the finance system for the next month. A centralized system where data in entered, updated
and deleted from only one location does not suffer from such problems. In a centralized
system, the superannuating employee's details are deleted from the master file from which
all departments' access data, thereby eliminating the risk of generating his salary for the
next month.

What Is a Business Process?

We have all heard the term process before, but what exactly does it mean? A process is a series
of tasks that are completed in order to accomplish a goal. A business process, therefore, is a
process that is focused on achieving a goal for a business. If you have worked in a business
setting, you have participated in a business process. Anything from a simple process for making
a sandwich at Subway to building a space shuttle utilizes one or more business processes.
Processes are something that businesses go through every day in order to accomplish their
mission. The better their processes, the more effective the business. Some businesses see their
processes as a strategy for achieving competitive advantage. A process that achieves its goal in a
unique way can set a company apart. A process that eliminates costs can allow a company to
lower its prices (or retain more profit).

Documenting a Process

Every day, each of us will conduct many processes without even thinking about them: getting
ready for work, using an ATM, reading our e-mail, etc. But as processes grow more complex,
they need to be documented. For businesses, it is essential to do this, because it allows them to
ensure control over how activities are undertaken in their organization. It also allows for
standardization: McDonald’s has the same process for building a Big Mac in all of its
restaurants.
The simplest way to document a process is to simply create a list. The list shows each step
in the process; each step can be checked off upon completion. For example, a simple process,
such as how to create an account on eBay, might look like this:

1. Go to ebay.com.
2. Click on “register.”
3. Enter your contact information in the “Tell us about you” box.
4. Choose your user ID and password.
5. Agree to User Agreement and Privacy Policy by clicking on “Submit.”

For processes that are not so straightforward, documenting the process as a checklist may not be
sufficient. For example, here is the process for determining if an article for a term needs to be
added to Wikipedia:

1. Search Wikipedia to determine if the term already exists.

 2. If the term is found, then an article is already written, so you must think of another term.
Go to 1.
3. If the term is not found, then look to see if there is a related term.
4. If there is a related term, then create a redirect.
5. If there is not a related term, then create a new article.

This procedure is relatively simple – in fact, it has the same number of steps as the previous
example – but because it has some decision points, it is more difficult to track with as a simple
list. In these cases, it may make more sense to use a diagram to document the process:

Process diagram for determining if a new term should be added to Wikipedia (click to
enlarge). (Public Domain)

Managing Business Process Documentation

As organizations begin to document their processes, it becomes an administrative task to keep

track of them. As processes change and improve, it is important to know which processes are the
most recent. It is also important to manage the process so that it can be easily updated! The
requirement to manage process documentation has been one of the driving forces behind the
creation of the document management system. A document management system stores and tracks
documents and supports the following functions:

 Versions and timestamps. The document management system will keep multiple versions
of documents. The most recent version of a document is easy to identify and will be
served up by default. 
 Approvals and workflows. When a process needs to be changed, the system will manage
both access to the documents for editing and the routing of the document for approvals.
 Communication. When a process changes, those who implement the process need to be
made aware of the changes. A document management system will notify the appropriate
people when a change to a document is approved.
Of course, document management systems are not only used for managing business process
documentation. Many other types of documents are managed in these systems, such as legal
documents or design documents. 

ERP Systems

An enterprise resource planning (ERP) system is a software application with a centralized

database that can be used to run an entire company. Let’s take a closer look at the definition of
each of these components:

An ERP system (click to enlarge)

A software application: The system is a software application, which means that it
has been developed with specific logic and rules behind it. It has to be installed and
configured to work specifically for an individual organization.

 With a centralized database: All data in an ERP system is stored in a single, central
database. This centralization is key to the success of an ERP – data entered in one part of
the company can be immediately available to other parts of the company. 
 That can be used to run an entire company: An ERP can be used to manage an entire
organization’s operations. If they so wish, companies can purchase modules for an ERP
that represent different functions within the organization, such as finance, manufacturing,
and sales. Some companies choose to purchase many modules, others choose a subset of
the modules. 

An ERP system not only centralizes an organization’s data, but the processes it enforces are the
processes the organization adopts. When an ERP vendor designs a module, it has to implement
the rules for the associated business processes. A selling point of an ERP system is that it has
best practices built right into it. In other words, when an organization implements an ERP, it also
gets improved best practices as part of the deal!
For many organizations, the implementation of an ERP system is an excellent opportunity
to improve their business practices and upgrade their software at the same time. But for others,
an ERP brings them a challenge: Is the process embedded in the ERP really better than the
process they are currently utilizing? And if they implement this ERP, and it happens to be the
same one that all of their competitors have, will they simply become more like them, making it
much more difficult to differentiate themselves?
Database management system (DBMS)
A database management system (DBMS) is system software for creating and
managing databases. The DBMS provides users and programmers with a systematic way to
create, retrieve, update and manage data.

A DBMS makes it possible for end users to create, read, update and delete data in a database.
The DBMS essentially serves as an interface between the database and end users or application
programs, ensuring that data is consistently organized and remains easily accessible.

The DBMS manages three important things: the data, the database engine that allows data to be
accessed, locked and modified -- and the database schema, which defines the database’s logical
structure. These three foundational elements help provide concurrency, security, data
integrity and uniform administration procedures. Typical database administration tasks supported
by the DBMS include change management, performance monitoring/tuning
and backup and recovery. Many database management systems are also responsible for
automated rollbacks, restarts and recovery as well as the logging and auditing of activity.

The DBMS is perhaps most useful for providing a centralized view of data that can be accessed
by multiple users, from multiple locations, in a controlled manner. A DBMS can limit what data
the end user sees, as well as how that end user can view the data, providing many views of a
single database schema. End users and software programs are free from having to understand
where the data is physically located or on what type of storage media it resides because the
DBMS handles all requests.

The DBMS can offer both logical and physical data independence. That means it can protect
users and applications from needing to know where data is stored or having to be concerned
about changes to the physical structure of data (storage and hardware). As long as programs use
the application programming interface (API) for the database that is provided by the DBMS,
developers won't have to modify programs just because changes have been made to the database.

With relational DBMSs (RDBMSs), this API is SQL, a standard programming language for
defining, protecting and accessing data in a RDBMS.
Popular types of DBMSes

Popular database models and their management systems include:

Relational database management system (RDMS)  - adaptable to most use cases, but
RDBMS Tier-1 products can be quite expensive.

NoSQL DBMS - well-suited for loosely defined data structures that may evolve over time. 

In-memory database management system (IMDBMS) - provides faster response times and better
performance.

Columnar database management system (CDBMS) - well-suited for data warehouses that have a

large number of similar data items.

Cloud-based data management system - the cloud service provider is responsible for providing

and maintaining the DBMS.

The Different Advantages of DBMS

1. Improved data sharing

The DBMS helps create an environment in which end users have better access to more and
better-managed data. Such access makes it possible for end users to respond quickly to changes
in their environment.

2. Improved data security

The more users access the data, the greater the risks of data security breaches. Corporations
invest considerable amounts of time, effort, and money to ensure that corporate data are used
properly. A DBMS provides a framework for better enforcement of data privacy and security
policies.

3. Better data integration

Wider access to well-managed data promotes an integrated view of the organization’s operations
and a clearer view of the big picture. It becomes much easier to see how actions in one segment
of the company affect other segments.

5. Improved data access

The DBMS makes it possible to produce quick answers to ad hoc queries. From a database
perspective, a query is a specific request issued to the DBMS for data manipulation—for
example, to read or update the data. Simply put, a query is a question, and an ad hoc query is a
spur-of-the-moment question. The DBMS sends back an answer (called the query result set) to
the application. For example, end users, when dealing with large amounts of sales data, might
want quick answers to questions (ad hoc queries) such as:

- What was the dollar volume of sales by product during the past six months?
- What is the sales bonus figure for each of our salespeople during the past three months?
- How many of our customers have credit balances of 3,000 or more?

6. Improved decision making

Better-managed data and improved data access make it possible to generate better-quality
information, on which better decisions are based. The quality of the information generated
depends on the quality of the underlying data. Data quality is a comprehensive approach to
promoting the accuracy, validity, and timeliness of the data. While the DBMS does not guarantee
data quality, it provides a framework to facilitate data quality initiatives.

7. Increased end-user productivity

The availability of data, combined with the tools that transform data into usable information,
empowers end users to make quick, informed decisions that can make the difference between
success and failure in the global economy.

Of course, a DBMS must perform additional work to provide these advantages, thereby bringing
with it the overhead. A DBMS will use more memory and CPU than a simple file storage
system. And, of course, different types of DBMSes will require different types and levels of
system resources.

What is Data Warehousing?

A data warehousing is a technique for collecting and managing data from
varied sources to provide meaningful business insights. It is a blend of
technologies and components which allows the strategic use of data.

It is electronic storage of a large amount of information by a business which

is designed for query and analysis instead of transaction processing. It is a
process of transforming data into information and making it available to
users in a timely manner to make a difference.

The decision support database (Data Warehouse) is maintained separately from the
organization's operational database. However, the data warehouse is not a product but an
environment. It is an architectural construct of an information system which provides users with
current and historical decision support information which is difficult to access or present in the
traditional operational data store.

The data warehouse is the core of the BI system which is built for data analysis and reporting.

You many know that a 3NF-designed database for an inventory system many have tables related
to each other. For example, a report on current inventory information can include more than 12
joined conditions. This can quickly slow down the response time of the query and report. A data
warehouse provides a new design which can help to reduce the response time and helps to
enhance the performance of queries for reports and analytics.

Data warehouse system is also known by the following name:

 Decision Support System (DSS)

 Executive Information System
 Management Information System
 Business Intelligence Solution
 Analytic Application
 Data Warehouse
History of Datawarehouse
The Datawarehouse benefits users to understand and enhance their organization's performance.
The need to warehouse data evolved as computer systems became more complex and needed to
handle increasing amounts of Information. However, Data Warehousing is a not a new thing.

Here are some key events in evolution of Data Warehouse-

 1960- Dartmouth and General Mills in a joint research project, develop the terms
dimensions and facts.

 1970- A Nielsen and IRI introduces dimensional data marts for retail sales.
 1983- Tera Data Corporation introduces a database management system which is
specifically designed for decision support

 Data warehousing started in the late 1980s when IBM worker Paul Murphy and Barry
Devlin developed the Business Data Warehouse.
  However, the real concept was given by Inmon Bill. He was considered as a father of
data warehouse. He had written about a variety of topics for building, usage, and
maintenance of the warehouse & the Corporate Information Factory.

How Datawarehouse works?

A Data Warehouse works as a central repository where information arrives from one or more
data sources. Data flows into a data warehouse from the transactional system and other relational
databases.

Data may be:

1. Structured
2. Semi-structured
3. Unstructured data

The data is processed, transformed, and ingested so that users can access the processed data in
the Data Warehouse through Business Intelligence tools, SQL clients, and spreadsheets. A data
warehouse merges information coming from different sources into one comprehensive database.

By merging all of this information in one place, an organization can analyze its customers more
holistically. This helps to ensure that it has considered all the information available. Data
warehousing makes data mining possible. Data mining is looking for patterns in the data that
may lead to higher sales and profits.

Types of Data Warehouse

Three main types of Data Warehouses are:

1. Enterprise Data Warehouse:

Enterprise Data Warehouse is a centralized warehouse. It provides decision support service

across the enterprise. It offers a unified approach for organizing and representing data. It also
provide the ability to classify data according to the subject and give access according to those
divisions.

2. Operational Data Store:

Operational Data Store, which is also called ODS, are nothing but data store required when
neither Data warehouse nor OLTP systems support organizations reporting needs. In ODS, Data
warehouse is refreshed in real time. Hence, it is widely preferred for routine activities like
storing records of the Employees.

3. Data Mart:
A data mart is a subset of the data warehouse. It specially designed for a particular line of
business, such as sales, finance, sales or finance. In an independent data mart, data can collect
directly from sources.

General stages of Data Warehouse

Earlier, organizations started relatively simple use of data warehousing. However, over time,
more sophisticated use of data warehousing begun.

The following are general stages of use of the data warehouse:

Offline Operational Database:

In this stage, data is just copied from an operational system to another server. In this way,
loading, processing, and reporting of the copied data do not impact the operational system's
performance.

Offline Data Warehouse:

Data in the Datawarehouse is regularly updated from the Operational Database. The data in
Datawarehouse is mapped and transformed to meet the Datawarehouse objectives.

Real time Data Warehouse:

In this stage, Data warehouses are updated whenever any transaction takes place in operational
database. For example, Airline or railway booking system.

Integrated Data Warehouse:

In this stage, Data Warehouses are updated continuously when the operational system performs a
transaction. The Datawarehouse then generates transactions which are passed back to the
operational system.

Components of Data warehouse

Four components of Data Warehouses are:

Load manager: Load manager is also called the front component. It performs with all the
operations associated with the extraction and load of data into the warehouse. These operations
include transformations to prepare the data for entering into the Data warehouse.

Warehouse Manager: Warehouse manager performs operations associated with the

management of the data in the warehouse. It performs operations like analysis of data to ensure
consistency, creation of indexes and views, generation of denormalization and aggregations,
transformation and merging of source data and archiving and baking-up data.

Query Manager: Query manager is also known as backend component. It performs all the
operation operations related to the management of user queries. The operations of this Data
warehouse components are direct queries to the appropriate tables for scheduling the execution
of queries.

End-user access tools:

This is categorized into five different groups like 1. Data Reporting 2. Query Tools 3.
Application development tools 4. EIS tools, 5. OLAP tools and data mining tools.

Who needs Data warehouse?

Data warehouse is needed for all types of users like:

 Decision makers who rely on mass amount of data

 Users who use customized, complex processes to obtain information from multiple data
sources.
 It is also used by the people who want simple technology to access the data
 It also essential for those people who want a systematic approach for making decisions.
 If the user wants fast performance on a huge amount of data which is a necessity for
reports, grids or charts, then Data warehouse proves useful.
 Data warehouse is a first step If you want to discover 'hidden patterns' of data-flows and
groupings.

What Is a Data Warehouse Used For?

Here, are most common sectors where Data warehouse is used:

Airline:

In the Airline system, it is used for operation purpose like crew assignment, analyses of route
profitability, frequent flyer program promotions, etc.

Banking:

It is widely used in the banking sector to manage the resources available on desk effectively.
Few banks also used for the market research, performance analysis of the product and operations.

Healthcare:
Healthcare sector also used Data warehouse to strategize and predict outcomes, generate patient's
treatment reports, share data with tie-in insurance companies, medical aid services, etc.

Public sector:

In the public sector, data warehouse is used for intelligence gathering. It helps government
agencies to maintain and analyze tax records, health policy records, for every individual.

Investment and Insurance sector:

In this sector, the warehouses are primarily used to analyze data patterns, customer trends, and to
track market movements.

Retain chain:

In retail chains, Data warehouse is widely used for distribution and marketing. It also helps to
track items, customer buying pattern, promotions and also used for determining pricing policy.

Telecommunication:

A data warehouse is used in this sector for product promotions, sales decisions and to make
distribution decisions.

Hospitality Industry:

This Industry utilizes warehouse services to design as well as estimate their advertising and
promotion campaigns where they want to target clients based on their feedback and travel
patterns.

Steps to Implement Data Warehouse

The best way to address the business risk associated with a Datawarehouse implementation is to
employ a three-prong strategy as below

1. Enterprise strategy: Here we identify technical including current architecture and tools.
We also identify facts, dimensions, and attributes. Data mapping and transformation is
also passed.
2. Phased delivery: Datawarehouse implementation should be phased based on subject
areas. Related business entities like booking and billing should be first implemented and
then integrated with each other.
3. Iterative Prototyping: Rather than a big bang approach to implementation, the
Datawarehouse should be developed and tested iteratively.

Here, are key steps in Datawarehouse implementation along with its deliverables.
Step Tasks Deliverables

1 Need to define project scope Scope Definition

2 Need to determine business needs Logical Data Model

3 Define Operational Datastore requirements Operational Data Store Model

4 Acquire or develop Extraction tools Extract tools and Software

5 Define Data Warehouse Data requirements Transition Data Model

6 Document missing data To Do Project List

7 Maps Operational Data Store to Data Warehouse D/W Data Integration Map

8 Develop Data Warehouse Database design D/W Database Design

9 Extract Data from Operational Data Store Integrated D/W Data Extracts

10 Load Data Warehouse Initial Data Load

11 Maintain Data Warehouse On-going Data Access and

Subsequent Loads

Best practices to implement a Data Warehouse

 Decide a plan to test the consistency, accuracy, and integrity of the data.
 The data warehouse must be well integrated, well defined and time stamped.
 While designing Datawarehouse make sure you use right tool, stick to life cycle, take
care about data conflicts and ready to learn you're your mistakes.
 Never replace operational systems and reports
 Don't spend too much time on extracting, cleaning and loading data.
 Ensure to involve all stakeholders including business personnel in Datawarehouse
implementation process. Establish that Data warehousing is a joint/ team project. You
don't want to create Data warehouse that is not useful to the end users.
 Prepare a training plan for the end users.
Why We Need Data Warehouse? Advantages &
Disadvantages
Advantages of Data Warehouse:

 Data warehouse allows business users to quickly access critical data from some sources
all in one place.
 Data warehouse provides consistent information on various cross-functional activities. It
is also supporting ad-hoc reporting and query.
 Data Warehouse helps to integrate many sources of data to reduce stress on the
production system.
 Data warehouse helps to reduce total turnaround time for analysis and reporting.
 Restructuring and Integration make it easier for the user to use for reporting and analysis.
 Data warehouse allows users to access critical data from the number of sources in a
single place. Therefore, it saves user's time of retrieving data from multiple sources.
 Data warehouse stores a large amount of historical data. This helps users to analyze
different time periods and trends to make future predictions.

Disadvantages of Data Warehouse:

 Not an ideal option for unstructured data.

 Creation and Implementation of Data Warehouse is surely time confusing affair.
 Data Warehouse can be outdated relatively quickly
 Difficult to make changes in data types and ranges, data source schema, indexes, and
queries.
 The data warehouse may seem easy, but actually, it is too complex for the average users.
 Despite best efforts at project management, data warehousing project scope will always
increase.
 Sometime warehouse users will develop different business rules.
 Organisations need to spend lots of their resources for training and Implementation
purpose.

The Future of Data Warehousing

 Change in Regulatory constrains may limit the ability to combine source of disparate
data. These disparate sources may include unstructured data which is difficult to store.
 As the size of the databases grows, the estimates of what constitutes a very large database
continue to grow. It is complex to build and run data warehouse systems which are
always increasing in size. The hardware and software resources are available today do not
allow to keep a large amount of data online.
  Multimedia data cannot be easily manipulated as text data, whereas textual information
can be retrieved by the relational software available today. This could be a research
subject.

What is Data Mart?

A data mart is focused on a single functional area of an organization and contains a subset of
data stored in a Data Warehouse.

A data mart is a condensed version of Data Warehouse and is designed for use by a specific
department, unit or set of users in an organization. E.g., Marketing, Sales, HR or finance. It is
often controlled by a single department in an organization.

Data Mart usually draws data from only a few sources compared to a Data warehouse. Data
marts are small in size and are more flexible compared to a Datawarehouse.

Why do we need Data Mart?

 Data Mart helps to enhance user's response time due to reduction in volume of data
 It provides easy access to frequently requested data.
 Data mart are simpler to implement when compared to corporate Datawarehouse. At the
same time, the cost of implementing Data Mart is certainly lower compared with
implementing a full data warehouse.
 Compared to Data Warehouse, a datamart is agile. In case of change in model, datamart
can be built quicker due to a smaller size.
 A Datamart is defined by a single Subject Matter Expert. On the contrary data warehouse
is defined by interdisciplinary SME from a variety of domains. Hence, Data mart is more
open to change compared to Datawarehouse.
 Data is partitioned and allows very granular access control privileges.
 Data can be segmented and stored on different hardware/software platforms.

Type of Data Mart

There are three main types of data marts are:

1. Dependent: Dependent data marts are created by drawing data directly from operational,
external or both sources.
2. Independent: Independent data mart is created without the use of a central data
warehouse.
 3. Hybrid: This type of data marts can take data from data warehouses or operational
systems.

Dependent Data Mart

A dependent data mart allows sourcing organization's data from a single Data Warehouse. It
offers the benefit of centralization. If you need to develop one or more physical data marts, then
you need to configure them as dependent data marts.

Dependent data marts can be built in two different ways. Either where a user can access both the
data mart and data warehouse, depending on need, or where access is limited only to the data
mart. The second approach is not optimal as it produces sometimes referred to as a data
junkyard. In the data junkyard, all data begins with a common source, but they are scrapped, and
mostly junked.

Independent Data Mart

An independent data mart is created without the use of central Data warehouse. This kind of
Data Mart is an ideal option for smaller groups within an organization.

An independent data mart has neither a relationship with the enterprise data warehouse nor with
any other data mart. In Independent data mart, the data is input separately, and its analyses are
also performed autonomously.
Implementation of independent data marts is antithetical to the motivation for building a data
warehouse. First of all, you need a consistent, centralized store of enterprise data which can be
analyzed by multiple users with different interests who want widely varying information.

Hybrid data Mart:

A hybrid data mart combines input from sources apart from Data warehouse. This could be
helpful when you want ad-hoc integration, like after a new group or product is added to the
organization.

It is best suited for multiple database environments and fast implementation turnaround for any
organization. It also requires least data cleansing effort. Hybrid Data mart also supports large
storage structures, and it is best suited for flexible for smaller data-centric applications.
What is Cloud Computing?
To be precise, cloud computing is the delivery of computing services like servers, storages and
more over the Internet. The companies that offer these computing services are called cloud
providers. They charge for cloud computing services based on usage.
Cloud computing is usually classified on the basis of location, or on the service that the cloud is
offering.

Based on a cloud location, we can classify cloud as:

 Public,
 Private,
 Hybrid
 Community Cloud
Based on a service that the cloud is offering, we classify as:
  IaaS (Infrastructure-as-a-Service)
 PaaS(Platform-as-a-Service)
 SaaS(Software-as-a-Service)
 or, Storage, Database, Information, Process, Application, Integration, Security,
Management, Testing-as-a-service
Cloud Types: Private, Public and Hybrid, Community
Depending on the type of data you’re working with, you’ll want to compare public, private,
and hybrid clouds in terms of the different levels of security and management required.
 Public Cloud – Whole computing infrastructure is located on the premises of a cloud
computing company that offers the cloud service.
 Private Cloud – Hosting all your computing infrastructure yourself and is not shared.
The security and control level is highest while using a private network.
 Hybrid Cloud – using both private and public clouds, depending on their purpose. You
host your most important applications on your own servers to keep them more secure and
secondary applications elsewhere.
 Community Cloud – A community cloud is shared between organizations with a
common goal or that fit into a specific community (professional community, geographic
community, etc.).
Types of cloud services: IaaS, PaaS, SaaS, FaaS
Cloud computing services fall into 4 categories: infrastructure as a service (IaaS), platform as a
service (PaaS), software as a service (SaaS) and FaaS (functions as a service). These are
sometimes called the cloud computing stack, because they build on top of one another.
1. Infrastructure-as-a-service (IaaS)
IaaS is the most basic category of cloud computing services that allows you rent IT
infrastructure (servers or VM’s) from a cloud provider on a pay-as-you-go basis.
2. Platform as a service (PaaS)
Platform-as-a-service (PaaS) refers to the supply an on-demand environment for
developing, testing, delivering and managing software applications. It is designed to
quickly create web or mobile apps, without worrying about setting up or managing the
underlying infrastructure of servers, storage, network and databases needed for
development.

3. Software as a service (SaaS)

Software-as-a-service (SaaS) is a method for delivering software applications over the
Internet as per the demand and on a subscription basis. SaaS helps you host and manage
the software application and underlying infrastructure and handle any maintenance
(software upgrades and security patching).

4. FaaS (functions as a service)

FaaS adds another layer of abstraction to PaaS, so that developers are completely insulated
from everything in the stack below their code. Instead of handling the hassles of virtual
servers, containers, and application runtimes, they upload narrowly functional blocks of
code, and set them to be triggered by a certain event. FaaS applications consume no IaaS
resources until an event occurs, reducing pay-per-use fees.
Uses of cloud computing
Although you do not realize you are probably using cloud computing right now, most of us use
an online service to send email, edit documents, watch movies, etc. It is likely that cloud
computing is making it all possible behind the scenes. Today a variety of organisations ranging
from tiny startups to government agencies are embracing this technology for the following:
 Create new apps and services as well as store, back up and recover data
 Host websites and blogs
 Stream audio and video
 Deliver on demand software services
 Analyze data for patterns
 Make predictions

How is Cloud Computing Different from Traditional IT Infrastructure?

Cloud is the new frontier of business computing and delivery of software and applications, and is
rapidly overtaking the traditional in-house system as a reliable, scalable and cost-effective IT
solution. However, many businesses that have built their own robust data centres and traditional
IT infrastructure still rely heavily on this model for security and managerial reasons.

Choosing an IT model for your business is a very important decision. Every company needs a
safe and secure storage space, where data and applications can be easily accessed and running
costs are kept to a minimum. If you’re thinking of migrating your data from traditional IT
infrastructure to cloud based platforms, read on to explore the differences between the two, to
better understand the benefits of such a move.

What is Traditional IT Infrastructure?

Traditional data centres consist of various pieces of hardware, such as a desktop computer, which
are connected to a network via a remote server. This server is typically installed on the premises,
and provides all employees using the hardware, access to the business’s stored data and
applications.

Businesses with this IT model must purchase additional hardware and upgrades in order to scale
up their data storage and services to support more users. Mandatory software upgrades are also
required with traditional IT infrastructure to ensure fail safe systems are in place to in case a
hardware failure occurs. For many businesses with IT data centres, an in-house IT department is
needed to install and maintain the hardware.

On the other hand, traditional IT infrastructures are considered to be one of the most secure data
hosting solutions and allows you to maintain full control of your company’s applications and
data on the local server. They are a customised, dedicated system ideal for organisations that
need to run many different types of applications.

Cloud Computing vs Traditional IT infrastructure

Cloud computing is far more abstract as a virtual hosting solution. Instead of being accessible via
physical hardware, all servers, software and networks are hosted in the cloud, off premises. It’s a
real-time virtual environment hosted between several different servers at the same time. So rather
than investing money into purchasing physical servers in-house, you can rent the data storage
space from cloud computing providers on a more cost effective pay-per-use basis.

The main differences between cloud hosting and traditional web hosting are:

Resilience and Elasticity

The information and applications hosted in the cloud are evenly distributed across all the servers,
which are connected to work as one. Therefore, if one server fails, no data is lost and downtime
is avoided. The cloud also offers more storage space and server resources, including better
computing power. This means your software and applications will perform faster.

Traditional IT systems are not so resilient and cannot guarantee a consistently high level of
server performance. They have limited capacity and are susceptible to downtime, which can
greatly hinder workplace productivity.

Flexibility and Scalability

Cloud hosting offers an enhanced level of flexibility and scalability in comparison to traditional
data centres. The on-demand virtual space of cloud computing has unlimited storage space and
more server resources. Cloud servers can scale up or down depending on the level of traffic your
website receives, and you will have full control to install any software as and when you need to.
This provides more flexibility for your business to grow.

With traditional IT infrastructure, you can only use the resources that are already available to
you. If you run out of storage space, the only solution is to purchase or rent another server.If you
hire more employees, you will need to pay for additional software licences and have these
manually uploaded on your office hardware. This can be a costly venture, especially if your
business is growing quite rapidly.

Automation

A key difference between cloud computing and traditional IT infrastructure is how they are
managed. Cloud hosting is managed by the storage provider who takes care of all the necessary
hardware, ensures security measures are in place, and keeps it running smoothly. Traditional data
centres require heavy administration in-house, which can be costly and time consuming for your
business. Fully trained IT personnel may be needed to ensure regular monitoring and
maintenance of your servers – such as upgrades, configuration problems, threat protection and
installations.

Running Costs

Cloud computing is more cost effective than traditional IT infrastructure due to methods of
payment for the data storage services. With cloud based services, you only pay for what is used –
similarly to how you pay for utilities such as electricity. Furthermore, the decreased likelihood of
downtime means improved workplace performance and increased profits in the long run.

With traditional IT infrastructure, you will need to purchase equipment and additional server
space upfront to adapt to business growth. If this slows, you will end up paying for resources you
don’t use. Furthermore, the value of physical servers decreases year on year, so the return on
investment of investing money in traditional IT infrastructure is quite low.

Security

Cloud computing is an external form of data storage and software delivery, which can make it
seem less secure than local data hosting. Anyone with access to the server can view and use the
stored data and applications in the cloud, wherever internet connection is available. Choosing a
cloud service provider that is completely transparent in its hosting of cloud platforms and ensures
optimum security measures are in place is crucial when transitioning to the cloud. Please see
our How Secure Is Cloud Computing? page for more information.

With traditional IT infrastructure, you are responsible for the protection of your data, and it is
easier to ensure that only approved personnel can access stored applications and data. Physically
connected to your local network, data centres can be managed by in-house IT departments on a
round-the-clock basis, but a significant amount of time and money is needed to ensure the right
security strategies are implemented and data recovery systems are in place.

To find out more about cloud hosting services from a dedicated and reliable cloud hosting
provider, take a look at our Cloud Computing page.

Q What is decision support system? Discuss its characteristics and types.

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

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

Programmed and Non-programmed Decisions

There are two types of decisions - programmed and non-programmed decisions.

Programmed decisions are basically automated processes, general routine work, where −

 These decisions have been taken several times.

 These decisions follow some guidelines or rules.

For example, selecting a reorder level for inventories, is a programmed decision.

Non-programmed decisions occur in unusual and non-addressed situations, so −

 It would be a new decision.

 There will not be any rules to follow.

 These decisions are made based on the available information.

 These decisions are based on the manger's discretion, instinct, perception and judgment.

For example, investing in a new technology is a non-programmed decision.

Decision support systems generally involve non-programmed decisions. Therefore, there will be
no exact report, content, or format for these systems. Reports are generated on the fly.

Attributes of a DSS

 Adaptability and flexibility

 High level of Interactivity

 Ease of use

 Efficiency and effectiveness

 Complete control by decision-makers

 Ease of development

 Extendibility

 Support for modeling and analysis

 Support for data access

 Standalone, integrated, and Web-based

Characteristics of a DSS
  Support for decision-makers in semi-structured and unstructured problems.

 Support for managers at various managerial levels, ranging from top executive to line
managers.

 Support for individuals and groups. Less structured problems often requires the
involvement of several individuals from different departments and organization level.

 Support for interdependent or sequential decisions.

 Support for intelligence, design, choice, and implementation.

 Support for variety of decision processes and styles.

 DSSs are adaptive over time.

Benefits of DSS
 Improves efficiency and speed of decision-making activities.

 Increases the control, competitiveness and capability of futuristic decision-making of the

organization.

 Facilitates interpersonal communication.

 Encourages learning or training.

 Since it is mostly used in non-programmed decisions, it reveals new approaches and sets
up new evidences for an unusual decision.

 Helps automate managerial processes.

Components of a DSS
Following are the components of the Decision Support System −

 Database Management System (DBMS) − To solve a problem the necessary data may
come from internal or external database. In an organization, internal data are generated
by a system such as TPS and MIS. External data come from a variety of sources such as
newspapers, online data services, databases (financial, marketing, human resources).
  Model Management System − It stores and accesses models that managers use to make
decisions. Such models are used for designing manufacturing facility, analyzing the
financial health of an organization, forecasting demand of a product or service, etc.

Support Tools − Support tools like online help; pulls down menus, user interfaces,
graphical analysis, error correction mechanism, facilitates the user interactions with the
system.

Classification of DSS
There are several ways to classify DSS. Hoi Apple and Whinstone classifies DSS as follows −

 Text Oriented DSS − It contains textually represented information that could have a
bearing on decision. It allows documents to be electronically created, revised and viewed
as needed.

 Database Oriented DSS − Database plays a major role here; it contains organized and
highly structured data.

 Spreadsheet Oriented DSS − It contains information in spread sheets that allows create,
view, modify procedural knowledge and also instructs the system to execute self-
contained instructions. The most popular tool is Excel and Lotus 1-2-3.

 Solver Oriented DSS − It is based on a solver, which is an algorithm or procedure

written for performing certain calculations and particular program type.

 Rules Oriented DSS − It follows certain procedures adopted as rules.

 Rules Oriented DSS − Procedures are adopted in rules oriented DSS. Export system is
the example.

 Compound DSS − It is built by using two or more of the five structures explained above.

Types of DSS
Following are some typical DSSs −

 Status Inquiry System − It helps in taking operational, management level, or middle

level management decisions, for example daily schedules of jobs to machines or
machines to operators.
  Data Analysis System − It needs comparative analysis and makes use of formula or an
algorithm, for example cash flow analysis, inventory analysis etc.

 Information Analysis System − In this system data is analyzed and the information
report is generated. For example, sales analysis, accounts receivable systems, market
analysis etc.

 Accounting System − It keeps track of accounting and finance related information, for
example, final account, accounts receivables, accounts payables, etc. that keep track of
the major aspects of the business.

 Model Based System − Simulation models or optimization models used for decision-
making are used infrequently and creates general guidelines for operation or managemen

What is transaction processing System? Discuss its types

Transaction Processing

Consider for a moment all the events that take place on a daily basis in an organization. Let's
take an electronics store as an example. A single store can easily carry 10,000 different items.
Throughout the day, customers come into the store, select a product and pay for it at the
checkout counter. Staff is continuously taking items from the stock room and placing them on
the shelves. When the stock runs low, new shipments are ordered. Other customers come in to
exchange items and deal with warranty issues.

All of these events are referred to as transactions, and keeping track of them requires a
transaction processing system. A transaction processing system, or TPS, is a system to capture
and process the detailed information necessary to update data on the fundamental operations of
an organization.

A transaction is essentially a single event that changes something. There are many different types
of transactions. For example, customer orders, receipts, invoices, payments, etc. The actual
processing of transactions includes the collection, editing, manipulation and storage of data. The
result of processing a transaction is that the records of an organization are updated to reflect the
new conditions at the time of the last processed transaction.
Consider the example of the electronics store. A customer buys a video game and pays for it with
cash at the register. This event is recorded as a sale transaction. However, it also triggers other
transactions.

First, the amount of cash at the register has just gone up. Second, the inventory of the particular
video game has gone down by one. These transactions are logically linked - they occur on the
same day at the same time and involve the same item. Linking the transactions provides
improved data consistency since one cannot exist without the other. The amount of cash in the
register cannot go up unless some transaction makes this happen.

There are many different types of transaction processing systems, such as payroll, inventory
control, order entry, accounts payable, accounts receivable and others. Transaction processing
produces valuable input into many other systems in an organization, such as management
information systems and decision support systems. A TPS serves as the foundation for these
other systems. A TPS tracks routine operations but does not provide much support for decision
making.

For example, in the case of a bank account, a TPS keeps track of all the events associated with a
single account: deposits, withdrawals, transfers, fees, interest paid, etc. This provides a good
description of the account activity.

Now let's say the customer comes into the bank and requests a car loan. The account activity is
useful information but not enough for the bank to make a decision on the car loan. This requires
combining information from different sources and analyzing the financial profile of the
customer.

Batch vs. Real-Time Processing

There are two ways to process transactions: using batches and in real time. In a batch
processing system, transactions are accumulated over a period of time and processed as a single
unit, or batch. For example, a store may update its sales records every day after the store closes.
Or, a payroll system may process all the time cards every two weeks to determine employee
earnings and produce paychecks. Whatever the time period in a batch system, there is some time
delay between the actual event and the processing of the transaction to update the records of the
organization.

In a real-time processing system, transactions are processed immediately as they occur without
any delay to accumulate transactions. Real-time processing is also referred to as online
transaction processing, or OLTP. In this case, the records in the system always reflect the
current status.

A good example of a real-time processing system would be airline ticket reservations. When you
book a ticket and select a seat, that booking is made right away, and nobody else can get that
same seat even a second later. Any changes you make to your reservation are also updated in real
time. Another example is the stock market. When you submit an order to buy a stock, that order
is processed immediately and not at the end of the day.

While real-time processing is often more efficient and in some cases necessary, batch processing
may be more effective. In the case of a payroll system, there is really no need to keep track of
how much an employee has earned every minute of the day and doing this every two weeks is
likely sufficient.

Q What is Porter’s Five Forces of Competitive Position Analysis?

Porter's Five Forces of Competitive Position Analysis were developed in 1979 by Michael E
Porter of Harvard Business School as a simple framework for assessing and evaluating the
competitive strength and position of a business organisation.

This theory is based on the concept that there are five forces that determine the competitive
intensity and attractiveness of a market. Porter’s five forces help to identify where power lies in a
business situation. This is useful both in understanding the strength of an organisation’s current
competitive position, and the strength of a position that an organisation may look to move into.

Strategic analysts often use Porter’s five forces to understand whether new products or services
are potentially profitable. By understanding where power lies, the theory can also be used to
identify areas of strength, to improve weaknesses and to avoid mistakes.

Porter’s five forces of competitive position analysis:

The five forces are:

1. Supplier power. An assessment of how easy it is for suppliers to drive up prices. This is
driven by the: number of suppliers of each essential input; uniqueness of their product or service;
relative size and strength of the supplier; and cost of switching from one supplier to another.

2. Buyer power. An assessment of how easy it is for buyers to drive prices down. This is driven
by the: number of buyers in the market; importance of each individual buyer to the organisation;
and cost to the buyer of switching from one supplier to another. If a business has just a few
powerful buyers, they are often able to dictate terms.
3. Competitive rivalry. The main driver is the number and capability of competitors in the
market. Many competitors, offering undifferentiated products and services, will reduce market
attractiveness.

4. Threat of substitution. Where close substitute products exist in a market, it increases the

likelihood of customers switching to alternatives in response to price increases. This reduces
both the power of suppliers and the attractiveness of the market.

5. Threat of new entry. Profitable markets attract new entrants, which erodes profitability.
Unless incumbents have strong and durable barriers to entry, for example, patents, economies of
scale, capital requirements or government policies, then profitability will decline to a competitive
rate.

Arguably, regulation, taxation and trade policies make government a sixth force for many
industries.

What benefits does Porter’s Five Forces analysis provide?

Five forces analysis helps organisations to understand the factors affecting profitability in a
specific industry, and can help to inform decisions relating to: whether to enter a specific
industry; whether to increase capacity in a specific industry; and developing competitive
strategies.

Actions to take / Dos Actions to Avoid / Don'ts

Use this model where there are at leastAvoid using the model for an individual
three competitors in the market firm; it is designed for use on an industry
basis
Consider the impact that government has or
may have on the industry

Consider the industry lifecycle stage –

earlier stages will be more turbulent

Consider the dynamic/changing

characteristics of the industry
 
Q What are various types of communication medium?
Transmission media are the physical pathways that connect computers, other devices, and people
on a network—the highways and byways that comprise the information superhighway. Each
transmission medium requires specialized network hardware that has to be compatible with that
medium..

It would be convenient to construct a network of only one medium. But that is impractical for
anything but an extremely small network. In general, networks use combinations of media types.
There are three main categories of media types:

 Copper cable—Types of cable include unshielded twisted-pair (UTP), shielded twisted-

pair (STP), and coaxial cable. Copper-based cables are inexpensive and easy to work with
compared to fiber-optic cables, but as you'll learn when we get into the specifics, a major
disadvantage of cable is that it offers a rather limited spectrum that cannot handle the
advanced applications of the future, such as teleimmersion and virtual reality.
 Wireless—Wireless media include radio frequencies, microwave, satellite, and infrared.
Deployment of wireless media is faster and less costly than deployment of cable,
particularly where there is little or no existing infrastructure (e.g., Africa, Asia-Pacific,
Latin America, eastern and central Europe). Wireless is also useful where environmental
circumstances make it impossible or cost-prohibitive to use cable (e.g., in the Amazon, in
the Empty Quarter in Saudi Arabia, on oil rigs).
 There are a few disadvantages associated with wireless, however. Historically, wireless
solutions support much lower data rates than do wired solutions, although with new
developments in wireless broadband, that is becoming less of an issue (see Part IV,
"Wireless Communications"). Wireless is also greatly affected by external impairments,
such as the impact of adverse weather, so reliability can be difficult to guarantee. However,
new developments in laser-based communications—such as virtual fiber—can improve this
situation. (Virtual fiber is discussed in Chapter 15, "WMANs, WLANs, and WPANs.") Of
course, one of the biggest concerns with wireless is security: Data must be secured in order
to ensure privacy.
 Fiber optics—Fiber offers enormous bandwidth, immunity to many types of interference
and noise, and improved security. Therefore, fiber provides very clear communications and
a relatively noise-free environment. The downside of fiber is that it is costly to purchase and
deploy because it requires specialized equipment and techniques.
Q Types of Communication Networks
Communication Networks can be of following 5 types:

1. Local Area Network (LAN)

2. Metropolitan Area Network (MAN)

3. Wide Area Network (WAN)

4. Wireless

5. Inter Network (Internet)

Local Area Network (LAN)

It is also called LAN and designed for small physical areas such as an office, group of buildings
or a factory. LANs are used widely as it is easy to design and to troubleshoot. Personal
computers and workstations are connected to each other through LANs. We can use different
types of topologies through LAN, these are Star, Ring, Bus, Tree etc.
LAN can be a simple network like connecting two computers, to share files and network among
each other while it can also be as complex as interconnecting an entire building.
LAN networks are also widely used to share resources like printers, shared hard-drive etc.
Characteristics of LAN

 LAN's are private networks, not subject to tariffs or other regulatory controls.

 LAN's operate at relatively high speed when compared to the typical WAN.

 There are different types of Media Access Control methods in a LAN, the prominent ones

are Ethernet, Token ring.

 It connects computers in a single building, block or campus, i.e. they work in a restricted

geographical area.

Applications of LAN

 One of the computer in a network can become a server serving all the remaining

computers called clients. Software can be stored on the server and it can be used by the

remaining clients.
 Connecting Locally all the workstations in a building to let them communicate with each

other locally without any internet access.

 Sharing common resources like printers etc are some common applications of LAN.

Advantages of LAN

 Resource Sharing: Computer resources like printers, modems, DVD-ROM drives and

hard disks can be shared with the help of local area networks. This reduces cost and

hardware purchases.

 Software Applications Sharing: It is cheaper to use same software over network instead

of purchasing separate licensed software for each client a network.

 Easy and Cheap Communication: Data and messages can easily be transferred over

networked computers.

 Centralized Data: The data of all network users can be saved on hard disk of the server

computer. This will help users to use any workstation in a network to access their data.

Because data is not stored on workstations locally.

 Data Security: Since, data is stored on server computer centrally, it will be easy to

manage data at only one place and the data will be more secure too.

 Internet Sharing: Local Area Network provides the facility to share a single internet

connection among all the LAN users. In Net Cafes, single internet connection sharing

system keeps the internet expenses cheaper.

Disadvantages of LAN

 High Setup Cost: Although the LAN will save cost over time due to shared computer

resources, but the initial setup costs of installing Local Area Networks is high.

 Privacy Violations: The LAN administrator has the rights to check personal data files of

each and every LAN user. Moreover he can check the internet history and computer use

history of the LAN user.

 Data Security Threat: Unauthorised users can access important data of an organization

if centralized data repository is not secured properly by the LAN administrator.

 LAN Maintenance Job: Local Area Network requires a LAN Administrator because,

there are problems of software installations or hardware failures or cable disturbances in

Local Area Network. A LAN Administrator is needed at this full time job.

 Covers Limited Area: Local Area Network covers a small area like one office, one

building or a group of nearby buildings.

Metropolitan Area Network (MAN)

It was developed in 1980s.It is basically a bigger version of LAN. It is also called MAN and uses
the similar technology as LAN. It is designed to extend over the entire city. It can be means to
connecting a number of LANs into a larger network or it can be a single cable. It is mainly hold
and operated by single private company or a public company.
Characteristics of MAN

 It generally covers towns and cities (50 km)

 Communication medium used for MAN are optical fibers, cables etc.

 Data rates adequate for distributed computing applications.

Advantages of MAN

 Extremely efficient and provide fast communication via high-speed carriers, such as fibre

optic cables.

 It provides a good back bone for large network and provides greater access to WANs.

 The dual bus used in MAN helps the transmission of data in both directions

simultaneously.

 A MAN usually encompasses several blocks of a city or an entire city.

Disadvantages of MAN

 More cable required for a MAN connection from one place to another.

 It is difficult to make the system secure from hackers and industrial espionage(spying)

graphical regions.

Wide Area Network (WAN)

It is also called WAN. WAN can be private or it can be public leased network. It is used for the
network that covers large distance such as cover states of a country. It is not easy to design and
maintain. Communication medium used by WAN are PSTN or Satellite links. WAN operates on
low data rates.

Characteristics of WAN

 It generally covers large distances(states, countries, continents).

 Communication medium used are satellite, public telephone networks which are

connected by routers.

Advantages of WAN

 Covers a large geographical area so long distance business can connect on the one

network.

 Shares software and resources with connecting workstations.

 Messages can be sent very quickly to anyone else on the network. These messages can

have picture, sounds or data included with them(called attachments).

 Expensive things(such as printers or phone lines to the internet) can be shared by all the

computers on the network without having to buy a different peripheral for each computer.

 Everyone on the network can use the same data. This avoids problems where some users

may have older information than others.

Disadvantages of WAN

 Need a good firewall to restrict outsiders from entering and disrupting the network.

 Setting up a network can be an expensive, slow and complicated. The bigger the network

the more expensive it is.

 Once set up, maintaining a network is a full-time job which requires network supervisors

and technicians to be employed.

 Security is a real issue when many different people have the ability to use information

from other computers. Protection against hackers and viruses adds more complexity and

expense.

Wireless Network
Digital wireless communication is not a new idea. Earlier, Morse code was used to implement
wireless networks. Modern digital wireless systems have better performance, but the basic idea is
the same.
Wireless Networks can be divided into three main categories:

1. System interconnection

2. Wireless LANs

3. Wireless WANs

System Interconnection
System interconnection is all about interconnecting the components of a computer using short-
range radio. Some companies got together to design a short-range wireless network
called Bluetooth to connect various components such as monitor, keyboard, mouse and printer,
to the main unit, without wires. Bluetooth also allows digital cameras, headsets, scanners and
other devices to connect to a computer by merely being brought within range.
In simplest form, system interconnection networks use the master-slave concept. The system unit
is normally the master, talking to the mouse, keyboard, etc. as slaves.

Wireless LANs
These are the systems in which every computer has a radio modem and antenna with which it
can communicate with other systems. Wireless LANs are becoming increasingly common in
small offices and homes, where installing Ethernet is considered too much trouble. There is a
standard for wireless LANs called IEEE 802.11, which most systems implement and which is
becoming very widespread.

Wireless WANs
The radio network used for cellular telephones is an example of a low-bandwidth wireless WAN.
This system has already gone through three generations.

 The first generation was analog and for voice only.

 The second generation was digital and for voice only.

 The third generation is digital and is for both voice and data.

Inter Network
Inter Network or Internet is a combination of two or more networks. Inter network can be formed
by joining two or more individual networks by means of various devices such as routers,
gateways and bridges.
The Threats Of Information System Security Information Technology?

Introduction

As use of internet and related telecommunications technologies and systems has become
pervasive ,use of these networks now creates a new vulnerability for organizations or
companies .These networks can be infiltrated or subverted a number of ways .As a result
,organizations or companies will faced threats that affect and vulnerable to information system
security . Threats to information system can come from a variety of places inside and external to
an organizations or companies .In order to secure system and information ,each company or
organization should analyze the types of threats that will be faced and how the threats affect
information system security .Examples of threats such as unauthorized access (hacker and
cracker ) ,computer viruses ,theft ,sabotage ,vandalism and accidents .

The Types of The Threats of Information System Security

1 Unauthorized Access (Hacker and Cracker)

One of the most common security risks in relation to computerized information systems is the
danger of unauthorized access to confidential data .The main concern comes from unwanted
intruders, or hackers, who use the latest technology and their skills to break into supposedly
secure computers or to disable them .A person who gains access to information system for
malicious reason is often termed of cracker rather than a hacker.

2 Computer Viruses (Ran Weber ,1999)

Computer virus is a kind of nasty software written deliberately to enter a computer without the
user’s permission or knowledge ,with an ability to duplicate itself ,thus continuing to spread
.Some viruses do little but duplicate others can cause severe harm or adversely affect program
and performance of the system .Virus program may still cause crashes and data loss .In many
cases ,the damages caused by computer virus might be accidental ,arising merely as the result of
poor programming .Type of viruses ,for example ,worms and Trojan horses .

3 Theft

The loss of important hardware, software or data can have significant effects on an
organization’s effectiveness .Theft can be divided into three basic categories: physical theft, data
theft, and identity theft.

4 Sabotage

With regard to information systems , damage may be on purpose or accidental and carried out an
individual basis or as an act of industrial sabotage .Insiders have knowledge that provide them
with capability to cause maximum interruption to an agency by sabotaging information
systems .Examples include destroying hardware and infrastructure ,changing data ,entering
incorrect data ,deleting software ,planting logic bombs ,deleting data ,planting a virus .

5 Vandalism

Deliberate damage cause to hardware, software and data is considered a serious threat to
information system security .The threat from vandalism lies in the fact that the organization is
temporarily denied access to someone of its resources .Even relatively minor damage to parts of
a system can have a significant effect on the organization as a whole.

6 Accidents

Major of damage caused to information systems or corporate data arises as a result of human
error .Accidental misuse or damage will be affected over time by the attitude and disposition of
the staff in addition to the environment .Human errors have a greater impact on information
system security than do manmade threats caused by purposeful attacks .But most accidents that
are serious threats to the security of information systems can be mitigated.

How The Threats Affect Information System Security

1 Unauthorized Access (Hacker and Cracker)

Hackers and crackers gain unauthorized access by finding weaknesses in the security protections
employed by Web sites and computer systems ,often taking advantage of various features of the
Internet that make it an open system that is easy to use .

1.1 Spoofing and Sniffing

Hackers attempting to hide their true identity often spoof ,or misrepresent themselves by using
fake e-mail addresses or masquerading as someone else .Spoofing redirecting a Web link to an
address different from the intended one ,with the site masquerading as the intended destination
.Links that are designed to lead to one side can be reset to send users to a totally unrelated site
,one that benefits the hacker .For example ,if hackers redirect customers to a fake Web site that
looks almost exactly like the true site ,they can collect and process orders effectively stealing
business as well as sensitive customer information from the true site .

While a sniffer is a type of eavesdropping program that monitors information travelling over a
network .When used legitimately ,sniffers can help identify potential network trouble-spots or
criminal activity on network ,but when used for criminal purposes ,they can be damaging and
very difficult to detect .Sniffer enable hackers to steal proprietary information from anywhere on
a network ,including e-mail messages ,company files ,and confidential reports .

1.2 Denial of Service Attacks (DOS)

The main aim of this attack is to bring down the targeted network and make it to deny the service
for legitimate users .Hackers flood a network server or Web server with many thousands of false
communications or requests for services to crash the network .They will install a small program
called zombies on some computers those are in intermediate level in the networks ,whenever
they want to attack ,they will run those programs remotely and will make the intermediate
computers to launch the attacks simultaneously .

2 Computer Viruses (Ran Weber,1999)

2.1 Worms

A variation of virus that is targeted at networks ,take advantage of security holes in operating
systems and other software to replicate endlessly across the Internet ,thus causing servers to
crash ,which denies service to Internet users .Worms can destroy data and programs as well as
disrupt or even halt the operation of computer networks .

A worm is similarly constructed to get into data-processing programmes and to modify or

destroy the data, but it differs from a virus in that it does not have the ability to duplicate itself
.The consequences of worm attack can be as serious as those of the virus attack .For example, a
bank computer can be instructed, by a worm program me that consequently destroys itself, to
continually transfer money to an illegal account.

2.2 Trojan horses

A Trojan appears as a legitimate in order to gain access to computer .The use of Trojans to
disrupt company activities or gain access to confidential information has grown sharply in the
past few years .Most of the Trojans encountered by business organization are designed to gather
information and transmit regular reports back to the owner.

Typically ,a Trojan will incorporate a key logging facility ,which also called a ‘keystroke
recorder’ to capture all keyboard input from a given computer .Capturing keyboard data allows
the owner of the Trojan to gather a great deal of information ,such as passwords and the contents
of all outgoing e-mail messages .

Trojans are often used as delivering systems for spyware and other forms of malware .When a
Trojan horse is being as spyware, it monitors someone computer activities .It is designed to give
owners control over the target computer system .Effectively, the Trojan act as a remote control
application, allowing the owner to carry out actions on the target computer as if they were sitting
in front of it.

Sometimes ,the owner of the Trojan will make no effort to conceal their activities ,for example
,the victims sees actions being carried out but is unable to intervene ,short of switching off the
computer .More often ,however ,the Trojan operates silently and the victim is unaware that their
computer is running programs ,deleting files ,sending e-mail ,and so on .
Trojan horses can destroy files and data, but commonly contain spyware, and an even backdoor
program .Trojans is usually contained in software downloads from unknown or entrusted source.

3 Theft

3.1 Physical Theft

Physical theft, as the term implies, involves the theft of hardware and software .It is worth
nothing than physical theft is not restricted to computer systems alone, components are often
targeted by criminals because of their small size and relatively high value .Physical theft results
in the loss of confidentially and availability and make the integrity of the data stored on the disk
suspect.

3.2 Data Theft

Data theft normally involves making copies of important files without causing any harm to the
originals .This can involve stealing sensitive information and confidential data or making
unauthorized changes to computer records .Such data can include passwords activation keys to
software, sensitive correspondence, and any other information that is stored on a victim’s
computer.

However ,if the original files are destroyed or damaged ,then the value of the copied data is
automatically increased .Service organizations are particularly vulnerable to data theft since their
activities tend to rely heavily upon access to corporate databases .The impact is if a competitor
gaining access to a customer list belonging to a sales organization cannot be imagined .The
immediate effect of such an event would be to place both organizations on an essentially even
footing .However ,in the long term ,the first organization would no longer enjoy a competitive
edge and might ,ultimately ,cease to exist .

3.3 Identity Theft

Identity theft is a crime in which an imposter obtains key pieces of personal information, such as
social security identification numbers, driver’s license numbers, or credit card numbers, to
impersonate someone else .The information may be used to obtain credit, merchandise, or
service in the name of the victim or provide the thief with false credentials.

The Internet has made it easy for identity thieves to use stolen information because goods can be
purchased online without any personal interaction .Credit card files are a major target Website
hackers .Moreover, e-commerce sites are wonderful sources of costumers personal information-
name, address, and phone numbers .Armed with this information, criminals can assume a new
identity and establish new credit for their own purposes.

A serious problem related to identity theft is spam .Spam electronic junk mail or junk newsgroup
postings, usually for the purpose advertising for some product and / or service .Spammers
commonly use zombie computers to send out millions of e-mail messages, unbeknown to the
computer users.

4 Sabotage

4.1 Individual Sabotage

Individual sabotage is typically carried out by a disgruntled employee who wishes to exavt some
form of revenge upon their employer .The logic bomb ,is a destructive computer program that
activates at a certain or in reaction to a specific event ,which is a well-known example of haw an
employee may cause deliberate damage to the organization’s information systems .

In most cases, the logic bomb is activated some months after the employee has left the
organization .This tends to have the effect of drawing suspicion away from the employee
.Another well-known example is known as a back door which is a section of program code that
allows a user to circumvent security procedures in order to gain full access to an information
system.

Although back doors have legitimate uses, such as for program testing, they can also be used as
an instrument of sabotage .If should be noted, however, that individual sabotage is becoming
more infrequent due to legislation such as the Computer Microsoft Act.

4.2 Industrial Sabotage

Industrial sabotage is considered rare, although there have been a number of well publicized
cases over the past few years .Industrial sabotage tends to be carried out for some kind of
competitive or financial gain .The actions of those involved tend to be highly organized, targeted
at specific areas of a rival organization’s activities, and supported by access to a substantial
resource base.

4.3 Unintentional Sabotage

An intent to cause loss or damage need not be present for sabotage to occur .Imagine the case of
an organization introducing a new information system at short notice and without proper
consultation .Employees may feel threatened by the new system and may wish to avoid making
use of it .A typical reaction might be to enter data incorrectly in an attempt to discredit the new
system.

Alternatively, the employee might continue to carry out tasks manually, claiming that this is a
more efficient way of working .In such cases, the employee’s primary motivation is to safeguard
their position-the damage or loss caused to the organization’s information systems is incidental
to this goal.

5 Vandalism
In a small network system ,for example ,damage to server or share storage device might
effectively halt the work of all those connected to the network .In larger systems ,a reduced flow
of work through one part of the organization can create bottlenecks ,reducing the overall
productivity of the entire organization .

Damage or loss of data can have more severe effects since the organization cannot make use of
the data until they have been replaced .The expense involved in replacing damaged or lost data
can far exceed any losses arising from damage to hardware or software .As an example, the
delays caused by the need to replace hardware or data might result in an organization’s being
unable to compete for new business, harming the overall profitability of the company.

6 Accidents

Some examples of the ways in which human errors can occur included (Paul Bocij ,Dave
Chaffey ,Andrew Greasly and Simon Hickie,2006):

6.1 Inaccurate data entry

As an example, consider a typical relational database management system, where update queries
are used to change records, tables reports .If the contents of the query are incorrect, errors might
be produced within all of the data manipulated by the query .Although extreme, significant
problems might be caused by adding or removing even a single character to a query.

6.2 Attempts to carry out tasks beyond the ability of the employee

In smaller computer-based information systems, a common cause of accidental damage involves

users attempting to install new hardware items or software applications, existing data may be lost
when the program is installed or the program may fail to operate as expected.

13.Conclusion

Threats are the actors or situations that might deliberately or accidentally exploit vulnerabilities
causing information system security incidents .Cannot deny that ,everyone of us-individuals
,organizations or companies are threatened and potentially vulnerable to the threats .In the
nutshell ,awareness and controls are the best defense .Through awareness and controls ,we can
protect personal and cooperate information while maintaining the benefits of information
technology