Ism Merged PDF

Information Systems for
Managers – Session-01&02
Dr. C. Lakshmi Devasena, IBS Hyderabad
1
Topics to be Covered
• Introduction to information systems
• Advances in information systems
• Impact on Business
• Functions of management
• Levels of management
2
Introduction to information
systems
•Information Technology supports every business
function
•An information system (IS) is a formal, technical,

organizational system designed to collect,
process, store, and distribute information
•To be a successful manager, one should

understand how information technology can
provide better products, enhance existing
services and create new business opportunities
3
Advances in information systems
• Social networking sites, big data
• Applications in science and technology
• Mobile applications (e.g. BFSI segment)
• Automation (Education, retail, etc.)
• Artificial Intelligence (Decision making, etc.)
4
Impact on Business
• Globalization
• Improving top line
• Improving bottom line
• Informed decision making
• Increased customer satisfaction
5
Management
• Management is the process of
directing tasks and organizing
resources to achieve organization
goals
6
Functions of Management
• Planning
• Organizing
• Leading
• Controlling
7
Planning
• Establishing organization goals
• Developing strategies to achieve
goals
8
Organizing
• Developing the structure of the
organization
• Acquiring human resources
9
Leading
• Motivating and managing
employees
• Forming task groups
10
Controlling
• Evaluating performance
• Controlling the organization
resources
11
Levels of management
• Top management
• Middle management
• First line management
12
Top management
• Establishing the goals of the
organization
• Interacting with representatives of

the external environment, such as
financial institutions, political figures
and important suppliers and
customers
13
Middle management
• Allocating resources so that the
objectives of top management are
accomplished
14
First line management
• Supervising day-to-day operations
15
Activities of an organization
• Strategic planning (Long range
plans)
• Tactical planning (Budgets tactical
plans)
• Operational planning (Day-to-day
transactions)
16
Framework for information
systems
• Each level (Operational, tactical and
strategic planning) – requires specific
information systems
17
Operational systems
characteristics -1
• Repetitiveness – daily, weekly,
monthly
• Predictability
• Emphasis on the past – past
activities of an organization.
• Detailed nature – information is
very detailed e.g payslips
18
Operational systems
characteristics -2
• Internal origin – data comes from
internal sources. E.g. Payslip data
comes from timesheets
• Structured form – format of input
and output data is highly structured
• Great accuracy – data input and
output are carefully checked
19
Tactical systems
• Provide middle level managers with
the information they need to
monitor and control operations and
to allocate their resources effectively
• Generate a variety of reports
20
Tactical systems characteristics -1
• Summary Reports – provide
management with important totals,
averages, key data and abstracts on the
activities of the organization
• Exception Reports – Warn managers

when results from a particular
operation exceed or do not meet
expected standard for the organization
21
• Adhoc Reports – Reports that
managers need, usually quickly, that
may never be needed again. E.g.
Overtime hours based on timesheets
• Periodic nature – information from a

tactical system is often produced
periodically e.g. Issues status in the
maintenance of systems
22
• Unexpected findings. E.g. Billing alerts
in a cloud computing environment due
to hacking
• Comparative nature – Information is

usually comparative in nature rather
than merely descriptive. E.g.
Comparison of project metrics with
organizational baselines or averages
23
• Summary form – The information is
usually not detailed, but in summary
form
• Both internal and external

resources – Data used for input to
the system may extend beyond
sources internal to the organization
24
Strategic planning systems
• Designed to provide top managers
with information that assists them in
making long-range planning decisions
for the organization.
• Top management usually uses

strategic planning information systems
for setting long-term organizational
goals.
25
characteristics -1
• Adhoc basis – Information may be
produced either regularly or periodically.
• Unexpected information – The system

may produce unexpected information
• Predictive nature – The information is

usually predictive of future events rather
than descriptive of past events. Long range
planners choose a route that will improve
the organization’s level of success.
26
characteristics -2
• Summary form – Information is usually not detailed, but in
summary form. Long range planners are not usually
interested in detailed information; they are usually
concerned with more global data and trends.
• External data – A large part of the data used for input to the
system may be acquired from sources external to the
organization. E.g Gartner reports / Market research reports
• Unstructured format – Data used for input to the system
may contain data that are unstructured in format.
• Subjectivity – The data used for input to the system may be
highly subjective
27
Comparison of Information System
Characteristic Operational Tactical Strategic Planning
Frequency Regular, Repetitive Mostly Regular / Often ad hoc

Periodic
Dependability of Expected results Some surprises may Results often contain
results occur surprises
Time period The past Comparative Predictive of the
covered future
Level of detail Very detailed Summaries of data Summaries of data
Source of data Internal Internal and external Mostly external
Nature of data Highly structured Some unstructured data Highly unstructured
Accuracy Highly accurate data Some subjective data Highly subjective data
Typical user First-line supervisors Middle managers Top Management

Level of decision Task oriented Oriented toward control Goal oriented
and resource allocation
1 June 2021 C. Lakshmi Devasena, IBS, Hyderabad

Components of information systems
• Hardware – main / peripherals
• Software – sys s/w, appln s/w
• Database – to store data
• Network – wired / wireless
• People
29
Stages of new information
technology growth
• Phase1: Investment / Project initiation
• Phase2: Technology learning and
adaptation
• Phase3: Management Control
• Phase4: Widespread technology transfer
30
Organization & Strategy
Strategies formulated by IS:

•Low cost leadership
•Product differentiation
•Focus on Niche markets
•Strengthen customer & supplier intimacy
31
Summary
• Introduction to information systems
• Advances in information systems
• Impact on Business
• Functions of management
•Components of information systems
•Stages of new information technology growth
•Organization & Strategy
32
Managers - S03
Dr. C. Lakshmi Devasena,
IBS Hyderabad
1
Previous session
• Management, functions of management
• Framework for information systems
•Components of IS
• Stages of new information technology
growth
2
Introduction
• Systems Concepts.
• Systems Characteristics
• Systems and their environment
• How a system works
• Systems approach to problem solving
• Transition to learning organization
3
Systems Concepts
• A system is an integrated set of
components, or entities that interact
to achieve a particular function or
goal.
4
Systems Characteristics
• System boundaries
•Purpose
•Systems and sub-systems - E.g. In a
business system, marketing, finance
and HR are examples of sub-systems
•Constraints
•Environment
•Outputs and inputs
•Interfaces
5
Systems and their environment -
01
• The system’s environment consists of
people, organizations and other
systems that supply data to or that
receive data from the system.
• Various kinds of systems may interact

with the environment in different
ways.
6
Systems and their environments
- 02
• Open systems - Open systems operate
in an external environment and
exchange information and data with
that environment.
• Closed systems - Closed system is
relatively self contained. It doesn’t
exchange information with its
environment.
7
Systems and their environments
- 03
• System feedback – Feedback is an
indicator of current performance when
compared to a set of standards. With
effective feedback, continuous adjustments
in the activities of a system can be made to
assure that the system achieves its goals
• System Entropy – Entropy is a measure of

level of disorder. Systems run down if they
are not maintained
8
How a system works - 01
• System concepts in business – Systems approach
is a way of analyzing business problems. It views the
business organization as a system of interrelated
parts designed to accomplish goals. Managers must
understand the goals of the total system and design
the functions of the sub-system.
• Information system as a system – The major

purpose of an information system is to convert data
into information – information is data with meaning
9
• Information system as a system – An
information system contains elements such
as hardware, software, personnel, databases
and procedures to accomplish its objectives.
• Hardware consists of computer devices and
communication equipment. Software
consists of instructions that the hardware
uses. Software consists of application
software and systems software.
10
• Sub systems – Each sub-system performs a
specialized task that supports the business
objectives. If one of the sub-systems breaks
down, the overall business will feel the
effect.
• Outputs and Inputs – An information

system receives inputs of data and
instructions, processes the data according to
instructions and produces outputs.
11
• Hierarchy of sub-systems – The sub-
systems within an information system
can be organized into a hierarchy to
represent their functions within the
overall system. Each sub-system
performs a specialized function.
12
• Sub-system interfaces – Interfaces
exist between the sub-systems of an
information system. Generally the
sub-systems are loosely coupled.
13
• Input controls – Input control ensures
that data is valid before they are
processed accurately. Password security
is used to ensure authorized access.
• Structure of an enterprise – Based on

the structure of an enterprise, the
various sub-systems are designed.
14
Systems approach to problem
solving
Systems approach to problem solving
involves the following steps
• Define the problem.
• Gather the data describing the problem
• Identify alternative solutions
• Evaluate these alternatives
• Select and implement the best alternative
• Follow up to determine whether the
solution is working
15
Transition to learning
organization - 01
• The most successful organizations will
be the learning organizations, and the
ability to learn faster than the
competitor will be the key to
maintaining a sustainable competitive
organization.
• Corporations can use the systems

approach to become learning
organizations.
16
organization - 02
Five disciplines of the learning organization
• Personal Mastery
• Mental models
• Building shared vision
• Team learning
• Systems thinking
17
organization - 03
Learning disabilities that interfere with
systems thinking
• Individuals focus on their own position
• Individuals blame someone else when
problems arise
• Reactiveness instead of Proactiveness
• Individuals spend time on events rather
than processes
• Functional hierarchies
18
organization - 04
Corporations can use the systems
approach to analyze and understand
the problems that occur in business
systems
19
organization - 05
Feedback in the learning organization
• Balancing feedback is a type of feedback
that tries to achieve stability. E.g. Training
need analysis based on 360 degree
feedback
20
Summary
• Systems Concepts.
• Systems Characteristics
• Systems and their environment
• How a system works
• Systems approach to problem
solving
• Transition to learning organization
21
Managers - 04
Dr. C. Lakshmi Devasena, IBS Hyderabad
1
Introduction
• Business Processes
• Impact of IT
• Reengineering of work
• IT and Business Process Redesign
• Management challenges in Business Process
Redesign
2
Business Processes
• Business processes refer to the manner in
which work is organized, coordinated and
focused to produce a valuable product or
service.
• They are the collection of activities required to
produce a product or service.
• Performance of a business firm depends on
how well its business processes are designed
and coordinated.
3
Order Fulfillment Process
Sales Generate Submit order

order
Accounting Check credit Approve credit Generate Invoice
production
Assemble product Ship product
4
Cashless Claims Process
How IT improves Business Processes
• Information systems automate many steps in
business processes that were formally
performed manually. E.g. Leave management
System
• Business processes can be improved by using
information technology to achieve greater
efficiency, innovation and customer services.
E.g. core banking system
6
Impact of IT - 01
• Efficiency - doing things right
• Effectiveness - doing the right things
• Transformation - Transforming the way a
functional unit or an organization does
business using information technology
7
Impact of IT - 02
How do applications that achieve the objectives
of efficiency, effectiveness and transformation
affect the individual, functional unit and the
organization?
8
Impact of IT - 03
Applications that have an impact on individual
Efficiency Task Mechanization Word processing.
Using a
spreadsheet to do
budget plan
Effectiveness Work improvement Using a prospect

database to
generate sales
letters
Transformation Role expansion Using a portable PC

to do “what-if”
analysis for
investment clients
9
Impact of IT - 04
Applications that have an impact on functional
unit
Efficiency Process Automation Order-entry; credit
checking
Effectiveness Functional Computer aided

enhancement design, computer
aided
manufacturing
Transformation Functional CD-ROM

redefinition disks/Pendrive for
business search
10
Impact of IT - 05
Applications that have an impact on the
organization
Efficiency Boundary extension Online order entry
linking customers
and suppliers
Effectiveness Service Online diagnostic

enhancement database for
electrical
appliances
Transformation Product innovation Publishing in

CD/Pendrive
11
Framework for application of IT
Individual Functional Unit Organization
Efficiency Task Process Boundary

Mechanization Automation extension
Effectiveness Work Functional Service

improvement enhancement enhancement
Transformation Role expansion Functional Product innovation

redefinition
12
Reengineering of work
• Process of reengineering of work
– Organize around outcomes, not around tasks
– Have those who use output of a process to
actually perform the process
– Treat geographically dispersed units as if they are
centralized
– Link parallel activities during the process, rather
than at the end of the process
– Capture information once at the source
13
Business Process Reengineering and
Business Process Redesign
14
IT and Business Process Redesign
• Steps in business process redesign
– Develop business vision and process objectives
– Identify processes to be re-designed
– Understand and measure existing processes
– Identify IT levers
– Design and build prototype of the process
15
Role of IT in Business processes
(re-design)
• Entities
– Inter-organizational processes
– Inter-functional processes
– Inter-personal processes
• Activities
– Operational activities
– Managerial activities
16
Management challenges in Business
process re-design
• Guidelines to manage transition
– Create task force with people from cross functional
groups
– Have re-design teams work closely with managers and
staff
– Explain thoroughly the information systems group wrt
power offered by technology
– Build a team of industrial engineers with strong
interpersonal skills, understanding of multiple
functions, process measurement etc.
– Build IT technology platforms that support cross
functional applications.
17
Summary
• Business Processes
• Impact of IT
• Reengineering of work
• IT and Business Process Redesign
• Management challenges in Business Process
Redesign
18
Information systems for managers –
S06
Global e-business and collaboration
1
Introduction
• Types of information systems
• Systems for linking enterprise
• e-business, e-commerce, e-governance
• Collaboration
• Systems and tools for collaboration
• IS department and functions
2
Types of Information Systems
• Transaction Process Systems(TPS)
– For operational managers. e.g Payroll transaction processing system
• Business Intelligence Systems(BIS) or Mgt Info System (MIS)
– For middle level managers and will help in decision making
– It is normally in the form of reports and dashboards
– TPS supply summarized data to the BIS or MIS.
• Decision Support Systems(DSS)
– Support non-routine decision making
– DSS bring in information from external sources such as current stock
prices or product prices of competitors
– Systems use a variety of models to analyze data.
• Executive Support Systems(ESS)
– For senior level managers who use these along with BI
– Reports and dash boards in form of charts and graphs
– They are reviewed periodically( weekly ,monthly, quarterly etc.)
3
Transaction Processing System
A transaction processing system collects and
stores data about transactions and sometimes
controls decisions made as part of a
transaction.
The transaction is the activity that changes
stored data, examples of such an activity
would be using a credit card to make a
reservation or making a cash withdrawal at an
ATM.
4
5
A TPS for payroll processing captures employee payment transaction data (such as a
time card). System outputs include online and hard-copy reports for management
and employee paychecks
6
Management Information System
In the system illustrated by this diagram, three TPS supply summarized transaction data to
the MIS reporting system at the end of the time period. Managers gain access to the
organizational data through the MIS, which provides them with the appropriate reports. 7
Business Intelligence System
Simple MIS Report
8
Decision Support System
A decision support system (DSS) is a computer
application that analyzes business data and
presents report so that managers can make
business decisions more easily.
9
Executive Support System
Executive Support System (ESS) is a reporting tool (software) that allows you
to turn your organization's data into useful summarized reports.
An executive information system (EIS), also known as an executive support

system (ESS), is a type of management information system that facilitates
and supports senior executive for information and decision-making needs.
It provides easy access to internal and external information relevant to
organizational goals.
• For example, the CEO of Leiner Health Products, one of the largest
manufacturers of private-label vitamins and supplements in the United
States, has an ESS that provides on his desktop a minute-to-minute view of
the firm’s financial performance as measured by working capital, accounts
receivable, accounts payable, cash flow, and inventory. The information is
presented in the form of a digital dashboard, which displays on a single
screen graphs and charts of key performance indicators for managing a
company
10
Systems for Linking Enterprise
• Specific to that organization
• ERP( Enterprise Resource Planning) systems
systems that span functional areas, focus on executing business processes across the business firm,
and include all levels of management
• Supply Chain Management (SCM) Systems
– Inter organizational system
• These systems help suppliers, purchasing firms, distributors, and logistics companies
share information about orders, production, inventory levels, and delivery of products
and services so that they can source, produce, and deliver goods and services efficiently.
• Customer Relationship Management(CRM) Systems
Used to optimize
– Revenue and profits
– Customer satisfaction
– Customer retention
– Customer expansion
• This information helps firms identify, attract, and retain the most profitable customers;
provide better service to existing customers; and increase sales.
11
Enterprise Resource Planning (ERP)
12
Supply Chain Management (SCM)
13
Systems for Linking Enterprise(contd.)
• Knowledge Management (KM) Systems
– Knowledge acquisition
– Knowledge retention
– Knowledge dispersion/distribution
– Proficiency building
– Continual improvement
– Customized knowledge building
• Intranet and Extranet for information sharing
14
Enterprise Application Architecture
15
E-business
• Use of digital technology and the internet to
execute major business processes in the
enterprise. E.g. Alibaba.com
it includes
– Activities for the internal management
– Coordination with suppliers
– Coordination with customers and also
– E-commerce
16
E-commerce
• It is that part of the e-business that deals with buying and
selling goods and services over the internet. E.g. Flipkart,
Amazon
It includes activities to support market transactions

Advertising
Marketing
Customer support
Security
Delivery
payment
17
E-governance
• Application of internet and networking
technologies to digitally enable government
and public sector agencies’ relationship with
citizens, business and other groups of
government
18
Collaboration
• In simple term it is team work
• It is working with others to achieve shared goals
or/and explicit goals
• Ranging from “one to one” to “many to many”
• The extent and magnitude varies depending on
task
• Could be internal to organization or external or
mix of both
19
Reasons for Collaboration
• Changing nature of work - A recent report from the consulting firm McKinsey
and Company argued that 41 percent of the U.S. labor force is now composed of jobs
where interaction (talking, e-mailing, presenting, and persuading) is the primary value-
adding activity
• Growth of Professional work - “Interaction” jobs tend to be professional jobs in

the service sector that require close coordination, and collaboration
• Changing organization of the firm - Today, work is organized into groups and
teams, who are expected to develop their own methods for accomplishing the task.
• Changing scope of the firm - The work of the firm has changed from a single
location to multiple locations—offices or factories throughout a region, a nation, or
even around the globe
• Emphasis on innovation - Bill Gates and Steve Jobs (founders of Microsoft and
Apple), both of whom are highly regarded innovators, and both of whom built strong
collaborative teams to nurture and support innovation in their firms
• Changing culture of work and business - Most research on collaboration

supports the notion that diverse teams produce better outputs, faster, than individuals
working on their own.
20
Business benefits of Collaboration
• Improved productivity
• Improved Quality
• Innovation
• Improved customer service
• Financial benefit - As a result of all of the above, collaborative
firms have superior sales growth and financial performance.
21
Requirements for effective
collaboration
• Collaboration capability
– Open culture CC
– Decentralized structure
CQ FP
– Breadth of collaboration
• Collaboration Technology CT
– For implementation and operations

– For strategic planning
Other extreme of good collaboration is “command and
control”
Successful collaboration requires an appropriate organizational

structure and culture, along with appropriate collaboration technology
22
Tools and Technology for Collaboration
• e-mail
• Instant messaging
• Social network
• Blogs
• WiKi
• Virtual worlds eg. Second Life
23
Internet based collaboration
environment
• Virtual meeting systems (skype)
• Google apps and sites
• Microsoft share point
• IBM’s Lotus notes
24
Time Space Matrix
Collaboration technologies can be classified in terms of whether they support interactions at

the same or different time or place, and whether these interactions are remote or co-located
25
Information Systems Department
• Also called IT department in some firms
– Programmers
– System analysts
– Information system managers – Leader of IT Team
– Chief information officer – Head of ISD
– Chief security( information) officer
– Chief Privacy officer – ensuring that the company complies with
existing data privacy laws
– Chief knowledge officer – responsible for firm’s knowledge
management program
There is no fixed organization structure for IS.
26
Summary
• Types of information systems
• Systems for linking enterprise
• e-business, e-commerce, e-governance
• Collaboration
• Systems and tools for collaboration
• IS department and functions
27
Information systems for managers –
S08
IT Infrastructure and emerging

technologies
1
Topics Covered
• IT Infrastructure
• Infrastructure components
• Current hardware trends
• Current software trends
• Open source software
• Cloud computing
2
Infrastructure
– The basic facilities, physical and organizational structures and
facilities needed for the operation of a society or organization or
a function.
– Transportation, communication, sewage, water, electric systems

etc. are examples of infrastructure.
IT Infrastructure is the shared technology resources that provide

the platform for the firm’s specific information system
applications. IT infrastructure include hardware, software and
services.
IT infrastructure consists of a set of physical devices and

software applications that are required to operate the
entire enterprise.
3
Evolution of IT Infrastructure
• General purpose mainframe (1959 to present)
• Minicomputer computing (1965 to present)
• Personal computers (1981 to present)
• Client server networks (1983 to present) – 2tier,
3tier, n tier, web server, application server
• Enterprise computing (1992 to present) – TCP/IP
networking standard
• Cloud and mobile computing (2000 to present)
4
5
Mainframe
6
Minicomputer
7
Multi-tier Client Server
8
Other Classification
• Based on capacity and size
– Super computers - bips
– Mainframe computers - mips
– Minicomputers
– Microcomputers (Desktop PCs, laptops)
– Personal devices like laptop, notebook etc.
– Personal digital assistants
– Smart phones
Size varies from a large room/hall to palmtop
9
Technology Drivers
• Moore’s Law 01010111 =87
– Computing power doubles every 18 months
– Price of computing falls by half every 18 months
• The law of Mass digital storage
– Amount of digital information roughly doubling every year
• Metcalfe’s Law & Network Economics
– value of a telecommunications network is proportional to the
square of the number of connected users of the system
• Declining Commn. Cost & The internet
• Standards and N/W effects
– Technology standards eg. ASCII, OSI Model, TCP/IP, Ethernet,
IBM/MS/Intel PC,
10
Moore’s Law
11
IT infrastructure Components/ Eco
Systems
• Computer Hardware platforms
– Dell, IBM, HP, Sun Micro Systems (now by Oracle)
– Chip producers: Intel, AMD, IBM
• Operating systems platforms
– MS-Dos, Unix, Windows, Linux etc.
• Enterprise software applications
– SAP, MS Project, Oracle ERP, etc
• Networking/Telecommunications
– AT&T, Nortel, CISCO
• Consultants and system integrators
– IBM, Infosys, TCS etc.
• Data Management and storage
– SQL Server, DB2, SAN (Storage area networks connect multiple storage devices on a separate
high speed network dedicated to storage)
• Internet platforms
– Java, .NET
12
IT Infrastructure Components
13
Hardware Platform trends -1
• Mobile digital platform – smartphones have taken on
many functionalities of PCs – surfing of internet, email,
messaging, exchanging data over extranets, kindle.
• Grid computing – connecting geographically remote
computers into a single network to create a virtual
supercomputer by combining the computational power
of all computers on the grid.
• Virtualization – is the process of presenting a set of
computing resources so that they can all be accessed in
ways that are not restricted by physical configuration
or geographical location.
14
Hardware Platform trends - 2
• Cloud computing features
– on demand self service (individuals can get computing capabilities on
their own)
– Network access from anywhere on internet
– Location independent resource pooling
– Rapid elasticity
– Measured services
• Services Provided
– SaaS
– PaaS
– IaaS
• Types
– Public
– Private
– Community
– Hybrid
15
Hardware Platform trends - 3
• Green computing – minimize impact on the
environment (reducing power consumption)
• Autonomous computing (develop systems
that can heal themselves, optimize and tune
themselves, protect from intruders).
16
Software Trends
• Open source software – software produced by a
community of several programmers which is free. E.g.
Linux, Apache web server, MySQL database, Mozilla firefox
browser
• Software for the Web
– Java: OS independent object oriented programming language
– Ajax (Asynchronous javascript and XML): client and server
exchange data without reloading the entire page, HTML for
presentation, XML for data transfer
• Web services and service oriented architecture
• Enterprise applications
• Cloud based software services and tools
• Mobile Apps
17
Summary
• IT Infrastructure
• Infrastructure components
• Current hardware trends
• Current software trends
• Open source software
• Cloud computing
18
EMERGING TRENDS, TECHNOLOGIES,
AND APPLICATIONS
Trends in Software and Service Distribution
• Recent trends in software and service
distribution include:
– Pull and push technologies
– Application service providers
• Pull technology
– User states a need before getting information
• Push technology (Webcasting)
– Web server delivers information to users who have
signed up for a service
Application Service Providers
• Application service providers (ASPs)
– Provide access to software or services for a fee
• Software as a service (SaaS), or on-
demand software
– Model for ASPs to deliver software to users for a fee
– Software might be for temporary or long-term use
– Users don’t need to be concerned with new software
versions and compatibility problems
Application Service Providers (cont’d.)
• Advantages:
– Similar to outsourcing
• Less expensive
• Delivering information more quickly
• Vendors:
– Google, NetSuite, Salesforce.com
Virtual Reality
• Goal of virtual reality (VR):
– Create an environment in which users can interact
and participate as they do in the real world
• VR technology
– Uses computer-generated, three-dimensional images
to create the illusion of interaction in a real-world
environment
Virtual Reality (cont’d.)
• VR terms:
– Simulation
– Interaction
– Immersion
– Telepresence
– Full-body immersion
– Networked communication
Types of Virtual Environments
• Egocentric environment
– User is totally immersed in the VR world
– Most common technology used with this environment
is a head-mounted display (HMD)
• Exocentric environment
– Data is still rendered in 3-D
– Users can only view it onscreen
– Main technology used in this environment is 3-D
graphics
Exhibit 4.1 Egocentric VR Technologies
Components of a Virtual Reality System
• Visual and aural systems
• Manual control for navigation
• Central coordinating processor and software
system
Exhibit 4.2 VR Components
Virtual Reality Applications
• Military flight simulations
• Medicine for “bloodless” surgery
• Entertainment industry
• Will one day be used for user interfaces in
information systems
• Current applications:
– Applications for the disabled
– Architectural design
– Education
– Flight simulation
– Videoconferencing
Radio Frequency Identification: An Overview
• Radio frequency identification (RFID) tag
– Small electronic device consisting of a small chip and
an antenna
– Provides a unique identification for the card or the
object carrying the tag
– Can be read from a distance of about 20 feet
Table1 RFID Applications
RFID Applications
Category Examples
Tracking and identification Railway cars and shipping containers, livestock and
pets, supply-chain management (tracking merchandise
from manufacturers to retailers to
customers), inventory control, retail checkout and POS
systems, recycling and waste disposal
Payment and stored-value systems Electronic toll systems, contactless credit cards (require
no swiping), subway and bus passes, casino tokens,
concert tickets
Access control Building access cards, ski-lift passes, car ignition

systems
Anticounterfeiting Casino tokens, high-denomination currency notes,

luxury goods, prescription drugs
Health care Tracking medical tools and patients (particularly

newborns and patients with Alzheimer’s), process
control, monitoring patient data
Biometrics
• Current and future applications of biometrics:
– ATM, credit, and debit cards
– Network and computer login security
– Web page security
– Voting
– Employee time clocks
– Airport security and fast check-in
– Passports and highly secured government ID cards
– Cell phones and smart cards
Trends in Networking
• Recent trends in networking technologies
• Many are already used in many organizations
– Wireless technologies and grid computing
• Newer but attracting a lot of attention:
– WiMAX and cloud computing
Wi-Fi
• Wireless Fidelity (Wi-Fi)
– Broadband wireless technology
– Based on the 802.11a, 802.11b, 802.11g, and
802.11n standards
• Information can be transmitted over short
distances
– In the form of radio waves
• Connect via:
– Computers, mobile phones and smart phones, MP3
players, PDAs, and game consoles
– Wi-Fi hotspots
WiMAX
• Worldwide Interoperability for Microwave
Access (WiMAX)
– Broadband wireless technology
– Based on the IEEE 802.16 standards
• Designed for wireless metropolitan area
networks
• Theoretically has faster data transfer rates and a
longer range than Wi-Fi
• Disadvantages:
– Interference from other wireless devices, high costs,
and interruptions from weather conditions
Bluetooth
• Can be used to create a personal area network (PAN)
• Wireless technology for transferring data over short
distances
• Specifications are developed and licensed by the
Bluetooth Special Interest Group
• Uses a radio technology called Frequency Hopping
Spread Spectrum (FHSS)
• Used to connect devices such as:
– Computers, global positioning systems (GPSs), mobile phones,
laptops, printers, and digital cameras
• Limited transfer rate
Nanotechnology
• Incorporates techniques that involve the
structure and composition of materials on a
nanoscale
• Nanometer is one billionth of a meter (10-9)
• Current technology for making transistors and
other components might reach their
miniaturization limits in the next decade
• Some consumer goods incorporating
nanotechnology are already on the market
– Nanomaterials
Summary
• New trends:
– Software as a service
– Virtual reality
– RFID
– Networking
– Nanotechnology
MS Excel
Topics
• General facilities/features of Excel
• Functions/formula ( Mathematical, statistical, financial and logical)
• Sorting, filtering and formatting
• Date functions
• References( relative and absolute)
• Name manager
• Lookup functions
• Match function
• Index Function
• Data Validation
• Formula check/trace
• Pivot Table
Functions
• Mathematical • Statistcal
– sum – average
– power – count (all types)
– rand – min
– sqrt – max
– subtotal – large
– product – small
– sumproduct – rank
– round – stdev
Functions contd…
• Logical • conditional
– and – sumif
– or – sumifs
– if – countif
– not – Countifs
• nested • Financial
– if and logical – PMT
– other combinations – NPV
– IRR
Terms used
• Workbook
• Sheets
• Ribbon,tab,groups
• Cell (reference Ex: A1)
• Column (width) and row(height)
• Auto fill
• .xlsx extension
• Formula bar and name box
Functions
• Sum, subtotal, product, sumproduct, if, count,
counta, countblank, countif, sumif, max, min,
large,small,average, rank, power,round,and,
or, not,PMT,NPV,IRR etc.
• Date functions, year, month, day and datedif
Today,now etc
• Nested Functions
Functions
Function starts with"=" sign.
Function has arguments in brackets /parenthesis: Ex:
SUM(C1:C10)
list of functions will be prompted when a function is attempted
PMT(rate,nper,pv,[fv],[type])
TRUE=1 and False= 0
function corresponding to the cell is displayed at formula bar

function is explained in brief ( format, arguments and result
expected)
Result will be displayed in the cell
F2 key will display function and arguments
errors wrt functions are also prompted

Exercise maths science
Make a table with five columns 86 75
First column will be "serial Number" 71 63
second column will be seat numbers 92 68
third column will be name 71 86
fourth will be marks in Maths 80 65
fifth will be marks in science 87 75
enter six entries( max marks 100)
sort wrt marks in maths

sort wrt marks in Science
bring to original table
find total marks of each student
find first and last marks in each subject
find first wrt overall total
find class average for each subject and for
total
Find second highest and second lowest
Rank them wrt total marks
references
• absolute ( fixed cell address to pick value)
• Relative ( addresses keep incrementing )
• Default is relative
• Use $ sign before row reference or column
reference or both depending on which one to
be frozen as absolute
• F4 key inserts $ sign automatically
Other functions
Countif SL No Name Marks Grade Nestedif Countif Rank Rank
sumif 1abc 53B Pass 2 5
nestedif 2ade 42C Fail 7
Rank 3def 65C Pass 5 4
Averageif 4jkl 76A First Division 3
5xyz 23E Fail 8
6pqr 88A+ Exceptional 1
7stu 82A First Division 2
8wxy 47C Fail 6
IF(I3>85,"Exceptional",IF(I3>75,"First Division",IF(I3>65,"Second Division",IF(I3>50,"Pass","Fail"))))
SUMIF(J3:J10,"C",I3:I10)
COUNTIF(E15:E22,"Pass")
RANK(I3,$I$3:$I$10,0)
59
Date Function
• Date function: 05 May 2021
• =Today() indicates current date
• =now() indicates current time also
• Year(date1)-year(date2) will give years between
the dates
• Month(date1)-Month(date2) will give months
between the dates
• day(date1)-day(date2) will give days between the
dates
• Find out how many days you completed at IBS
Datedif(A2,A3,”y”)
• y gives completed years
• m gives completed months
• d gives completed days
• ym months ignoring years
• yd days ignoring years
• md days ignoring months
• DATEDIF(A2,A3,"y")&"years”,
This will give completed years between the dates
( A2 is the cell address of one date and A3 is the cell
address of earlier date)
Name Manger(Reference)
• A name that represents a cell, range of cells, formula, or constant value. You can
create your own defined name.
• All names have a scope, either to a specific worksheet (also called the local
worksheet level) or to the entire workbook (also called the global workbook level).
Syntax rules for names
• Valid characters : The first character of a name must be a letter, an underscore

character (_), or a backslash (\). Remaining characters in the name can be letters,
numbers, periods, and underscore characters
• The letters "C", "c", "R", or "r" or reserved names of excel can NOT used to define a
name,
• Cell references disallowed Names cannot be the same as a cell reference, such as
Z$100 or R1C1.
• Spaces are not valid
• Name length A name can contain up to 255 characters.
• Case sensitivity Names can contain uppercase and lowercase letters.
buying selling profit qty total cost
234 256 =selling-buying 5 =buying*qty
=SUMIF(buying,">
450")
=SUM(buying)
=COUNTIF(selling,
"<500")
Name Manger and if functions
buying selling profit qty total cost
=SUMIF(buying,">4
50")
=SUM(buying)
=COUNTIF(selling,"
<500")
Operator precedence
• : space , colon space comma

• - negation
• % Percentage
• ^ Exponential
• * / multiplication division
• + - addition subtraction &
• concatenation = < > <= >= <>
Find profit and total buying cost of each item.
Find number of items costing more than 400 each(buying)
count number of items giving profit
find total selling price of all items
find total buying cost of items giving loss
increase selling price by 5% and do all calculations.
Buying cost Selling price profit qty total cost Item

234 256 22 5 1170 Item A
434 450 16 6 2604 Item B
458 450 -8 7 3206 Item C
769 850 81 8 6152 Item D
PMT( Financial Function)
• Calculates the payment for a loan based on constant payments and
a constant interest rate.
• Syntax
PMT(rate,nper,pv,fv,type)
• Rate is the interest rate for the loan.
• Nper is the total number of payments for the loan.
• Pv is the present value, or the total amount that a series of future
payments is worth now; also known as the principal.
• Fv is the future value, or a cash balance you want to attain after
the last payment is made. If fv is omitted, it is assumed to be 0
(zero), that is, the future value of a loan is 0.
• Type is the number 0 (zero) or 1 and indicates when payments are
due.
Financial Functions
PMT(Payment)
Equal Monthly installments
Present Value pv 1000000
Principle
amount
Note: Enter rate corresponding to
rate(interest) rate 10%per year installment time
number of
installments nper 120months
Note: arguments in [] are optional and have a default
value
future or final
value after
tenure fv default "0"
Type of
payment type 0 or 1
default 0 payment after end of installment period
1 before start of installment period
By default the result is indicated as negative to indicate reducing balance after payment
EMI or PMT
will be pmt=PMT(rate,nper,pv,[fv],[type])
Rs. -13,215.07
IRR Function
• IRR function
• Returns the internal rate of return for a series of cash flows represented by the numbers in values. These
cash flows do not have to be even, as they would be for an annuity. However, the cash flows must occur at
regular intervals, such as monthly or annually. The internal rate of return is the interest rate received for an
investment consisting of payments (negative values) and income (positive values) that occur at regular
periods.
• Syntax
• IRR(values,guess)
• Values is an array or a reference to cells that contain numbers for which you want to calculate the
internal rate of return.
• Values must contain at least one positive value and one negative value to calculate the internal rate of
return.
• IRR uses the order of values to interpret the order of cash flows. Be sure to enter your payment and income
values in the sequence you want.
• If an array or reference argument contains text, logical values, or empty cells, those values are ignored.
• Guess is a number that you guess is close to the result of IRR.
• Microsoft Excel uses an iterative technique for calculating IRR. Starting with guess, IRR cycles through the
calculation until the result is accurate within 0.00001 percent. If IRR can't find a result that works after 20
tries, the #NUM! error value is returned.
• In most cases you do not need to provide guess for the IRR calculation. If guess is omitted, it is assumed to
be 0.1 (10 percent).
• If IRR gives the #NUM! error value, or if the result is not close to what you expected, try again with a
different value for guess.
Finacial Functions
PMT(Payment)
Principle amount
rate(interest) rate 10%per year
number of installmentsnper 120months
PMT Rs. -13,215.07
Formula tab-->Formula auditing--> trace precedents

Finacial Functions
PMT(Payment)
Principle amount
rate(interest) rate 10%per year
number of installmentsnper 120months
PMT Rs. -13,215.07
Formula tab-->Formula auditing--> trace dependents

Worksheet and workbook specifications and limits
Feature Maximum limit
Open workbooks Limited by available memory and system resources
Worksheet size 1,048,576 rows by 16,384 columns
Column width 255 characters
Row height 409 points
Page breaks 1,026 horizontal and vertical
Total number of characters that a cell can contain 32,767 characters
Characters in a header or footer 255
Sheets in a workbook Limited by available memory (default is 3 sheets)
Colors in a workbook 16 million colors (32 bit with full access to 24 bit color spectrum)
Named views in a workbook Limited by available memory
Unique cell formats/cell styles 64,000
Fill styles 256
Line weight and styles 256
Unique font types 1,024 global fonts available for use; 512 per workbook
Between 200 and 250, depending on the language version of Excel
Number formats in a workbook
that you have installed
Names in a workbook Limited by available memory
Windows in a workbook Limited by available memory
Hyperlinks in a worksheet 66,530 hyperlinks
Panes in a window 4
Linked sheets Limited by available memory
Limited by available memory; a summary report shows only the first
Scenarios
251 scenarios
Changing cells in a scenario 32
Adjustable cells in Solver 200
Custom functions Limited by available memory
Zoom range 10 percent to 400 percent
Reports Limited by available memory
Sort references 64 in a single sort; unlimited when using sequential sorts
Undo levels 100
Fields in a data form 32
Workbook parameters 255 parameters per workbook
Calculation specifications and limits
Feature Maximum limit
Number precision 15 digits
Smallest allowed negative number -2.2251E-308
Smallest allowed positive number 2.2251E-308
Largest allowed positive number 9.99999999999999E+307
Largest allowed negative number -9.99999999999999E+307
Largest allowed positive number via formula 1.7976931348623158e+308
Largest allowed negative number via formula -1.7976931348623158e+308
Length of formula contents 8,192 characters
Internal length of formula 16,384 bytes
Iterations 32,767
Worksheet arrays Limited by available memory
Selected ranges 2,048
Arguments in a function 255
Nested levels of functions 64
User defined function categories 255
Number of available worksheet functions 341
Size of the operand stack 1,024
Cross-worksheet dependency 64,000 worksheets that can refer to other sheets
Cross-worksheet array formula dependency Limited by available memory
Area dependency Limited by available memory
Area dependency per worksheet Limited by available memory
Dependency on a single cell 4 billion formulas that can depend on a single cell
Linked cell content length from closed workbooks 32,767
January 1, 1900 (January 1, 1904, if 1904 date system is
Earliest date allowed for calculation
used)
Latest date allowed for calculation December 31, 9999
Largest amount of time that can be entered 9999:59:59
Access- Tables
Create tables under-ISM_2022
database file
Student_data Course_data
• Student_ID--- Text • Course_ID--- Text
• Student_name----Text • Course_name--- Text
• Mobile_No--- Text
• Duration(Weeks)– number
• Blood_Group--- List
• Place--------- List • Credits--------- number
• DOB----------- Date • Semester------ number
• Passport_available- YES/NO • Year of induction--- number
• Course_ID Text ( Foreign Key)
• Faculty_ID Text (Foreign Key)
• Section--------- Text
Table-Faculty_data
• Faculty_ID
• Faculty_Name
• Faculty_Qualification
• Department
• Room_no
• Mobile_No
Exercise-Access
• Use Student table to enter course number and
faculty number as foreign keys
• Use design view for defining the field names(
attributes or column names in table)
• Use data sheet view to enter the data in
tables.
• Enter at least five records in each table
• Field types in Microsoft Access
• Fields in a Microsoft Access database can be of many
different data types. Access supports different kinds of
text, numbers, dates and some more special data
types. This document will describe each data type and
note which versions of Microsoft Access support it.
• Textual types
• Text The Text data type is used for short text fields of
limited length, and can contain up to 255 characters.
Memo A Memo field is a virtually unlimited text field. It
can store up to 1GB of text.
Forms
• Introduction to forms
• Demonstration of making a simple form to
add one more record to student table( whivh
is already made)
Joining the tables
• Process of joining tables. ( all three)
• Possible errors
• Referential integrity examples
• Relation ships( one to one and one to many)
• Example of select-join- present
Queries
• Introduction
• Views available in query
• Simple query through Query wizard ( list of
students opted for a course and are from
Bangalore etc.)
• Selecting fields from different tables
Reports
• Introduction
• Different views and facilities available in
reports through demonstration.
ISM – 18
DBMS – Introduction to
DBMS
1
Previous Session
• Excel exercises
2
Today’s Session
• Data organization in file system
• Database approach to data management
3
Organizing Data in a Traditional File Environment
• File organization concepts

• Computer system uses hierarchies
• Field: Group of characters
• Record: Group of related fields
• File: Group of records of same type
• Database: Group of related files
• Record: Describes an entity
• Entity: Person, place, thing on which we store information
• Attribute: Each characteristic, or quality, describing entity
• E.g. Attributes Date or Grade belong to entity COURSE
4
The Data Hierarchy
A computer system
organizes data in a
hierarchy that starts with
the bit, which represents
either a 0 or a 1. Bits can
be grouped to form a
byte to represent one
character, number, or
symbol. Bytes can be
grouped to form a field,
and related fields can be
grouped to form a record.
Related records can be
collected to form a file,
and related files can be
organized into a
database.
Figure 6-1
5
• Problems with the traditional file processing (files maintained separately by

different departments)
• Data redundancy and inconsistency
• Data redundancy: Presence of duplicate data in multiple files
• Data inconsistency: Same attribute has different values
• Program-data dependence:
• When changes in program requires changes to data accessed by program
• Lack of flexibility or Difficulty in accessing data
• Poor security
• Lack of data sharing and availability
• Concurrent access by multiple users
6
Traditional File Processing
The use of a traditional approach to file processing encourages each functional area in a corporation to
develop specialized applications and files. Each application requires a unique data file that is likely to be a
subset of the master file. These subsets of the master file lead to data redundancy and inconsistency,
processing inflexibility, and wasted storage resources. 7
Database Management System (DBMS)
 DBMS contains information about a particular enterprise

◦ Collection of interrelated data
◦ Set of programs to access the data
◦ An environment that is both convenient and efficient to use
 Database Applications:
◦ Banking: transactions
◦ Airlines: reservations, schedules
◦ Universities: registration, grades
◦ Sales: customers, products, purchases
◦ Online retailers: order tracking, customized recommendations
◦ Manufacturing: production, inventory, orders, supply chain
◦ Human resources: employee records, salaries, tax deductions
 Databases can be very large.
 Databases touch all aspects of our lives
8
The Database Approach to Data Management
• Database:
• Collection of data organized to serve many applications by centralizing
data and controlling redundant data
• Database management system:
• Interfaces between application programs and physical data files
• Separates logical and physical views of data
• Solves problems of traditional file environment
• Controls redundancy
• Eliminated inconsistency
• Uncouples programs and data
• Enables central management and security
9
Human Resources Database with Multiple Views
A single human resources database provides many different views of data, depending on the information requirements of
the user. Illustrated here are two possible views, one of interest to a benefits specialist and one of interest to a member
of the company’s payroll department.
10
• Relational DBMS
• Represent data as two-dimensional tables called relations or files
• Each table contains data on entity and attributes
• Table: Grid of columns and rows
• Rows (tuples): Records for different entities
• Fields (columns): Represents attribute for entity
• Key field: Field used to identify each record
• Primary key: Field used to uniquely identify each record, not null
• Foreign key: Primary key used in second table as look-up field to identify
records from original table
11
Relational Database Tables
A relational database organizes data in the form of two-dimensional tables. Illustrated here are
tables for the entities SUPPLIER and PART showing how they represent each entity and its
attributes. Supplier_Number is a primary key for the SUPPLIER table and a foreign key for the
PART table.
12
Relational Database Tables (cont.)
13
• Operations of a Relational DBMS: Three basic operations used

to develop useful sets of data
• SELECT: Creates subset of data of all records that meet
stated criteria
• JOIN: Combines relational tables to provide user with more
information than available in individual tables
• PROJECT: Creates subset of columns in table, creating tables
with only the information specified
14
The Three Basic Operations of a Relational DBMS
The select, project, and join operations enable data from two different
tables to be combined and only selected attributes to be displayed.
15
• Capabilities of Database Management Systems

• Data definition capability: Specifies structure of database
content, used to create tables and define characteristics of fields
• Data dictionary: Automated or manual file storing
definitions of data elements and their characteristics
• Data manipulation language: Used to add, change, delete,
retrieve data from database
• Structured Query Language (SQL)
• Microsoft Access user tools for generation SQL
• Also: Many DBMS have report generation capabilities for
creating polished reports (Crystal Reports)
16
Example of an SQL Query
Illustrated here are the SQL statements for a query to select suppliers for parts 137 or 150.
17
An Access Query
Illustrated here is how the query specified early would be constructed using query-building
tools in the Access Query Design View. It shows the tables, fields, and selection criteria used
for the query. 18
• Designing Databases
• Conceptual (logical) design: abstract model from business
perspective
• Physical design: How database is arranged on direct-access
storage devices
• Design process identifies:
• Relationships among data elements, redundant database
elements
• Most efficient way to group data elements to meet business
requirements, needs of application programs
• Normalization
• Streamlining complex groupings of data to minimize
redundant data elements and awkward many-to-many
relationships
19
An Unnormalized Relation for Order
An unnormalized relation contains repeating groups. For example, there can be many parts and
suppliers for each order. There is only a one-to-one correspondence between Order_Number and
Order_Date.
20
Normalized Tables Created from Order
After normalization, the original relation ORDER has been broken down into four smaller relations. The relation ORDER is
left with only two attributes and the relation LINE_ITEM has a combined, or concatenated, key consisting of Order_Number
and Part_Number.
21
Normal Forms
• 1 NF – No multi valued attributes or

repeating groups.
• 2 NF – 1 NF plus no partial dependencies
• 3 NF – 2 NF plus no transitive dependencies
• Entity-relationship diagram
• Used by database designers to document the data model
• Illustrates relationships between entities
23
An Entity-Relationship Diagram
This diagram shows the relationships between the entities ORDER, LINE_ITEM, PART, and
SUPPLIER that might be used to model the database specified above.
24
Using Databases to Improve Business Performance and
Decision Making
• For very large databases and systems, special

capabilities and tools are required for analyzing large
quantities of data and for accessing data from multiple
systems
• Data warehousing
• Data mining
• Tools for accessing internal databases through the Web
25
Decision Making
• Database warehouses
• Data warehouse:
• Stores current and historical data from many core operational
transaction systems
• Consolidates and standardizes information for use across enterprise,
but data cannot be altered
• Data warehouse system will provide query, analysis, and reporting
tools
• Data marts:
• Subset of data warehouse with summarized or highly focused
portion of firm’s data for use by specific population of users
• Typically focuses on single subject or line of business
26
Decision Making
Components of a Data Warehouse
ETL
The data warehouse extracts current and historical data from multiple operational systems inside the
organization. These data are combined with data from external sources and reorganized into a central
database designed for management reporting and analysis. The information directory provides users with
information about the data available in the warehouse.
27
Decision Making
• Business Intelligence:
• Tools for consolidating, analyzing, and providing access to
vast amounts of data to help users make better business
decisions
• Principle tools include:
• Software for database query and reporting
• Online analytical processing (OLAP)
• Data mining
28
Decision Making
Business Intelligence
A series of analytical
tools works with data
stored in databases
to find patterns and
insights for helping
managers and
employees make
better decisions to
improve
organizational
performance.
29
Decision Making
Multidimensional Data Model
The view that is showing

is product versus region.
If you rotate the cube 90
degrees, the face that
will show is product
versus actual and
projected sales. If you
rotate the cube 90
degrees again, you will
see region versus actual
and projected sales.
Other views are possible.
30
Decision Making
• Data mining:
• More discovery driven than OLAP
• Finds hidden patterns, relationships in large databases
• Infers rules to predict future behavior
• The patterns and rules are used to guide decision making and
forecast the effect of those decisions
• Popularly used to provide detailed analyses of patterns in
customer data for one-to-one marketing campaigns or to
identify profitable customers.
• Less well known: used to trace calls from specific
neighborhoods that use stolen cell phones and phone
accounts 31
Decision Making
• Types of information obtainable from data mining

• Associations: Occurrences linked to single event
• Sequences: Events linked over time
• Classification: Recognizes patterns that describe group
to which item belongs
• Clustering: Similar to classification when no groups
have been defined; finds groupings within data
• Forecasting: Uses series of existing values to forecast
what other values will be
32
Decision Making
• Databases and the Web

• Many companies use Web to make some internal databases available to
customers or partners
• Typical configuration includes:
• Web server
• Application server/middleware
• Database server (hosting DBM)
• Advantages of using Web for database access:
• Ease of use of browser software
• Web interface requires few or no changes to database
• Inexpensive to add Web interface to system
33
Decision Making
Linking Internal Databases to the Web
Users access an organization’s internal database through the Web using their desktop PCs
and Web browser software.
34
Text mining and web mining
• Text mining tools extract key elements from
large unstructured data sets, discover patterns
and relationships and summarize the
information.
• Web mining is the discovery and analysis of
useful patterns and information from the
world wide web.
35
Summary
• Data organization in file system
• Database approach to data management
36
Business Intelligence
and Knowledge Management
Objectives
• Explain the concepts of data mining and online analytical processing
• Explain the notion of business intelligence and its benefits to

organizations
• Identify needs for knowledge storage and management in

organizations
• Explain the challenges in knowledge management and its benefits

to organizations
BI & KM, Dr. C. Lakshmi Devasena, IBS Hyd

2
Data Mining and Online Analysis
• Data warehouse: a large database containing

historical transactions and other data
• Data warehouses are useless without software
tools to process the data into meaningful
information
• Business intelligence (BI): information gleaned
with information analysis tools
– Also called business analytics

3
Data Mining
• Data mining: the process of selecting, exploring,
and modeling large amounts of data
– Used to discover hidden patterns/relationships
that can support decision making
• Combination of data-warehousing techniques

and data-mining tools facilitates the prediction of
future outcomes

4
Data Mining (continued)
• Data mining has four main objectives:
– Sequence or path analysis: finding patterns
where one event leads to another
– Classification: finding whether certain facts fall
into predefined groups
– Clustering: finding groups of related facts not
previously known
– Forecasting: discovering patterns that can lead
to reasonable predictions
– Association

5
• Data mining techniques are applied to various
fields, including marketing, fraud detection,
and targeted marketing to individuals

6
7
• Inferring demographics
– Predict what customers are likely to purchase in
the future
– Amazon.com
• Determines a customer’s age range based on his
or her purchase history
• Attempts to determine customer’s gender
• Advertises for appropriate age groups based on
the inferred customer demographics

8
Online Analytical Processing
• Online analytical processing (OLAP): a type
of application used to exploit data warehouses
– Provides extremely fast response times
– Allows a user to view multiple combinations of
two dimensions by rotating virtual “cubes” of
information
• Drilling down: the process of starting with broad
information and then retrieving more specific
information as numbers or percentages
• Roll up: process of starting with detailed details
to summary detail.
9
Online Analytical Processing
(continued)
• OLAP is increasingly used by corporations to
gain efficiencies
– Office Depot used OLAP on a data warehouse to
determine cross-selling strategies
– Ben & Jerry’s tracks ice cream flavor popularity
• BI software is integrated into Microsoft’s SQL

Server database software

10
More Customer Intelligence
• A major effort of business is collecting business
intelligence about customers
• Data-mining and OLAP software are often integrated into
CRM systems
• Web has become popular for transactions, making data
collection easy
• Targeted marketing is more effective than mass
marketing
• Clickstream software: tracks and stores data about
every visit to a Web site
• Third-party companies such as DoubleClick and Engage
Software may be hired to study consumer activity
11
Dashboards
• Dashboard: an interface between BI tools and

the user
– Resembles a car dashboard
– Contains visual images to quickly represent
specific business metrics of interest to
management
– Helps management monitor revenue and sales,
monitor inventory levels, and pinpoint trends and
changes over time

12
• Business value of improved decision making
– Improving hundreds of thousands of “small” decisions
adds up to large annual value for the business
• Types of decisions:
– Unstructured: Decision maker must provide
judgment, evaluation, and insight to solve problem
– Structured: Repetitive and routine; involve definite
procedure for handling so they do not have to be
treated each time as new
– Semistructured: Only part of problem has clear-cut
answer provided by accepted procedure
13
INFORMATION REQUIREMENTS OF KEY DECISION-MAKING GROUPS IN A FIRM
Senior managers, middle managers, operational managers, and employees have different types of decisions and
information requirements.
14
• The 4 stages of the decision making process
1. Intelligence
• Discovering, identifying, and understanding the
problems occurring in the organization
2. Design
• Identifying and exploring solutions to the problem
3. Choice
• Choosing among solution alternatives
4. Implementation
• Making chosen alternative work and continuing to
monitor how well solution is working
15
STAGES IN DECISION MAKING
The decision-
making process
is broken down
into four stages.
16
• Business intelligence
– Infrastructure for collecting, storing, analyzing data
produced by business
– Databases, data warehouses, data marts
• Business analytics
– Tools and techniques for analyzing data
– OLAP, statistics, models, data mining
• Business intelligence vendors
– Create business intelligence and analytics purchased
by firms
17
• Business intelligence users
– 80% are casual users relying on production reports
– Senior executives
• Use monitoring functionalities
– Middle managers and analysts
• Ad-hoc analysis
– Operational employees
• Prepackaged reports
• E.g. sales forecasts, customer satisfaction, loyalty and
attrition, supply chain backlog, employee productivity
18
Group Decision Support Systems (GDSS)
– Interactive system to facilitate solution of unstructured

problems by group
– Specialized hardware and software; typically used in
conference rooms
• Overhead projectors, display screens
• Software to collect, rank, edit participant ideas and responses
• May require facilitator and staff
– Enables increasing meeting size and increasing
productivity
– Promotes collaborative atmosphere, guaranteeing
anonymity
– Uses structured methods to organize and evaluate ideas
19 © Prentice Hall 2011

Knowledge Management
• Organizations should record all of their experiences with

clients, but should also capture knowledge and expertise
gained in the organization
• OLAP and data warehouses are not enough for managing
knowledge
• Knowledge is expertise created in an organization
• Knowledge management (KM): gathering, organizing,
sharing, analyzing, and disseminating knowledge to
improve an organization’s performance

20
Knowledge Management (continued)
• The purposes of KM include:
– Transfer individual knowledge into databases
– Filter and separate the most relevant knowledge
– Organize that knowledge to provide easy access to it,
or to push it to employees based on needs
• Storage costs continue to decrease, making it cost
effective to store more information
– The challenge is to develop tools that can quickly find
the most relevant information for solving problems

21
Knowledge Management
• Knowledge management: Set of business processes
developed in an organization to create, store,
transfer, and apply knowledge
• Knowledge management value chain:
– Each stage adds value to raw data and information as
they are transformed into usable knowledge
1. Knowledge acquisition
2. Knowledge storage
3. Knowledge dissemination
4. Knowledge application
22
THE KNOWLEDGE MANAGEMENT VALUE CHAIN
Knowledge management today involves both information systems activities and a host of enabling management and
organizational activities.
23
Capturing and Sorting
Organizational Knowledge
• Knowledge workers: research, prepare, and provide
information
– There is much overlap in the work they do
• Money can be saved by collecting and organizing
knowledge gained by workers
– Avoid having workers solve the same problem that
has already been solved by others

24
Capturing and Sorting
Organizational Knowledge (continued)
• The biggest challenge for employees is how to
find answers to specific questions
– Some software tools can help
• Electronic Data Systems Corp:
– Analyzes free-form employee responses with an
automated system that sorts and links the
information
• Motorola uses an application that pulls
information from a KM program and makes
suggestions applicable to the task at hand
25
Employee Knowledge Networks
• In addition to building knowledge bases, some
tools direct employees to other employees who
have the required expertise
– Such experts can provide non-recorded expertise
– No need to waste money hiring experts in every
department
• Employee knowledge network: a tool that
facilitates knowledge sharing through intranets

26
(continued)
• Tacit Systems’ ActiveNet tool:
– Continually processes business communications
(e-mail, documents, etc.) to build a profile of each
employee’s topics, expertise, and interests
– Profiles are accessible by other employees, but
the private information used to create the profiles
is not accessible to others

27
(continued)
• AskMe’s software detects and captures
keywords from e-mail and documents created by
employees
– Creates a knowledge base with names of
employees and their interests
– Allows free-form search queries on Web
– A search returns the names of employees who
have created documents, e-mail, or presentations
on the subject

28
Knowledge from the Web
• Consumers post opinions of products on Web at
various locations such as:
– On the vendor’s site
– At product evaluation sites such as Epinions.com
– In blogs
• Opinions are expressed on many Web pages,
but are difficult to locate and are highly
unstructured
– Distilling this knowledge could aid a company’s
market research, to learn about their own
products and those of their competitors
29
Knowledge from the Web (continued)
• Some companies have developed software to

search for this information
• Accenture Technology Labs: the research and
development unit of the consulting firm
Accenture
– Uses Online Audience Analysis software to
search thousands of Web sites daily for
predetermined information about specific
products and services

30
Knowledge from the Web (continued)
• Factiva: a software tool that gathers online

information from over 10,000 sources
– Collects information from newspapers, journals,
market data, and newswires
– Screens all new information for information
specified by a subscribing organization
– Helps an organization know what others say
about their products and services

31
Autocategorization
• Autocategorization (or automatic taxonomy):

automates classification of data into categories
for future retrieval
– Used by companies to manage data
– Used by most search engines
– Constantly improved to yield more precise and
faster results

32
Autocategorization (continued)
• U.S. Robotics (USR) wanted to reduce its

customer support labor
– A survey showed that most clients visited their
Web site before calling support personnel
– USR purchased autocategorization software
– Accuracy and response was improved, allowing a
higher number of support issues to be resolved
by the Web visit

33
Summary
• Business intelligence (BI) is any information about organization, its
customers, or its suppliers that can help firms make decisions
• Data mining is the process of selecting, exploring, and modeling

large amounts of data to discover previously unknown relationships
• Data mining is useful for predicting customer behavior and detecting

fraud
• Online analytical processing (OLAP) puts data into multi-

dimensional tables
• OLAP either uses dimensional databases or calculates desired

tables on the fly
• Drilling down means moving from a broad view to a specific view of

information
• Dashboards interface with BI software tools to provide quick

information such as business metrics
34
Summary (continued)
• Knowledge management involves gathering, organizing, sharing,
analyzing, and disseminating knowledge
• The main challenge of knowledge management is identifying and

classifying useful information from unstructured sources
• Most unstructured knowledge is textual
• Employee knowledge networks are software tools to help

employees find other employees with specific expertise
• Autocategorization is the automatic classification of information

35
BUILDING INFORMATION
SYSTEMS
Systems Development Life Cycle: An Overview
• System failure can happen for several reasons:
– Missed deadlines
– Users’ needs that weren’t met
– Dissatisfied customers
– Lack of support from top management
– Going over budget, and so forth
Systems Development Life Cycle: An Overview
(cont’d.)
• Systems development life cycle (SDLC)
– Also known as the “waterfall model”
– Series of well-defined phases performed in sequence
that serve as a framework for developing a system or
project
– Each phase’s output (results) becomes the input for
the next phase
Exhibit 18.1 Phases of the SDLC
Phase 1: Planning
• One of the most crucial phases of the SDLC model
• Systems designer must understand and define the
problem the organization faces
– Problem can be identified internally or externally
• Analyst or team of analysts assesses the current and

future needs of organization or a specific group of users
Phase 1: Planning (cont’d.)
• Questions:
– Why is this information system being developed?
– Who are the system’s current and future users?
– Is the system new or an upgrade or extension of an existing
system?
– Which functional areas (departments) will be using the system?
• End result of this phase should give users and top

management a clear view of:
– What the problem is
– How the information system will solve the problem
Phase 1: Planning (cont’d.)
• Example: ABC Furniture is planning for an
information system to solve the problem of
inaccurate inventory forecasts
– Why
– Who
– When
– What
Formation of the Task Force
• Consisting of representatives from different
departments, systems analysts, technical advisors, and
top management
• Team collects user feedback and tries to get users
involved from the beginning
• Internal users
– Employees who will use the system regularly
• External users
– Include customers, contractors, suppliers, and other business
partners
Feasibility Study
• Feasibility
– Measure of how beneficial or practical an information
system will be to an organization
– Should be measured continuously throughout the
SDLC process
• Usually has five major dimensions:
– Economic, technical, operational, schedule, and legal
Phase 2: Requirements Gathering and Analysis
• Requirements-gathering and analysis
phase
– Analysts define the problem and generate alternatives
for solving
• First step
– Gathering requirements
– Interviews, surveys, observations, JAD approach, etc.
• Team uses this information to determine:
– What the new system should do (process analysis)
– What data is needed for this process to be performed
(data analysis)
Phase 2: Requirements Gathering and Analysis
(cont’d.)
• Two major approaches for analysis and design
of information systems:
– Structured systems analysis and design (SSAD)
approach
– Object-oriented approach
• Use different tools for creating analysis models
Table 10.1 Examples of Tools Used in SSAD Analysis Models
Exhibit 18.3 A Context Diagram for ABC’s Inventory Management System
Phase 3: Design
• Design phase
– Analysts choose the solution that’s the most realistic and offers
the highest payoff for the organization
• Output of this phase
– Document with exact specifications for implementing the system
– Includes files and databases, forms and reports, documentation,
procedures, hardware and software, networking components,
and general system specifications
• Design consists of three parts:

– Conceptual design
– Logical design
– Physical design
Computer-Aided Systems Engineering
• Computer-aided systems engineering (CASE)
tools
– Automate parts of the application development process
• Outputs:
– Specifications documents
– Documentation of the analysis, including models and
explanations
– Design specifications with related documentation
– Logical and physical design documents based on the conceptual
design
– Code modules that can be incorporated into the system
Prototyping
• Small-scale version of the system is developed
– Large enough to illustrate the system’s benefits
– Allows users to offer feedback
• Prototypes are used for:

– Gathering system requirements
– Helping to determine system requirements
– Determining a system’s technical feasibility
• Steps:
– Define the initial requirements
– Develop the prototype
– Review and evaluate the prototype
– Revise the prototype
Phase 4: Implementation
• Implementation phase
– Solution is transferred from paper to action
– Team configures the system and procures components for it
• Tasks
– Acquiring new equipment
– Hiring new employees
– Training employees
– Planning and designing the system’s physical layout
– Coding
– Testing
– Designing security measures and safeguards
– Creating a disaster recovery plan
Phase 4: Implementation (cont’d.)
• Options for conversion:
– Parallel conversion
– Phased-in-phased-out conversion
– Plunge (direct cutover) conversion
– Pilot conversion
Implementation Alternatives
• Insourcing
– Organization’s team develops the system internally
• Self-sourcing
– End users develop information systems with little or no formal
assistance from the information systems team
• Outsourcing
– Organization hires an external vendor or consultant who specializes in
providing development services
– Options:
• Onshore
• Nearshore
• Offshore
– Disadvantages of outsourcing:
• Loss of control
• Dependency
• Vulnerability of strategic information
Phase 5: Maintenance
• Information system is operating
• Enhancements and modifications to the system have
been developed and tested
• Hardware and software components have been added or
replaced
• Team collects performance data and gathers information
on whether the system is meeting its objectives
– By talking with users, customers, and other people affected by
the new system
New Trends in Systems Analysis and Design
• SDLC model might not be appropriate in these
situations:
– Lack of specifications
– Input-output process can’t be identified completely
– Problem is “ad hoc”
– Users’ needs change constantly
Service-Oriented Architecture
• SOA focuses on the development, use, and reuse of
small, self-contained blocks of codes (called services) to
meet the software needs of an organization
• The fundamental principle behind SOA is that the

“blocks of codes” can be reused in a variety of
different applications, allowing new business processes
to be created from a pool of existing services
Rapid Application Development
• Concentrates on user involvement and continuous
interaction between users and designers
• Combines the planning and analysis phases into one
phase
• Develops a prototype of the system
• Uses an iterative process
– Repeats the design, development, and testing steps as needed,
based on feedback from users
Extreme Programming (XP)
• Recent method for developing software
applications and information system projects
• Divides a project into smaller functions
– Developers can’t go on to the next phase until the
current phase is finished
• Pair programming
– Two programmers participate in one development
effort at one workstation
Agile Methodology
• Similar to XP
• Less emphasis on team coding and more emphasis on
limiting the project’s scope
• Focuses on setting a minimum number of requirements
and turning them into a working product
• Agile Alliance organization
– Manifesto contains principles for this methodology
Summary
• SDLC phases:
– Planning, requirements gathering and analysis,
design, implementation, and maintenance
• CASE tools
• Prototyping
• Self sourcing and outsourcing
• New trends in systems development
E-COMMERCE
Defining E-Commerce
• E-business
– Activities a company performs for selling and buying
products and services, using computers and
communication technologies
• E-commerce
– Buying and selling goods and services over the
Internet
Defining E-Commerce (cont’d.)
• Business applications that use the Internet:
– Buying and selling products and services
– Collaborating with other companies
– Communicating with business partners
– Gathering business intelligence on customers and
competitors
– Providing customer service
– Publishing and disseminating information
E-Commerce versus Traditional Commerce
• Internet and telecommunication technologies play major
role
• No physical store
• Click-and-brick e-commerce
– Mix of traditional and e-commerce
Advantages and Disadvantages of E-Commerce
• Advantages:
– Better relationships with suppliers, customers,
business partners
– Price transparency
– Round the clock and globe operations
– More information on potential customers
– Increasing customer involvement
– Improving customer service
– Increasing flexibility and ease of shopping
(cont’d.)
– Increasing the number of customers
– Increasing opportunities for collaboration with
business partners
– Increasing return on investment because inventory
needs are reduced
– Offering personalized services and product
customization
– Reducing administrative and transaction costs
(cont’d.)
• Disadvantages:
– Bandwidth capacity problems
– Security issues
– Accessibility
– Acceptance
– Lack of privacy of customers
E-Commerce Business Models
• E-commerce companies focus their operations in
different parts of the value chain
• Types:
– Merchant – Amazon.com, Dell, HP, Cisco (direct to cust.)
– Brokerage – online auction sites (ebay.com), online stockbrokers
– Advertising – Yahoo, Google (AdWords)
– Mixed – (more than one source) ISPs, online auction sites
– Informediary – (consumers & business and sell it to other
companies) Bizrate.com – performance of websites & sell to advertisers
– Subscription – (sell digital products or services) Wall Street
Journal, Consumer Reports, antivirus vendors
Exhibit 20.3 Business-to-Consumer E-Commerce
Categories Major
of E-Commerce
Categories of E-Commerce
C2C - eBay.com
B2C - Amazon.com
B2B – Walmart
C2B - Priceline.com
A B2C E-Commerce Cycle
• Major activities:
– Information sharing
– Ordering
– Payment
– Fulfillment
– Service and support
B2B E-Commerce
• B2Bs use these additional technologies
extensively:
– Intranets
– Extranets
– Virtual private networks
– Electronic data interchange (EDI)
– Electronic funds transfer (EFT)
• Lowers production costs and improves accuracy
– By eliminating many labor-intensive tasks
Mobile and Voice-Based E-Commerce
• Mobile commerce (m-commerce)
– Based on Wireless Application Protocol (WAP)
– Using handheld devices, such as smart phones or
PDAs, to conduct business transactions
• Supporting technologies:
– Wireless wide-area networks and 4G networks
– Short-range wireless communication technologies
• Examples:
– iPhone apps
– Internet Explorer Mobile
– Google mobile
Mobile and Voice-Based E-Commerce (cont’d.)
• Voice-based e-commerce
– Rely on voice recognition and text-to-speech
technologies
– Can conduct business using e-wallets
– Security features
• Call recognition, voice recognition, fixed shipping
address
E-Commerce Supporting Technologies
• Electronic payment systems
• Web marketing
• Search engine optimization
Electronic Payment Systems
• Electronic payment
– Money that is exchanged only electronically
• Payment cards:
– Credit, debit, and smart cards
• Smart cards
– Credit card sized
– Contain an embedded microprocessor chip storing important
financial and personal information
• Other types of payments:
– E-cash
– E-check
– E-wallets
– PayPal
– Micropayments
– Crypto Transfer
Web Marketing
• Uses the Web and its supporting technologies to promote goods and
services
• Terms:
– Ad impression
– Banner ads
– Click
– Cost per thousand (CPM)
– Cost per click (CPC)
– Cookie
– Hit
– Page view (PV)
– Pop-up ads
– Pop-under ads
– Splash screen
– Spot leasing
Search Engine Optimization
• Method for improving the volume or quality of
traffic to a Web site
• Some companies offer SEO service
– Editing a site’s contents and HTML code to increase
its relevance to specific keywords
• Recommendations for optimizing a Web site:
– Keywords
– Page title
– Inbound links
Summary
• e-commerce with traditional commerce
• Major e-commerce business models
• Main categories of e-commerce
• B2C e-commerce business cycle
• B2B e-commerce business models
• Mobile and voice e-commerce
• Supporting technologies
Unique features of e-commerce
 Ubiquity
o Internet/Web technology available everywhere: work, home, etc., anytime.
 Global reach
o The technology reaches across national boundaries, around Earth
 Universal standards
o One set of technology standards: Internet standards
 Richness
o Supports video, audio, and text messages
 Interactivity
o The technology works through interaction with the user
 Information density
o Large increases in information density—the total amount and quality of
information available to all market participants
 Personalization / Customization
o Technology permits modification of messages, goods
 Social technology
o The technology promotes user content generation and social networking
INFORMATION SECURITY
Computer and Network Security: Basic Safeguards
• Critical for most organizations

– Especially in recent years, with “hackers” becoming more
numerous and adept at stealing and altering private information
• Hackers use a variety of tools to break into computers

and networks
– Sniffers, password crackers, and rootkits
– Types: Script kiddie, Black hat, White hat

(cont’d.)
• Comprehensive security system

– Protects an organization’s resources
– Including information and computer and network equipment, e-
mails, invoices transferred via electronic data interchange (EDI),
new product designs, marketing campaigns, and financial
statements
• Threats
– Include sharing passwords with coworkers, leaving a computer
unattended while logged on to the network, or even spilling
coffee on a keyboard
(cont’d.)
• Comprehensive security system
– Includes hardware, software, procedures, and personnel that
collectively protect information resources
• Confidentiality
– System must not allow disclosing information to anyone who isn’t
authorized to access it
• Integrity
– Ensures the accuracy of information resources in an organization eg.
Financial transactions
• Availability
– Ensures that computers and networks are operating & Authorized users
can access the information they need
Exhibit 21.1 The McCumber Cube
(cont’d.)
• Three levels of security
– Level 1: front-end systems
– Level 2: back-end servers
– Level 3: corporate network
• Fault-tolerant systems
– Combination of hardware and software for improving reliability
– Uninterruptible power supply (UPS)
– Redundant array of independent disks (RAID)
• Store data in multiple places, checksum
– Mirror disks
Security Threats: An Overview
• Some threats can be controlled completely or
partially, but some can’t be controlled
• Categories
– Unintentional
– Intentional
Intentional Threats
• Viruses - Consists of self-propagating program code that’s triggered by a specified
time or event eg. I Love You, Michelangelo
• Worms - Travel from computer to computer in a network, Replicate into a full-
blown version that eats up computing resources eg. Code Red, Melissa, and Sasser
• Trojan programs - Contains code intended to disrupt a computer, network, or
Web site. Usually hidden inside a popular program eg. Infostealer Trojan
• Logic bombs - Type of Trojan program used to release a virus, worm, or other
destructive code. Triggered at a certain time or by an event
• Backdoors - Enable the designer or programmer to bypass system security and
sneak back into the system later to access programs or files , cybercriminals hid
malware inside of a free file converter.
• Blended threats (e.g., worm launched by Trojan) - characteristics of computer
viruses + worms + other malicious codes. vulnerabilities found on public and private
networks. Main goal is not just to start attack, but also to spread it. Multi-layer
security system could guard against blended threats
• Denial-of-service attacks - Flood a network or server with service requests
• Social engineering - Use the private information they’ve gathered to break into
servers and networks and steal data. Commonly used social-engineering techniques
are “Dumpster diving” and “shoulder surfing”
Protecting Against Data Theft and Data Loss
• Portable storage media
– Theft or loss of data
– Stealing company data
Security Measures and Enforcement: An Overview
• Biometric security measures
• Nonbiometric security measures
• Physical security measures
• Access controls
• Virtual private networks
• Data encryption
• E-commerce transaction security measures
• Computer Emergency Response Team
Biometric Security Measures
• Use a physiological element to enhance security
measures
• Devices and measures
– Facial recognition – Vein analysis
– Fingerprints – Voice recognition
– Hand geometry
– Iris analysis
– Palmprints
– Retinal scanning
– Signature analysis
Exhibit 21.2 Examples of Biometric Devices
Nonbiometric Security Measures
• Main security measures:
– Callback modems
• Verify whether a user’s access is valid by:
– Logging the user off
– Calling the user back at a predetermined number
• Useful in organizations with many employees who work off-site
– Firewalls
• Combination of hardware and software
• Act as a filter or barrier between a private network and external
computers or networks
– Intrusion detection systems
• Protect against both external and internal access
• Placed in front of a firewall
• Prevent against DoS attacks
• Monitor network traffic
• “Prevent, detect, and react” approach
• Require a lot of processing power and can affect network
performance
Physical Security Measures
• Primarily control access to computers and networks
• Include:
– Cable shielding
– Electronic trackers
– Identification (ID) badges
– Proximity-release door openers
– Room shielding
Access Controls
• Terminal resource security
– Software feature that erases the screen and signs the user off
automatically after a specified length of inactivity
• Password
– Combination of numbers, characters, and symbols that’s entered
to allow access to a system
– Length and complexity determine its vulnerability to discovery
– Guidelines for strong passwords
Virtual Private Networks
• Provide a secure “tunnel” through the Internet
– For transmitting messages and data via a private
network
• Remote users have a secure connection to the
organization’s network
• Low cost
• Slow transmission speeds
Data Encryption
• Transforms data, “plaintext” or “cleartext,”
into a scrambled form called “ciphertext”
• Rules for encryption determine how simple
or complex the transformation process should be
– Known as the “encryption algorithm”
• Protocols:
– Secure Sockets Layer (SSL)
– Transport Layer Security (TLS)
• Key size
– Between 32 and 168 bits
• Main types of encryption
– Asymmetric also called “public key encryption”
– Symmetric
Computer Emergency Response Team (CERT)
• Developed by the Defense Advanced Research Projects
Agency
• Focuses on security breaches and DoS attacks
• Offers guidelines on handling and preventing these
incidents
• Cyber Incident Response Capability
– CIRC, http://www.doecirc.energy.gov/aboutus.html
Guidelines for Comprehensive Security System
• Train employees
• Guidelines and steps involved:
– People
– Procedures
– Equipment and technology
Business Continuity Planning
• Outlines procedures for keeping an organization
operational
• Prepare for disaster
• Plan steps for resuming normal operations as
soon as possible
Summary
• Types of threat
• Basic safeguards
– Biometric
– Nonbiometric
• Fault tolerance
• Establish comprehensive security system and
business continuity plan

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Information Systems for

Dr. C. Lakshmi Devasena, IBS Hyderabad

•An information system (IS) is a formal, technical,

•To be a successful manager, one should

• Interacting with representatives of

• Generate a variety of reports

• Exception Reports – Warn managers

• Periodic nature – information from a

• Comparative nature – Information is

• Both internal and external

• Top management usually uses

• Unexpected information – The system

• Predictive nature – The information is

Frequency Regular, Repetitive Mostly Regular / Often ad hoc

Typical user First-line supervisors Middle managers Top Management

1 June 2021 C. Lakshmi Devasena, IBS, Hyderabad

Strategies formulated by IS:

• Various kinds of systems may interact

• System Entropy – Entropy is a measure of

• Information system as a system – The major

• Outputs and Inputs – An information

• Structure of an enterprise – Based on

• Corporations can use the systems

Dr. C. Lakshmi Devasena, IBS Hyderabad

Sales Generate Submit order

Accounting Check credit Approve credit Generate Invoice

Effectiveness Work improvement Using a prospect

Transformation Role expansion Using a portable PC

Effectiveness Functional Computer aided

Transformation Functional CD-ROM

Effectiveness Service Online diagnostic

Transformation Product innovation Publishing in

Efficiency Task Process Boundary

Effectiveness Work Functional Service

Transformation Role expansion Functional Product innovation

Global e-business and collaboration

An executive information system (EIS), also known as an executive support

It includes activities to support market transactions

• Growth of Professional work - “Interaction” jobs tend to be professional jobs in

• Changing culture of work and business - Most research on collaboration

– For implementation and operations

Successful collaboration requires an appropriate organizational

Collaboration technologies can be classified in terms of whether they support interactions at

IT Infrastructure and emerging

– Transportation, communication, sewage, water, electric systems

IT Infrastructure is the shared technology resources that provide

IT infrastructure consists of a set of physical devices and

Access control Building access cards, ski-lift passes, car ignition

Anticounterfeiting Casino tokens, high-denomination currency notes,

Health care Tracking medical tools and patients (particularly

function corresponding to the cell is displayed at formula bar

Result will be displayed in the cell

F2 key will display function and arguments

errors wrt functions are also prompted

sort wrt marks in maths

Countif SL No Name Marks Grade Nestedif Countif Rank Rank

sumif 1abc 53B Pass 2 5

nestedif 2ade 42C Fail 7

Rank 3def 65C Pass 5 4

Averageif 4jkl 76A First Division 3

5xyz 23E Fail 8

6pqr 88A+ Exceptional 1

7stu 82A First Division 2