FINANCIAL AND ACCOUNTING SYSTEMS (Chart 2.

58)

Integrated and Non- Integrated Systems

What is a System? Technical Concepts Non - Integrated Integrated ERP Features of an

"a set of principles or A) Working of any software
procedures per which
something is done; an i) Front End & Back End
organized scheme or
• Front End -
method"
It is part of the overall software
which actually interacts with
What is a Process? user who is using software
It is a coordinated & • Back End -
standardized flow of It is a part of overall software
activities performed by which does not directly interact
people or machines, with user, but interact with
which can traverse Front End only
functional or
departmental
boundaries to achieve a ii) Application Software
business objective &
• Application software performs
creates value for
many functions such as
internal or external receiving inputs from user,
customers.
interprets instructions &
performs logical functions so a
desired output is achieved
• There are three layers which
together form application
System Ideal ERP System
B) Installed Applications V/s Cloud It is an overall business
based Applications Typical non-integrated management system that caters i) Manufacturing
environment where all need of all people connected ii) Financials
departments are with organization
a) Installed Applications iii) Human Resources
working independently
These are programs that are installed iv) Supply Chain
& using their own set of
on hard disc of the user’s computer. Benefits of an ERP System Management
data:-
b) Cloud Applications A) Information integration v) Projects
These days many org. do not want to i) Human Resource B) Reduction of lead-time vi) Customer
install Financial Applications on their ii) Accounting C) On-time Shipment Relationship
own IT infrastructure. For many org., iii) Marketing D) Reduction in Cycle Time Management (CRM)
the thought process is that it is not
iv) Production E) Improved Resource utilization vii) Data Warehouse
their primary function to operate
complex IT systems & to have a v) Purchase
dedicated IT team & hardware which vi) Logistics F) Better Customer Satisfaction
requires hiring highly skilled IT vii) Quality Control G) Improved Supplier
resources & to maintain the hardware Performance
& software to run daily operations. The
Two major problems H) Increased Flexibility
costs may become prohibitive.
i) Communication Gaps I) Reduced Quality Costs
ii) Mismatched Data J) Better Analysis and Planning
Capabilities
K) Improved information
accuracy & decision-making
capability
L) Use of Latest Technology
(Continue on Chart 2.59)
 FINANCIAL AND ACCOUNTING SYSTEMS (Chart 2.59)
Integrated and Non- Integrated Systems

Concepts in Computerized Accounting Systems

Types of Data Voucher Types Voucher Number Accounting Flow Types of Ledgers Grouping of
It is a documentary evidence of a A Voucher No. or a Document Accounting flow from angle of Ledgers
A) Master Data transaction Number is a unique identity of software Ledgers At time of
It is relatively permanent Types of vouchers used in any voucher/ document creation of any
data that is not expected to accounting systems Peculiarities about voucher Transactions new ledger, it
Debit Balance Credit Balance
change again & again numbering must be placed
1) Contra 9) Debit Note Humans
under a particular
Types of master data 2) Payment 10) Sales Order 1) It must be unique Voucher Entry Asset Expense Income Liability group
1) Accounting Master Data 3) Receipt 11) Stock Journal 2) Separate numbering series
2) Inventory Master Data 4) Journal 12) Physical Stock 3) May have prefix or suffix Posting There are four
3) Payroll Master Data 5) Sales 13) Delivery Note or both Profit & Loss basic groups in
4) Statutory Master Data 6) Purchase 14) Receipt Note 4) All vouchers must be Balancing Software Account Accounting, i.e.
numbered serially Income
7) Credit Note 15) Memorandum
Expense
B) Non-Master Data 8) Purchade 16) Attendance 5) All vouchers are recorded in Trial Balance Balance Sheet Asset
It is a data which is Order 17) Payroll chronological order & hence Liability
expected to change voucher recorded earlier must Profit &
frequently, again & again & have an earlier number Loss Balance
not a permanent data Accoun Sheet
 FINANCIAL AND ACCOUNTING SYSTEMS (Chart 2.60)

Risks And Controls in an ERP Environment Audit of ERP Systems

A. ERP Implementation, its
Risks and related Controls
1. People Issues
2. Process Risks
3. Technological Risks
4. Other Implementation
Issues
5. Post Implementation issues around roles & privileges
B. Role Based Access Control
(RBAC)
i) It is an approach to
restricting system access to
authorized users.
ii) It is a policy neutral access
control mechanism defined
C. Types of Access
While assigning access to different
users, following options are possible:-
i) Create – Allows to create data
ii) Alter – Allows to alter data
iii) View – Allows only to view data
iv) Print – Allows to print data
i) Fundamental objectives of an audit of controls
do not change in an environment. When
evaluating controls over systems, decisions must
be made regarding relevance of operational
internal control procedures to IT controls
ii) ERP Systems should produce accurate,
complete, & authorized information that is
supportable & timely.

iii) RBAC can be used to

facilitate administration of
security in large org.

i) Compliance means conforming to a rule, such as a specification, policy, Types

standard or law. i) General – Applicable to all irrespective of anything
ii) Specific - Applicable to specific type of businesses only
Applicable Regulatory &
ii) Regulatory Compliance describes goal that organizations aspire to
Compliance achieve in their efforts to ensure that they are aware of & take steps to There may be two approaches for making compliances
Requirements comply with relevant laws, policies & regulations requiring accounting data
i) Using same software for accounting & tax compliance
ii) Using different software for accounting & tax compliance

1) Financial Accounting
Module
Features of this module:-
a) Tracking of flow for
effective strategic
decision making
b) Creation of
Organizational Structure
c) Financial Accounting
Global Settings
d) General ledger
Accounting
e) Tax Configuration &
Creation & Maintenance
of house of Banks
h) Asset Accounting
f) Account payables
g) Account receivables
i) Integration with Sales &
Distribution & Materials
Management
FINANCIAL AND ACCOUNTING SYSTEMS (Chart 2.61)
Business Process Modules & Their Integration Financial & Accounting Systems
Different types of industries require different modules these are as follows:-
2) Controlling 4) Human Resource 6) Material Management
3) Sales & Distribution Module 5) Quality Management Module
Module Module (MM) Module
Features of this Features of this module:- i) Enhances work • Quality Planning • Quality Control a) Purchase Requisition
module:- a) Setting up Organization Structure process & data • Quality Assurance • Quality Improvement from Production Dept.
a) Cost element b) Assigning Organizational Units management within Quality Management Process includes the b) Evaluation of Requisition
Accounting HR dept of following -
c) Defining pricing Components c) Asking for Quotation
enterprises.
b) Cost Center d) Setting up sales document types, a) Master data & standards are set for d) Evaluation of quotations
Accounting billing types, and tax-related ii) Most important quality management e) Purchase Order
c) Activity-Based- components objective of master b) Set Quality Targets to be met f) Material Receipt
Accounting e) Setting up Customer master data data administration c) Quality management plan is prepared g) Issue of material
records & configuration in Human Resources
d) Internal Orders d) Define how those quality targets will be h) Purchase Invoice
is to enter
e) Product Cost measured i) Payment to Vendor
employee-related
Controlling Sales & Distribution Process data for e) Take actions needed to measure quality
f) Profitability a) Pre - Sales Activities administrative, time- f) Identify quality issues & improvements &
Analysis b) Sales Order recording, & payroll changes to be made
purposes. payroll &
g) Profit Center c) Inventory Sourcing g) Any change is needed in product, change
personnel
Accounting d) Material Delivery requests are sent
departments deal
e) Billing with Human h) Report on overall level of quality achieved
f) Receipt from Customer Resource of org.
i) Quality is checked at multiple points
(Continue on Chart 2.62)
 FINANCIAL AND ACCOUNTING SYSTEMS (Chart 2.62)

Business Process Modules & Their Integration Financial & Accounting Systems Reporting System & Management Information
System
Different types of industries require different modules these are as follows:-
A) Reporting System
7) Project Systems 9) Supply Chain 10) Plant Maintenance 11) Customer Relationship i) It simply means presentation of information in proper
8) Production Planning (PP) Module
Module Module Module Management (CRM) & meaningful way.
i) It is an integrated i) It is another important module that It provides i) It is a functional module Benefits of a CRM module :- ii) a system of regular reporting on pre-decided aspects.
project management includes software designed specifically for extensive which handles maintaining
tool used for planning production planning & management functionality for of equipment & enables a) Improved customer B) Management Information System (MIS)
& managing projects logistics, efficient planning of relations
manufacturing, production & generation
ii) It also consists of master data, system planning, & schedules b) Increase customer I) What is an MIS Report?
ii) It has several tools configuration and transactions in order to analytics revenues It is a tool that managers use to evaluate business
that enable project accomplish plan procedure for production ii) PM application c) Maximize up-selling & processes & operations.
management process component provides you cross-selling
such as cost & with a comprehensive
• Master Data d) Better internal II) Who Uses MIS Reports?
planning budget, software solution for all
• SOP (Sales & Operations Planning) communication i) MIS systems automatically collect data from various
scheduling, maintenance activities
requisitioning of • DRP (Distribution Resource Planning) e) Optimize marketing areas within a business
that are performed within
materials and • Production Planning a company ii) These systems can produce daily reports that can be
services • MRP (Material Requirements planning) sent to key members throughout the organization
• Capacity Planning
• Product Cost Planning III) Type of Information in an MIS Report
i) Relevant iii) Accurate
ii) Timely iv) Structured
 FINANCIAL AND ACCOUNTING SYSTEMS (Chart 2.63)
Business Process Modules & Their Integration Financial & Accounting Systems

What is a Business Process? Integration with Other Modules

It consists of a set of activities that are performed in co-
ordination in an organizational & technical environment. I) Integration Points II. Example of ERP Modules
Some of points where integration with i) Material Management Module
other modules is required are discussed
Business Process Flow here:- ii) Production Module
Business Process is a prescribed sequence of work steps i) Material Management Integration with iii) Supply Chain Module
performed to produce a desired result for org. Finance & Controlling (FICO) iv) Finance & Accounting
ii) Human Resource Module Integration v) Human Resource Module
A typical life cycle of an accounting transaction may with Finance & Controlling vi) Sales & Distribution
include :- iii) Material Management Integration
i) Source Document v) Adjustments with Production Planning (PP)
ii) Journal vi) Adjusted TB iv) Material Management Integration
iii) Ledger vii) Closing Entries with Sales & Distribution (SD)
iv) Trial Balance viii) Financial statement v) Material Management Integration with
Quality Management (QM)
Business process cycles in a manufacturing industry are vi) Material Management Integration
depicted as under:- with Plant Maintenance (PM)
i) Purchase & payables iv) Fixed Assets
ii) Production & Inventory v) Payroll
iii) Revenue & Receivables vi) Financial Statement
 FINANCIAL AND ACCOUNTING SYSTEMS (Chart 2.64)
Business Reporting
It is public reporting of operating
& financial data by a business
enterprise, or regular provision
of information to decision-
makers within an organization to
support them in their work.
Why is Business Reporting
Important?
i) Allows organizations to
present a cohesive explanation
of their business
ii) Helps stakeholders to assess
organizational performance &
make informed decisions
iii) Promote better internal
decision-making
iv) Integral to successful
management of business, & is
one of major drivers of
sustainable organizational
success
Business Reporting & Funadmentals of XBRL
I. What is XBRL
i) It is open international standard
for digital business reporting,
managed by a global not for profit
consortium, XBRL International.
ii) XBRL provides a language in
which reporting terms can be
authoritatively defined.
iii) It is a standards-based way to
communicate & exchange business
information between business
systems
II. What is XBRL tagging
It is process by which any financial
data is tagged with most
appropriate element in an
accounting taxonomy that best
represents data in addition to tags
that facilitate identification/
classification
Fundamentals of XBRL
III. What does XBRL do? IV. Who uses it?
It allows unique tags to be associated i) Regulators
with reported facts, allowing: ii) Companies
i) People publishing reports to do so iii) Governments
with confidence that information iv) Data Providers
contained in them can be consumed &
v) Analysts & Investors
analyzed accurately
vi) Accountants
ii) People consuming reports to test
them against a set of business & logical V. Important features of
rules, to capture & avoid mistakes at XBRL
their source
i) Clear Definitions
iii) People using information to do so in ii) Testable Business
the way that best suits their needs, Rules
including by using different languages, iii) Multi-lingual Support
alternative currencies & in their
preferred style.
iv) Strong Software
iv) People consuming information to do Support
so confident that data provided to them
conforms to a set of sophisticated pre-
defined definitions
 Refer
4.85 & 4.86

Refer Refer
4.87 & 4.88 E- Commerce 4.89

Architecture
Risks &
of Networked
Controls
System

Refer
Master Refer
4.88 Chart of 4.89

Ch 4
Guidlines &
Laws Governing Digital
E-commerce Payment

Computing
Technologies

Refer Refer Refer Refer Refer

4.90 4.93 4.92 4.92 4.93

Virtualization BYOD Artificial Mobile

IOT
intelligence Computing

Grid Green Cloud

WEB 3.0 Machine
Computing Computing Computing Learning
Refer Refer Refer Refer Refer
4.90 4.93 4.91 4.93 4.90
 E-COMMERCE, M-COMMERCE AND EMERGING TECHNOLOGY (Chart 4.85)

E-Commerce

Introduction Difference between Traditional commerce & E-Commerce

“Sale / Purchase
of goods /
services through
electronic mode
is e-
commerce.” This
could include
use of
technology in
form of
Computers,
Desktops,
Mobile
Applications,
etc.
 E-COMMERCE, M-COMMERCE AND EMERGING TECHNOLOGY (Chart 4.86)

E-Commerce

Benefits Disadvantage of Components Various e- Market Business Models

E-Business 1) User 6) E-commerce models for E-Commerce
To Customer/ To • Internet Connection 2) Internet / Vendors • e - Shops (e-tailers) • Business-to-
To Business / Sellers
Indivisual/ User Government • High start-up costs Network a) Suppliers & Supply • e -Malls Consumer (B2C)
• Convenience • Increased Customer • Instrument • Legal issues 3) Web portal Chain Management • e -auctions • Business-to-
• Time saving Base to fight • Some business 4) Payment b) Warehouse • Portals Business (B2B)
• Various • Recurring payments corruption processes may never Gateway Operations
• Buyer Aggregators • Consumer- to-
Options made easy • Reduction lend themselves to e- c) Shipping & returns
5) Technology • Virtual Community Consumer (C2C)
• Easy to find • Instant Transaction in use of commerce d) E - Commerce
Infrastructure catalogue & product • e -marketing • Consumer to
reviews • Provides a dynamic ecologically
• Cultural • Computers, display • e-procurement Business (C2B)
• Coupon & market damaging
impediments to e- Servers & e) Marketing & loyalty
Deals • Reduction in costs: materials • e -distribution • Consumer to
business Database f) Showroom & offline
• Anytime • Efficiency improvement Government (C2G)
• Mobile Apps purchase programs
• Creation of new markets
• Security Concerns
• Easier entry into new
• Digital g) Different Ordering Trends in E- commerce • Government to
Libraries Methods Consumer (G2C)
markets • Content •
• Data h) Guarantees
• Better quality of goods Social Commerce • • Business to
Interchange i) Privacy Policy
• Elimination of Time Mobile Commerce • Government (B2G)
Delays j) Security Biometrics •
Artificial Intelligence
• Predictive Analysis
 E-COMMERCE, M-COMMERCE AND EMERGING TECHNOLOGY (Chart 4.87)

Types of Architecture E-Commerce Architecture Vide Internet

Two Tier Three Tier Layer Includes Purpose

1) Presentation Tier- allows user to interact with 1) Presentation Tier- Occupies top level & displays information
e-commerce / m-commerce vendor related to services available on a website. 1) Client / User 1) User This Layer helps the e-
2) Database Tier- Product data /price data / 2) Application Tier- It controls application functionality by Interface 2) Web Browser commerce customer connect
customer data & other related data are kept performing detailed processing. 3) 3) Web Server to e-commerce merchant
here. Database Tier- Information is stored & retrieved. Data in this
tier is kept independent of application servers or business logic 2) Application 1) E-merchant Customer logs to merchant
Advantages Disadvantages Layer 2) Reseller systems. allows customer to
• System performance is • Performance 3) Logistics partner check products available on
Advantages Disadvantages merchant’s website
higher because business deteriorates if
logic & database are number of users’ • Clear separation of user- • Creates an increased need for 3) Database Information store This layer is accessible to user
physically close increases. interface-control & data network traffic management, Layer house, where all through application layer
presentation from server load balancing & fault data relating to
• Since processing is • There is restricted application-logic tolerance products, price it
shared between client & flexibility and choice kept
• Dynamic load balancing • Current tools are relatively
server, more users could of DBMS, since data
• Change management immature & are more complex
interact with system language used in
server is proprietary
• By having simple • Maintenance tools are
to each vendor
structure, it is easy to currently inadequate for
setup & maintain entire maintaining server libraries.
system smoothly
 E-COMMERCE, M-COMMERCE AND EMERGING TECHNOLOGY (Chart 4.88)

E-Commerce Architecture Vide M-Commerce Steps of E-

Commerce
Guidelines & Laws Governing E-Commerce
Layer Includes Purpose Work Flow
Digram Guidelines for E- Commercial Laws
1) Client / 1) Mobile APP Helps e-commerce customer 1) Customers Commerce Governing E-Commerce
User Interface (Application) connect to e- login 2) 1) Billing 1) Income Tax Act, 1961
2) User Product / Service 2) Product guarantee / 2) Companies Act, 2013
Selection 3) warranty
2) Application 1) E-merchant Through these application’s 3) Foreign Trade (Development
Customer Places
Layer 2) Reseller customer logs to merchant 3) Shipping and Regulation) Act, 1992
Order
3) Logistics systems. This layer allows 4) Delivery 4) The Factories Act, 1948
4) Payment
partner customer to check products
Gateway 5) Return 5) The Custom Act, 1962
4) Payment available on merchant’s
5) Dispatch & 6) Payment 6) The Goods and Services Tax
Gateway website
Shipping Process Act, 2017 (GST)
6) Delivery Special Laws governing E-
3) Database Information store This layer is accessible to Tracking Commerce 7) The Competition Act, 2002
Layer house, where all user through application 7) COD tracking 8) Foreign Exchange
data relating to layer 1) Information Technology Act, Management Act (FEMA 1999)
products, price it 2000 9) Consumer Protection Act,
kept
2) Reserve Bank of India, 1934 1986
 E-COMMERCE, M-COMMERCE AND EMERGING TECHNOLOGY (Chart 4.89)

Risks & Controls Digital Payments

way of payment which is made through digital modes. Payer & payee
both use digital modes to send & receive money. Also called
electronic payment. No hard cash is involved. All transactions are
Risks Controls completed online. Instant & convenient way to make payments.

1) Privacy & Security E-business Ways to protect risk Cyber Security Risk Types Advantages
2) Quality issues environment, controls 1) Educating Considerations A) New Methods 1) Easy and convenient
3) Delay in goods & Hidden are necessary for all participant about There could be cyber 1) UPI Apps 2) Pay or send money from
Costs persons in chain, nature of risks security risks with 2) Immediate Payment Service anywhere
4) Needs Access to internet & including 2) Communication of Direct as well as (IMPS) 3) Discounts from taxes
lack of personal touch organizational policies Indirect impact.
1) Users 3) Mobile Apps 4) Written record
to its customers • A Direct Financial
5) Security & credit card issues 2) Sellers / Buyers / Impact could be if 4) Mobile Wallets 5) Less Risk
6) Infrastructure Merchants 3) Ensure Compliance Application at 5) Aadhar Enabled Payment 6) Competitive advantage to
7) Problem of anonymity 3) Government with Industry Body Company’s Retailers Service(AEPS) business
8) Repudiation of contract 4) Network Service Standards
4) Protect your e- which contains 6) Unstructure Supplementary 7) Environment Friendly
Providers Commerce business financial information Service Data(USSD)
9) Lack of authenticity of
from intrusion- has weak passwords
transactions 5) Technology Service 7) Mobile Banking Drawbacks
• Viruses at all OSI layers
10) Data Loss or theft or Providers resulting in harming 8) Cryptocurrency 1) Difficult for a Non-technical
• Hackers •
duplication 6) Logistics Service integrity of data. person
Passwords •
11) Attack from hackers Providers Regular software • An Indirect B) Traditional Methods 2) The risk of data theft
12) Denial of Service 7) Payment Gateways updates Operational Impact i) Cards 3) Overspending
• Sensitive data could be if sensitive
13) Non-recognition of • Credit Cards 4) Disputed transactions
customer
electronic transactions • Debits Cards 5) Increased business costs
information
14) Lack of audit trails • Smart Card 6) The necessity of internet
15) Problem of piracy ii) Internet Banking access
 E-COMMERCE, M-COMMERCE AND EMERGING TECHNOLOGY (Chart 4.90)

Computing Technologies

Virtualization Grid Computing Machine Learning

Definition: It is a type of AI that provides

Concept Application Areas Concept Types of Resources
computers with ability to learn without
Core concept of 1) Server Consolidation It is a special kind of distributed computing. In 1) Computation 2) Storage being explicitly programmed. It focuses
Virtualization lies 2) Disaster Recovery ideal grid computing system, every resource is 3) Communications 4) Software & Licenses on development of computer programs
in Partitioning, shared, turning a computer network into a that can change when exposed to new
3) Testing & Training 5) Special equipment, capacities, architectures, &
which divides a powerful supercomputer. Every authorized data
4) Portable Applications computer would have access to enormous policies
single physical
server into 5) Portable Workspaces processing power & storage capacity Applications
multiple logical
Grid Computing Security 1) Autonomous vehicles
servers. Once • Secured Single Sign-on 2) Medical diagnosis, in cancer research
physical server is Types Benefits
• Resource Management 3) Search engines
divided, each
logical server can 1) Hardware 1) Making use of Underutilized Resources • Data Management 4) Playing games
run an operating Virtualization 2) Resource Balancing • Management and Protection of Credentials 5) Online assistants
system & 2) Network 3) Parallel CPU Capacity • Interoperability with local security solutions 6) Detecting unusual credit card
applications Virtualization 4) Virtual resources & virtual organizations for • Standardization transactions to prevent frauds
independently 3) Storage Virtualization collaboration. • Exportability Risks
5) Access to additional resources • Support for secure group communication It being an application based on AI, the
6) Reliability • Support for multiple implementations nature of risk to it remain similar to
those posed by AI systems
7) Management
 E-COMMERCE, M-COMMERCE AND EMERGING TECHNOLOGY (Chart 4.91)

Cloud Computing
Cloud computing, means use of computing resources as a service through networks, typically Internet. It provides facility to access shared resources &
common infrastructure offering services on demand over network to perform operations that meet changing business needs

Cloud Computing Environment

Private Public Hybrid Community

Resides within boundaries of an IT is provisioned for open use by general public. It may be It is a combination of It is provisioned for exclusive
organisation & used exclusively for owned, managed, & operated by a business, academic, or both at least one use by a specific community
the organisation's benefits government org., or some combination of them. Services private (internal) & at of consumers from
are offered on pay-per-use basis. least one public organizations that have
Characteristics (external). shared concerns
1) Secure Characteristics
2) Central Control 1) Highly Scalable 3) Less Secure Characteristics Characteristics
3) Weak Service Level Agreements 2) Affordable 4) Highly Available 1) Scalable 1) Collaborative & Distributive
Advantages 5) Stringent SLAs 2) Partially Secure Maintenance
1) Improves average server Advantages 3) Stringent SLAs 2) Partially Secure
utilization, higher efficiencies in low 1) Used in development, deployment & management of 4) Complex Cloud 3) Cost Effective
cost enterprise applications, at affordable costs. Management
Advantages
2) High level of security & privacy to 2) Deliver highly scalable & reliable applications rapidly Advantages 1) Establishing a low-cost
user private cloud
3) No need for establishing infrastructure for setting up & 1) Highly scalable
3) small , controlled & maintained by maintaining cloud 2) Provides better 2) Collaborative work
organization 4) Strict SLAs are followed security than public 3) Sharing of responsibilities
5) There is no limit for number of users cloud 4) Better security than public
limitation
IT teams in organization may have to limitation limitation cloud
invest in buying, building & managing Security assurance & thereby building trust among clients Security features are limitation
clouds independently. Budget is a is far from desired but slowly liable to happen. Further, not as good as private autonomy of organization is
constraint in private clouds & they privacy & organizational autonomy are not possible cloud & complex to lost & some of security
also have loose SLAs manage features are not.
 E-COMMERCE, M-COMMERCE AND EMERGING TECHNOLOGY (Chart 4.92)

Computing Technologies

Cloud Computing Internet of Things Aritificial Intelligence

It is a system of interrelated computing Defination- Ability to use

devices, mechanical & digital machines, memory, knowledge,
Characteristics Drawbacks Service Models
Pertinent Issues objects, animals or people that are experience, understanding,
1) Elasticity & Scalability 1) If Internet connection provided with unique identifiers & ability reasoning, imagination &
Related to Cloud
2) Pay-per-Use is lost, link to cloud & a) IAAS to transfer data over a network without judgement to solve
thereby to data & Computing requiring human-to-human or human-to- problems & adapt to new
3) On-demand Characteristics
applications is lost. computer interaction situations
4) Resiliency 1) Web access to resources • Threshold Policy
5) Multi Tenancy 2) Security is a major 2) Centralized Management • Interoperability Application Applications
6) Workload Movement concern as entire 3) Elasticity & Dynamic • Hidden Costs 1) Home appliances 1) Autonomous vehicles
working with data & Scaling
7) Wide Range of Network Access applications depend on 4) Shared infrastructure • Unexpected 2) Office machines 2) Medical diagnosis, in
Capacities other cloud vendors or Behaviour cancer research
5) Metered Services 3) Governments can keep track of
providers. • Security Issues resource utilisations 3) Proving mathematical
Advantages Instances
1) Achieve economies of scale 3) Does not permit 1) NAAS 4) DTAAS • Legal Issues 4) Wearables theorems
2) Reduce spending on technology control on these 2) STAAS 5) BAAS • Software 5) Smart City 4) Online assistants
infrastructure resources as these are 3) DBAAS Development in Cloud 6) Smart Grids 5) Creating art
not owned by the user
3) Globalize workforce b) PAAS • Bugs in Large-Scale 7) Industrial Internet of Things 6) Playing games &
or customer.
Distributed Systems predicting outcomes.
4) Streamline business processes 4) Customers may have c) SAAS 8) Connected Car
to face restrictions on
5) Reduce capital costs Instances 9) Connected Health 7) Search engines
availability of
6) Pervasive accessibility 1) TAAS 3) EAAS 10) Smart Retail
applications , operating
7) Monitor projects more effectively systems & infrastructure 2) APIAAS 11) Smart Supply Chain Risks
8) Less personnel training is needed options. d) Other Risks 1) AI relies heavily of data it
9) Minimize maintenance & licensing 5) Applications may not 1) CASS 3) SECAAS 1) Risk to Product manufacturer gets. Incorrect data can lead
software reside with a single 2) Risk to user of these products to incorrect conclusions
2) DAAS 4) IDAAS
10) Improved flexibility cloud vendor & two 2) AI carries a security
a) Security
vendors may have threats
11) Easy access to information/ b) Privacy, autonomy & control
applications that do not
applications c) Intentional obsolescence of devices 3) AI in long term may kill
cooperate with each
12) Load balancing other. 3) Technology Risk human skills of thinking the
13) Backup and Recovery 4) Environmental Risk due to Technology unthinkable
 E-COMMERCE, M-COMMERCE AND EMERGING TECHNOLOGY (Chart 4.93)

Computing Technologies

Mobile Computing Green Computing BYOD Web 3.0

It refers to the technology that allows transmission of data via It is study & practice of BYOD refers to business policy that also known as
a computer without having to be connected to a fixed physical establishing/ using computers allows employees to use their Semantic Web,
link. Mobile data communication has become a very important & IT resources in a more preferred computing devices, like describes sites
& rapidly evolving technology as it allows users to transmit efficient & environmentally smart phones & laptops for business wherein
data from remote locations to other remote or fixed locations friendly & responsible way. purposes computers will be
generated raw
data on their own
Components Green Computing Best Advantages without direct user
1) Mobile Communication 3) Mobile Software Practices 1) Happy Employees interaction
2) Mobile Hardware 1) Develop a sustainable 2) Lower IT budgets
Limitations Green Computing plan 3) IT reduces support requirement
1) Insufficient Bandwidth 4) Transmission interferences 2) Recycle 4) Early adoption of new
Technologies Components
2) Security Standards 5) Potential health hazards 3) Make environmentally
3) Power consumption 6) Human interface with device sound purchase decisions 5) Increased employee efficiency 1) Semantic Web
4) Reduce Paper 2) Web Services
Consumption
Benefits Emerging BYOD Threats
1) Remote access to work order details 5) Conserve Energy 1) Network Risks
2) Update work order status in real-time, facilitating excellent Challenges 2) Device Risks
communication a) Evaluate the actual security 3) Application Risks
3) Access to corporate services & information at any time, from mechanisms in order to 4) Implementation Risks
anywhere assess their energy
consumption
4) Improve management effectiveness by enhancing
information quality b) Building new security
mechanisms by considering
5) Remote access to corporate knowledge base job location the energy costs from the
design phase.