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Fundamentals of Information Systems

This book is a part of the course by Jaipur National University, Jaipur.This book contains the course content for Fundamentals of Information Systems.

JNU, JaipurFirst Edition 2013

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Index

ContentI. ...................................................................... II

List of FiguresII. ........................................................... V

List of TablesIII. ...........................................................VI

AbbreviationsIV. ....................................................... VII

Case StudyV. .............................................................. 140

BibliographyVI. ......................................................... 150

Self Assessment AnswersVII. ................................... 153

Book at a Glance

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Contents

Chapter I ....................................................................................................................................................... 1Fundamentals of Information System ........................................................................................................ 1Aim ............................................................................................................................................................... 1Objectives ...................................................................................................................................................... 1Learning outcome ......................................................................................................................................... 11.1 Introduction to Information System ........................................................................................................ 21.2 Components of Information System ........................................................................................................ 3 1.2.1 Information System Resources ................................................................................................ 3 1.2.2 Data vs. Information ................................................................................................................ 4 1.2.3 Network Resources .................................................................................................................. 51.3 Roles of Information System ................................................................................................................... 61.4 Competitive Advantages of Information System ..................................................................................... 71.5 Applications of Information Systems ....................................................................................................... 81.6 Trends of Information System ................................................................................................................. 91.7 Future of Information System ................................................................................................................ 10Summary .................................................................................................................................................... 15References .................................................................................................................................................. 15Recommended Reading ............................................................................................................................ 15Self Assessment ........................................................................................................................................... 16

Chapter II ................................................................................................................................................... 18Information Technologies .......................................................................................................................... 18Aim ............................................................................................................................................................. 18Objectives ................................................................................................................................................... 18Learning outcome ...................................................................................................................................... 182.1 Introduction to Information Technology ............................................................................................... 192.2 Development in Different Areas ............................................................................................................ 192.3 Managerial Issues in Hardware and Software ....................................................................................... 222.4 Data Resource Management Technologies ............................................................................................ 232.5 Technologies used in E-business System ............................................................................................... 28 2.5.1 Networks and the Internet ...................................................................................................... 28 2.5.2 Networking Standards ............................................................................................................ 29 2.5.3 The Web ................................................................................................................................. 29 2.5.4 Web 2.0 .................................................................................................................................. 30 2.5.5 Peer-to-peer Networks ........................................................................................................... 31 2.5.6 Cloud Computing ................................................................................................................... 32 2.5.7 Mobile Computing and M-commerce .................................................................................... 33 2.5.8 Technologies for Supply Chain Management ........................................................................ 33Summary ..................................................................................................................................................... 35References ................................................................................................................................................... 35Recommended Reading ............................................................................................................................. 35Self Assessment .......................................................................................................................................... 36

Chapter III .................................................................................................................................................. 38Information and its Role in Business ....................................................................................................... 38Aim .............................................................................................................................................................. 38Objectives ................................................................................................................................................... 38Learning outcome ....................................................................................................................................... 383.1 Introduction to IT in Business ................................................................................................................ 393.2 Features of IT in Business ...................................................................................................................... 393.3 Intranet, Extranet, Internets as Emerging Tools for Information Technologies ..................................... 433.4 Data Warehouse ..................................................................................................................................... 453.5 Data Mining ........................................................................................................................................... 48

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3.6 Competitive Advantages in Business ..................................................................................................... 52Summary ..................................................................................................................................................... 55References ................................................................................................................................................... 55Recommended Reading ............................................................................................................................. 56Self Assessment ........................................................................................................................................... 57

Chapter IV .................................................................................................................................................. 59Types of Information System .................................................................................................................... 59Aim .............................................................................................................................................................. 59Objectives .................................................................................................................................................... 59Learning outcome ....................................................................................................................................... 594.1 Types of Information System ................................................................................................................. 60 4.1.1 Office Information System .................................................................................................... 60 4.1.2 Expert System ........................................................................................................................ 61 4.1.3 Decision Support System ....................................................................................................... 61 4.1.4 Management Information System .......................................................................................... 61 4.1.5 Transaction Processing Systems ............................................................................................ 614.2 Transaction Processing Systems (TPS) .................................................................................................. 624.3 Management Reporting System (MRS) ................................................................................................. 644.4 Decision Support System (DSS) ............................................................................................................ 664.5 Executive Information System (EIS) ..................................................................................................... 674.6 Office Information System (OIS) .......................................................................................................... 684.7 Professional Support System (PSS) ....................................................................................................... 68Summary .................................................................................................................................................... 69References .................................................................................................................................................. 69Recommended Reading ............................................................................................................................. 70Self Assessment .......................................................................................................................................... 71

Chapter V .................................................................................................................................................... 73Database Information System and Design ............................................................................................... 73Aim .............................................................................................................................................................. 73Objectives .................................................................................................................................................... 73Learning outcome ....................................................................................................................................... 735.1 The role of Database in Application Development ................................................................................ 745.2 Data Modelling Basics ........................................................................................................................... 755.3 Database Life Cycle ............................................................................................................................... 765.4 Information System Planning ................................................................................................................ 78 5.4.1 Information Systems Council (ISC) ...................................................................................... 79 5.4.2 Strategic Business Planning .................................................................................................. 80 5.4.3 Strategic Information Technology Planning ......................................................................... 80 5.4.4 Agency Information Systems Planning .................................................................................. 80 5.4.5 Information Systems Plan Review ........................................................................................ 81 5.4.6 Government Operation Improvements .................................................................................. 82 5.4.7 Agency Improvements .......................................................................................................... 83 5.4.8 State Wide Technology and Fiscal Review ............................................................................ 83 5.4.9 Improvements in Overall Technology Planning ................................................................... 835.5 Innovative Funding Mechanisms ........................................................................................................... 84Summary ..................................................................................................................................................... 85References .................................................................................................................................................. 85Recommended Reading ............................................................................................................................. 86Self Assessment ........................................................................................................................................... 87

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Chapter VI .................................................................................................................................................. 89Information System Engineering.............................................................................................................. 89Aim .............................................................................................................................................................. 89Objectives .................................................................................................................................................... 89Learning outcome ........................................................................................................................................ 896.1 Identification of Strategic Planning Factors .......................................................................................... 90 6.1.1 Goals ...................................................................................................................................... 91 6.1.2 Critical Success Factors ......................................................................................................... 93 6.1.3 Problem Areas ........................................................................................................................ 946.2 Identifying Corporate Planning Objects ................................................................................................ 956.3 Develop Enterprise Model ..................................................................................................................... 97Summary ................................................................................................................................................... 102References ................................................................................................................................................ 102Recommended Reading ........................................................................................................................... 102Self Assessment ......................................................................................................................................... 103

Chapter VII .............................................................................................................................................. 105Networks and Distributed Processing .................................................................................................... 105Aim ........................................................................................................................................................... 105Objectives ................................................................................................................................................. 105Learning outcome ..................................................................................................................................... 1057.1 Introduction to Network Technology ................................................................................................... 1067.2 Network Types ..................................................................................................................................... 107 7.2.1 Basic Type of Networks ....................................................................................................... 107 7.2.2 Geographic Spread of Nodes and Hosts ...............................................................................112 7.2.3 Other Types of Area Networks .............................................................................................116 7.2.4 Communication Model Employed by the Nodes ..................................................................116 7.2.5 Switching Model Employed by the Nodes ...........................................................................1177.3 Basic Processing Alternatives ...............................................................................................................117 7.3.1 File Server Systems ..............................................................................................................117Summary ...................................................................................................................................................119References ..................................................................................................................................................119Recommended Reading .......................................................................................................................... 120Self Assessment ......................................................................................................................................... 121

Chapter VIII ............................................................................................................................................. 123System Development ................................................................................................................................ 123Aim ........................................................................................................................................................... 123Objectives ................................................................................................................................................. 123Learning outcome ..................................................................................................................................... 1238.1 Introduction to System Development .................................................................................................. 1248.2 Investigation ......................................................................................................................................... 1258.3 Analysis ................................................................................................................................................ 1278.4 Design .................................................................................................................................................. 1288.5 Implementation .................................................................................................................................... 1288.6 Maintenance ......................................................................................................................................... 129 8.6.1 Four Types of Software Maintenance ................................................................................ 130 8.6.2 Software Development : The Waterfall Model .................................................................... 132 8.6.3 What is a Software Life Cycle Model? ............................................................................... 133 8.6.4 What is a Software Process Model?..................................................................................... 134Summary .................................................................................................................................................. 136References ................................................................................................................................................ 136Recommended Reading .......................................................................................................................... 137Self Assessment ......................................................................................................................................... 138

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List of Figures

Fig. 1.1 Information system resources ........................................................................................................... 4Fig. 1.2 Network resource ............................................................................................................................. 6Fig. 1.3 Trends of information system .......................................................................................................... 9Fig. 1.4 Meta data classification ................................................................................................................. 13Fig. 2.1 Types of databases used by organisations and end users ................................................................ 26Fig. 2.2 Logical data elements in information system ................................................................................. 27Fig. 2.3 Database management software like Microsoft Access ................................................................. 27Fig. 2.4 Client/server versus peer-to-peer architectures .............................................................................. 32Fig. 2.5 Cloud computing ............................................................................................................................ 32Fig. 3.1 Features of the extranet ................................................................................................................... 40Fig. 3.2 Features of the intranet ................................................................................................................... 41Fig. 3.3 Internet ............................................................................................................................................ 43Fig. 3.4 Extranet ........................................................................................................................................... 45Fig. 3.5 Data warehouse ............................................................................................................................... 46Fig. 4.1 Types of information system ......................................................................................................... 60Fig. 4.2 Characteristics of TPS ................................................................................................................... 62Fig. 4.3 Types of transaction ...................................................................................................................... 64Fig. 4.4 Types of report ............................................................................................................................... 65Fig. 5.1 Seven basic design review phases for a database application ........................................................ 74Fig. 5.2 Database life cycle ......................................................................................................................... 77Fig. 5.3 IT planning process......................................................................................................................... 78Fig. 5.4 The information systems planning process in Tennessee ............................................................... 79Fig. 6.1 Tree of vision, goals and objectives ................................................................................................ 93Fig. 6.2 Problem area .................................................................................................................................. 95Fig. 7.1 An abstract network ...................................................................................................................... 106Fig. 7.2 Peer-to-peer network .................................................................................................................... 109Fig. 7.3 Client-server ..................................................................................................................................110Fig. 7.4 Example of a WAN between LANs ...............................................................................................113Fig. 7.5 Local Area Network ......................................................................................................................114Fig. 7.6 Wide Area Network ......................................................................................................................115Fig. 7.7 Communication models .................................................................................................................116Fig. 7.8 File server system ..........................................................................................................................118Fig. 8.1 Development life cycle ................................................................................................................ 124Fig. 8.2 Approach for waterfall model ...................................................................................................... 126Fig. 8.3 Software maintenance ................................................................................................................... 130Fig. 8.4 Software life cycle models ........................................................................................................... 132

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List of Tables

Table 4.1 ACID tests .................................................................................................................................... 63Table 6.1 Example of goals .......................................................................................................................... 92Table 6.2 Objective of goal .......................................................................................................................... 92Table 6.3 Possible objectives for given goals .............................................................................................. 93

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Abbreviations

ARPA - Advance Research Project Agency ATM - Asynchronous Transfer Mode BEP - Business Process Engineering BSD - Berkeley Software DistributionCAN - Control Area Network CDROM - Compact Disc-Read-Only MemoryCIO - ChiefInformationOfficerDAN - Desk Area Network DBA - Data Base Administration DBLC - Database Life CycleDBMS - Database Management System DNS - Domain Name System DSO - Decision Support ObjectsDSS - Decision Support System DW - Data Warehouse EDI - Electronic Data InterchangeEDI - Electronic Data Interchange EIS - Executive Information System ERF - Equipment Replacement FundETL - Extraction Transformation and LoadingFDD - Functional Decomposition Diagrams FTP - File Transfer Protocol GFOA - GovernmentFinanceOfficersAssociationGIS - Global Information SystemsHRD - Human Resources DevelopmentHTML - Hypertext Markup LanguageHttp - Hyper Text Terminal Protocol ICT - Information Communication Technology IP - Internet Protocol IRC - Internet Relay ChatIS - Information System ISC - Information System Council ISP - Internet Service Provider IT - Information Technology IT ABC - Information Technology Assessment and Budget Review CommitteeLAN - Local Area Network MAC - Management Advisory CommitteeMacOS - Macintosh Operating SystemMAN - Metropolitan Area Network MIS - Management Information SystemMRS - Management Reporting SystemMRS - Management Reporting System MS - MicrosoftMSTC - Maharashtra State Textile CorporationNASCIO - NationalAssociationofStateChiefInformationOfficersNASIRE - National Association of State Information Resource ExecutivesNBA - National Board of AccreditationNIC - National Informatics CentreOIR - OfficeforInformationResourceOLAP - Online Analytical ProcessingOLTP - Online Transaction Processing


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OSI - OfficeInformationSystemOU - Organisational Unit P2P - Peer-To-PeerPAN - Personal Area Network PC - Personal ComputerPDA - Personal Data Assistant PFD - Process Flow Diagram PSS - Professional Support System PSU - Power Supply UnitRFID - RadioFrequencyIdentificationSADB - Subject Area DatabasesSAN - Storage Area Network SDF - Systems Development FundSDLC - Systems Development Life CycleSIIL - Scope Industries India LtdSME - Small and Medium EnterpriseSMS - Short Message Service SSP - Strategic System Planning TCP - Transmission Control Protocol TPS - Transaction Processing SystemsU.S. - United State URL - Universal Resource LocatorVoIP - Voice over Internet ProtocolVPN - Virtual Private NetworksWAN - Wide Area Network WLAN - Wireless Local Area Network XML - Extensible Markup Language

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Chapter I

Fundamentals of Information System

Aim

The aim of this chapter is to:

introduce information system •

explain the components of information system •

discuss information system resources•

Objectives

The objectives of this chapter are to:

elucidate the hardware resources •

differentiate between data and information •

enlist network resources •

Learning outcome

At the end of this chapter, you will be able to:

understand the role of information system •

explain competitive advantages of information system •

enlist• information system activities


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1.1 Introduction to Information System Information is data that has been processed into a form that is meaningful to the user. An information system (IS) is an organised combination of people, hardware, software, communications network, and data resources that collect, transform and disseminate information in an organisation.

Information systems and technologies have become vital components of businesses and organisations. •People rely on information systems to communicate with each other using a variety of physical devices (hardware), •information processing instructions and procedures (software), communication channels (networks) and stored data (data resources).Information can be classified into facts, opinions, concepts, procedures, processes, principles, primary•information, and secondary information. Apartfromthis,itcanalsobeclassifiedintoseveraltypesbasedonitsnature,usage,creation,application,•structure, and form.In order to present the information in a proper manner to the user, the data can be collected through two main •methods:

Primary �Secondary �

Primary data collection refers to collecting original data or collecting data directly from the source. •Secondary data collection refers to collecting data from secondary sources such as books, journals, research •reports, online databases, Internet and so on. The user should check whether this data has been updated before analysing the data and drawing conclusions. •The transmission of information between one person and another, takes place with the help of the communications •system. Summarisationandmessageroutingarethetwomethodsthatincreasethesendingandreceivingefficiencyof•the system. Individuals tend to exercise discretion over the content or distribution of information by message delay, message •modificationorfiltering,inferenceoruncertaintyabsorption,andpresentationbias.Thebenefitsofinformationinorganisationsincludeitshelpsinmanagementcontrol,ithelpsindecision-making,•and it helps to build models, backgrounds, and motivation. Quality of information is also a vital issue. •Theterm‘quality’issubjectiveinnatureandhenceitsparametersshouldbeclearlydefinedinordertojudge•the quality of information. The various parameters of quality are validity, consistency, reliability, impartiality, and age. •Errors and bias occur as a result of giving too much importance and preference to the quantity of information •rather than the quality. An IS accepts data resources as input and processes it and delivers information products as output. Information •systems consist of people resources (end users and IS specialists), hardware resources (machines and media), software (programs and procedures), data (data and knowledge bases) and networks (communications media and network support) to perform input, processing, output, storage, and control activities that convert data resources into information products. Some of the important activities performed by an IS are processing of data into information, storage of data •resources and control of system performance. Information systems perform three vital roles in any type of organisation. They support business operations, •support managerial decision making and provide strategic competitive advantage to the organisation. Informationsystemsareclassifiedaccordingtotheiruseinabusiness.•

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1.2 Components of Information SystemAn information system is a system that accepts data resources as input and processes them into information products as output.

An information system depends on the resources of people (end users and IS specialists), hardware (machines •and media), software (programs and procedures), data (data and knowledge basis) and networks (communications media and network support) to perform input, processing, output, storage, and control activities that convert data resources into information products.This information system model highlights the relationships among the components and activities of information •systems. It provides a framework that emphasises four major concepts that can be applied to all types of information •systems:

People,hardware,software,dataandnetworksarethefivebasicresourcesofinformationsystems. �A people resource includes end users and IS specialists, hardware resources consist of machines and media, �software resources include both programs and procedures, data resources can include data and knowledge bases and network resources include communications media and networks.Data resources are transformed by information processing activities into a variety of information products �for end users.Information processing consists of input, processing, output, storage and control activities. �

1.2.1 Information System Resources

People resources•People are required for the operation of all information systems. This people resource includes end users �and IS specialists.End users (also called users or clients) are people who use an information system or the information it �produces. They can be accountants, salespersons, engineers, clerks, customers or managers. Most of us are information �system end users.IS Specialists are people who develop and operate information systems. �They include systems analysts, programmers, computer operators, and other managerial technical and �clerical IS personnel.Briefly,systemsanalystsdesigninformationsystemsbasedontheinformationrequirementsofendusers, �programmerspreparecomputerprogramsbasedonthespecificationsofsystemsanalysts,andcomputeroperators operate large computer systems.

Hardware resources•The concept of hardware resources includes all physical devices and materials used in information processing. �Specially, it includes not only machines, such as computers and other equipments, but also all data media, that is, all tangible objects on which data is recorded, from sheets of paper to magnetic disks. Examples of hardware in computer-based information systems are: �- Computer systems, which consist of central processing units containing microprocessors, and variety

of interconnected peripheral devices.- Computer peripherals, which are devices such as a keyboard or electronic mouse for input of data and

commands, a video screen or printer for output of information, and magnetic or optical disks for storage of data resources.

Software resources•The concept of software resources includes all sets of information processing instructions. �This generic concept of software includes not only the sets of operating instructions called programs, which �direct and control computer hardware, but also the sets of information processing instructions needed by people, called procedures.


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It is important to understand that even information systems that don’t use computers have a software �resource component. This is true even for the information systems of ancient times, or the manual and machine-supported �information systems still used in the world today. They all require software resources in the form of information processing instructions and procedures in �order to properly capture, process, and disseminate information to their users.

People Resources

Hardware Resources

Software resources

Fig. 1.1 Information system resources

Following are the examples of software resources•System software, such as an operating system program, which can control and support the operations of a �computer system.Application software, which are the programs that directs processing for a particular use of computers by �end users. For example, a sales analysis program, a payroll program, or a work processing program.Procedures, which are operating instructions for the people who will use an information system. For example, �instructionsforfillingoutapaperformorusingasoftwarepackage.

Data resources•Data is more than the raw material of information systems. �The concept of data resources has been broadened by managers and information systems professionals. �They realise that data constitutes a valuable organisation resource. Thus, you should view data as data �resourcethatmustbemanagedeffectivelytobenefitallendusersinanorganisation.Data can take many forms, including traditional alphanumeric data, composed of numbers and alphabetical �and other characters that describe business transactions and other events and entities. Text data, consisting of sentences and paragraphs used in written communications; image data, such as graphic �shapesandfigures;andaudiodata,thehumanvoiceandothersounds,arealsoimportantformsofdata.

The data resources of information systems are typically organised into following factors.•Database that holds processed and organised data. �Knowledge bases that hold knowledge in variety of forms such as facts, rules, and case examples about �successful business practices.For example, data about sales transactions may be accumulated and stored in a sales database for subsequent �processing that yields daily, weekly, and monthly sales analysis reports for management. Knowledge bases are used by knowledge management systems and expert systems to share knowledge and �giveexpertadviceonspecificsubjects.

1.2.2 Data vs. Information

The word data is the plural of datum, though data commonly represents both, singular and plural forms. •Data are raw facts or observations, typically about physical phenomena or business transactions. For example, •a spacecraft launch or the sale of an automobile would generate a lot of data describing those events. Morespecifically,dataareobjectivemeasurementsoftheattributes(thecharacteristics)ofentities(suchas•people, places, things, and events).

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Example 1:A spacecraft launch generates vast amounts of data.•Electronic transmissions of data (telemetry) from thousands of sensors are converted to numeric and text data •by computers. Voice and image data are also captured through video and radio monitoring of the launch by mission •controllers.Of course, buying a car or an airline ticket also produces a lot of data. •Justthinkofthehundredsoffactsneededtodescribethecharacteristicsofthecaryouwantanditsfinancing,•or the details for even the simplest airline reservation.People often use the terms data and information interchangeably. However, it is better to view data as raw •materialresourcesthatareprocessedintofinishedinformationproducts.Thenwecandefineinformationasdata thathavebeenconvertedintoameaningfulandusefulcontextfor•specificendusers.Thus, data are usually subjected to a value-added process (we call data processing or information processing) •where its form is aggregated, manipulated, and organised; its content is analysed and view information as processed data placed in a context for human user. So,you shouldview informationasprocesseddataplaced inacontext thatgives itvalue for specificend•users.

Example 2: Names, quantities, and dollar amounts recorded on sales forms represent data about sales transactions. •However, a sales manager may not regard these as information. •Only after such facts are properly organised and manipulated can meaningful sales information is furnished, •specifying, for example, the amount of sales by product type, sales territory, or sales persons.

1.2.3 Network Resources

Telecommunications networks like the Internet, intranets, and extranets have become essential to the successful •operations of all types of organisations and their computer-based information systems. Telecommunications networks consist of computers, communications processors, and other devices interconnected •by communications media and controlled by communications software. The concept of Network resources emphasises that communications networks are a fundamental resource •component of all information systems.

Network resources include the following:Communication mediaExamples include twisted pairwire, coaxial cable, fiber-optic cable,microwave systems, and communicationsatellite systems.

Network supportThis generic category includes all of the people, hardware, software, and data resources that directly support the operation and use of a communications network. Examples include communications control software such as network operating systems and Internet packages.


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communication media

Network Support

Fig. 1.2 Network resource

1.3 Roles of Information SystemInformation technology (IT) refers to the management and use of information using computer-based tools. •It includes acquiring, processing, storing, and distributing information. •Mostcommonly,itisatermusedtorefertobusinessapplicationsofcomputertechnology,ratherthanscientific•applications. The term is used broadly in business to refer to anything that ties into the use of computers.•Mostly, businesses today create data that can be stored and processed on computers. •In some cases, the data must be input to computers using devices such as keyboards and scanners. •In other cases, the data might be created electronically and automatically stored in computers. •Small businesses generally need to purchase software packages, and may need to contract with IT businesses •that provide services such as hosting, marketing web sites and maintaining networks. However, larger companies can consider having their own IT staffs to develop software, and otherwise handle IT needs in-house. For instance, businesses working with the federal government are likely to need to comply with requirements •relating to making information accessible.Theconstantupgradeininformationtechnology,alongwithincreasingglobalcompetition,isaddingdifficulty•and hesitation of several orders of scale to the business and trade. One of the most widely discussed areas in recent business literature is that of new organisational network •structures that hold survival and growth in an environment of growing complexity. Effective implementation of information technology would decrease liability by reducing the cost of expected •failuresandincreaseflexibilitybyreducingthecostofadjustment.The businesses reaction to the environment remains to be the vital determinant for its effectiveness. •Thecapabilitiesandflexibilitiesofcomputer-communicationsystemsmakethemgraduallymoreappropriate•tobusinessesbybeingabletorespondtoanyspecificinformationorcommunicationrequirement.Information technology is having impact on all trade industries and businesses, in service as well as in •manufacturing.It is affecting workers at all levels of organisations, from the executives to middle management and clerks.•Information technology is increasingly becoming a basic factor of all types of technologies such as craft, •engineering, routine, and non-routine.The advances in Information technology would result in remarkable decline in the costs of synchronisation that •would lead to new, concentrated business structures. It enables the business to respond to the new and urgent competitive forces by providing effective management •of interdependence.

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In the near future businesses would be facing a lack and a redundancy of information called information glut. •To solve the information-glut companies will need to introduce methods for selective thinning out of •information. Improvements in telecommunications will make it easier to control business units dispersed over different parts •of the world. Advances in telecommunications would result in increased distance-communication. Indirect communication •would be preferred for well-structured information for routine, pre-programmed and decision processes.

1.4 Competitive Advantages of Information SystemFollowing are the advantages of information system.

Technology has taken the business environment by storm. •Processes that used to be manual are now automated, and methods for communication have been •transformed. The arrival of technology has completely transformed today’s business practices.•Information systems (IS) have been around for a while, but as they evolve, they are continually “new” and offer •many possibilities. An IS isn’t just a collection of hardware and software, it’s much more than that, it’s a tool. This tool can be used •in a number of ways, and the value of it really depends on how your business opts to utilise it. Many businesses today are still realising the power their technology possesses, but once strategic knowledge •is realised, the potential is endless.Installing automation simply for the sake of having it guarantees it’ll be a just an ordinary (and expensive!) •business possession, but grasping an understanding of the ways it can be used is the real value. Strategic planning in utilising information systems is the key to gaining a competitive advantage. •You don’t want to purchase new systems for the upgrade unless you plan to maximise its capabilities. •Don’t think of your IS systems as a commodity, view them as assets and a means to gain a competitive lead in •your industry.Ways you can maximise your information systems are as follows:•

DifferentiationISallowsyoutostrategicallydefineyourorganisationinawaythatmakesyourbusinessstandoutfromthe•competition. You can integrate IS in such a way where you can offer your customers something no one else does. •With a unique design that makes your business appealing to do business with, you can easily increase your •customer base.

Coordination of supply and distributionISprovidesaterrificwaytomonitorandtrackinventory.•Typically, managers will use information system to track goods and to manage their entire supply/chain •management process.If there’s a problem, you can easily pinpoint and enact a solution before becoming a costly issue.•

CustomersIntegrating IS with the web is a great way to maximise your technology. •Youcangenerateefficiency,effectivenessandenhancementallatthesametime.•Employee burden is relieved and you can augment your customer’s shopping experience at the same time.•


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Decision makingInformation systems allow the vital element of providing “real-time” information. •In today’s competitive environment, a manager needs to make rapid decisions and to do this effectively; you’ll •needthemostuptodateinformationavailable.ProperlydesigningyourIStocustomfityourneedswillenableyou to accomplish this. You’ll get fast action when you can quickly assess a situation.•

CommunicationYoursystemspossesseswaystoeffectivelyandefficientlyshareinformation.•Automated communication is a time and resource saver and can add tremendous value to your business.•When implementing IS, technology standards are important, but inter-connectivity is essential.•Providing a way to network within your own organisation and with partners and customers is a vital •component. If your company has the latest and greatest technology, even better than competitors and suppliers, it doesn’t •you much good in seclusion because you’re left isolated from the others. Ultimately, this ends up becoming less cost-effective and more time consuming which decreases the value of •your IS.Greatbenefitscomewithutilisingmanagementinformationsystems.•Thebusinessvaluesinthisinvestmentarelessredundancy(whichsavesonman-hoursworked),efficiency,•better data integrity, streamlining of processes - the possibilities are endless. Withproperplanning,yourcompanycanmaximiseprofitwhiledecreasingoverheadcosts.•Implementing such a system will be costly initially, but if business requirements and processes are properly and •accuratelyidentified,thepayoffsarevast.Investing in IS keep your business competitive and a strong ability to maintain status in the global economy.•Manybusinesseswhodonothaveawebpresenceorengageine-commercewillprobablyfindthemselves•being ousted by their competitors. Companiesthatdonotimplementinformationsystems(IS)intotheirorganisationalstructurewilllikelyfind•themselves falling by the wayside. Today, a networked presence is vital to your organisation and implementing IS systems to help run your •businesses processes. When exploring the value of IS from both, a technical perspective and a competitive advantage perspective, •InformationSystemsareadefinitiveandeffectivemeanstoexpandyourbusiness.

1.5 Applications of Information SystemsThere are several application areas which have to be considered in information systems. Those are as follows:

Information system activitiesInformation processing (or data processing) activities that occur in information system include the following:

Input of data resources•Processing of data into information•Output of information products•Storage of data resources•Control of system performance•

Input of data resourcesData about business transactions and other events must be captured and prepared for processing by the input •activity.

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Input typically takes the form of data entry activities such as recording and editing.•Once entered, data may be transferred onto a machine-readable medium such as magnetic disk or type, until •needed for processing.

Processing of data into informationData is typically subjected to processing activities such as calculating, comparing, sorting, classifying, and •summarising. These activities organise, analyse and manipulate data, thus converting them into information for end users.•A continual process of correcting and updating activities must maintain quality of data stored in an information •system.

Output of information products Information in various forms is transmitted to end-users and made available to them in the output activity. The goal of information systems is the production of appropriate information products for end users.

Storage of data resourcesStorage is a basic system component of information systems.•Storage is the information system activity in which data and information are retained in an organised manner• for later use.

Control of system performanceAn important information system activity is the control of its performance.•An information system should produce feedback about its input, processing, output, and storage activities.•Feedback must be monitored and evaluated to determine if the system is meeting established performance• standards.Feedbackisusedtomakeadjustmentstosystemactivitiestocorrectdeficiencies•

1.6 Trends of Information SystemManagement information systems (MIS) are complex decision support systems used by companies to enhance and improve their business operations. Historically, an MIS was a management tool to help company management make informed decisions for their business based on information gathered from all business departments. Technology has greatly improved the effectiveness of the MIS.

Data Mining

Education Networking

CareersEnterprise Resource Planning

Trends of Information

System

Fig. 1.3 Trends of information system


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Enterprise Resource PlanningEnterprise resource planning (ERP) software is a form of MIS that is installed in all departments and locations •of businesses to enhance the availability of company information. With the globalisation of the economic marketplace, companies have sought ways to improve their ability to •collectandreportfinancialinformationtomanagementforeffectivedecisionmaking.ERPsfill this void by allowing companies to use one computer system to effectively record all company•information.

NetworkingAnother trend in MIS is the ability for companies to network with other companies for business purposes. •Manufacturingfirmscan shorten their supplychainusingelectronicdata interchange (EDI) to transfer the•necessary information for ordering more products. Networking also allows companies to transfer money through several bank accounts, creating a quicker process •for paying bills and purchasing materials.An MIS ensures that management has all the pertinent information for these business operations, allowing them •to review the effectiveness of their operations.

Data miningAn important trend in MIS is the ability for companies to use data mining tools to collect information regarding •consumer purchases and other economic trends. This allows management to translate this information into goals and directions for future business operations. Most MIS software also has trending or forecasting models that allow companies to project emerging consumer •marketsforprofitableoperations.CompaniescanusetheirinternalfiguresintheMIStomeasuretheeffectivessoftheirexternaldatamining•techniques.

EducationAs MIS software becomes more prevalent in businesses, many colleges and universities have developed •educational programs to train students on these programs.Most degrees are four-year baccalaureate programs that combine general business courses with a mix of •computer programming and management classes. This helps students to develop a well-rounded education in the development and implantation of MIS software. Advanced degrees are also offered.•

CareersComputerised MIS programs have led to a new career in database management and consulting.•AccordingtotheU.S.BureauofLabourStatistics(BLS),thegrowthrateforjobsintheMISfieldisexpected•to grow 21 percent or more from 2006 to 2016. Incomes can range from $83,000 to $109,000 depending on the industry or position, according to the BLS.•

1.7 Future of Information SystemInformation systems are increasing in complexity. There are greater volumes of data, users, processes and transactions. There are greater interdependencies between components.

The range of available storage, user interface and computing devices is increasing so producing heterogeneity •at the physical system level. The utilisation of multiple information sources to solve a problem (or create an opportunity) creates a need for •homogeneous access over heterogeneous information sources.

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The optimal utilisation of multiple computing resources demands the creation of a uniform computing •landscape. The key to homogeneous access to heterogeneous resources lies with metadata.•The future of advanced information systems depends on metadata. •Metadata is the core of the emerging UK GRIDs project.•The title makes an assertion that metadata is the future of information systems. •The premise is that metadata is an essential, and the most important, component in advanced information •systems engineering. The topic of Metadata has recently found the limelight, largely due to a sudden realisation of its necessity in •making the WWW (World Wide Web) usable effectively. Metadata(dataaboutdata)isessentialforWWWtoscale,forfindinginformationofrelevanceandforintegrating•together data and information from heterogeneous sources. Metadataisessentialforrefiningqueriessothattheyselectthatwhichtheuserintends.•Metadata is essential for understanding the structure of information, its quality and its relevance. •Metadata is essential in explaining answers from ever more complex information systems. •Metadata assists in distilling knowledge from information and data. •Metadata assists in multilinguality and in multimedia representations. •The engineering of systems from components (data, processes, software, events, and subsystems) is assisted by •metadata descriptions of those components.Metadata has been used in information systems engineering for many years but usually in a specialist, one-off •and uncoordinated way. Commonlythemetadataishuman-readablebutisnotspecifiedsufficientlyformally,noracceptedwidelyenough,•to be interpreted unambiguously by IT (Information Technology) systems. The ubiquity of WWW, the increasing need for access to heterogeneous distributed information and the increased •use of multilingual and multimedia sources all demand some common representation of, and understanding of, metadata.Metadata is attached to data to aid in its interpretation. •Metadata processing systems interpret the data using the attached metadata. •In addition to information systems such as WWW (update, retrieval) and systems engineering as described •above, metadata is essential for electronic business from advertising through catalogue information provision through initial enquiry to contract, purchase, delivery and subsequent guarantee or maintenance. Metadata is like the Rosetta stone which provided the multiway translation key between Greek, Demotic and •Hieroglyphicsor,withanassociatedprocessingsystem,liketheBabelfish.Toquote,“TheBabelfishissmall,yellowandleech-like,andprobablytheoddestthingintheuniverse.Itfeeds•on brainwave energy received not from its own carrier but from those around it. It absorbs all unconscious mental frequencies from this brainwave energy to nourish itself with. It then excretes into the mind of its carrier a telepathic matrix formed by combining the conscious thought frequencies with nerve signals picked up from the speech centres of the brain which has supplied them. The practical upshot of all this is that if you stick a Babelfishinyourearyoucaninstantlyunderstandanythingsaidtoyouinanyformoflanguage.”

MetadataMetadata is data about data. •Metadatacandescribeadatasource,aparticularcollectionofdata(afileoradatabaseoratableinarelational•database or a class in an object-oriented database), an instance of data (tuple in a relational database table, object instance in a class within an object-oriented database) or data associated with the values of an attribute within a domain, or the particular value of an attribute in one instance. Metadata can describe data models.•


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Metadata can also be used to describe processes and software. •It can describe an overall processing system environment, a processing system, a process, a component of a •process. Itcandescribeasuiteofsoftware,aprogram,asubroutineorprogramfragment,aspecification.•It can describe an event system, an individual event, a constraint system and an individual constraint. •It can describe a process and /or event model.•Metadata can describe people and their roles in an IT system. •It can describe an organisation, a department, individuals or individuals in a certain role.•The process of standardisation of metadata models, semantics and syntax is only just beginning, and then mainly •in the data domain. Particular application domains have their own metadata standards to assist in data exchange, e.g., engineering, •healthcare, libraries. An attempt at a more general exchange metadata for internet resources – the Dublin Core - has been proposed •butunfortunatelyitisinsufficientlyformaltobereallyuseful.A general metadata model, RDF (Resource Description Framework) has been proposed with the implementation •language XML (eXtended Markup Language).This paper concentrates on the traditional data / information / knowledge aspects of metadata; however, there •are clear linkages to processing (including events) and people – especially from the object-oriented and logic-based viewpoints.

A classification of metadataMetadata is used for several purposes, they are mentioned as follows:

Describing data for the purposes of data exchange•Describing data for the purposes of global access from query (including update) to optimise recall and •relevanceDescribing data for the purposes of query optimisation;•Describing data for the purposes of answer integration and explanation;•Describing data for the purposes of correct analytical processing or interpretation, representation or •visualisation.Describing the data to overcome multilinguality and multimedia heterogeneities.•

All of these purposes require that the data be described:Such that the resource is constrained formally to ensure integrity.•Such that the resource is reachable by automated means.•Suchthatthereissufficientdescriptionforthepurposestoutilisetheresource.•

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SCHEMA NAVIGATIONAL ASSOCIATIVE

data

(document)

how to get it

view to users

constrain it

Fig. 1.4 Meta data classification

Itshouldbenotedthatthisclassificationissuitablefordata,itcanalsobeusedandissufficientlygeneralfor-metadata about processes, events, organisations or people.

Schema MetadataSchema metadata constrains the associated data. •Itdefinestheintensionwhereasinstancesofdataaretheextension.•From the intension a theoretical universal extension can be created, constrained only by the intension. •Conversely, any observed instance should be a subset of the theoretical extension and should obey the constraints •definedintheintension(schema).One problem with existing schema metadata (For example, schemas for relational DBMS) is that they lack •certain intensional information that is required. Systems for information retrieval based on, for example, the SGML (Standard Generalised Markup Language) •DTD(DocumentTypeDefinition)experiencesimilarproblems.It is noticeable that many ad hoc systems for data exchange between systems send with the data instances a •schema that is richer than that in conventional DBMS – to assist the software (and people) handling the exchange to utilise the exchanged data to best advantage.

Navigational metadataNavigational metadata provides the pathway or routing to the data described by the schema metadata or •associative metadata.In the RDF model it is a URL (universal resource locator), or more accurately, a URI (Universal Resource •Identifier).With increasing use of databases to store resources, the most common navigational metadata now is a URL with •associated query parameters embedded in the string to be used by CGI (Common Gateway Interface) software or proprietary software for a particular DBMS product or DBMS-Web server software pairing.The navigational metadata describes only the physical access path. Naturally, associated with a particular URI •are other properties such as:

security and privacy (For example, a password required to access the target of the URI); �access rights and charges (For example, does one have to pay to access the resource at the URI target); �Constraints over traversing the hyperlink mapped by the URI (For example, the target of the URI is only �availableifpreviouslyafieldonaformhasbeeninputwithavaluebetween10and20).Anotherexamplewould be the hypermedia equivalent of referential integrity in a relational database;


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semantics describing the hyperlink such as ‘the target resource describes the son of the person described �in the origin resource’

However, these properties are best described by associative metadata which then allows more convenient •co-processing in context of metadata describing both, resources and hyperlinks between them and if appropriate - events.

Associative metadataIn the data and information domain, associative metadata can describe:•

A set of data (For example, a database, a relation (table) or a collection of documents or a retrieved subset). �Anexamplewouldbeadescriptionofadatasetcollectedaspartofascientificmission;An individual instance (record, tuple, document). An example would be a library catalogue record describing �a book ;Anattribute(columninatable,fieldinasetofrecords,namedelementinasetofdocuments).Anexample �wouldbetheaccuracy/precisionofinstancesoftheattributeinaparticularscientificexperiment;Domain information (For example, value range) of an attribute. An example would be the range of acceptable �valuesinanumericfieldsuchasthecapacityofacarengineorthelistofvalidvaluesinanenumeratedlistsuch as the list of names of car manufacturers; Arecord/fieldintersectionuniquevalue(i.e.,valueofoneattributeinoneinstance)thiswouldbeusedto �explain an apparently anomalous value.

In the relationship domain, associative metadata can describe relationships between sets of data, For example, •hyperlinks. Associativemetadatacanwithmoreflexibilityandexpressivitythanavailablein,forexample,relationaldatabase•technology or hypermedia document system technology describe the semantics of a relationship, the constraints, the roles of the entities (objects) involved and additional constraints.In the process domain, associative metadata can describe (among other things) the functionality of the process, •its external interface characteristics, restrictions on utilisation of the process and its performance requirements /characteristics.In the event domain, associative metadata can describe the event, the temporal constraints associated with it, •the other constraints associated with it and actions arising from the event occurring.Associative metadata can also be personalised: given clear relationships between them that can be resolved •automatically and unambiguously, different metadata describing the same base data may be used by different users.Taking an orthogonal view over these different kinds of information system objects to be described, associative •metadatamaybeclassifiedasfollows:

Descriptive: provides additional information about the object to assist in understanding and using it; �Restrictive: provides additional information about the object to restrict access to authorised users and is �related to security, privacy, access rights, copyright and IPR (Intellectual Property Rights);Supportive: a separate and general information resource that can be cross-linked to an individual object �to provide additional information, for example, translation to a different language, super- or sub-terms to improve a query – the kind of support provided by a thesaurus or domain ontology;Most examples of metadata in use today include some components of most of these kinds but neither �structuredformallynorspecifiedformallysothatthemetadatatendstobeoflimiteduseforautomatedoperations – particularly interoperation – thus requiring additional human interpretation.

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Summary Information is the data that has been processed into a form that is meaningful to the user. An information system •(IS) is an organised combination of people, hardware, software, communications network and data resources that collect, transform and disseminate information in an organisation. Information systems and technologies have become a vital component of businesses and organisations. •People rely on information systems to communicate with each other using a variety of physical devices (hardware), •information processing instructions and procedures (software), communication channels (networks) and stored data (data resources).Informationcanbeclassifiedintofacts,opinions,concepts,procedures,processes,principles,primaryinformation•and secondary information. An information system depends on the resources of people (end users and IS specialists), hardware (machines •and media), software (programs and procedures), data (data and knowledge basis) and networks (communications media and network support) to perform input, processing, output, storage, and control activities that convert data resources into information products. Communicationmedia,examplesincludetwistedpairwire,coaxialcable,fiber-opticcable,microwavesystems,•and communication satellite systems.Network support is a generic category and includes all of the people, hardware, software, and data resources •that directly support the operation and use of a communications network. Examples include communications control software such as network operating systems and Internet packages.Information technology (IT) refers to the management and use of information using computer-based tools. It •includes acquiring, processing, storing, and distributing information. The arrival of technology has completely transformed today’s business practices.•Information systems (IS) have been around for a while, but as they evolve, they are continually “new” and offer •many possibilities. ISallowsyoutostrategicallydefineyourorganisationinawaythatmakesyourbusinessstandoutfromthe•competition.

References Schmidt, J. W. and Stogny, A. A., 1990. • Next generation information system technology, Springer, pp. 1-45. Falkenberg, E. D., Lyytinen, K. and Stuart, V., 2000. • Information systems concepts, Springer, pp. 3-47. Sheth, N. J., • Strategic Importance of information technology [pdf] Available at: <http://www.jagsheth.net/docs/Strategic%20Importance%20of%20Information%20Technology.pdf> [Accessed 6 September 2011]. Liddy, E. D., 2007. • Information Technology Trends [pdf] Available at: <http://www.cnlp.org/presentations/slides/Liddy.ITtrends.pdf> [Accessed 6 September 2011].

Recommended Reading Stair, M. and Reynolds, G. W., 2008. • Fundamentals of Information Systems, Cengage Learning. Effy, Oz., 2008. • Management Information Systems, Cengage Learning.Curtis, G. and Cobham, D., 2008. • Business Information Systems: Analysis, Design and Practice, Pearson Education.


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Self Assessment____________and technologies have become a vital component of businesses and organisations. 1.

Information organisationa. Information structureb. Information coordinationc. Information systemsd.

__________ data collection refers to collecting original data or collecting data directly from the source. 2. Primarya. Secondary b. External c. Immediate d.

____________ data collection refers to collecting data from secondary sources such as books, journals, research 3. reports, online databases, Internet, etc.

Primarya. Secondary b. External c. Immediate d.

Which is the most vital issue of information? 4. Quantity a. Quality b. Data c. Information d.

Which of the following sentences is true?5. Information dispensation consists of input, processing, output, storage and control activities.a. Information privilege consists of input, processing, output, storage and control activities.b. Information processing consists of input, processing, output, storage and control activities.c. Information system consists of input, processing, output, storage and control activities. d.

________ consist of central processing units containing microprocessors and variety of interconnected peripheral 6. devices.

Computer systemsa. Processor systems b. Mainframe systemsc. Workstation systemsd.

The concept of Software Resources includes all sets of information processing_________.7. formula a. instructionsb. methods c. regulation d.

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___________ is more than the raw material of information systems. 8. Information a. Data b. Records c. Figures d.

Information technology (IT) refers to the management and use of information using _______ tools. 9. computer-baseda. mechanical b. engineer c. software d.

Small businesses generally need to purchase ________________ packages.10. Formula a. Code b. Softwarec. Hardware d.


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Chapter II

Information Technologies

Aim


introduce the concept of information technology •

explain development of information technology in different area •

discuss the managerial issues in hardware and software •

Objectives


elucidate the data resource management technologies•

explain business information demand•

describe distributed database •

Learning outcome


understand the technologies used in E-business system •

explain the concept of networks and internet •

enlist the n• etworking standards

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2.1 Introduction to Information Technology Information technology is seemingly a simple subject, however, when one starts doing an in depth study of it, one understands that there are so many concepts which are related to it. In a broader sense, information technology refers to both, the hardware and software that are used to store, retrieve, and manipulate information. At the lowest level, one has the servers with an operating system. Installed on these servers are things like database and web serving software. The servers are connected to each other and to users via a network infrastructure. And the users accessing these servers have their own hardware, operating system, and software tools.

IfonewishestoknowaboutITfield,oneneedstoknowitsbasics.Itisasoftwareorientedfieldwherechanges•persist only for a small time and they tend to change as technology changes. Itismoreaboutchangesthatplaceinthefieldofcomputersandhowitcanbeutilisedforonesbenefitsin•moving to another level of success.Thedefinitionofinformationtechnologyvaries,however,thebasicconceptremainssame.•It is about how one can manage ones information in a compact form by the use of software’s as well as •hardware. One even makes use of different operating system along with servers that will be used for it. •So, it is a complete package where one employs various kind of tools to develop new software or one can also •even design a platform which can be used by ones end users.So,therearealotofthingswhichonecangetfromthisfieldasitisgrowingbyleapsandbounds.•Butnowadays,definitionofinformationtechnologyhaschangedalot,assomanythingshavebeenaddedto•it which includes managing ones database, system administrators and many more people who have come in thisfield.It is not just about developing a software, moreover, one needs to have a testing department as well as database •manager who can mage and coordinate other important activities. Thus, it should be clear that now the meaning ofinformationtechnologyhaschangeandanewdefinitionhascomein.

2.2 Development in Different AreasInformationtechnologyfordevelopment,withanestablishedrecordforpublishingqualityresearchandinfluencingpracticeforover20years,isthefirstjournaltohaveexplicitlyaddressedglobalinformationtechnologyissuesandopportunities. It publishes social and technical research on the effects of Information Technology (IT) on economic, social and human development.

Inaddition tobeingavaluablepublication in thefieldof informationsystems, information technology for•developmentisalsocitedinfieldssuchaspublicadministration,economics,andinternationaldevelopmentand business, and has a particularly large readership in international agencies connected to the Commonwealth Secretariat, United Nations, and World Bank.Information technology for development endeavours a advance research and practice in the development of •scalable information technology (IT) infrastructures in global development, and considers ITpolicy and commerce infrastructures, and the effects of online communities and research methods for measuring the effects of IT.Thejournalappealstoengineers,scientists,strategists,practitionersinthefield,academics,internationalleaders,•and policy-makers who recognise the importance of IT as an economic driver and make decisions with respect to investments in technical, legal and human infrastructures.The objective of Information technology for development is to provide a forum for policy-makers, practitioners, •and academics to discuss strategies and best practices for working in developing countries, tools and techniques for ascertaining the effects of IT infrastructures in government, civil societies and the private sector, and theories and frameworks that explain the effects of IT on development.Thejournalhelpsaddressinghowtoachievesignificant,measurableimprovementsinaddressingtheMillennium•Development Goals through Information and Communication Technology (ICT): Strategies for sourcing goods in the less developed countries and marketing services to the more developed countries;


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Best practices for working in the different countries; Theories and frameworks that explain the effects of IT on •development; Tools and techniques for ascertaining the effects of IT infrastructures in government, civil society and the •private sector.Information technology for development accepts both, qualitative and quantitative research on subjects such •as:

Development issuesIT ethics and development•International legal frameworks•IT and the global community•Effect of mobile infrastructures on development•IT and the emergence of the knowledge society•International ICT dialogues and discourses: Implications for developed and transition economies•Consultation and collaboration across the digital differences•Adoption and diffusion of IT, and rate of uptake•Security of network infrastructures, public key infrastructure•Scalable infrastructures for development•Sustainable development in developing and transition economies•Attaining Millennium Development Goals through ICT•Officialdevelopmentassistance•

IT policyeGovernment•IT infrastructure for public administration and reform [legal framework, human resource development (HRD) •frameworks]eGovernance for good government (eGovernment, eDemocracy and eBusiness)•International commerce and development•Public policy for the IT industry•Innovations in capacity building for ICT development (education in IT, skills for ICT development)•Debtfinancingstrategiesanddevelopments•IT strategies for development (national and sectoral)•ICT and political development in transitional economies•ICT standards and dependency•Cyber-security•

IT businessProcurement: public procurement information systems•Metropolitan growth and Global Information Systems (GIS)•Sourcing strategies: netsourcing•Outsourcing web enabled strategies•Small and Medium Enterprise (SME) access to public procurement systems•Open sourcing, online communities•eCommerce Security•

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Uptake of ICTs on micro-enterprises and their effect on the economy•

Health informaticsInnovations in bioinformatics•Information for action in healthcare•Health information systems•Rural health infrastructures•

IT infrastructureThe computer centre in the Ministry is equipped with Windows-NT servers, pentium based client systems, a •scanner for document imaging operations. In addition to these, the centre is also equipped with Local Area Network(LAN) equipments such as switches •and hubs, which serve as a backbone for accessing information on Ministry-wide Local Area Network (LAN), Internet as well as operating Intranet based applications in the Ministry;Apart from NIC Central facility, about 90 pentium based client systems capable of handling present day Windows •basedsoftwareandofficeautomationsuitsareoperationalwithofficialsandDesks/SectionsintheMinistry.ALANofabout90nodes isoperational in theMinistryandisbeingextensivelyusedforsharingoffiles/•documents, collecting information/material on annual reports, parliament questions, VIP references and Parliament Assurances from Sections/Desks as well as for sending replies to parliament questions and their onward transmission through e-mail to Rajya Sabha and Lok Sabha;Facilitiesforsendingelectronicmail(e-mail)andsurfingonInternethavebeenprovidedtoallofficials/Desks/•Sections in the Ministry.

E-Governance applicationsAs part of the e-governance programme, the Ministry-wide Intranet portal (http://nt-steel/) has been established •for e-submission of indents for monthly stationary items, application for casual leave and earned leave as well as to share and disseminate information among the users of the Ministry.The portal facilitates on-line lodging of General Administration related complaints by Sections/Desks in the •Ministry.The facility for downloading of forms for sanction of leave and advances, medical re-imbursement; ACRs; •identity card, staff car booking; income tax; telephone list (English and Hindi), E-mail address directory of officials/Sections/DesksintheMinistry,organisationchart,activitylistandtrainingmaterialindownloadableformat on Windows-98, MS-Word, MSAccess, MS-Excel and Power Point has also been made available for alltheofficers/staffintheMinistry.Personalcornerforemployee’sprofile,salarystatement,GPFstatement,incometaxcalculationsheet,Bulletin•BoardServiceforOfficeMemoranda,OfficeOrdersandOfficeCircularsandflashofdeputationvacancies/postsinGovernment.ofIndiaandnewsflashfromleadingnewspapersareavailableontheintranet.The Intranet portal also provides interface for accessing computer based systems in the area of tracking of •important references, parliament assurances and providing periodic feedback on the progress of a reference and assurance, cataloguing of books in the library, steel room booking and facilitation counter enquiry and grievance monitoring.

Steel statisticsMonthly steel sector highlights and steel statistics in the area of steel production, steel exports and imports, apparent consumption, demand and availability, market prices and market analysis are available on the NIC facility.


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Ministry’s official websiteThe Ministry’s Web-site (http://steel.nic.in), in bilingual format on Internet is also available to provide information •on administrative setup, major activities of the ministry, the policy framework, annual reports, overview of the steel sector, analysis of steel imports and import statistics, development since 1991, research and technology. Development, Preliminary Information Memorandum of PSUs (MSTC, SIIL, MOIL and MECON) links to •Ministry’sPSUsandattachedoffices,researchandtechnologymissionandofficialshandlinggrievancesintheministry and its PSUs has also been provided to give a wide coverage of information on the steel sector.

Findings of E-Readiness Assessment Group of Department of Information Technology, Ministry of Communication and ITThe survey carried out by E-readiness Assessment Group of Department of Information Technology, Ministry of Communication and IT for Central Ministries/Departments has placed Ministry of Steel at No. 3 among the top 10 out of 44 Central Ministries/ Departments for IT/E-governance preparedness.

2.3 Managerial Issues in Hardware and SoftwareCreating and managing a coherent IT infrastructure raises multiple challenges: making wise infrastructure investments, coordinating infrastructure components, dealing with scalability and technology change, and management and governance.

Making wise infrastructure investmentsITInfrastructureisamajorcapitalinvestmentforthefirm.•Iftoomuchisspentoninfrastructure,itliesidleandconstitutesadragonfirmfinancialperformance.•Iftoolittleisspent,importantbusinessservicescannotbedeliveredandthefirm’scompetitors(whospentjust•therightamount)willoutperformtheunderinvestingfirm.Howmuchshouldthefirmspendoninfrastructure?Thisquestionisnoteasytoanswer.•ArelatedquestioniswhetherafirmshouldpurchaseitsownITinfrastructurecomponentsorrentthemfrom•external suppliers. As we discussed earlier, a major trend in computing platforms both hardware and software is to outsource to •external providers. The decision either to purchase one’s own IT assets or rent them from external providers is typically called the •rent versus buy decision.

Choosing and coordinating infrastructure components Firms today create IT infrastructures by choosing combinations of vendors, people, and technology services •andfittingthemtogethersotheyfunctionasacoherentwhole.When each element of infrastructure is driven by somewhat different forces, accomplishing this is a major •management job. For instance, changes in law may mandate vast increases in data storage and retrieval, but the existing hardware •platform may be incapable of supporting the addition computing demand.

Dealing with infrastructure changes Asfirmsgrow,theycanquicklyoutgrowtheirinfrastructure.•Asfirmsshrink,theycangetstuckwithexcessiveinfrastructurepurchasedinbettertimes.•HowcanafirmremainflexiblewhenmostoftheinvestmentsinITinfrastructurearefixedcostpurchasesand•licenses? How well does the infrastructure scale? •Scalability refers to the ability of a computer, product, or system to expand to serve a larger number of users •without breaking down.

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How can the infrastructure be changed, and over what time frame? •Becausethefirm’sdigitalinfrastructurepermeateseverynookandcrannyofthefirm,andthereforedirectly•affects how employees perform on a daily basis, any change in this infrastructure would seem to have to occur slowly, guided by some vision (business or technology based) or understanding of the future requirements for infrastructure. Lefttoconstituentbusinessunits,orasinglechiefinformationofficerandhisorherstaff,chaoscouldreignor,•alternatively, bold technologically advanced plans may come and go without any real change. Who will supply this vision or understanding needed for long-term, stable evolution?•

Management and governanceA long-standing issue among information system managers and CEOs has been the question of who will control •andmanagethefirm’sITinfrastructure.Should departments and divisions have the responsibility of making their own information technology decisions •or should IT infrastructure be centrally controlled and managed? What is the relationship between central information systems management and business unit information systems •management? How will infrastructure costs be allocated among business units? •Each organisation will need to arrive at answers based on its own needs. •

2.4 Data Resource Management TechnologiesConsider the following questions.

What is the future for data resource management?•Considering the past practices and the current data resource situation in most public and private sector •organisations, is a new direction needed for developing and managing the data resource?Is a new orientation toward improved data resource quality and increased business support needed?•

Data administration has not been an effective way to manage an organisation’s data resource. People have tried to administer the data with an orientation toward the data, rather than towards support of the business. Many organisations have been, and still are, oriented toward the technology aspect of information technology by trying every new technology that comes along hoping that it will help them administer the data and provide better business support.

Theyarelookingforthatelusivesilverbulletandaresacrificingfuturebusinesssupportforcurrentneeds.Anewdirection is needed that focuses on managing data as a critical resource of the organisation to directly support its business activities. The data resource must be managed with the same intensity and formality that other critical resources are managed. Organisations must emphasise the information aspect of information technology, determine the data needed to support the business, and then use appropriate technology to build and maintain a high-quality data resource that provides that support.

In other words, organisations must manage data as a resource rather than administer the data.

Business information demandA new direction for formal data resource management begins with an understanding of an organisation’s demand for information to support their business activities. The business information demand is an organisation’s continuously increasing, constantly changing need for current, accurate, integrated information, often on short or very short notice, to support its business activities.

It is an extremely dynamic demand for information to support the business.•The result of past data resource management practices is rapidly increasing quantities of disparate data. •Disparate data are data that are essentially not alike, or are distinctly different in kind, quality, or character. •


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They are unequal and cannot be readily integrated. •They are low-quality, defective, discordant, ambiguous, heterogeneous data. •The data resource is in a state of disarray that does not, and cannot, adequately support and organisation’s •dynamic need for information.Disparate data cause a dilemma for most organisations. •The business needs integrated data to meet the business information demand, yet disparate data are being created •faster than they have ever been created before. There is no end in sight for a resolution to this dilemma with the current orientation.•In fact, the current orientation will lead to increased quantities of disparate data and decreased support for the •business because the data resource naturally drifts toward disparity of it is not properly managed.The sooner organisations make a conscious effort to alter the natural drift away from disparity; the easier it will •be to achieve a high-quality data resource that supports the business information demand. The surprising thing is that most people will not object to formal data resource management. •Most people really want a higher quality data resource, are enthused about improving data resource quality, •and want to share data. The problem is that they just do not know how to go about those tasks without impacting business operations.•

Data resource qualityData resource quality is a measure of how well the organisation’s data resource supports the current and the future business information demand of the organisation. The data resource cannot support just the current business informationdemandwhilesacrificingthefuturebusinessinformationdemand.

It must support both the current and the future business information demand. •The ultimate data resource quality is stability across changing business needs and changing technology. •This stability across change is the ideal that provides the foundation organisations need to become an intelligent •learning organisation--an i-organisation.A high-quality data resource can only be achieved by developing a comparate data resource where the data are •alike in kind, quality, and character, and are without defect.Theyareconcordant,homogeneous,nearlyflawless,nearlyperfect,high-qualitydata.•Thedataareeasily identifiedand thoroughlyunderstood, readilyaccessedandshared,andutilised to their•fullest potential.

Common data architectureA comparate data resource must be developed within single, organisation-wide common data architecture. Data architecture is the science and method of designing and constructing a data resource that is business driven, based on real-world objects and events as perceived by the organisation, and implemented into appropriate operating environments.

It is the overall structure of a data resource that provides a consistent foundation across organisational boundaries •toprovideeasilyidentifiable,readilyavailable,high-qualitydatatosupportthebusinessinformationdemand.The common data architecture is a formal, comprehensive data architecture that provides a common context •within which all data at an organisation’s disposal are understood and integrated. It is subject oriented, meaning that it is built from data subjects that represent business objects and business events •in the real world that are of interest to the organisation and about which data are captured and maintained.The common data architecture contains concepts, principles, and techniques for developing and maintaining •formaldatanames,comprehensivedatadefinitions,properdatastructures,precisedata integrity rules,androbust data documentation.Documentationaboutthedataresourceisoftenreferredtoasmeta-data,whichiscommonlydefinedasdata•aboutthedata.Thistermhasbeenmisusedandabusedtothepointthatitsrealdefinitionisunclear.

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An increased emphasis on meta-data only promotes the concept that they are something different from the •business data that must be designed and managed independent of the business data.The term data resource data helps people understand the importance of thoroughly documenting the data •resource. Data resource data are any data that document the data resource and help people understand, manage, and use •that data resource to support the business information demand. Data resource data are a major segment of the organisation’s data resource that are designed, developed, managed, •stored, retrieved, and used the same as any other segment of the data resource. They support the business of managing the organisation’s data resource just like human resource data support •the business of managing the organisation’s human resource.

A new directionThe traditional orientation to building an organisation’s data resource is to develop data models independent of organisation-wide data architecture. In many organisations, only 10% to 15% of their data resource has ever been modelled and portions of the data resource have been modelled multiple times with different tools and techniques.

Many data models are oriented toward developing the database rather than understanding the business. This •from-below, brute force physical approach leads to increased data disparity.A new data resource management direction emphasises the development of an integrated data resource within •one organisation-wide, subject oriented common data architecture. Adatamodelisdevelopedusingasubsetofthedataresourcedataforaspecificbusinessactivityforaspecific•audience. Theconceptisthesameasanyothersegmentofthedataresource,suchasaffirmativeaction,wherespecific•dataareextractedfromthedataresourceandpresentedtotheaffirmativeactionaudienceinaformthatisusefulto them for performing their business activity.Thespecificdatamodeltechniquesandnotationsaresimplyanoptionforpresentingadatamodeltoaspecific•audience. Data model are not developed independent of the common data architecture. •Therearenomoreconflictingdatamodelsordatamodeldisparitybecausealldatamodelsaredevelopedwithin•the context of the common data architecture.

Data resource managementData are a vital organisational resource that needs to be managed like other important business assets. Today’s business enterprises cannot survive or succeed without quality data about their internal operations and external environment.

With each online mouse click, either a fresh bit of data is created or already-stored data are retrieved from all •those business websites. All that’s on top of the heavy demand for industrial-strength data storage already in use by scores of big •corporations. What’s driving the growth is a crushing imperative for corporations to analyse every bit of information they •can extract from their huge data warehouses for competitive advantage. That has turned the data storage and management function into a key strategic role of the information age. •That’s why organisations and their managers need to practice data resource management, a managerial activity •that applies information systems technologies like database management, data warehousing, and other data management tools to the task of managing an organisation’s data resources to meet the information needs of their business stakeholders.


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Types of databasesContinuing developments in information technology and its business applications have resulted in the evolution of several major types of databases. Figure given below illustrates several major conceptual categories of databases that may be found in many organisations. Let’s take a brief look at some of them now.

Distribution databases on internets and

other networks

External Databases on the internet and online services

Data marts

Data Warehouse

End User Databases

Client computer

Network Server

Operational database of

the organizational

Fig. 2.1 Types of databases used by organisations and end users(Source: http://highered.mcgraw-hill.com/sites/dl/free/0073043559/314063/OBrien_13e_Chapter_5.pdf)

Operational databasesOperational databases store detailed data required for supporting the business processes and operations of a •company. They are also called subject area databases (SADB), transaction databases, and production databases.•Examples are a customer database, human resource database, inventory database, and other databases containing •data generated by business operations. Ahumanresourcedatabaselikethatshownbelowfigurewouldincludedataidentifyingeachemployeeand•hisorhertimeworkedcompensation,benefits,performanceappraisals,traininganddevelopmentstatus,andother related human resource data.

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Employee Record 1

Employees Record 2

Employees Record 3

Employees Record 4

Name Field

SS No. Field

Salary Field

Name Field

SS No. Field

Salary Field

Name Field

SS No. Field

Insurance Field

Name Field

SS No. Field

Insurance Field

Jones T.A 275- 32-3874 20,000 Klugman

J. L. 349-88-7913 28,000 Alvarez J.S. 542-40-3718 100,000 Porter

M.L 617-87-7915 50,000

Human Resource Database

Payroll File BenefitsFile

Fig. 2.2 Logical data elements in information system(Source: http://highered.mcgraw-hill.com/sites/dl/free/0073043559/314063/OBrien_13e_Chapter_5.pdf)

Figure given below illustrates some of the common operational databases that can be created and managed for •a small business using Microsoft Access database management software.

Fig. 2.3 Database management software like Microsoft Access(Source: http://highered.mcgraw-hill.com/sites/dl/free/0073043559/314063/OBrien_13e_Chapter_5.pdf)


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Distributed databasesMany organisations replicate and distribute copies or parts of databases to network servers at a variety of •sites. These distributed databases can reside on network servers on the World Wide Web, on corporate intranets or •extranets, or on other company networks. Distributed databases may be copies of operational or analytical databases, hypermedia or discussion databases, •or any other type of database. Replication and distribution of databases are done to improve database performance at end user worksites. •Ensuring that the data in an organisation’s distributed databases are consistently and concurrently updated is a •major challenge of distributed database management.Distributed databases have both advantages and disadvantages. •One primary advantage of a distributed database lies with the protection of valuable data.•Ifallofanorganisation’sdataresideinasinglephysicallocation,anycatastrophiceventlikeafireordamage•to the media holding the data would result in an equally catastrophic loss of use of that data. By distributing the database in multiple locations, the negative impact of such an event can be minimised.•

2.5 Technologies used in E-business SystemThe main aim of this section of chapter is to provide a brief introduction to the information and communications technology (ICT) underlying e-business. While it is essential to build up a basic conceptual foundation in the technology, in order to appreciate the technological possibilities and constraints, one should be careful not to become obsessed or blinded by technological detail. Technology is but one of the essential components of e-business. Key concepts in this area are as follows:

Networks and the internet•Networking standards•The web•Web 2.0•Peer-to-peer networks•Cloud computing•Mobile computing and m-commerce•Technologies for supply chain management•

2.5.1 Networks and the InternetIndividual computers consist of both, hardware (input devices, output devices, memory and central processing units) and software (operating systems, utilities and applications).

These form the basis of all computing activities. •Connecting computers together involves forming networks. •Networks are what make e-business so interesting: they open up exciting opportunities for communication, •collaboration and markets. There are several types of networks. Some important ones include:•

localareanetworks(LANs)–anetworkcoveringasmallphysicalarea,suchasasmalloffice �wide area networks (WANs) – a network that covers a broad geographical area �virtual private networks (VPNs) – commonly used to secure communications through the public internet �Internetworks (for example, intranets, extranets and the internet). �

Intranets are private networks that operate within organisations. These are used by businesses that want to restrict •access to important or sensitive information. Intranets also aim to simplify access to information for employees. •

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Extranets extend beyond the boundaries of companies to include suppliers, customers and other •collaborators.Extranets are used extensively to support supply chain management. •Particularly interesting for this unit is the internet, a so-called ‘network of networks’, which enables communication •between millions of computers worldwide. As Chaffey (2009) explains, the internet can be understood as a large client/server system. •Client computers provide the interface to human users and perform local processing think of one’s personal •computer at home. Servers, on the other hand, are computers dedicated to providing services across the network. •Email is an example of a service commonly delivered by servers. •Firewallscanbeusedtoprotectthesecurityofinformationflowingoveranintranetorextranet.•Firewalls are software on the servers where a company’s network interfaces with the internet.•Firewalls are required to prevent unauthorised users from accessing private networks. •

2.5.2 Networking StandardsThe internet and similar networks are based on a set of technical communications protocols, where a ‘protocol’ is a highly restricted form of language shared by computers which enables them to communicate with each other. While one is not expected to learn the detail of the technical side of e-business, a basic understanding of certain protocols is necessary in order to appreciate what makes e-business possible and how it is changing.

The most important of these protocols are the Transmission Control Protocol (TCP) and the Internet Protocol •(IP). These are usually written together as TCP/IP as they operate very closely together. •TheTransmissionControlProtocollayerofTCP/IPbreaksfilesintoefficientlysizedchunksofdata,known•as packets. Packets are units of data that are routed between an origin (often a server) and a destination (such as a client) •on the internet. The Internet Protocol communicates these chunks of data using a technique known as packet-switching. •Oncetheyallarriveattheirdestinationtheyarere-assembledintotheoriginalfile(bytheTransmissionControl•Protocol). SomeimportantapplicationsofTCPareemail,filetransferandtheweb.•

2.5.3 The WebIt is important to understand that the internet and the web are not the same thing. The web is part of the internet a very important part but there’s more to the internet than just the web. The web is based on the Hypertext Markup Language (HTML) standard, which is how we publish information on web pages.

HTML has many different functions, including hyperlinks, which allow users to move easily from one document •or web page to the next.For users to experience the web, they must have what is known as a web browser installed on their computer. •This is a software application that permits them to connect to servers to access and view content online. Web browsers are becoming increasingly important applications because they are seen as being central to the •future of the user’s computing experience. In the past, web browsers were just one of many different software applications, including word processors •and media players. However, the move towards what has been termed cloud computing means that activities such as word processing •or the creation of databases are done through the browser, on servers in the ‘cloud’. The Hypertext Transfer Protocol (HTTP) is a standard for transferring requests for the delivery of web pages •from servers to browsers.


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The transfer involves sending and receiving packets of data. •OnewillprobablybefamiliarwithHTTPfromonesexperiencesofsurfingonline,asallwebaddressesstart•with ‘http://’. The technical name for web addresses is a Uniform (or universal) Resource Locator (URL). •What follows the ‘http: //’ is known as a domain name. •For example, the domain name for the London School of Economics and Political Science is ‘www.lse.•ac.uk’. Domain names are important because they provide a shortcut to websites online. •All domain names map onto what are known as Internet Protocol •(IP) addresses. For example, the IP address for the LSE is 158.143.96.8. •

URL: http://www.lse.ac.uk �Domain name: www.lse.ac.uk �IP address: 158.143.96.8. �

One will probably agree that it is much easier to remember ones favourite sites’ domain names than it is to •memorise the numerous IP addresses, which is what makes domain name mapping so important. This mapping takes place as part of the Domain Name System (DNS) and is fundamental to the internet’s •architecture. Domain names are also important for companies from a marketing point of view. •Many companies view their portfolios of domain names as brand assets. •Imagine how many domain names Coca-Cola, a global company with a very recognisable brand, must register •in all the different countries in which it operates (for example, http://www.coca-cola.co.uk; http://www.cocacola.com.sg; http://www.coca-olaindia.com; http://www.coca-cola.com.cn, and so on).

2.5.4 Web 2.0Recently, there has been much discussion about the emergence of a new version of the web – web 2.0. Proponents arguethatthereareimportantdifferencesbetweentheoriginalweb,firstpopularisedinthe1990s,andweb2.0.Theoriginal web was typically composed of static pages, written by a site’s owners or administrators, and infrequently updated.

In contrast, web 2.0 is said to run on dynamic, user-generated content. •It is supposedly more interactive and participatory than the old web, although critics continue to debate these •distinctions. The popular site Wikipedia, where users participate and collaborate to generate content, is a notable example •of the new wave of websites that rely on user-generated content and governance. Other examples of web 2.0 type technologies include web logs (popularly known as ‘blogs’) and social •networking sites. As these technologies present interesting opportunities and challenges for business and society. •From the technical perspective, web 2.0 is different in terms of the extent to which it relies on certain new •scripts and technologies. Therearetwoinparticular−JavaScriptandAjax−whichwenotehere.(Notethatonewillnotneedtoknow•how to use these for this unit.) JavaScript is a scripting language used in web design to write functions that enhance user interfaces and the •dynamics of web pages. JavaScript makes pages more interactive by permitting, for example, a web form to validate that the information •a user has entered into forms is acceptable before submitting it to a server. JavaScript is behind most of the pop-up boxes that we encounter online. •

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Ajax stands for ‘asynchronous JavaScript and XML’ and is a new approach to designing web applications. •Ajax is actually a set of technologies, not a single technology, that work together to retrieve data from servers •‘asynchronously’ (that is, with no timing requirements for the transmission of data). It runs in the background and does not interfere with the display and behaviour of a web page. •Whereas, a typical web 1.0 page would require one to click a link or submit a form and then wait for a new page •to load, Ajax allows users to update content on pages without leaving the page. To give one an idea of how these technologies are being used, web applications such as Google mail and the •photo-sharing site Flickr use Ajax, as does Amazon’s user-rating system.Another web 2.0 technology that one should be aware of is the widget: •

A block of executable code that is installed within web pages. �Importantly, this code is reusable, often written by third parties, and its content is ‘live’ and dynamic. �Widgetsarewhatmakeon-screentoolssuchasclocks,stockmarkettickersandflightarrivalschedules �possible.

2.5.5 Peer-to-peer NetworksThe traditional internet architecture is the client/server relationship described above, whereby user clients rely on serverstotransferdataacrossnetworks.However,thereareotherwaystoconfigurenetworkrelationshipsonline.

One such innovative architecture is known as peer-to-peer (P2P) networking. P2P networks are composed •of users, known as peers, who share their computing resources with other peers, without the involvement of intermediaries such as network hosts or servers. Peers are thus both, suppliers and consumers of resources.•P2P networks are ad-hoc networks in the sense that new nodes (peers) can be added or existing ones removed •withoutasignificantimpactontheperformanceofthenetwork.These architectures are dynamic and distributed. •Theirdistributednaturemeansthattheyaremorerobustthanclient/serverconfigurationsasthereisnosingle•point of failure in the system. Figure given below shows the basic difference between the client/server and peer-to-peer architectures.•How do you think each model affects how organisations communicate, operate and coordinate work? P2P •networkingwasfirstpopularisedduringtheNapsterperiod,whenfile-sharingfirsttookoff,andhasyettolosepace. History shows us that these new internet architectures arguably revolutionised the entertainment industry. •While the use of peer-to-peer technology as a platform for distributing content such as music and video is very •significanttoe-business,wemustalsoconsidertheotherbusinessmodelsandtechnologyapplicationsthatcantake advantage of peer-to-peer architectures. For example, Skype, the successful start-up company providing a free software application to make voice calls •over the internet, runs on a P2P model.


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Central server

Clients

Distributed Clients

Fig. 2.4 Client/server versus peer-to-peer architectures

It uses P2P networks to transfer its Voice over Internet Protocol (VoIP) data from caller to caller.•

2.5.6 Cloud ComputingRelated to peer-to-peer networking is the emerging concept of cloud computing.

Cloud computing enables users to access and use web applications that reside in vast data centres located around the world instead of on their own personal computers.

It is called ‘cloud computing’ because most network diagrams denote the internet as a cloud. •Theseapplicationsbasedinthecloudaresupposedtobenefitfrommassiveon-demandscalabilityandcanbe•dynamically provisioned to achieve economies of scale, saving businesses money. Importantly, these resources are provided as a service over the internet and are often billed like utilities.•

Internet

Notebook Computer PC

PDA

Database Remote Desktop

Mobile

Fig. 2.5 Cloud computing

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In a way, cloud computing resembles previous network architectures. •Recall the client/server relationship we covered before. •Cloud computing is similar to the client/server architecture in that the ‘cloud’ consists of a series of high-•performance servers that offer content. The difference between client/server models and the cloud computing model is that the software and the data •reside on the servers in the cloud, and not on the client machines, as is the case with traditional client/server architectures.The reason for this is that companies offering cloud services believe that users want their information to be •accessible from anywhere and available on multiple platforms: mobile phones; across computers at home and at work; and shared with friends, family and colleagues. The idea is to store everything ‘out there’ so that an employee or work team, for example, can access it whenever •and from wherever it is needed. However, with the move to the cloud comes a new set of concerns regarding the possibility of network disruption •and data not being available, the security of data that are stored in the cloud, user privacy and others.

2.5.7 Mobile Computing and M-commerceSo far we have focused on information technologies in terms of personal computers. We typically think of computers as the machines that sit on our desks. However, recent developments in mobile phone technology mean that today’s mobile phones are effectively computers. This is interesting because it means that most of us have computers with us wherever we are. This realisation has led analysts to begin exploring the idea of mobile commerce, or m-commerce. There are a wide range of products and services that open up when we begin to treat the mobile phone as a networked computer:

Mobile ticketing• – The replacement of paper tickets with electronic tickets that can be sent to a mobile phone or personal data assistant (PDA) via a text message or short message service (SMS).Mobile vouchers• – Offering discounts to customers directly through their mobile phones. When combined with location-based services, mobile vouchers can be sent to customers as they pass certain retail areas.Location-based services• – Mobile phone service providers constantly triangulate a user’s location in a certain area and this location data can be used for marketing purposes (for example, directing customers to a particular restaurant nearby).Mobile banking• – Using mobile phones to conduct basic banking activities such as transfers, balance checks and payments.Mobile marketing and advertising• – Marketing directly to customers through their mobile phones.

2.5.8 Technologies for Supply Chain ManagementAswellasgeneral-purposetechnologiesandarchitectures,e-businesstechnologiesarealsoappliedinmorespecificsituations; for example, in supply chain management.

When extranets are used to coordinate and manage supply chains, they often involve electronic data interchange •(EDI). EDI is a generic term that refers to the structured exchange of data or documents between organisations using •information technology. It is a format that pre-dates the internet, with various international technical standards. And despite the current •of innovation that has taken place in e-business over the past couple of decades, the EDI format is still widely used by many companies in their supply chain activities. Radiofrequencyidentification(RFID)isaso-called‘automaticidentification’technology,whichpermitsthe•identificationofitemswithoutdirecthumanintervention.Itspredecessor,barcodingtechnology,reliedonline-of-sight transmission of data along the supply chain and often required human beings to intervene in the process. However,byusingradiosignals,RFIDcanautomatetheproductidentificationprocess,andthuspromisesmanybenefitstosupplychainmanagement.


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RFID offers many potential advantages over previous supply chain technologies. For one, by automating the •process, it can reduce labour costs. TheRFIDtagsthemselvesallowsignificantlylargeramountsofdatatobestoredontheproducts(forexample,•serial number, colour, size, price), leading to better intelligence along the supply chain. Additionally, the tags increase inventory visibility for partners and improve response times to customer demands •and market trends. RFID also permits asset tracking, which can help reduce shrinkage and, in the case of a product being recalled, allows partners to locate and remove faulty goods quickly. Depending on how it is implemented, RFID can help facilitate item-level tracking, whereby tags are stored in •each individual product (as opposed to pallet or case-level tracking). Item-level tracking opens up many opportunities for increased intelligence along the supply chain, for example •in terms of theft detection, stock monitoring and product customisation. However, a decision to implement RFID at the item-level must be carefully considered.•RFID tags can be expensive, although prices are decreasing as the technology matures.•Considerthatatanygiventime,therearethousands−ifnotmillions−ofproductsmovingalongthetypical•supply chain, and one will see that the technology costs can accumulate quickly. The reliability of RFID is also a concern, as certain metals interfere with the radio frequencies used by RFID. •Thus, managers in some industries need to understand these technical limitations before choosing RFID for •managing supply chains. For example, motorcycles are built with various metal components, and so item-level RFID may prove problematic for their supply chains.

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SummaryIn the broadest sense, information technology refers to both the hardware and software that are used to store, •retrieve, and manipulate information. At the lowest level one has the servers with an operating system. Installed on these servers are things like database and web serving software. The servers are connected to each other and to users via a network infrastructure. And the users accessing these servers have their own hardware, operating system, and software tools.Information Technology for Development, with an established record for publishing quality research and •influencing practice for over 20 years, is thefirst journal to have explicitly addressed global informationtechnology issues and opportunities. It publishes social and technical research on the effects of Information Technology (IT) on economic, social and human development.Information Technology for Development endeavours to advance research and practice in the development •of scalable Information Technology (IT) infrastructures in global development, and considers IT, policy and commerce infrastructures, and the effects of online communities and research methods for measuring the effects of IT.The Computer Centre in the Ministry is equipped with Windows-NT servers, Pentium based client systems, a •scanner for document imaging operations.ALANofabout90nodes isoperational in theMinistryandisbeingextensivelyusedforsharingoffiles/•documents, collecting information/material on annual reports, parliament questions, VIP references and Parliament Assurances from Sections/Desks as well as for sending replies to parliament questions. The Intranet portal provides interface for accessing computer based systems in the area of tracking of important •references, parliament assurances and providing periodic feedback on the progress of a reference and assurance, cataloguing of books in the Library, Steel Room booking and Facilitation Counter enquiry and grievance monitoring.The Ministry’s Web-site (http://steel.nic.in), in bilingual format on Internet is also available to provide information •on administrative setup, major activities of the Ministry, the policy framework, Annual Reports, overview of the steel sector, Analysis of Steel Imports & Import Statistics, development since 1991, Research & Technology. Creating and managing a coherent IT infrastructure raises multiple challenges: making wise infrastructure •investments, coordinating infrastructure components, dealing with scalability and technology change and management and governance. Firms today create IT infrastructures by choosing combinations of vendors, people, and technology services •andfittingthemtogethersotheyfunctionasacoherentwhole.

ReferencesSingh, K.A., 2005. • Computer Networks, Firewall Media, pp. 1- 21. Tanenbaum, A. S., 2003. • Computer networks, Prentice Hall Professional, pp.14-40.Abrams, M. D. and Podell, H. J., • Local Area Networks [pdf] Available at: <http://www.acsac.org/secshelf/book001/16.pdf> [Accessed 5 September 2011]. HP innovation, 2005. • WAN Design Guide, The Lower Layers [pdf]. Available at: <http://www.hp.com/rnd/pdfs/WANDesignGuide.pdf> [Accessed 5 September 2011].

Recommended ReadingPeterson, L. L. and Davie, B. S., 2011.• Computer Networks: A Systems Approach, Elservier.Stair, R. M., Reynolds, G. and Reynolds, G. W., 2009. • Principles of Information Systems, Cengage Learning.Kwiecien, A., Gaj, P. and Sterna, P., 2011. • Computer Networks, Springer.


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Self Assessment _________________ refers to both, the hardware and software that are used to store, retrieve, and manipulate 1. information.

Information toolsa. Information machineryb. Information expertisec. Information technologyd.

Which of following sentences is true?2. Information technology for development accepts both, qualitative and quantitative research.a. Information technology for development accepts both, random and direct research. b. Information technology for development accepts both, synchronous and asynchronous research.c. Information technology for development accepts both, complicated and easy research. d.

Which of following is not a development issues?3. IT ethics and developmenta. e Governmentb. International legal frameworksc. IT and the global communityd.

Which of following is not an IT business?4. Procurement: public procurement information systemsa. Metropolitan growth and Global Information Systems (GIS)b. Sourcing strategies: netsourcingc. Cyber security d.

Innovations in bioinformatics is ________________ . 5. IT business a. IT infrastructure b. Health informatics c. IT policy d.

__________ in capacity building for ICT development. 6. Improvementsa. Innovationsb. Modernismsc. Noveltyd.

________________ has not been an effective way to manage an organisation’s data resource. 7. Data administrationa. Data directionb. Data governmentc. Data organisationd.

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The __________ resource must be managed with the same intensity and formality that other critical resources 8. are managed.

information a. methodb. datac. rule d.

_____________ is an extremely dynamic demand for information to support the business.9. Business information demand a. Data resource management b. Data resource quality c. Common data architecture d.

______________coversasmallphysicalarea,suchasasmalloffice.10. LANa. WANb. MANc. WLANd.


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Chapter III

Information and its Role in Business

Aim


introduce the concept of IT in business•

explain the features of IT in business•

highlight the features of the extranet•

Objectives


elucidate the features for the intranet•

explain the concept of digital dashboard•

discuss the knowledge management •

Learning outcome

At the end of this chapter, you will able to:

understand the internet •

explain data warehousing •

rec• ognisethebenefitsofadatawarehouse

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3.1 Introduction to IT in BusinessIdeally, any manufacturing organisation’s vision and mission is to guide you through a future path. But the organisation has a vision of information technology in place. Some organisations may need to question this, one may feel that attention must be focused on their organisational skills and basic information technology plays a role of a facilitator. But unlike this, organisations are in greater need of a vision of information technology. Now we will analyse the need and essence of the landscape of information technology in a business organisation.

ConsiderXYZorganisationthatafterfiveyearsoflifehadenteredaphaseofbusinessgrowth.Sofar,therole•of information technology would have been a support system. It an experience shows that most organisations in this stage tend to focus on their core competencies and •exploit more business opportunities, and almost no attention is paid to the key role of information technology can play.Taking into account the type of business organisation is facing competition and limitations, such as increased •demand and the need for a rapid increase in production capacity, the need for considerable investment to enter newmarketsorgreaterfocusonbusinessties,hisapparentlydifficulttofocusandtheteamcanbeanengineof business. But the fact of the matter is, it really is. So the question is: how can we do?Theorganisationalrequirementscanbelargelydividedintofunctionalrequirements(veryspecificsectorof•industry), the routine transactional requirements, the content management requirements, and the requirements ofworkflowandinfrastructureneed.Now the organisation must have a plan for information technology landscape, depending on its current business •outlook and future.It is possible that the rational application of the plan of the Information Technology landscape. •Startwiththecoverageofdomainfunctionality(I+D,F&D,etc),thebenefitsareevidentinthiscase.Followed•by transactional systems (like ERP) and management systems and content. The advantages of these systems will take place over a period of time, preferably after a period of stabilisation.Forworkflowsystems,shouldbeattheenterpriselevel.Theseworkflowsystemsareessentialforanorganisation.•Theeffectivenessoftheabovecanbeseriouslyhamperedbyaworkflowsysteminefficient.Infrastructure of information technology is a continuous process of implementation of a landscape in Information •Technology. Any effective technological solution has to be to work right business software applications and hardware infrastructure.The most important thing is to have a path of integration, the landscape of the strategy for implementing •information technology that followed. This integration process is well designed from a holistic perspective necessary to Information Technology.Gradually, as the information technology landscape is accumulated within the organisation, there are no •corresponding gains in terms of business process automation, business process management and, ultimately, that leads to effective knowledge management with the organisation. In this scenario, the information technology acts as a driver of business, then the perspective of information •technology will be part of any strategy for future growth of the business organisation scale.

3.2 Features of IT in BusinessA portal is simply a website that is designed to collect and organise information and operations personnel for your business. Setting your strategy for a new or improved company website is a bit more complicated than simply launching a web page.

Thefirstpartofyourbusinessportalstrategyshouldbedeterminingtheaudienceyouwanttoserve.Ifthefocusis your customers and partners on an extranet, one have a set of features one want to consider for your site. If your target is an intranet portal for your employees, one has a different set of features to consider. Here is a look at each of these business portal applications for help in setting your strategy.


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Features of the extranet

Search

Consistent easy to use interface

Minimal clinet development

Discussions

Aggression

Alerts

Self Service

Fig. 3.1 Features of the extranet

There is no one answer to which features are mandatory and which are optional in portal design. Despite the lack of agreement on a single list, everyone agrees that there are several important features that one should consider when setting your extranet portal strategy. Those features include:

Search•Your search functionality should be able to query both, structured and unstructured content by keywords. �Structured data are the databases and transactional systems, such as an ERP system. �Unstructuredcontentincludesalloftheofficedocuments,proposals,andotherinformationthatcannotbe �easily entered into a database.

Consistent, easy-to-use interface•Portalstypicallyhaveaconsistentinterfacewhichflowsfromthehomepagedownthrougheveryareaof �the portal. Theinterfaceistypicallydesignedspecificallytomakeusingtheportalveryeasy.Thismayincludebread �crumbing to link to higher levels in the hierarchy; and hovering menus, which allow for an expanded list of links.

Minimal client deployment•Portals typically do not require that the users install new software. This generally means that portals are �Web-based.

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Discussions•Some portals provide discussion forums where users can interact with one another and with the portal �host. These forums are designed to strengthen the relationship between users and the host organisation. �

Aggregation•Pulling links and content together into a single place helps users know where to go if they are looking for �information. Aggregation allows a user to interact with several systems from one single user interface. �

Alerts•Userscansignupfore-mailnotificationwhentheinformationthattheyareinterestedinchanges.Thiscan �include both, key performance indicator changes and changes in information within documents. Alerts shift the model of user interaction from a pull model, where users must go check the portal, to a push �model, where they will be informed when something of interest on the portal changes.

Self service•Portals can be a home for a variety of self-service applications, which allow customers, employees, and �others to take care of their own needs.With the features listed above one can create an interactive environment where clients and other partners �canfindwhattheyarelookingforandinteractinaneasy-to-usewaythatshouldincreaseusersofyourextranet.

Features of the intranetIn addition to the features that one should consider for an extranet, there are special considerations for intranet •deployments. One should consider additional features for your intranet, because intranet users typically stay connected for •longer periods of time than extranet users. The additional features include as follows. •

Digital Dashboard

Personalisation

Knowledge Management

Collaboration

Distributed Control

Fig. 3.2 Features of the intranet


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Digital dashboardA dashboard lets one display key status indicators for several business processes and systems on a single screen, •givingtheuseraquickoverviewofoverallstatusandallowingrapididentificationofproblems.Digital dashboards offer an opportunity for executives to get a complete view of the overall landscape of •the organisation, including portions of the organisation that cannot be reduced to a set of key performance indicators.

PersonalisationThe ability for groups and individual users to customise the way that the information is displayed. •Filtering content to the information that a group is interested in and being able to change the location of the •information on the screen is considered an important way in which portals create a user-friendly experience.

Knowledge managementYour employees hold the keys to most of the information in your organisation. Portals provide are pository for •the information that employees have developed through experience.Portals help to broaden the usefulness or leverage of the knowledge that the organisation already possesses.•

CollaborationSome portals provide tools necessary to facilitate better collaboration. This might include the presence of information to help identify when co-workers are available, or lists to help organise tasks, events, and announcements.

Distributed controlOne of the challenges that many IT organisations face is trying to maintain their existing intranet systems. •Distributed control via a content management system allows individual owners to manage the content aspects •of the portal in their areas.

Defining your business portalJustknowingwhataportaliswillnothelponedefinewhatyourbusinessportalshouldlooklike.Forthat,onewillhave to evaluate the business problems facing your organisation and how a portal strategy can be formed to solve those problems. From there, one can select the features that one need to implement in order to solve that business problem.

One of the greatest challenges is creating a portal project that is both large enough to be of interest to the users •and small enough to be able to become functional in a reasonable period of time. Portals can demonstrate clear value, but only when they have a targeted business problem to solve and an overall •architecturetofitinto.Whendefiningyourportal,firstmakesurethatyou’veidentifiedasmallnumberofprojectsorinitiativesthat•willbenefitmostfromtheportal.Develop a solid plan on how those problems will be solved with process revisions and automated support •through the portal. Second, make sure that one allow for a small amount of time to put in provisions for larger, enterprise-wide •solutions when they are ready.

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3.3 Intranet, Extranet, Internets as Emerging Tools for Information TechnologiesInformation technology tools are explained below:

IntranetIntranet is a network that is not available to the world outside of the Intranet. If the Intranet network is connected to the Internet,theIntranetwillresidebehindafirewalland,ifitallowsaccessfromtheInternet,willbeanExtranet.

ThefirewallhelpstocontrolaccessbetweentheIntranetandInternettopermitaccesstotheIntranetonlyto•people who are members of the same company or organisation. In its simplest form, an Intranet can be set up on a networked PC without any PC on the network having access •via the Intranet network to the Internet. Forexample,consideranofficewithafewPCsandafewprintersallnetworkedtogether.•The network would not be connected to the outside world. •On one of the drives of one of the PCs there would be a directory of web pages that comprise the Intranet. •Other PCs on the network could access this Intranet by pointing their browser (Netscape or Internet Explorer) •to this directory - for example U:\inet\index.htm.From then onwards they would navigate around the Intranet in the same way as they would get around the •Internet.

InternetThe Internet, sometimes called simply “the Net,” is a worldwide system of computer networks - a network of networks in which users at any one computer can, if they have permission, get information from any other computer (and sometimes talk directly to users at other computers).

Customer Location

Satellite Modem and Router

Networked Workstations

Teleport

NOC Satellite Hub

Internet Backbone

Fig. 3.3 Internet

It was conceived by the Advanced Research Projects Agency (ARPA) of the U.S. government in 1969 and was •firstknownastheARPANet.


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The original aim was to create a network that would allow users of a research computer at one university to be •able to “talk to” research computers at other universities. AsidebenefitofARPANet’sdesignwasthat,becausemessagescouldberoutedorreroutedinmorethanone•direction, the network could continue to function even if parts of it were destroyed in the event of a military attack or other disaster.Today, the Internet is a public, cooperative, and self-sustaining facility accessible to hundreds of millions of •people worldwide. Physically, the Internet uses a portion of the total resources of the currently existing public telecommunication •networks. Technically, what distinguishes the Internet is its use of a set of protocols called TCP/IP (for Transmission •Control Protocol/Internet Protocol). Two recent adaptations of Internet technology, the intranet and the extranet, also make use of the TCP/IP •protocol.For many Internet users, electronic mail (e-mail) has practically replaced the Postal Service for short written •transactions. Electronic mail is the most widely used application on the net. •One can also carry on live “conversations” with other computer users, using Internet Relay Chat (IRC). •More recently, Internet telephony hardware and software allows real-time voice conversations.•The most widely used part of the Internet is the World Wide Web (often abbreviated “WWW” or called “the •Web”). Its outstanding feature is hypertext, a method of instant cross-referencing. •In most Web sites, certain words or phrases appear in text of a different colour than the rest; often this text is •also underlined. When one select one of these words or phrases, one will be transferred to the site or page that is relevant to this •word or phrase. Sometimes, there are buttons, images, or portions of images that are “clickable.” •If one moves the pointer over a spot on a Web site and the pointer changes into a hand, this indicates that one •can click and be transferred to another site.Using the web, one has access to millions of pages of information. •Web browsing is done with a Web browser, the most popular of which are Microsoft Internet Explorer and •Netscape Navigator. The appearance of a particular Web site may vary slightly depending on the browser one use. Also, later versions •of a particular browser are able to render more “bells and whistles” such as animation, virtual reality, sound, andmusicfiles,thanearlierversions.

Extranet An extranet is a private network that uses Internet technology and the public telecommunication system to securely share part of a business’s information or operations with suppliers, vendors, partners, customers, or other businesses.

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Internet A Internet B

Internet C

Internet

Private connection public service



Fig. 3.4 Extranet

An extranet can be viewed as part of a company’s intranet that is extended to users outside the company. •It has also been described as a “state of mind” in which the Internet is perceived as a way to do business with •other companies as well as to sell products to customers.servermanagement,theissuanceanduseofdigitalcertificatesorsimilarmeansofuserauthentication,encryption•of messages, and the use of virtual private networks (VPNs) that tunnel through the public network.

Companies can use an extranet to:•Exchange large volumes of data using Electronic Data Interchange (EDI) �Share product catalogs exclusively with wholesalers or those “in the trade” �Collaborate with other companies on joint development efforts �Jointly develop and use training programs with other companies �Provide or access services provided by one company to a group of other companies, such as an online �bankingapplicationmanagedbyonecompanyonbehalfofaffiliatedbanksShare news of common interest exclusively with partner companies. �An extranet requires security and privacy. �

3.4 Data WarehouseBusiness Intelligence refers to a set of methods and techniques that are used by organisations for tactical and strategic decision making.

It leverages technologies that focus on counts, statistics and business objectives to improve business •performance.A Data Warehouse (DW) is simply a consolidation of data from a variety of sources that is designed to support •strategic and tactical decision making. Its main purpose is to provide a coherent picture of the business at a point in time.•Using various Data Warehousing toolsets, users are able to run online queries and “mine” their data.•Many successful companies have been investing large sums of money in business intelligence and data •warehousing tools and technologies. They believe that up-to-date, accurate and integrated information about their supply chain, products and customers •are critical for their very survival.Computerisation of business processes; technological advances in transmission and storage of data; and powerful •database management tools have opened up new possibilities of data manipulation and analysis.


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Business managers are eager to explore the repositories of current and historical data to identify trends and •patterns in the wrap and hoof of business. They hope to mine data and use them for taking intelligent business decisions. In this context, industries •are increasingly focusing on data warehousing, Online Analytical Processing (OLAP), and other related technologies.

Operation System

ERP

CRM

Flat Files

ETL

Extra Transformation

loading

Data Warehouse

Summary Data

Raw data

Metadata

OLAP Analysis

Data Mining

Reporting

Fig. 3.5 Data warehouse(Source: http://datawarehouse4u.info/images/data_warehouse_architecture.jpg)

What is the difference between data warehousing and OLAP?‘Data warehouse’ and ‘OLAP’ are terms which are often used interchangeably.•Actually they refer to two different components of a decision support system. •While data in a data warehouse is composed of the historical data of the organisation stored for end user analysis, •OLAP is a technology that enables a data warehouse to be used effectively for online analysis using complex analytical queries. The differences between OLAP and data warehouse is tabulated below for ease of understanding:•

Data warehouse specification Data from different data sources is stored in a relational database for end use analysis•Data is organised in summarised, aggregated, subject oriented, non volatile patterns.•Datainadatawarehouseisconsolidated,flexiblecollectionofdata,Supportsanalysisofdatabutdoesnot•support online analysis of data.

Online analytical processingA tool to evaluate and analyse the data in the data warehouse using analytical queries.•A tool which helps organises data in the data warehouse using multidimensional models of data aggregation •and summarisation. Supportsthedataanalystinrealtimeandenablesonlineanalysisofdatawithspeedandflexibility.•

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What is data warehousing in information system? ‘Data warehousing’ is a collection of decision support technologies that enable the knowledge worker, the •statistician, the business manager and the executive in processing the information contained in a data warehouse meaningfully and make well informed decisions based on outputs. The Data warehousing system includes backend tools for extracting, cleaning and loading data from Online •Transaction Processing (OLTP) Databases and historical repositories of data. It also consists of the Data storage area--composed of the Data warehouse, the data marts and the Data store. It also provides for tools like OLAP fororganising,partitioningandsummarisingdatainthedatawarehouseanddatamartsandfinallycontainsfront end tools for mining, querying, reporting on data. It is important to distinguish between a “Data warehouse” and “Data warehousing”.•A ‘Data warehouse’ is a component of the data warehousing system. It is a facility that provides for a consolidated, •flexibleandaccessiblecollectionofdataforenduserreportingandanalysis.AdatawarehousehasbeendefinedbyInmom(consideredoneofthefoundersoftheDatawarehouseconcept)•as a “subject-oriented, integrated, time-varying, non-volatile collection of data that is primarily used in organisational decision making.”

The data in a data warehouse is categorised on the basis of the subject area and hence it is “subject �oriented”Universalnamingconventions,measurements,classificationsandsoonusedinthedatawarehouse,provide �an enterprise consolidated view of data and therefore it is designated as integrated.The data once loaded can only be read. Users cannot make changes to the data and this makes it non- �volatile.Finallydata isstoredfor longperiodsof timequantifiedinyearsandbearsa timeanddatestampand �therefore it is described as “time variant”.

Data warehousing features In one are interested in having an idea about the maintaining, building, retrieving data and designing, then the best technique is to know about the data warehousing.

The data warehousing is generated and premeditated to support the organisation in decision making process.• It is simpler to answer all kinds of queries when the production database system gets copied in the organisations •warehouse. With this, it will not even hamper the constancy of the system of production. •It has the ability to provide all the details of the business organisation that could have been done by the person •who manually reviews all the warehousing data. Therefore, the data warehousing is a very important and powerful tool as regards improvising decision making •process of your business organisation.Data warehousing is a set of important tools and new concepts developed into technology. With the assistance of •a data warehouse, things become very simple for any business organisation for countering all kinds of problems faced at the time of providing the key information to the concerned department or people. Data warehousing is furthermore a collection of the data that could be utilised in the long run to measure the •changes eventually and the different effects to the business organisation in the future.More than two decades, the number of technologies and experiences incorporated jointly in order to develop •thelatestfieldofthedatawarehousing.One can term it as a resourceful and well organised method of reporting and managing the data that is scattered •and not in uniformity in the business organisation.It is but obvious that the transactions could measure hundreds of gigabytes; therefore, it is important for the •data warehouse to be huge and vast. That is the main reason why the data marts are generally designed for each individual department or product •line separately.


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Thedatawarehousingsystemisveryinfluentialandimportantplatformtomergedatafromthenewandold•applications. Once can easily transfer the rules to the warehouse effortlessly. •Themostimportantkeyfeatureofthedatawarehousingis,itcollects,records,providesandfiltersthebasic•data to the different kinds of systems to higher degrees.

Benefits of a data warehouseWiththeassistanceofdatawarehousing,onecanprovidecommondatamodelsforvariedinterestfieldsregardlessof the source of the data. In this manner, it is simple to analyse and report the information.

Therearemanykindsofinconsistenciesthatareidentifiedandalsoresolvedbeforeevenloadingoftheinformation•in the data warehousing. Again it becomes easy to analyse and report the process altogether.The better part of the data warehouse is the control of the users’ information, so if the system goes purged over •a period of time, the information can be safely and easily stored for a longer period of time.Due to the fact that it is very different from the other operational systems, the data warehousing assists in •retrieving the data without even slowing down or hampering the operating system. It also heightens the value of the operational business application and the customer relationship management system. Data warehousing makes way to the proper functioning of the support system application like the exception reports, actual performance analysis reports and the trend reports.In brief, the system of data warehousing has potentially proved to be very helpful in provision of collective •information to the users. Its creation is mainly for supporting different types of analysis and the queries that need the extensive searching in a large scale. Businesses have been impacted to the bottom line after thorough implementation of the data warehousing systems.

3.5 Data MiningBy this point in time, one has probably heard a good deal about data mining, the database industry’s latest buzzword. What’sthistrendallabout?Touseasimpleanalogy,it’sfindingtheproverbialneedleinthehaystack.Inthiscase,the needle is that single piece of intelligence your business needs and the haystack is the large data warehouse one have built up over a long period of time.

Data mining in business Through the use of automated statistical analysis (or “data mining”) techniques, businesses are discovering new •trends and patterns of behaviour that previously went unnoticed. Once they have uncovered this vital intelligence, it can be used in a predictive manner for a variety of •applications. Brian James, assistant coach of the Toronto Raptors, uses data mining techniques to rack and stack his team •against the rest of the NBA. The Bank of Montreal’s business intelligence and knowledge discovery program is used to gain insight into •customer behaviour.

Gathering data Thefirststeptowardbuildingaproductivedataminingprogramis,ofcourse,togatherdata!•Most businesses already perform these data gathering tasks to some extent the key here is to locate the data •criticaltoyourbusiness,refineitandprepareitforthedataminingprocess.If one is currently tracking customer data in a modern DBMS, chances are you’re almost done. •Take a look at the article Mining Customer Data from DB2 Magazine for a great feature on preparing your data •for the mining process.

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Selecting an algorithm Choose one or more data mining algorithms to apply to your problem. •If one is just starting out, it is probably a good idea to experiment with several techniques to give you a feel •for how they work. Your choice of algorithm will depend upon the data one have gathered, the problem one are trying to solve and •the computing tools one have available to you. Let us take a brief look at two of the more popular algorithms.•

Regression Regression is the oldest and most well-known statistical technique that the data mining community utilises. •Basically,regressiontakesanumericaldatasetanddevelopsamathematicalformulathatfitsthedata.•When one are ready to use the results to predict future behaviour, one simply take your new data, plug it into •the developed formula and you’ve got a prediction! The major limitation of this technique is that it only works well with continuous quantitative data (like weight, •speed or age).Ifoneareworkingwithcategoricaldatawhereorderisnotsignificant(likecolour,nameorgender)oneare•better off choosing another technique.

Classification Workingwithcategoricaldataoramixtureofcontinuousnumericandcategoricaldata?Classificationanalysis•might suit your needs well. This technique is capable of processing a wider variety of data than regression and is growing in popularity. •You’llalsofindoutputthatismucheasiertointerpret.•Instead of the complicated mathematical formula given by the regression technique you’ll receive a decision •tree that requires a series of binary decisions. Onepopularclassificationalgorithmisthek-meansclusteringalgorithm.•TakealookattheClassificationTreeschapterfromtheElectronicStatisticsTextbookforin-depthcoverage•of this technique.

Other techniques Regressionandclassificationaretwoofthemorepopularclassificationtechniques,buttheyonlyformthetipofthe iceberg. For a detailed look at other data mining algorithms, look at this feature on Data Mining Techniques or the SPSS Data Mining page.

Data mining products Data mining products are taking the industry by storm. •The major database vendors have already taken steps to ensure that their platforms incorporate data mining •techniques.Oracle’sDataMiningSuite(Darwin)implementsclassificationandregressiontrees,neuralnetworks,k-nearest neighbours, regression analysis and clustering algorithms.Microsoft’sSQLServeralsooffersdataminingfunctionalitythroughtheuseofclassificationtreesandclustering•algorithms. If you’re already working in a statistics environment, one are probably familiar with the data mining algorithm •implementations offered by the advanced statistical packages SPSS, SAS, and S-Plus.


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Moving on Have we whetted your appetite for data mining knowledge?•For a more detailed look, check out the excellent slide show presentations and other data mining resources on •Megaputer.com. Ifyou’rereadytogetstartedbutcan’tfindanysampledata,takealookatthevariousrepositorieslistedinData•Sources for Knowledge Discovery.

When did data mining begin?Data mining techniques are the result of a long process of research and product development. •Thisevolutionbeganwhenbusinessdatawasfirststoredoncomputers,continuedwithimprovementsindata•access, and more recently, generated technologies that allow users to navigate through their data in real time. Data mining takes this evolutionary process beyond retrospective data access and navigation to prospective •and proactive information delivery. Data mining is ready for application in the business community because it is supported by three technologies •thatarenowsufficientlymature:

Massive data collection �Powerful multiprocessor computers �

Data mining algorithmsThe core components of data mining technology have been under development for decades, in research areas •suchasstatistics,artificialintelligence,andmachinelearning.Today, the maturity of these techniques, coupled with high-performance relational database engines and broad •data integration efforts, make these technologies practical for current data warehouse environments.Dataminingtechniquescanyieldthebenefitsofautomationonexistingsoftwareandhardwareplatforms,and•can be implemented on new systems as existing platforms are upgraded and new products developed. When data mining tools are implemented on high performance parallel processing systems, they can analyse •massive databases in minutes. Faster processing means that users can automatically experiment with more models to understand complex •data. High speed makes it practical for users to analyse huge quantities of data. Larger databases, in turn, yield •improved predictions.

The enterprise data warehouse as a data mining sourceAn enterprise data warehouse is an excellent source for locating data to mine. •Because of the nature of a data warehouse, most pertinent data that has been selected by analysts and business •users should be located within the warehouse structure. In addition, this data is organised and stored for the explicit purpose of reporting.•Through the data warehouse, further processing of OLAP data can occur. This processing can take the form of •additional aggregations into multidimensional cubes (i.e., SQL Server 2000 Analysis Services Cubes) or undergo further segregation into organisational data marts.The data mining process will utilise the data in the enterprise data warehouse, based on user selection and •location of pertinent data, to test and validate a data mining model. It is important that the data be granular enough to analyse. •Datathatischaracterisedbysignificantaggregationsbeyondtheoriginalgrainofthedatawillnotproduce•significantresultswhenusedtocreateortestagainstaminingmodel.

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An enterprise data warehouse is a prime source for data mining data because the data housed within the •warehousehasalreadyundergonesignificantdataadditions,modificationsandcleansingbasedonbusinessrules and processes. RefinedExtractionTransformationandLoading(ETL)processesarerequiredforreliableOLAPandenterprise•data warehouse reporting.It is the ETL process which is responsible for cleansing bad data from the OLTP source, reclassifying or •aggregating granular transactions from the operational system, and enriching the data with more readable and comprehensible data as opposed to the operational codes and abbreviations used in an OLTP system. Oncethedatahasbeensufficientlycleansedandrefined,itisripefordatamining.•Typical data warehousing implementations in organisations will allow users to ask and answer questions such •as “How many sales were made, by territory, by sales person between the months of May and June in 1999?” Data mining will allow business decision makers to ask and answer questions, such as “Who is my core customer •that purchases a particular product we sell?” or Geographically, how well would a line of products sell in a particular region and who would purchase them, given the sale of similar products in that region?”

How does data mining work?The technique that is used to perform these feats in data mining is called modelling.•Modelling is simply the act of building a model in one situation where one know the answer and then applying •it to another situation where one don’t. Forinstance,ifonewerelookingforasunkenSpanishgalleononthehighseasthefirstthingonemightdois•research the times when Spanish treasure had been found by others in the past. One might note that these ships often tend to be found off the coast of Bermuda and that there are certain •characteristics to the ocean currents, and certain routes that have likely been taken by the ship captains in that era. One notes these similarities and build a model that includes the characteristics that are common to the locations •of these sunken treasures. With these models in hand one sail off looking for treasure where your model indicates it most likely might be •given a similar situation in the past. Hopefully,ifonehasmadeagoodmodel,onefinedyourtreasure.•The process of creating the data mining model is directly dependent on the methodology used to feed the entire •data mining process. In essence, the method used to make data available to be mined governs the process used to create the data •model. If a solutions architect designed a specialised OLAP data cube in Analysis Services to serve as the primary source of data mining data, then an OLAP data mining model would be created, as opposed to a relational data mining model.This act of model building is thus something that people have been doing for a long time, certainly before the •advent of computers or data mining technology. What happens on computers, however, is not much different from the way people build models. •Computers are loaded up with lots of information about a variety of situations where an answer is known, and •then the data mining software on the computer must run through that data and distil the characteristics of the data that should go into the model. Once the model is built it can then be used in similar situations where one doesn’t know the answer.•

In what areas is data mining profitable?A wide range of companies have deployed successful applications of data mining. •Whileearlyadoptersofthistechnologyhavetendedtobeininformation-intensiveindustriessuchasfinancial•services and direct mail marketing, the technology is applicable to any company looking to leverage a large data warehouse to better manage their customer relationships.


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Twocriticalfactorsforsuccesswithdataminingare:alarge,well-integrateddatawarehouseandawell-defined•understanding of the business process within which data mining are to be applied (such as customer prospecting, retention, campaign management, and so on).

Some successful application areas include:Pharmaceutical companies•Credit card companies •Transportation companies•

Large consumer package goods companies (to improve the sales process to retailers)Each of these examples has clear common ground. They leverage the knowledge about customers implicit in a data warehouse to reduce costs and improve the value of customer relationships. These organisations can now focus theireffortsonthemostimportant(profitable)customersandprospects,anddesigntargetedmarketingstrategiesto best reach them.

Is Microsoft SQL Server helpful for data mining?Yes, SQL Server 2000 includes Analysis Services with data mining technology which examines data, in relational •data warehouse or data mart star schemas, as well as SQL Server 2000 Analysis Services OLAP cubes to uncover areas of interest to business decision makers and other analysts. Housed within this new segment of Analysis Services are data mining algorithms which enable the creation •and analysis of data mining models.OLAP Data Mining with SQL Server allows architects to reuse the results from data mining and incorporate •the information into an OLAP Cube dimension for further analysis.Userscannowbrowseandinvestigatedatawhilefindingtheanswerstoquestionsthatonlydataminingcan•answer. PivotTable Services support data mining through emulating a similar interface to that of OLAP pivot tables.•In essence, users can utilise a specially designed Excel spreadsheet to interface with data mining services and •run prediction queries against a data mining model, just as they do for multidimensional analysis of OLAP data cubes.In addition, the Decision Support Objects (DSO) library has been extended in order to accommodate direct •programmatic access to the data mining functionality present within OLAP services, as well as continued programmatic access to the OLAP cube resources.DSO now includes the Mining Model object as well as other extended support objects. Coupled with the new •OLE DB for Data Mining provider, organisations wishing to implement custom applications which provide predictive data mining data to meet business processes, or those organisations that wish to access data mining data for the purpose of creating an operational data mining application, can now do so using the DSO library.

3.6 Competitive Advantages in BusinessIdentifying a competitive advantage and crafting an effective business strategy to support it is an iterative, ongoing process. The steps below have been excerpted from the chapter and are presented with active web links to assist innovators in getting started.

Understand the competitive advantages of competitorsWhat to cover?

Carefully evaluate established or emerging competitors in the market to identify their strengths.•Consider their weaknesses and what opportunities this creates for a new company to potentially establish a •foothold in the market by addressing those gaps. Also evaluate companies that have established a leadership position in other markets for ideas and examples of •how competitive advantages can effectively be developed.

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Review what is known about the competitive landscape to understand factors in the external environment that •may be a source of competitive advantage. Then, name the competitive advantages that these companies have developed (i.e., what they do well that others •cannot easily imitate), as well as the business strategies they have put into place to capitalise on them.

Where to look?Analyst reportsIf players in the competitive landscape are public, carefully review analyst reports for clues regarding a company’s core assets, strengths, and sources of competitive advantage. These publications may also provide information about the chosen business strategies of public companies.

Personal networks Networkwithindividualsinthefieldtogaininsightintothecompetitiveadvantagesandsupportingbusinessstrategiesthat have been chosen by these companies, how well their strategies support their competitive advantages, and any difficultiestheyhaveencounteredalongtheway(whichmighttranslateintoopportunitiesforanewcompetitor).

Identify the company’s competitive advantagesWhat to cover?

Perform a detailed assessment of the company’s own strengths, weaknesses, and assets. •Think about which ones potentially can be developed into competitive advantages, taking into account important •internal and external factors (such as the availability of time, money, and necessary connections). Evaluate how the company’s competitive advantages align with the most urgent and important needs of customers •in the market, as well as the strengths and weaknesses of competitors. Evaluate whether they are positional or capability-based advantages and how sustainable they are. •Then, prioritise the list of potential advantages based on the likelihood that they could be achieved, sustained, •and utilised to effectively differentiate the company.

Where to look?Involve key members of the company in this assessment to make sure nothing is overlooked and multiple •perspectives are considered. Be honest about which competitive advantages are truly feasible, sustainable, and substantial enough to •differentiate the company. Validate the assessment with an outside expert or advisor if additional objectivity is required.•

Create a statement of competitive advantageWhat to cover?

Articulate themost promising competitive advantages that have been identified in a concise statement of•competitive advantage. This statement should convey in one or two sentences what the company does, for whom it does this, how this •uniquely solves an urgent need in the market, and why competitors cannot imitate it. Many companies have competitive advantages, but few can clearly and explicitly articulate them. •Beyond just being an important mental exercise to gain a deeper understanding of a company’s advantages, a •definedstatementofcompetitiveadvantagehelpsthecompanymoreeffectivelypersuadepotentialinvestorsabout its ability to capture the value created by its products and ultimately position itself in the market and convincingly demonstrate to customers why it is a more valuable alternative than the competition. Keep in mind that the statement must present a distinctive advantage that cannot easily be replicated by others •and also can be demonstrated in concrete terms.Superlative claims will not stand up in the market. Continue honing the statement until it is clear, compelling, •and “feels right” based on the fundamental strengths of the organisation.


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Itisalsoagoodideatotestthestatementwithtrustedadvisorsandasmallgroupofcustomersforconfirmation•that it communicates a persuasive and differentiated reason for doing business with the company.

Where to look?As noted above, it is essential to involve all key members of the team in the development of the statement of competitive advantage.

Set a strategyWhat to cover?

Basedonthedefinitionofitscompetitiveadvantages,determinethefundamentalbusinessstrategiesthatmake•sense to pursue. Startbyeliminatingstrategiesthatarenotapplicable(e.g.,firstmoverisnotanoptionifanothercompany•is already in the market; me-too is impractical if the company’s technology has differentiated features and benefits).Then consider which of the remaining strategies make the best match based on the business itself, the needs of •the market, and the value propositions the company is trying to demonstrate to its stakeholders.

Where to look?Make this decision with the management team. •Involve the board of directors for additional expertise and to validate the approach.•Recognise that this is just one aspect of a holistic business strategy, and invest time and energy in making sure the •rest of the strategy lines up around the fundamental business approach that has been chosen (and vice versa).

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SummarySome organisations may need to question this, one may feel that attention should focus on their organisational •skills and basic information technology plays a role of a facilitator. But unlike these organisations are in greater need of a vision of information technology. The role of information technology business is a factor in today’s competitive environment and not just a facilitator.ConsiderXYZorganisationthatafterfiveyearsoflifehadenteredaphaseofbusinessgrowth.•So far, the role of information technology would have been a support system. •My experience shows that most organisations in this stage tend to focus on their core competencies and exploit •more business opportunities, and almost no attention is paid to the key role of information technology can play.The most important thing is to have a path of integration, the landscape of the strategy for implementing •information technology that followed. This integration process is well designed from a holistic perspective necessary to Information Technology.The information technology landscape is accumulated within the organisation, there are no corresponding gains •in terms of business process automation, business process management and, ultimately, that leads to effective knowledge management with the organisation. A portal is simply a Web site that is designed to collect and organise information and operations personnel for •your business. Setting your strategy for a new or improved company Web site is a bit more complicated than simply launching a Web page.Thefirstpartofyourbusinessportalstrategyshouldbedeterminingtheaudienceonewanttoserve.Ifthefocus•is your customers and partners on an extranet, one have a set of features one want to consider for your site.In addition to the features that one should consider for an extranet there are special considerations for intranet •deployments. One should consider additional features for your intranet, because intranet users typically stay connected for •longer periods of time than extranet users. A dashboard lets one display key status indicators for several business processes and systems on a single screen, •givingtheuseraquickoverviewofoverallstatusandallowingrapididentificationofproblems.Filtering content to the information that a group is interested in and being able to change the location of the •information on the screen is considered an important way in which portals create a user-friendly experience.One of the greatest challenges is creating a portal project that is both large enough to be of interest to the users •and small enough to be able to become functional in a reasonable period of time. Portals can demonstrate clear value, but only when they have a targeted business problem to solve and an overall •architecturetofitinto.Whendefiningyourportal,firstmakesurethatyou’veidentifiedasmallnumberofprojectsorinitiativesthat•willbenefitmostfromtheportal.

ReferencesJarke, M., 2003. • Fundamentals of data warehouses, Springer, pp.1-83. Inmon, W.H., 2005. • Building The Data Warehouse, 4th ed., Wiley-India, pp. 71-210. Ghosh, M. and Avasia, M. • Intra, extra and Internet: Information Management And Sharing In Libraries [pdf] Available at: <http://eprints.rclis.org/bitstream/10760/8218/1/Kharagpur_conference.pdf>. [Accessed 2 September 2011]. English, L. P., 1999. • Improving data warehouse and business information quality [pdf] Available At: <http://www.infoimpact.com/IQBook/iq.pdf>. [Accessed 1 September 2011].


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Recommended ReadingDevlin, B., 1997. • Data warehouse: from architecture to implementation, Addison-Wesley.Kimball, R. and Ross, M., 2011.• The Data Warehouse Toolkit: The Complete Guide to Dimensional Modeling, John Wiley and son.Rainardi, V. 2008, • Building a Data Warehouse: With Examples in SQL Server, Wiley-India.

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Self AssessmentInfrastructure of information technology is a continuous process of implementation of a landscape 1. in______________.

Information Technologya. Information Gadget b. Electronic Technology c. Electronic Gadgetd.

A __________ is simply a web site that is designed to collect and organise information and operations personnel 2. for business.

porcha. portalb. path form c. pitchd.

_______________ allows a user to interact with several systems from one single user interface.3. Aggregationa. Online chatb. Googlec. Attachment d.

Which technique performs research and product development?4. Data removal a. Data insertion b. Data inclusion c. Data mining d.

Which of the following sentences is true?5. Microsoft’sSQLServeroffersdataminingfunctionalitythroughtheuseofclassificationtreesandclusteringa. algorithms. DatabaseServeralsooffersdataminingfunctionalitythroughtheuseofclassificationtreesandclusteringb. algorithms. PLServer also offers datamining functionality through the use of classification trees and clusteringc. algorithms. TerminalServeralsooffersdataminingfunctionalitythroughtheuseofclassificationtreesandclusteringd. algorithms.

______________ takes this evolutionary process beyond retrospective data access and navigation to prospective 6. and proactive information delivery.

Data removal a. Data mining b. Data insertion c. Data inclusion d.


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An enterprise data warehouse is an excellent source for locating________ to mine. 7. link a. addressb. datac. message d.

_________ is simply the act of building a model in one situation where one know the answer and then applying 8. it to another situation where one don’t.

Mining a. Modellingb. Mixing c. Making d.

PivotTable Services support data mining through emulating a similar interface to that of __________ pivot 9. tables.

OLLP a. OLAPb. OLAAc. OLPPd.

RefinedExtractionTransformationandLoading(ETL)processesarerequiredforreliableOLAPandenterprise10. data warehouse_______________.

Reportinga. Supporting b. Indicating c. Selecting d.

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Chapter IV

Types of Information System

Aim


enlist the type of the information system •

introducetheconceptofofficeinformationsystem•

explain management information system •

Objectives


definetransactionprocessingsystem•

elucidate the features of the transaction processing systems •

enlist the types of transactions•

Learning outcome


explain the concept of management reporting system •

understand the decision support system •

describe• an executive information system


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4.1 Types of Information SystemAn information system is an integrated collection of hardware devices, software programs, data, procedures and people to generate information which supports organisational activities -- short- and long-term. Bart Prakken, in the book“Information,OrganisationandInformationSystemsDesign,”definesaninformationsystemas“acohesivecombination of processes, concerning the collection, transformation, storing and retrieval of (output) data which contain news for the user, regardless of the technical means applied.”

OfficeInformation

system

Information system

Expert System

Decision support system

Management Information

System

Transaction processing

systems

Fig. 4.1 Types of information system

4.1.1 Office Information SystemAnofficeinformationsystem(OIS),orofficeautomation,facilitatescommunicationandworkflowelectronicallybetween employees of an organisation.

OIS uses communications technology (EDI, or electronic data interchange; video-conferencing, facsimile and •voice mail); software (word processing, database, spreadsheet, presentation, groupware, •Web-browsers, e-mail and personal information management); •And various hardware devices (computers, modems, speakers, fax machines, scanners and others) to automate •processes. Anofficeinformationsystemsupportsawiderangeofbusinessactivities,suchascreatingdocuments,organising•scheduling tasks, accounting and sending messages.

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4.1.2 Expert SystemAn expert system is an information system that stores knowledge from human experts and then attempts to imitate human decision-making and reasoning faculties for non-experts.

It has two main components: A knowledge base (a comprehensive repository of human knowledge and experience) •Inference rules (logical rules that are applied to the knowledge base every time a user inputs a new decision •situation to the system).

4.1.3 Decision Support SystemA decision support system (DSS) is used to help managers and users make relevant and timely decisions.

They typically include graphics, spreadsheets, statistical analysis capabilities and query language (such as SQL) •to help users extract relevant data and evaluate results so they can make decisions. Some DSS’s also help users simulate a decision situation to create a comprehensive model of all the factors •affecting the decision.Executive information system (EIS) is a special type of decision support system that is typically used by •executive management. It represents information in the form of tables which show managerial statistics, ratios and trends. •An EIS retrieves data from external sources, such as the Internet or the Dow Jones News, to provide information •regarding contemporary economic indicators, commodity prices and other strategic issues.

4.1.4 Management Information SystemA management information system (MIS), or management reporting system (MRS), produces accurate and organised information that enables managers and other decision-makers to reach precise decisions, supervise activities, solve problems and track progress.

An MIS typically produces three different types of reports: detailed information, summary information and •exception information. Adetailedinformationreportusuallyconfirmsalltransactionprocessingactivities.•Summary information report summarises data into an easily understandable format and generates associated •graphs, tables and totals to present information in a condensed form.Exceptioninformationisusedtofilterdatathatrequiresimmediateactionsordecisions.•

4.1.5 Transaction Processing SystemsA transaction processing system (TPS) is an information system that captures and processes data generated during an organisation’s day-to-day transactions.

A transaction is a business activity such as a deposit, payment, order or reservation.•Clerical staff typically performs the activities associated with transaction processing, which include the •following:

Recording a business activity such as a student’s registration, a customer’s order, an employee’s timecard �or a client’s payment.Confirminganactionortriggeringaresponse,suchasprintingastudent’sschedule,sendingathank-you �note to a customer, generating an employee’s pay check or issuing a receipt to a client.Maintaining data, which involves adding new data, changing existing data, or removing unwanted data. �

Transactionprocessingsystemswereamongthefirstcomputerisedsystemsdevelopedtoprocessbusinessdata•a function originally called data processing. Usually, the TPS computerised an existing manual system to allow for faster processing, reduced clerical costs •and improved customer service.


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Thefirsttransactionprocessingsystemsusuallyusedbatchprocessing.•With batch processing, transaction data is collected over a period of time and all transactions are processed •later, as a group. As computers became more powerful, system developers built online transaction processing systems. •With online transaction processing (OLTP) the computer processes transactions as they are entered. •When you register for classes, your school probably uses OLTP. •The registration administrative assistant enters your desired schedule and the computer immediately prints your •statement of classes. The invoices, however, often are printed using batch processing, meaning all student invoices are printed and •mailed at a later date.Today, most transaction processing systems use online transaction processing. •Some routine processing tasks such as calculating pay checks or printing invoices, however, are performed •more effectively on a batch basis. For these activities, many organisations still use batch processing techniques.•

4.2 Transaction Processing Systems (TPS)AtransactionisanyeventthatpassestheACIDtestinwhichdataisgeneratedormodifiedbeforestorageinaninformation system. A Transaction Processing System (TPS) is a type of information system that collects, stores, modifiesandretrievesthedatatransactionsofanenterprise.

Features of transaction processing systems The success of commercial enterprises depends on the reliable processing of transactions to ensure that customer orders are met on time, and that partners and suppliers are paid and can make payment.

Thefield of transaction processing, therefore, has become a vital part of effective businessmanagement,•led by such organisations as the Association for Work Process Improvement and the Transaction Processing Performance Council. Transaction processing systems offer enterprises the means to rapidly process transactions to ensure the smooth •flowofdataandtheprogressionofprocessesthroughouttheenterprise.Typically, a TPS will exhibit the following characteristics:•

Characteristics of TPS

Rapid Processing Realiablilty Standardisation Control

Access

Transaction processing qualifiers

Fig. 4.2 Characteristics of TPS

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Rapid Processing •The rapid processing of transactions is vital to the success of any enterprise now more than ever, in the face �of advancing technology and customer demand for immediate action. TPS systems are designed to process transactions virtually instantly to ensure that customer data is available �to the processes that require it.

Reliability •Customers will not tolerate mistakes. �TPS systems must be designed to ensure that not only do transactions never slip past the net, but that the �systems themselves remain operational permanently. TPS systems are therefore designed to incorporate comprehensive safeguards and disaster recovery �systems. These measures keep the failure rate well within tolerance levels. �

Standardisation •Transactionsmustbeprocessedinthesamewayeachtimetomaximiseefficiency. �To ensure this, TPS interfaces are designed to acquire identical data for each transaction, regardless of the �customer.

Controlled access •Since TPS systems can be such a powerful business tool, access must be restricted to only those employees �who require their use. Restricted access to the system ensures that employees who lack the skills and ability to control it cannot �influencethetransactionprocess.

Transactionsprocessingqualifiers•In order to qualify as a TPS, transactions made by the system must pass the ACID test. �The ACID tests refers to the following four prerequisites: �

Atomicity Consistency Isolation Durability

Atomicity means that •a transaction is either completed in full or not at all. For example, if funds •are transferred from one account to another, this only counts as a bonefidetransactionif both the withdrawal and deposit take place. If one account is •debited and the other is not credited, it does not qualify as a transaction. TPS systems ensure •that transactions take place in their entirety.

TPS systems •exist within a set of operating rules (or integrity constraints). If an integrity •constraint states that all transactions in a database must have a positive value, any transaction with a negative value would be refused.

Transactions must •appear to take place in isolation. For example, when •a fund transfer is made between two accounts the debiting of one and the crediting of another must appear to take place simultaneously. The funds cannot •be credited to an account before they are debited from another.

Once •transactions are completed they cannot be undone. To ensure that •this is the case even if the TPS suffers failure, a log will be created to document all completed transactions.

Table 4.1 ACID tests


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These four conditions ensure that TPS systems carry out their transactions in a methodical, standardised and reliable manner.

Types of transactions While the transactionprocessmustbestandardised tomaximiseefficiency,everyenterprise requiresa tailoredtransaction process that aligns with its business strategies and processes. For this reason, there are two broad types of transaction:

Batch processing

Real Time Processing

Transaction

Fig. 4.3 Types of transaction

Batch processing Batchprocessingisaresource-savingtransactiontypethatstoresdataforprocessingatpre-definedtimes.•Batch processing is useful for enterprises that need to process large amounts of data using limited resources. •Examples of batch processing include credit card transactions, for which the transactions are processed monthly •rather than in real time. Credit card transactions need only be processed once a month in order to produce a statement for the customer, so batch processing saves IT resources from having to process each transaction individually.

Real time processing In many circumstances the primary factor is speed. •For example, when a bank customer withdraws a sum of money from his or her account it is vital that the •transaction be processed and the account balance updated as soon as possible, allowing both the bank and customer to keep track of funds.

4.3 Management Reporting System (MRS)Management reporting systems are the most elaborate of the management oriented information systems. The main objective of management reporting systems (MRS) is to provide lower and middle management with printed or electronic reports and with inquiry capabilities to help maintain operational and management control of the enterprise.

Characteristics of MRS include:They are usually developed by information systems professionals, rather than by end users, over an extensive period oftime,withtheuseoflifecycleorienteddevelopmentmethodologiesasopposedtoarapiddevelopmentbyfirstbuildingasimplerprototypesystemandthenrefiningitinresponsetouserexperience.

These systems are building for situations in which information requirements are reasonably well known and •expected to remain relatively stable.MRSs do not directly support the decision-making process as a search for alternative solutions to problems and •the selection of the solution to be implemented.MRSs are oriented toward reporting on the past and the present, rather than projecting the future.•MRSs generally have limited analytical capabilities. They are not built around elaborate models, but rather rely •on extraction of data from databases according to given criteria, and on summarisation of the data.

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MRSs largely report on internal company operations rather than spanning the company’s boundaries by reporting •external information.

Reporting by Management Report SystemsMRSs may produce reports either directly from a database collected and maintained by a transaction processing system, or from databases spun off from the central database for the purpose. Separate spin off databases may be created for several reasons, such as:

Avoiding interference and delays in transaction processing•Maintaining the security of central databases•Economising by using local databases accessible to local managers to counter heavy telecommunications costs •of working with a central database.

MRSs provide the following types of reports:

Demand (Ad Hoc) Reports

Scheduled (periodic) Reports

Exception Reports

Fig. 4.4 Types of report

Scheduled (Periodic) reports•Schedule reports are furnished on a daily, weekly, biweekly, or other regular basis depending on the decision- �making need.Theformatandtheinformationalcontentofscheduledreportsarefixedinadvance.However,itiscrucialto �identify the essential informational needs of various managers to facilitate each manager’s decision making and to prevent information overload.Theconceptofresponsibilityreportingisgenerallyapplied-managersreceivereportswithintheirspecific �areas of responsibility.A hierarchy of performance reports arises, with each report including only the items that the manager can �control.

Exception reports•Exception report produced only when pre-established out of bounds conditions occur and containing only �the information regarding these conditions. Exceptionreportinghelpsmanagersavoidperusalofincidentfiguresandconcentrateondeviationsfrom �the norm and on unusual events.


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Demand (Ad Hoc) reports•Theabilityofamanagertorequestademandreportorscreenoutputasneededenhancestheflexibilityof �MRS use and gives the end user the capability to request the information and format that best suit his or her needs. Query languages provided by DBMSs make data accessible for demand reporting. �

4.4 Decision Support System (DSS)A Decision Support System is a way to model data and make quality decisions based on it. Making the right decision inbusinessisusuallybasedondataqualityandone’sabilitytosiftthroughandanalyzethedatatofindtrendsthatsolutions and strategies can be created from/for. DSS or Decision Support Systems are usually computer applications with a human component. They can sift through large amounts of data and pick between the many choices.

While many people think of decision support systems as a specialised part of a business, most companies have actually integrated them into their day to day operating activities.

For instance, many companies constantly download and analyze sales data, budget sheets, and forecasts. •They update their strategy once they analyze and evaluate the current results. •Decisionsupportsystemshaveadefinitestructureinbusinesses.•Inreality,however,thedataanddecisionsthatarebasedonthemarefluidandconstantlychanging.•Decision support systems are used to collect data, analyze and shape the data that is collected, and make sound •decisions or construct strategies from analysis. Whether computers, databases, or people are involved usually does not matter.•Itisimportanttonotethatalthoughcomputersandartificialintelligenceareatwork,itisultimatelyuptohumans•to execute these strategies or formulate the data into a usable hypothesis.

Types of Decision Support System ModelsItisimportanttonotethattheDSSfielddoesnothaveauniversallyacceptedmodel.Thatistosay,therearemanytheoriesvieforsupremacyinthisbroadfield.BecausetherearemanyworkingDSStheories,therearemanywaysto classify DSS.

For instance, one of the DSS models available bears the relationship of the user in mind. This model takes into •consideration passive, active, and cooperative DSS models.Decision support systems that just collect data and organise it effectively are usually called passive models. •Theydonotsuggestaspecificdecision,andtheyonlyrevealthedata.•An active decision support system actually processes data and explicitly shows solutions based upon that •data. While there are many systems that can be active, many organisations would be hard pressed to put all their faith •into a computer model without any human intervention.A cooperative Decision support system is when data is collected, analyzed, and then given to a human who •helpsthesystemreviseorrefineit.Here,bothahumanandcomputercomponentworktogethertocomeupwith the best solution.While the above DSS model considers the user’s relationship, another popular DSS model sees the mode of •assistance as the underlying basis of the DSS model. This includes the Model Driven DSS, Communications Driven DSS, Data Driven DSS, Document Driven DSS, and Knowledge Driven DSS.AModelDrivenDSSisoneinwhichdecisionmakersusestatisticalsimulationsorfinancialmodelstocome•up with a solution or strategy. Though these decisions are based on models, they do not have to be overwhelmingly data intensive.•A Communications Driven DSS model is one in which many collaborate to come up with a series of decisions •tosetasolutionorstrategyinmotion.Thismodelcanbeinanofficeenvironmentorontheweb.

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ADataDrivenDSSmodelputsitsemphasisoncollecteddatathatisthenmanipulatedtofitthedecisionmaker’s•needs. This data can be internal or external and in a variety of formats. It is important that data is collected and categorised sequentially, for example daily sales, operating budgets •from one quarter to the next, inventory over the previous year, etc.A Document driven DSS model uses a variety of documents such as text documents, spreadsheets, and database •recordstocomeupwithdecisionsaswellasfurthermanipulatetheinformationtorefinestrategies.A Knowledge driven DSS model uses special rules stored in a computer or used by a human to determine •whether a decision should be made. For instance, many day traders see a stop loss limit as a knowledge driven DSS model. These rules or facts are •used in order to make a decision.The scope in which decisions are made can also be seen as a DSS model. •For instance, an organisational, departmental or single user decision can be seen in the scope-wide model.•

4.5 Executive Information System (EIS)Definition:AnExecutiveInformationSystem(EIS)isasetofmanagementtoolssupportingtheinformationanddecision-making needs of management by combining information available within the organisation with external information in an analytical framework.

EIS are targeted at management needs to quickly assess the status of a business or section of business. These •packagesareaimedfirmlyatthetypeofbusinessuserwhoneedsinstantanduptodateunderstandingofcriticalbusiness information to aid decision making.The idea behind an EIS is that information can be collated and displayed to the user without manipulation or •further processing. The user can then quickly see the status of his chosen department or function, enabling them to concentrate on decision making.GenerallyanEISisconfiguredtodisplaydatasuchasorderbacklogs,opensales,purchaseorderbacklogs,•shipments, receipts and pending orders. This information can then be used to make executive decisions at a strategic level.The emphasis of the system as a whole is the easy to use interface and the integration with a variety of data •sources. It offers strong reporting and data mining capabilities which can provide all the data the executive is likely to need. Traditionally the interface was menu driven with either reports, or text presentation. Newer systems, and •especially the newer Business Intelligence systems, which are replacing EIS, have a dashboard or scorecard type display.Before these systems became available, decision makers had to rely on disparate spreadsheets and reports which •slowed down the decision making process. Now massive amounts of relevant information can be accessed in seconds. The two main aspects of an EIS system are integration and visualisation. The newest method of visualisation •is the dashboard and scorecard. The dashboard is one screen that presents key data and organisational information on an almost real time and •integrated basis. The scorecard is another one screen display with measurement metrics which can give a percentile view of •whatever criteria the executive chooses.Behind these two front end screens can be an immense data processing infrastructure, or a couple of integrated •databases, depending entirely on the organisation that is using the system. The backbone of the system is traditional server hardware and a fast network. The EIS software itself is run •from here and presented to the executive over this network. The database needs to be fully integrated into the system and have real-time connections both in and out. This •informationthenneedstobecollated,verified,processedandpresentedtotheenduser,soareal-timeconnectioninto the EIS core is necessary.


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Executive Information Systems come in two distinct types: ones that are data driven, and ones that are model •driven. Data driven systems interface with databases and data warehouses. They collate information from different •sources and present them to the user in an integrated dashboard style screen. Model driven systems use forecasting, simulations and decision tree like processes to present the data.•As with any emerging and progressive market, service providers are continually improving their products and •offering new ways of doing business. Modern EIS systems can also present industry trend information and competitor behaviour trends if needed. •Theycanfilterandanalysedata;creategraphs,chartsandscenariogenerations;andoffermanyotheroptions•for presenting data.There are a number of ways to link decision making to organisational performance. From a decision maker’s •perspective these tools provide an excellent way of viewing data. Outcomes displayed include single metrics, trend analyses, demographics, market shares and a myriad of other •options. The simple interface makes it quick and easy to navigate and call the information required.For a system that seems to offer business so much, it is used by relatively few organisations. •Current estimates indicate that as few as 10% of businesses use EIS systems. One of the reasons for this is •thecomplexityofthesystemandsupportinfrastructure.Itisdifficulttocreatesuchasystemandpopulateiteffectively. Combining all the necessary systems and data sources can be a daunting task, and seems to put many businesses •off implementing it. The system vendors have addressed this issue by offering turnkey solutions for potential clients. Companies like Actuate and Oracle are both offering complete out of the box Executive Information Systems, •and these aren’t the only ones. Expense is also an issue. Once the initial cost is calculated, there is the additional cost of support infrastructure, •training, and the means of making the company data meaningful to the system.

4.6 Office Information System (OIS)Stores data relating to computer control of information in a business, including electronic mail, documents, •invoices and so on.Modern systems now handle free-form text, photographs, and diagrams, audio and video sequences. •Documentsmayhavespecificstructure,perhapsdescribedusingmark-uplanguagesuchasSGML,HTML,•or XML.

4.7 Professional Support System (PSS)Professionalsupportsystemsofferthefacilitiesneededtoperformtasksspecifictogivenprofession.Forexample,automotive engineers use computer-aided engineering (CAE) software together with “Virtual reality” system to designandtestnewmodelsforfuelefficiency,handlingandpassengerprotectionbeforeproducingprototypes,andlater they use CAE the design and analysis of physical tests. Biochemical use special three-dimensional modelling software to visualise the molecular structure and probable effect of new drugs before investing in lengthy clinical test.Investmentbankersoftenemployfinancialsoftwaretocalculatetheexpectedrewardsandpotentialrisksofvarious investment strategies. Indeed, specialised support systems are now available for most professions.

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Summary An information system is an integrated collection of hardware devices, software programs, data, procedures and •people to generate information which supports organisational activities, short and long term. Anofficeinformationsystem(OIS),orofficeautomation,facilitatescommunicationandworkflowelectronically•between employees of an organisation. An expert system is an information system that stores knowledge from human experts and then attempts to •imitate human decision-making and reasoning faculties for non-experts. A knowledge base (a comprehensive repository of human knowledge and experience) •Inference rules (logical rules that are applied to the knowledge base every time a user inputs a new decision •situation to the system).A decision support system (DSS) is used to help managers and users make relevant and timely decisions. •Executive information system (EIS) is a special type of decision support system that is typically used by •executive management. It represents information in the form of tables which show managerial statistics, ratios and trends. •An EIS retrieves data from external sources, such as the Internet or the Dow Jones News, to provide information •regarding contemporary economic indicators, commodity prices and other strategic issues.A management information system (MIS), or management reporting system (MRS), produces accurate and •organised information that enables managers and other decision-makers to reach precise decisions, supervise activities, solve problems and track progress. Summary information report summarises data into an easily understandable format and generates associated •graphs, tables and totals to present information in a condensed form.Exceptioninformationisusedtofilterdatathatrequiresimmediateactionsordecisions.•A transaction processing system (TPS) is an information system that captures and processes data generated •during an organisation’s day-to-day transactions. Transactionprocessingsystemswereamongthefirstcomputerisedsystemsdevelopedtoprocessbusinessdata•a function originally called data processing. Usually, the TPS computerised an existing manual system to allow for faster processing, reduced clerical costs •and improved customer service.ATransactionProcessingSystem (TPS) is a typeof information system that collects, stores,modifiesand•retrieves the data transactions of an enterprise. AtransactionisanyeventthatpassestheACIDtestinwhichdataisgeneratedormodifiedbeforestoragein•an information system The success of commercial enterprises depends on the reliable processing of transactions to ensure that customer •orders are met on time, and that partners and suppliers are paid and can make payment. Whilethetransactionprocessmustbestandardisedtomaximiseefficiency,everyenterpriserequiresatailored•transaction process that aligns with its business strategies and processes.

References Stair, R and Reynolds, G., 2011. • Principles of Information Systems, Cengage Learning, pp. 375-400. O’brien, 2010. • Introduction to Information Systems, Tata McGraw-Hill Education. pp. 10-290. Seifert, E. K., 2010. • Information system for sustainable development [pdf] Available at: <http://www.dss.dpem.tuc.gr/pdf/Information%20Systems%20for%20Sustainable%20Development.pdf>. [Accessed 30 August 2011]. Helmer, R. and Hespanhol, I. Chapter 9* - • Information Systems. [pdf] Available at: <http://www.who.int/water_sanitation_health/resourcesquality/wpcchap9.pdf>. [Accessed 30 August 2011].


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Recommended ReadingStair, R. and Reynolds, G., 2011. • Fundamentals of Information Systems, Cengage Learning.Hall, J. A., 2010. • Accounting Information Systems, Cengage Learning. Mcleod, 2008. • Management Information Systems, 10/E. Pearson Education India.

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Self Assessment Whichsystemworkflowselectronicallybetweenemployeesofanorganisation?1.

Expert Systema. Transaction processing systemsb. Decision support system c. Officeinformationsystemd.

________________ supports a wide range of business activities, such as creating documents, organising 2. scheduling tasks, accounting and sending messages.

Officeinformationsystema. Expert Systemb. Transaction processing systemsc. Decision support system d.

An ______________________ is an information system that stores knowledge from human experts and then 3. attempts to imitate human decision-making and reasoning faculties for non-experts.

Officeinformationsystema. Transaction processing systemsb. Decision support system c. Expert Systemd.

Which of the following sentences is true?4. An expert system is used to help managers and users make relevant and timely decisions. a. A decision support system is used to help managers and users make relevant and timely decisions. b. Anofficeinformationsystemisusedtohelpmanagersandusersmakerelevantandtimelydecisions.c. A transaction processing systems is used to help managers and users make relevant and timely decisions. d.

Which decision support system is typically used by executive management? 5. Executive information system a. Expert information b. Excusive information system c. Electronics information system d.

A _____________ is a business activity such as a deposit, payment, order or reservation.6. operationa. contractb. transactionc. matterd.

Thefirsttransactionprocessingsystemsusuallyused___________processing.7. system a. setb. group c. batchd.


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A________________ is a typeof information system that collects, stores,modifiesand retrieves thedata8. transactions of an enterprise.

Officeinformationsystema. Transaction processing systemsb. Decision support system c. Expert Systemd.

___________ means that a transaction is either completed in full or not at all. 9. Atomicitya. Consistency b. Isolation c. durability d.

Transactions must appear to take place in____________ . 10. Atomicitya. Consistency b. Isolation c. durability d.

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Chapter V

Database Information System and Design

Aim


introduce the concept of database information system•

explain role of database in application development •

discuss data modelling •

Objectives


elucidate the database life cycle•

explain information system planning •

enlistbenefitsofinformationsystemplanning•

Learning outcome


understand agency improvement •

explain operation improvement •

de• scribe innovative funding mechanisms


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5.1 The role of Database in Application DevelopmentDesign reviews are important facets of the system development lifecycle for database applications. It is during the designreviewthatallaspectsofthedatabaseandapplicationcodearereviewedforefficiency,effectiveness,andaccuracy.

It is imperative that all database applications, regardless of their size, are reviewed to assure that the application wasdesignproperly,efficientcodingtechniqueswereused,andthedatabaseisaccessedandmodifiedcorrectlyandefficiently.

The design review is an important process for checking the validity of design decisions and correcting errors •before applications and databases are promoted to production status.Multiple design reviews should be conducted over the course of an application’s life.•There are seven basic design review phases for a database application:•

Conceptual Design Review �Logical Design Review �Physical Design Review �Organisational Design Review �SQL and Application Code Review �Pre-Implementation Design Review �Post-Implementation Design Review �

Conceptual Design Review

Logical Design Review

Physical Design Review

Organizational Design Review

SQL and Application Code Review

Pre-Implementation Design Review

Post-Implementation Design Review

Fig. 5.1 Seven basic design review phases for a database application

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For database applications, the DBA must participate in every design review, at every stage.•It is imperative that the application be reviewed before, during, and after implementation. •Design reviews are critical for ensuring that an application is properly designed to achieve its purpose. •There are many aspects of the development process and its resulting application that are addressed by design •reviews. The underlying intent of imposing the design review process on an application is to expose it to a thorough •review of every underlying component, structure and nuance of the application. Some of the areas that can be addressed by a design review include:•

a validation of the intent and purpose of the application �an assessment of the logical data model �an assessment of the physical data model �a review and analysis of the physical DBMS parameters �a prediction of SQL performance �a judgement on the practicality of the programming language techniques deployed �an analysis of overall performance after production implementation �

A group consisting of subject matter experts and the developer’s peers and co-workers should conduct each •design review.The DBA usually must act as the focal point for organising and conducting design reviews.• Frankly, if the DBA does not organise design reviews it is unlikely that any design review will be conducted. •And if design reviews are not conducted, the application is more apt to suffer performance and availability problems in a production environment.Formal design review roles should include the leader, the scribe, the mediator, and the participants. The leader •can change from one design review to the next, but within the scope of a single design review a single leader must be assigned. The primary role of the leader is to act as a master of ceremonies to keep the review process moving along. •Other duties include creating an agenda and ensuring that the agenda is followed, engaging all participants of •the design review to solicit everyone’s input, ensuring that all participants maintain proper decorum, working with the proper participants before the meeting to ensure that all required documentation will be made available for the design review, and any other tasks necessary to ensure a successful design review. Though it is not mandatory, the DBA typically acts as the leader of design reviews for applications using a •database.By establishing and following a systematic approach to database application design reviews, the likelihood of •implementing optimal applications increases. Database development can be very complex.•Only by managing and documenting the implementation process can you ensure the creation of successful and •useful application systems. Thedesignreviewprocessisanefficientwaytoencouragearigorousandsystematicpreandpost-implementation•review of database applications.

5.2 Data Modelling BasicsData modelling is the formalisation and documentation of existing processes and events that occur during application software design and development. Data modelling techniques and tools capture and translate complex system designs intoeasilyunderstoodrepresentationsofthedataflowsandprocesses,creatingablueprintforconstructionand/orre-engineering.

Adatamodelcanbethoughtofasadiagramorflowchartthatillustratestherelationshipsbetweendata.•Although capturing all the possible relationships in a data model can be very time-intensive, it’s an important •step and shouldn’t be rushed.


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Well-documented models allow stake-holders to identify errors and make changes before any programming •code has been written.Data modellers often use multiple models to view the same data and ensure that all processes, entities, relationships •anddataflowshavebeenidentified.There are several different approaches to data modelling, including:•

Conceptual data modelling � -identifiesthehighest-levelrelationshipsbetweendifferententities.Enterprise data modelling � - similar to conceptual data modelling, but addresses the unique requirements ofaspecificbusiness.Logical data modelling � -illustratesthespecificentities,attributesandrelationshipsinvolvedinabusinessfunction. Serves as the basis for the creation of the physical data model.Physical data modelling - � representsanapplicationanddatabase-specific implementationofa logicaldata model.

5.3 Database Life CycleDBLC stands for Database Life Cycle. The database life cycle is an examination of the history of a database. Like many things involving technology, the database has a life cycle associated to it. Databases need to change along with technology and business needs in order for businesses to evolve and stay competitive.

There are six phases in the database life cycle and they are (in order): Initial study•Design•Implementation and loading•Testing and evaluation•Operation•Maintenance and evolution. •

Each phase is completed and the life cycle moves into the next phase. The initial study and maintenance and evolution phases are specially linked. When a database is in the maintenance and evolution phase, it may be determined that the company wants to look into a database change. The company would then move out of the maintenance and evolution phase and go back to the starting point of the initial study.

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Intial study

Database Life Cycle

Operation

Design

Implementation and loading

Maintenance and evoluation

Testing and evaluation

Fig. 5.2 Database life cycle

Let’s look at the details of each phase:

Initial studyThe goal of this phase is essentially to understand how the company works, what problems and limitations users have,whatthecompanywishestoaccomplish,andtodefinethescopeandboundariesoftheproject.Thescopeandboundariesareessentialtomakesurethedatabaseiscreatedexactlyasspecified.

DesignDesigners create an abstract data structure that attempts to model real-world objects by creating a conceptual design. Designersmustconsiderend-userviews,defineentities,attributes,relationships,andidentifyprocessesandaccessrequirements. The DBMS software is selected. The conceptual design is then translated into the logical design, which is DBMS dependent. Physical design of the database is the last step. It is the process of selecting hardware to be used in the database itself.

Implementation and loadingIn this phase, the DBMS software is installed, the database(s) are produced and data is put into the database tables. This phase of the DBLC also requires that the database performance is evaluated, security standards set up, and backup and recovery procedures put in place, data integrity enforcement. Finally, the database administrator must ensure that the company standards are being followed by implementing and enforcing them in database.

Testing and evaluationThis phase requires that the database is tested again for performance. It is tested during Implementation and loading, however,itistestedagainandfine-tuned.Testingalsorequiresthattheadministratoralsotestintegrity,securityand multi-user load.


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OperationEssentially at this point, the database is fully functional. Users are allowed to fully use the system and report any issues. Any problems are resolved according to severity.

Maintenance and evolutionThis is perhaps the longest phase of the DBLC. Over the life of the database, the database administrator will have to perform backups, recoveries, enhance performance, add entities and attributes, add/change user permissions, and maintain security and integrity.

5.4 Information System PlanningIn the early 1980’s, the State of Tennessee recognised that the role of government was changing, that the •needs for government services would continue to grow, and that resources available to government were decreasing. Effective use of information technology was viewed as a major avenue that could assist government in managing •this change. Itwasalsounderstoodthatwell-definedbusinessandinformationtechnologyplanningprocesseswerecritical•success factors. The State of Tennessee has developed a comprehensive technology planning process to enhance technology project •initiation, review, and approval.In 2004 theNationalAssociation of StateChief InformationOfficers (NASCIO) recognised theState of•Tennessee’s Information Systems Planning Process with an award for excellence. The organisations in this IT planning process are as follows:•

Information Systems Council (ISC)

Strategic Business Planning

Strategic information technology planning

Agency information system planning

Information system plan Review

Government operation improvement

Agency improvement

Statewidetechnologyandfiscalreview

Fig. 5.3 IT planning process

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5.4.1 Information Systems Council (ISC)The ISC is charged with ultimate authority over information technology within State government. The Council is comprised of the following representatives from the legislative, executive, and judicial branches of State government:

Three members of the State Senate and three from the House of Representatives •Comptroller of the Treasury •Chief Justice of the Supreme Court of Tennessee•Commissioner of Finance and Administration, Chairman•Commissioner of General Services •Representative of the Tennessee Regulatory Agency •Representative from the State Legislature•Two private citizens with experience in information technology•

Office of the Budget: Central budget authority for State government.

Office for Information Resources (OIR): Central technology authority for State government.

Management Advisory Committee (MAC): A Management Advisory Committee is established within each agency to enable executive management to more effectively direct information technology activities. The Deputy Executive OfficeroftheagencytypicallychairstheMAC,withprogram/functionalareaexecutivesasMACmembers.SomeagenciesincludetheirGeneralCouncil,ChiefFinancialOfficer,orInternalAuditorontheMAC.AgencyISDirectorsare staff to the MAC. The MAC is accountable directly to the Commissioner or agency head.

The information systems planning process in Tennessee has been in operation since 1981. It involves the preparation and agency authorization of the Information Systems Plans (ISP), a review by the central administrative agency, and finalauthorisationbythemajordirectingbodyfortechnologywithinTennesseeStategovernment.

State of Tennessee

Information Systems Council

LegislativeBranch

ExecutiveBranch

Judicial Branch

54 State agencies and commissions, each with their own Information Systems and technology priorities set by their MAC

OfficeoftheBudget&OfficeforInformationResources

Fig. 5.4 The information systems planning process in Tennessee


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5.4.2 Strategic Business Planning In 1997, key leaders in Tennessee State Government, including the Governor and his Senior Staff, the Commissioner of the Department of Finance and Administration, the Comptroller of the Treasury, and the State Treasurer, agreed that theStatewouldgreatlybenefitfromthedevelopmentandimplementationofformalstrategicbusinessplans.

In August 1997, the Governor’s Senior Staff initiated the strategic planning process within the Executive Branch. A plan was developed that enabled the 23 Executive Branch departments to align their strategic goals and objectives to the State’s business goals and objective.

Each year, the Governor and his Cabinet formulate the overall State Strategic Plan. Each agency in the Executive Branch develops their agency Strategic Business Plan based on the goals and objectives of the State Strategic Plan.

5.4.3 Strategic Information Technology Planning In 1998, the State established a formal Strategic Information Technology Planning Process. Input to this state-wide IT planning effort comes from the State Strategic Business Plans, agency Information Systems Plans and technology trends in the marketplace.

ExecutivemanagementwithintheOfficeforInformationResources,withagencyrepresentation,leadsthisplanningeffort.

5.4.4 Agency Information Systems Planning

Priortothebeginningofthefiscalyear(July1),eachagencydevelopsanInformationSystemsPlan(ISP)•covering a three-year planning horizon.Yearoneidentifiesprojectsforthecurrentfiscalyearforwhichfundingisalreadyinplace.•YeartwocoversthefollowingfiscalyearwherefundingwillberequestedinthebudgetsubmittedinOctober.•Year three covers future projects. Development of the agency’s ISP is a cooperative effort between executive management, business staff, and Information Systems staff. Agency executive management and business staff, with Information Systems staff assistance, perform the •following activities:

Review of the strategic business plan for the agency, including the statement of mission, goals, objectives, �strategies, and priorities that set business direction.Assessment of the current technological environment within the agency, including evaluation of the primary �hardware requirements, application software, and connectivity.Development of an Information Technology Strategy based upon the analysis of the current environment �and thebusinessgoals tobeachieved.This strategy identifies theagency’s shortand long-rangegoalsrelated to managing and sharing information and information technology in support of the agency’s business strategic plan. The strategy also addresses agency technology weaknesses and needs.

Information technology projects are identified and documented in the ISP in support of the Information•Technology Strategy. These projects may include traditional application development or acquisition projects, aswellasprojectsinvolvingspecifictechnologiesincludingvoiceresponsesystems,geographicinformationsystems, and communication infrastructure projects. Each project with initial costs over $100,000 is described in a Project Proposal. •TheProjectProposaladdressesthebusinessprocesstobeimpactedbytheprojectandspecifiesthebusiness•strategy or objectives supported by the project. ACostBenefitAnalysisdocumentisalsoincludedtodetailthecosts,benefits,risks,andfundingsourcesforthe•project.

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TheProjectProposalandCostBenefitAnalysisprovideaframeworkforanagency’sexecutivemanagementto•evaluateandprioritiseproposedprojects,aswellasprovideamechanismtomonitorcostsandbenefitsduringproject implementation. These documents also provide executive management in State government with the information needed to understand the business impact to the State, prioritise projects on a state wide basis, and recommend funding.The Information Systems Plans are reviewed and authorised by Management Advisory Committees (MACs) within •each agency. Management Advisory Committees perform the following functions:

Sets the information technology agenda as an adjunct to the development of the business strategy for the �agency.Ensures that the agency information technology strategy is carried out and that projects are appropriately targeted �tosupportspecificbusinessstrategies.Reviewsthecostassumptionsandbenefitestimatesinordertoapprovesubmissionoftheproject. �Sets priorities within the agency for a project in relation to other projects competing for resources. �Ensuresthatauthorisedprojectsmeettargetsestablishedintheprojectproposalandcostbenefitanalysis. �Ensures that technology projects are in line with business needs and direction. �Authorises the Information Systems Plan and the technology projects contained therein. �

5.4.5 Information Systems Plan Review

External review of the Information Technology Strategy and supporting projects begins with submission of the •InformationSystemsPlanstotheOfficeforInformationResources.TheTennesseeDepartmentofFinanceandAdministrationhousestheStateBudgetOfficeandtheOfficefor•Information Resources (OIR). TheStateBudgetOfficeoverseesdevelopmentandmanagementoftheBudgetforallofStategovernment,and•OIR oversees information technology for all of State government. Representatives from these organisations serve on a review group, the Information Technology Assessment & •Budget Review Committee (IT ABC). They have the responsibility of addressing information systems issues from a state wide (corporate) view, to take •a strategic view on major technological issues, and to provide a process for monitoring technology projects. The review of Information Systems Plans is an important step in the accomplishment of these •responsibilities. There are multiple purposes for plan review, including:•

Approval or disapproval of current projects based on support of the State and Agency Strategic Plan and �resource availability; Adherence to the State’s information systems architecture, policies and procedures; And contribution to �fulfilmentoftheState’sservicedeliverytoitscitizens.Recommendationofprojectsforinclusionorexclusioninfundingformulasforthenextfiscalyear. �Review of future projects in an attempt to identify long-term needs for information technology resources. �Review of the Information Technology Strategy in an attempt to evaluate the agency’s approach in using �information technology to enable and enhance service delivery as outlined in its Business Strategy.Reviewoftheplantodevelopanunderstandingoftheissuesrelatedtotheeffectiveandefficientuseof �information technology in the agency and the State as a whole. This information is important to identifying issues that not only affect the agency but also the systems community in the State. In its role as staff to the Information Systems Council, OIR is then better positioned to help pursue strategic �initiatives to address major issues.Overall view of projects across agencies that may be performing similar functions, generating redundant data, �or demonstrating a need for sharing data or resources. This view assists the State in addressing a growing need for sharing data among agencies in order to facilitate better service to the citizens of the State


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The IT ABC is made up of senior management from the following areas:•Enterprise policy and planning, chair �Data networking and telecommunications �Division of budget �Information security �Data center operations �Solutions delivery and support �Information technology planning �Enterprise architecture �Mainframe business services �Special services �

The IT ABC plan review begins each year when the Information Systems Plans are submitted May 15 for small •agencies and July 1st for large agencies. The plans, as well as reviewer comments about the plans and each major project, are shared electronically.•Approximately, 80 staff members from the various divisions within OIR and Budget read and comment on the •plans and/or projects. IT ABC members complete a review of each ISP, as well as a review of the comments provided by staff. •Theactionsbytheagency’sManagementAdvisoryCommitteeindefiningandsettingprojectprioritiesalso•helps the IT ABC understand the relative importance of each project in the further prioritisation and ranking of all project requests throughout State government.After the preliminary review, an agenda memo noting issues of concern to individual agencies is prepared. A •formalmeetingisheldbytheITABCwitheachagency’sMACandISstafftoaddresstheissuesidentified.After the formal meeting, the agency is provided a formal disposition on their plan and each project in the •plan.FundingconsiderationsbasedontheITABCdispositionofprojectsarefinalised,andthestatewideagency•initiatives are presented to the Information Systems Council. Thecouncilmakesthefinaldispositiononmajorprojectsandinitiativesforstategovernment.•A state wide Information Systems Plan is developed annually based upon the individual agency plans.•ThestatewideInformationSystemsPlan,whichcanbeviewedathttp://tennessee.gov/finance/oir/prd/tennplan.•htm, consists of the following segments:

Overview of the State’s strategic business and information systems planning efforts, state wide initiatives �and major state wide achievements through technology.Overview of the information technology environment in Tennessee. �Overview of agency business strategy, technology strategy, achievements and planned technology �projects.

5.4.6 Government Operation ImprovementsThe operation of state government has improved in three general areas directly related to the

Information Systems planning process:•Improvementsinthewayagenciesdefineprioritiseandmonitorinformationtechnologyprojects,•Improvementsinthestate-widetechnologyandfiscalreviewofprojects,and•Significantimprovementsinoverallinformationtechnologyplanning.•

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5.4.7 Agency Improvements Individualprojectsarenowmoreclearlydefinedduetothestandardisationofacomprehensiveprojectplanningformatasrequiredbytheprojectproposalandcostbenefitanalysismethodology.

Anticipated review of these deliverables within the agency and outside the agency increases the accuracy of •the descriptions and estimates. Projectsponsors,aswellasMACmembers,areencouragedtobecloselyinvolvedinthecostbenefitanalysis•process. Their role as the responsible parties has been crucial for ensuring that business objectives within the estimated •costsanddeliveringthespecifiedbenefits.Individual projects are nowpart of an overall technology strategy thatmoves the agency toward defined•goals. The goals to be supported are part of the agency’s business strategy. •The close link between the business needs and technology enhances the visibility of information •technology initiatives that are usually costly in both dollars and manpower resources.Due to the nature of the need for technology strategies to support the business initiatives of the agency, management •overview and direction of the information technology strategy to support projects is emphasised. Business management’s key role in the development of the information technology strategy aids in ensuring •that technology projects are more likely to be supported with the needed resources.Technology advancement relies on an agency business strategy. •The development of agency business strategies has accelerated due to this dependence.•Individual projects are nowpart of an overall technology strategy thatmoves the agency toward defined•goals. The goals to be supported are part of the agency’s business strategy. •The close link between the business needs and technology enhances the visibility of information technology •initiatives that are usually costly in both dollars and manpower resources. Due to the nature of the need for technology strategies to support the business initiatives of the agency, management •overview and direction of the information technology strategy to support projects is emphasised. Business management’s key role in the development of the information technology strategy aids in ensuring •that technology projects are more likely to be supported with the needed resources.Technology advancement relies on an agency business strategy. •The development of agency business strategies has accelerated due to this dependence.•

5.4.8 State Wide Technology and Fiscal ReviewTheexplicitstatementofthebusinessneeddrivingtechnologyprojects,aswellasthedefinitionoftheprojectandassociatedcostsandbenefits,improvestheunderstandingoftheneedfortheprojectoutsideoftheagency.

A more objective review of all information technology projects can take place. Approvals and prioritisation are based on more factual data and less on subjective issues.

5.4.9 Improvements in Overall Technology Planning

Through the plan review process, an enterprise wide view is obtained so that initiatives can be viewed as State •initiatives rather than agency initiatives.Resource maximisation can take place through this view of similar, cooperative projects. Similar or overlapping •efforts can be coordinated across agencies.Conformance of information technology initiatives to the State’s architectural standards is more readily •encouraged and achieved.


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Benefits of information systems planningAgainst the backdrop of our planning process, projects and initiatives are initiated, approved, and monitored to •ensure they meet the business needs of the State. An atmosphere has been fostered to encourage cost effective technology solutions to servicedeliverychallengesof stategovernment.Theeffectiveandefficientuseofresourcesexpendedontechnologies,theclosemanagementcontrolovertheprojects,andthebenefitsincitizenservice have fostered the expanded use of information technology. Information technology in State government is driven by business goals established by the elected representatives of the citizens of the state.Executivemanagementisaccountablefortechnologyinitiatives.Morerealistictechnologyprojectsaredefined•and evaluated on a more objective basis.Theimpactofmoreeffectiveplanningisdifficulttomeasure;However,thereisnodoubtthatbusinessand•informationtechnologyplanninghasenabledsignificantprogressintheoperationofStategovernment.Oneindicator of that progress and effectiveness is national recognition of our accomplishments. Tennessee has been honoured with the following:

“The Best Managed State in the Country” by one national publication, and “One of the Best Managed �States”byanotherpublication,andtheonlystatetomakethetopfiveinboth,“One of the Top 100 organisations among both private and public sector organisations by CIO �Magazine”,“ThefirstandonlystatetoreceiveALLthreeGovernmentFinanceOfficersAssociation(GFOA)awards �of excellence and information systems that have been awarded the NASIRE and Smithsonian,One of the top six states in the nation for effective management of information technology. (Study conducted �by Syracuse University, “Governing” and “Government Executive” magazines,)2004NationalAssociationofStateChiefInformationOfficers(NASCIO)recognisedtheStateofTennessee’s �Information Systems Planning Process with an award of excellence,2003 First in the Nation in Brown University’s third annual survey of state e Government performance, and �2002 BEST OF THE WEB– Center for Digital Government.

5.5 Innovative Funding MechanismsAstheStatehasadoptedtechnologytoenhanceservicetocitizens,ITprojectsthatrequiresignificantinvestment•have increased in number and cost. In support of this effort, the State established a fund, called the Systems Development Fund (SDF), as a mechanism •for funding large application development projects and for large equipment purchases. State agencies can request funding from the SDF to cover initial investment and pay back the funds over a three •tofive-yeartimeframe.Projects approved for expenditure from this fund are determined by the Information Systems Council based on •the recommendation of the Commissioner of Finance & Administration. The State has also created an Equipment Replacement Fund (ERF) that can be used to replace desktop •hardware. Agencies using the ERF must be able to escrow a portion (1/3, 1/4, or 1/5 depending upon the equipment’s life •cycle)ofthereplacementfundsannuallyinordertoaccumulatesufficientreplacementdollarsfortheirnextreplacement cycle.

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SummaryDesign reviews are an important facet of the system development lifecycle for database applications. It is during •thedesignreviewthatallaspectsofthedatabaseandapplicationcodearereviewedforefficiency,effectiveness,and accuracy. It is imperative that all database applications, regardless of their size, are reviewed to assure that the application •wasdesignproperly,efficientcodingtechniqueswereused,andthedatabaseisaccessedandmodifiedcorrectlyandefficiently.For database applications, the DBA must participate in every design review, at every stage.•Design reviews are critical for ensuring that an application is properly designed to achieve its purpose. •There are many aspects of the development process and its resulting application that are addressed by design •reviews. A group consisting of subject matter experts and the developer’s peers and co-workers should conduct each •design review.The DBA usually must act as the focal point for organising and conducting design reviews.•Frankly, if the DBA does not organise design reviews it is unlikely that any design review will be conducted. •Formal design review roles should include the leader, the scribe, the mediator, and the participants. •The leader can change from one design review to the next, but within the scope of a single design review a •single leader must be assigned. The primary role of the leader is to act as a master of ceremonies to keep the review process moving along. •Adatamodelcanbethoughtofasadiagramorflowchartthatillustratestherelationshipsbetweendata.•Although capturing all the possible relationships in a data model can be very time-intensive, it’s an important •step and shouldn’t be rushed. Well-documented models allow stake-holders to identify errors and make changes before any programming •code has been written.Data modellers often use multiple models to view the same data and ensure that all processes, entities, relationships •anddataflowshavebeenidentified.DBLC stands for Database Life Cycle. The database life cycle is an examination of the history of a database. •Like many things involving technology, the database has a life cycle associated to it. Databases need to change along with technology and business needs in order for businesses to evolve and stay competitive. Each phase is completed and the life cycle moves into the next phase. The initial study and maintenance and •evolution phases are specially linked. When a database is in the maintenance and evolution phase, it may be determined that the company wants to look into a database change.

References Agarwal, V. V., Huddleston, J., Raghuram, R., Gilani, S. F. and Jacob, J. R., 2008. • Beginning C# 2008 Databases: From Novice to Professional, Hammer Pedersen, pp. 4- 49. Muller, R. J., 1999. • Database design for smarties: using UML for data modeling, Morgan Kaufmann, pp. 1-139. Josh, J. and Johnsons, E. • Data Modelling and Design in Information System [pdf] Available at: <http://www.ca.com/files/whitepapers/part1_db_modeling_design_information_systems.pdf>[Accessed29August2011].datatechnologytoday, 2011. • Data and Technology Today [Online]. Available at: <http://datatechnologytoday.wordpress.com/2011/03/28/the-importance-of-database-design-reviews/> [Accessed 29 August 2011].


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Recommended ReadingHalpin, T. A., Evans, and Halloc, K. P., 2003. • Database modeling with Microsoft Visio for Enterprise Architects, Morgan Kaufmann. Coronel. C., Morris, S. and Poss, P., 2009.• Database systems: design, implementation, and management, Cengage Learning. Carpenter, T., 2010. • SQL Server 2008 Administration: Real-World Skills for MCITP Certification and Beyond (Exams 70-432 and 70-450), John Wiley and Sons.

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Self AssessmentDesign reviews are an important facet of the system development lifecycle for database_________.1.

applicationsa. research b. managementc. storaged.

______________reviews are critical for ensuring that an application is properly designed to achieve its 2. purpose.

Quality a. Model b. Application c. Designd.

Who must act as the focal point for organising and conducting design review? 3. Database Management a. Database organisation b. Database Application c. Database designd.

Which of the following sentences is true?4.

The manager can change from one design review to the next, but within the scope of a single design review a. a single leader must be assigned.The leader can change from one design review to the next, but within the scope of a single design review b. a single leader must be assigned. The organisation can change from one design review to the next, but within the scope of a single design c. review a single leader must be assigned. The quality check engineer can change from one design review to the next, but within the scope of a single d. design review a single leader must be assigned.

The primary role of the __________ is to act as a master of ceremonies to keep the review process moving 5. along.

leadera. managersb. designerc. developer’s d.

Which of following sentences is true?6. Database development can be very simple.a. Database development can be very easy.b. Database development can be very strenuous.c. Database development can be very complex.d.


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Data modellers often use _______models to view the same data and ensure that all processes, entities, relationships 7. anddataflowshavebeenidentified.

multiplea. regular b. complexc. fewd.

The database life cycle is an examination of the _________ of a database.8. current situation a. spaces b. historyc. recordd.

_________advancement relies on an agency business strategy. 9. Technologya. Equipmentb. Knowledgec. Skilld.

____________approved for expenditure from this fund are determined by the Information Systems Council 10. based on the recommendation of the Commissioner of Finance & Administration.

Designsa. Projectsb. Qualityc. Plansd.

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Chapter VI

Information System Engineering

Aim


introduce the concept of strategic planning factors •

explain keys to successful implementation •

discuss critical success factors •

Objectives


elucidateindustryspecificcriticalsuccessfactors•

explain the concept of value of critical success factors•

enlist the problem areas in strategic planning •

Learning outcome


understand corporate planning objects•

explainthebenefitsofstrategicsystemplanning•

discus• s organisation unit


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6.1 Identification of Strategic Planning FactorsTheobjectivesofstrategicplanningincludingunderstandingthebenefitsofstrategicplanning;understandingtheproducts of strategic planning; and learning the keys to successful planning and implementation.

Many organisations spend most of their time reacting to unexpected changes instead of anticipating and preparing for them. This is called crisis management. Organisations caught off guard may spend a great deal of time and energy “playing catch up”. They use up their energy coping with immediate problems with little energy left to anticipate and prepare for the next challenges. This vicious cycle locks many organisations into a reactive posture.

It does not have to be that way. A sensible alternative is a well tested process called strategic planning which •provides a viable alternative to crisis management.Strategicplanningisastepbystepprocesswithdefiniteobjectivesandendproductsthatcanbeimplemented•and evaluated. Simply, it is a process by which we look into the future, paint a picture of the future based on currenttrends,andinfluencetheforcesthatwillaffectus.Strategicplanninglooksthreetofiveyearsahead.Itchartsadefinitecoursebasedonstrongindicatorsofwhat•the business environment will be like in those years.Indicators include census demographic statistics, economic indicators, government policies, and technological •advances. They reveal strong trends regarding changes in lifestyles and the economic and political climates, whichareimportantfactorsinfluencingthefacilitiesplanningandmanagementindustry.Some of these trends are potential opportunities, some potential threats, and some are both. Examining the •possibilities and formulating strategies to meet the challenges can help the organisation take full advantage of opportunities and minimise threats. In short, we can take control of the future. We can use our energies and resources more effectively and conduct •our business more successfully, despite changes in the environment.

Why strategic planning?Besidesthepersonalsatisfactionoftakingchargeoftheorganisationsfuture,strategicplanningoffersatleastfivecompelling reasons for its use:

Forcesalookintothefutureandthereforeprovidesanopportunitytoinfluencethefuture,orassumeaproactive•posture.Provides better awareness of needs and of the facilities related issues and environment. •Helpsdefinetheoverallmissionoftheorganisationandfocusesontheobjectives.•Providesasenseofdirection,continuity,andeffectivestaffingandleadership.•Plugs everyone into the system and provides standards of accountability for people, programs, and allocated •resources.

To sum up, strategic planning is the key to help us collectively and cooperatively gain control of the future and the destiny of our organisation.

Keys to successful implementationSupposetheorganisationthoroughlydevelopsallfiveproductsofstrategicplanning,completestheprocess,andcomes up with a strategic plan. It is the “business as usual,” the plan sits on the shelf, and before one knows it, another year has passed. However, this need not happen.

The three major keys to successful strategic planning and implementation are commitment, credibility, and •communication.Up-front commitment by the leaders must include an adherence to the full and thorough process of strategic •planning. There must also be a commitment to implementing the strategies recommended by the strategic planning committee.The leaders should implement programs and services and commit allocations to meet the objectives of the •strategic plan at a level that is “doable” for the organisation and level of activity.

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A strategic planning committee researches, collects input, and makes recommendations. But, it is up to member •of the organisation to implement the recommendations.Credibility is created and maintained by following these three guidelines: representative participation, adherence •to the complete process, and clear documentation.The strategic planning committee should have representatives from all areas of the organisation and adhere to •the steps of the process. While the actual logistics of research and implementing the plan can be tailored to the available resources, all •fiveproductsshouldbecarefullydevelopedandevaluated.The committee should document all of its research and activities to serve as the basis for the strategic plan and •its background materials. It will also serve as a clear record of the committee activities open for all to see and evaluate. There should be •nothing exclusive or secret about strategic planning. It should be open to all for review and input.Input, feedback, and understanding are crucial at every step. A key concept to remember is that strategic planning •is a cooperative and participatory process. Everyoneshouldhaveinputand,ideally,everyoneshouldfeelasenseofownershipoverthefinalplan.Such•personal commitment will facilitate the implementation process.It is important to explain the principles and goals of strategic planning to everyone in the organisation. •We need to assure each person that although he or she may not be on the committee, everyone can have input •and evaluate the recommendations. Itisuptothestaffandcommitteestodeterminehowtofulfileachobjective.•The strategic planning committee makes general recommends on what they think should be done. •The leadership, operating committees, and staff determine how it will be done.•An additional aid to implement the strategic plan is to create an integrated system by which the strategic plan •becomes the “benchmark” (measuring stick) for progress in our organisation. It then becomes a system of accountability.The best way to set up an integrated system is for the directors to accept the strategic plan and make the mission •statement part of the directives. Thestrategicplancanthenbecomethecontextfromwhichprogramsandservicesflow.•Strategic planning is the key to assuring that our organisation is prepared for the challenges of tomorrow.•

6.1.1 GoalsAgoalisaspecifictarget,anendresultorsomethingtobedesired.Itisamajorstepinachievingthevisionoftheorganisation.

In the planning context, a goal is a place where the organisation wants to be, in other words a destination. •Forexample,agoalforasportingorganisationmightbetohave50qualifiedandactivecoaches.•An organisation may set several goals that will outline a path to achieving the vision. The goal of attaining 50 •qualifiedandactivecoacheswillbeanimportantstepinachievingthevisionofbecomingmostdynamic,mostrespected and best achieved club in the district league.


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Example GoalsKey Result Area Possible Goals

Membership To attain 1000 membersClub development To attain 30 clubs, each properly constituted.Facilities To own and operate a national standard training facilityFundingandfinance Toattainself-fundingcapabilityandfinancialindependence

Administration To achieve standards of administration that is commensurate with the association’s vision.

Table 6.1 Example of goals

ObjectivesA measure of change in order to bring about the achievement of the goal.

Theattainmentofeachgoalmayrequireanumberofobjectivestobereachedasshowninthefigurebelow.•There is often much confusion between goals and objectives. Whereas, a goal is a description of a destination, •an objective is a measure of the progress that is needed to get to the destination. The following table serves to illustrate the difference between goals and objectives.•

The difference between goals and objectivesGoal (The destination) The objective (The change necessary)

50qualifiedandactivecoaches Increasequalified/activecoachesby50%byDecember2005Membership base of 500 persons Increase membership by 25% by December 2005Profileinthecommunityasaclubofexcellence in health and safety Reduceincidencesofinjuryonthefieldby50%byDecember2005

Achievefinancialindependence Increase sponsorship by 100% by December 2005

Table 6.2 Objective of goal

It is important to understand that a number of goals must be attained before the vision can become a reality. •Similarly, each goal will in turn require a number of objectives to be successfully achieved. Thefiguregivenbelowillustrateshowthevision,goalsandobjectiveslinktogetherinatree.•

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Obj 1.1 Obj 1.2

Obj 2.1Obj 2.2

Obj 2.3

Obj 3.1

Obj 3.2Obj 4.1Obj 4.2

Obj 4.3

Obj 5.1

Goal 1

Goal 2

Goal 3

Goal 4

Goal 5

The Vision

Fig. 6.1 Tree of vision, goals and objectives(Source: http://www.leoisaac.com/planning/strat027.htm)

Each goal requires one or more strategies to be pursued. To achieve the vision of the organisation all goals must •be achieved.The table below also shows how a number of objectives, in this case four are needed before a goal can be •attained.

Example objectivesGoal Possible Objectives

To attain 1000 members

Increase membership in metropolitan area of Brisbane by 20% by 2005Increase membership in North Queensland by 50% by 2005To increase membership in over 35 category by 20% by 2005To reduce member loss between ages of 18 and 25 by 20% by 2001

Table 6.3 Possible objectives for given goals

6.1.2 Critical Success FactorsCriticalsuccessfactorscanbedefinedasthoseissueswhicharedeemedimportanttotheorganisation,withregardto its present and future performance, and also to its stakeholders.

Thesefewkeyfactorsareuniqueforachievementofitsvisionandmightbespecifictotheindustryinwhich•it operates. Criticalsuccessfactorsdefinefewareasofperformancethatareessentialfortheorganisationtoaccomplish•its mission.In other words these are the factors that are critical to the success of the organisation and positive results with •respect to these factors are absolutely necessary for an organisation to achieve its vision, remain competitive and succeed in the industry.


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Industry specific critical success factors Identificationof critical success factors unique to an industry canbedone fromgeneral industry analysis,•competitor analysis and macro environment analysis. These are the challenges that are inherent in an industry type at any given moment of time and the company •inheritsthemascriticalsuccessfactorstofulfilinviewofitschoicetocompeteintheindustry.

Uniqueness of critical success factorsAlso depending upon the location, technology, human capital, local markets, organisation structure, and many more such attributes, each organisation has a few critical success factors which are of utmost importance for it to excel in the marketplace and achieve its goals and vision.

Value of critical success factorsUnderstanding of the critical success factors is of utmost importance as they drive the strategy for any company.

Critical success factors are considered as an important component of strategic planning and a means for •organisations to focus and validate important activities, initiatives and projects. Critical success factors is a useful concept in explicating the things that people at best knew intuitively and •sometimes accidentally to direct their efforts towards staying competitive and realising the vision. For strategic planners critical success factors provide a basis for collecting and validating the information. •Where there is an overload of information, which is a possibility today, thanks to progress made in communication •andinformationtechnology,criticalsuccessfactorsactasafiltertochecktherelevanceofinformation?

Through the process of strategic planning an organisation:Identifiesthefactorscriticalfortheindustryforthegiventimeframe•Assessesfactorscriticalspecificallytotheorganisation•Decidesonthetrade-offsthatcanbemadeinotherareaswithoutcompromisingonthelongtermprofitability•of the companyFinallyidentifiesthegoalswhichhelpitinfulfillingtheindustrywidecriticalsuccessfactors•Further, identify the critical success factors to achieve the goals set by it (this sets the focus for senior management •teamformonitoringandreviewingtheprogress)finallythemostcriticalofallthesuccessfactorsistobeabletoimplement the strategic choice made by the company, because however well the challenges in the competitive landscapemighthavebeenunderstoodandhoweverwelltheymighthavebeenanalyzed,bestoptionsidentifiedand action plans charted out by the senior management team and strategic planners, if they are not implemented in a structured way all the hard work done amounts to zero.

Critical success factors are all about creating focus while planning and as well as while implementing the strategy.

6.1.3 Problem AreasStrategic planning andmanagement can help a firm to build its competitive advantage in themarketplace.However, some common problems occur in strategic planning and management. Managers need to recognise these potential problems so that they can recognise and deal with them if they arise in their own strategic planning or management.

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Commitment

Organizational Politics Resistance to Change

Problem Area

Climate

Fig. 6.2 Problem area

CommitmentA common problem in strategic planning and management is a lack of commitment from the top management •team.Top management teams are often reluctant to support a system of strategic planning and management because •it takes power and authority away from them. The strategic planning and management process should therefore be designed with a mind to increasing top •management commitment.

ClimateInorderforstrategicplanningandmanagementtobesuccessful,theremustbeaclimatewithinthefirmthatisconducivetostrategicplanningandmanagement.Simplyput,theorganisationalcultureofthefirmneedstosupportstrategic planning and management, if it does not, and then there is little chance of it being properly used.

Organisational politicsA major problem that can harm the strategic planning and management process is organisational politics. •Planning and management are supposed to be objective but, in reality, individual planners and managers have •their own interests, beliefs and biases. Ifpersonalbiasesinfluencetheplanningandmanagementprocess,thenitcancausepoliticalriftswithinthe•firm.

Resistance to changePeople are, in general, reluctant to change. This can be highly problematic when strategic planning and •managementisbeingintroducedtoafirm.It is a new and different way of doing things and people may simple reject it because it is new and different.• It is necessary to carefully introduce the strategic planning and management process and to be aware of any •resistance to the change.

6.2 Identifying Corporate Planning ObjectsStrategic systems planning (SSP) is used to study an organisation’s information needs, identify strategic opportunities and develop a plan to address those information needs.

A strategic system planning is always performed with an organisation’s senior management and is not undertaken as an end in itself.

The objective is to create action by implementing the strategic systems implementation plan.•To be truly effective, the strategic system planning project must be owned and directed by the organisation •executive and not by the IS department. There are several factors that are keys to a successful SSP project.•The strategic systems planning methodology is applicable to any organisational unit.•


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Depending on the organisational structure, the organisation could represent a branch, department, division, •company, or group of companies.A strategic system planning is concerned with examining the entire organisation, determining the strategic •systems required by the organisation, and developing a plan to implement the strategic systems. Duetothesignificantchangesthatareaddressedaspartofstrategicsystemsplanning,thechangemanagement•methodology is an integral part of any SSP project.The project management methodology is also required to ensure the successful delivery of a SSP project.•As part of the strategic systems planning project, the current business functions are examined, and opportunities •forimprovementareidentified.Thestrategicsystemsimplementationplanidentifiesnewsystemsprojectstosatisfythebusinessfunctions.•SomeprojectsmayrequireBusinessProcessEngineering(BPE)toidentifyanddesignthespecificimprovements,•before any development projects proceeds.Theimplementationplan,developedtoaddressthestrategicopportunitiesidentified,includeshighlevelplans•for change management, business process engineering, technology deployment and software deployment, as wellasthedefinitionofstrategicsystemsprojectsandarecommendedimplementationschedule.Inordertorealisethebenefitsidentifiedduringthestrategicsystemsplanningproject,itisveryimportantto•keep the strategic systems plan up to date.

Critical success factorsStrategic systems planning (SSP) is undertaken to develop a strategic systems implementation plan. The objective oftheplanistotakeactiontoimplementthestrategicsystemsidentifiedduringtheSSPproject.Toensuretheaction plan is implemented:

The strategic systems implementation plan must be action oriented, and the actions must be measurable.•The SSP project must be owned and directed by the user community. Ideally the project director should be •recruited from the organisation’s executive. The IS department should not be the driving force behind the SSP project.The organisation must have a business plan.•Key decision makers must participate in the SSP project. This participation must be structured and consistent •throughout the project.TheSSPprojectmustachievetheproperlevelofdetail.Attoohighalevelofdetail,theplanwillgiveinsufficient•direction and will be of low value to the organisation. At too detailed a level, the project will lose sight of the overall picture, take forever to complete, and will probably be invalid since it is too early in the life cycle to make detailed decisions. Remember that the life cycle is iterative, and there will be opportunity later in the process to complete the detailed analysis and make the detailed decisions.The Strategic Systems Implementation Plan must be a total plan for the organisation to support its business. •This implies that key people who are required to make it a success must have participated cooperatively in generating these plans.Theplanmustbeflexibleenoughtoaccommodatethemanagementculture,managementphilosophy,existing•investments and management style. This is especially important in order to be successful in obtaining commitment to proceed.The SSP project must have the technology expertise required to develop a solid technology platform. However, •technology expertise does not guarantee success.The SSP project must focus on quality rather than quantity.•The strategic systems implementation plan developed during the SSP project must be refreshed annually to •ensure the plan remains achievable and strategic.

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Benefits of strategic systems planningThestrategicsystemsplanningprocessprovidesmanybenefitstotheorganisation.Theprocess:

Enables senior management to view the enterprise in terms of key business functions and data.•Identifiesinformationandsystemsneededtosupportthebusinesspriorities.•Establishes a technology platform and a framework for information systems development.•Anchors system development to business plans.•Sets priorities and expectations for systems projects.•

Organisation unit“Organisational units”, are administrative-level containers on a computer network that allow network administrators to organise groups of users together so that any changes, security privileges or any other administrative tasks could beaccomplishedmoreefficiently.

A network administrator will typically create organisational units that resemble their company’s business •organisation. An organisational unit (OU) can be set up for each department. Within that department OU, there could be •subsets, or objects that represent users, groups, customers, partners, vendors or even computers and printers on the network.Applying a set of policies or restrictions to an organisational unit applies it to all subsets within that organisation •unit. An object, placed into a new organisation unit, inherits all the policies and rights associated with that organisational •unit.Organisational units are used on systems as a form of identity management, a method of technology used to •automate various administrative applications such as password synchronisation, resetting passwords, user provisioning, Meta directories, and consolidated reporting and auditing.

LocationsOrganisational location is the place where business operations occur.

Business functionsA business function is a concept used in the organisation architecture domain and represents what work is done by that organisation, organisation unit or business role.

An organisation can be designed as a set of business functions and usually the structure of the organisation units •within an organisation is closely based on the business functions.Those business functions are more stable than the organisation structure itself and often an organisation unit or •business role may be responsible for multiple business functions. A business function is only ever carried out by a single business role/organisation unit within an organisation.Examplesofbusinessfunctionsinclude:sales,marketing,supplychainmanagement,financialmanagement,•operations, customer relationship management, product management, and supplier/partner relationship management.

Entity types Major categories of data about the people, places and things managed by the organisation are called entity types.

6.3 Develop Enterprise ModelAn enterprise model is a computational representation of the structure, activities, processes, information, resources, people, behaviour, goals, and constraints of a business, government, or other enterprise.

Itcanbebothdescriptiveanddefinitionalspanningwhatisandwhatshouldbe.Theroleofanenterprisemodelisto achieve model-driven enterprise design, analysis, and operation.


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Fromadesignperspective,anenterprisemodelshouldprovidethelanguageusedtoexplicitlydefineanenterprise.We need to be able to explore alternative models in the design of enterprises spanning organisation structure and behaviour.

To reason about alternative designs for enterprises, we need to reason about different possible sets of constraints for enterprises within the model. We need to ask the following questions:

Can a process be performed in a different way?•Or can we achieve some goal in a different way? •Can we relax the constraints in the enterprise such that we can improve performance or achieve new goals? •We also need to be able to determine the impact of changes on all parts of the enterprise. For example, how will •relaxation of policies affect the quality of products or services provided by the enterprise? How will the purchase of a new machine affect the activities that are performed? •Will we need to retrain people in the enterprise to give them the skills to use the machine? •How will changing the activities change resource consumption? •From an operations perspective, the enterprise model must be able to represent what is planned, what might •happen, and what has happened.It must supply the information and knowledge necessary to support the operations of the enterprise, whether •they are performed by hand or machine.It must be able to provide answers to questions commonly asked in the performance of tasks.•

Function decompositionDecomposition is the process of starting at a high level and dividing entities into smaller and smaller related parts.

Functional decomposition is a business analysis technique for breaking down a “business operation” into •functional components.A functional decomposition diagram (FDD) shows a hierarchical organisation of the business functions that •comprise the business operation. It does not show the sequence of events.AFDD isdistinct fromaprocessflowdiagram(PFD),which shows the sequenceofeventsofabusiness•operation or function.The main purpose of functional decomposition is to break up a large or complex business operation or function •into smaller and more manageable chunks. It therefore facilitates understanding of the business operation or function and hence is a useful tool in conducting analysis and design.Functionaldecompositionisusedindeterminingthefunctionalrequirementsofasolutionandindefiningthese•in the functional requirements documentA large or complex function is more easily understood when broken down using functional decomposition.•Functional decomposition can be used to break up a large or complex business operation into smaller components, •priortodevelopingprocessflowdiagrams.Functional decomposition is most commonly used during the analysis phase of a project to produce functional •decomposition diagrams as part of the functional requirements document. It can also be used during the planning, analysis and design phases of a project to help clarify business •operations.

Steps of functional decomposition Organise a meeting with the experts, the people managing and working with the business operation.•Identify and name the business operations to be decomposed•For each business operation, start at the top level and ask “what does this business operation consist of?” Draw •thefirstlevelcomponents.

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Decomposethefirstlevelcomponentswiththeirfunctionsandcontinuetodecomposetolowerlevelsuntil•sufficientlevelofdetailisachieved.Hand draws the initial functional decomposition in front of the expert, getting them to confirm the •components. Ask questions to determine the purpose of each function and record this information.•

Check for completeness Is the whole business operation represented?•Are all components shown?•Are the connections between the components correct? •Refineasnecessary.•

Review with the experts:Doanendtoendwalk-throughofthebusinessoperation,checkingeachfunctiontoconfirmthatitiscorrect.•Ask if there are any other areas of the business operation that are not already covered.•

Step 1: What is the business operation? Draw the top level.

Course Administration

Step 2: What does this business operation consist of? Drawthefirstlevelboxes.

course Administration

Course Enrolment

Course Completion

Course Attendance

Notethatthefirstlevelboxesaredeliberatelypositionedintheexampletoemphasisethatthefunctionaldecompositiondiagram has no implied sequence of events (i.e. from left to right) by the relative positions of the components.


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Step 3: Draw the next level boxes. Repeat for further levels as required.

course Administration

Course Completion

Course Attendance

Course Application

Course Payment

Course Assessment

Course Certification

Course Enrolment

Entity Relationship DiagramEntity-relationship modelling is a high-level data modelling technique that helps designers create accurate and useful conceptual models. E-R models are best expressed using graphical E-R diagrams. This technique was originally developed by Professor Peter Chen to serve as a tool for communication between designers and users.

Chen recognised the problems that were caused when developers and users fail to understand each other. It is typical for developers and users to think that they each know exactly what the other is thinking. Unfortunately, human communication is not that good. In the presence of misunderstanding, developers build information systems that do not meet user needs. The result is either the total failure of the system that was developed or a major increase in costs as the system is rewritten.

E-R diagrams provide a visual, graphical model of the information content of a system. Developers create E-R diagrams that represent their understanding of user requirements. Users then carefully evaluate the E-R diagrams to make sure that their needs are being met.

OncetheE-Rdiagramhasbeenapprovedbytheusercommunity,thediagramprovidesthespecificationofwhatmustbeaccomplishedbythedevelopers.Inthepresenceofaccuratemodels,developerscanbeconfidentthattheyare building useful systems. Without a precise description of the agreement between users and developers, the system is doomed to failure. Our goal, then, is to produce a data model that is understandable to users and that accurately and precisely describes the structure of the information to be stored in the database.

As one important aspect of E-R modeling, database designers represent their data model by E-R diagrams. These diagrams enable designers and users to express their understanding of what the planned database is intended to do and how it might work, and to communicate about the database through a common language. The myriad of styles andconventionsforE-Rdiagrammingmakeitdifficulttochoosethebestone.EachorganisationthatusesE-Rdiagramsmustadoptaspecificstyleforrepresentingthevariouscomponents.

Planning matricesAplanningmatrixisadiagramthatshowsspecifictasksneededtocompleteanactivity, thepersonsorgroupsresponsible for completing the tasks, and the schedule by which the tasks must be completed.

When to use it: As a planning matrix links activity to responsibility and schedule, it is useful in many quality planning and quality-improvement steps. It can be especially useful in steps such as planning the project, testing theories, designing remedies, and developing implementation plans.

How to use it:Begin with a tree diagram:Usetheright-handbranchestoidentifyallthetasksrequiredtocompleteaspecificactivity.

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Add two columns to the right of the activities: Label the columns who and when.

Assign responsibility: Discuss and identify the most appropriate person(s) or group to complete the task. Write names on adhesive notes and attach them next to the proper activity.

Determine schedule: Agree on necessary completion dates for each task. Write dates on adhesive notes and post them in the When column next to the appropriate activity.

Finalise the matrix: Make sure the team is in agreement on both the assignment of responsibility and the scheduled completion date for each task. Transfer the matrix to standard paper.

Agree on a process to track progress: Determine whether the team leader or the team as a whole is responsible for monitoring work completion. Establish a reporting mechanism to ensure timely and accurate accounting of work performed. Refer to the planning matrix often.


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SummaryTheobjectivesofstrategicplanningincludingunderstandingthebenefitsofstrategicplanning;understanding•the products of strategic planning; and learning the keys to successful planning and implementation.It does not have to be that way. A sensible alternative is a well tested process called strategic planning which •provides a viable alternative to crisis management.Strategicplanningisastepbystepprocesswithdefiniteobjectivesandendproductsthatcanbeimplemented•and evaluated. Very simply, it is a process by which we look into the future, paint a picture of that future based oncurrenttrends,andinfluencetheforcesthatwillaffectus.Strategicplanninglooksthreetofiveyearsahead.Itchartsadefinitecoursebasedonstrongindicatorsofwhat•the business environment will be like in those years.Supposeourorganisationthoroughlydevelopsallfiveproductsofstrategicplanning,completestheprocess,•and comes up with a strategic plan. It is the “business as usual,” the plan sits on the shelf, and before one knows it, another year has passed. However, this need not happen.Credibility is created and maintained by following these three guidelines: representative participation, adherence •to the complete process, and clear documentation.The strategic planning committee should have representatives from all areas of the organisation and adhere to •the steps of the process. While the actual logistics of research and implementing the plan can be tailored to the available resources, all •fiveproductsshouldbecarefullydevelopedandevaluated.The committee should document all of its research and activities to serve as the basis for the strategic plan and •its background materials. Agoalisaspecifictarget,anendresultorsomethingtobedesired.Itisamajorstepinachievingthevisionof•the organisation.An organisation may set several goals that will outline a path to achieving the vision. The goal of attaining 50 •qualifiedandactivecoacheswillbeanimportantstepinachievingthevisionofbecomingmostdynamic,mostrespected and best achieved club in the district league.It is important to understand that a number of goals must be attained before the vision can become a reality. •Similarly, each goal will in turn require a number of objectives to be successfully achieved. Criticalsuccessfactorscanbedefinedasthoseissueswhicharedeemedimportanttotheorganisation,with•regard to its present and future performance, and also to its stakeholders.

References Ward. J and Peppard, J., 2002. • Strategic planning for information systems. John Wiley and Sons, pp. 26-89. Cassidy. A., 2005. • A practical guide to information systems strategic planning, Auerbach Publications, pp. 376Schultheis, 1999. • Management Information Systems: The Manager S View. Education. [Online] Available at: <http://books.google.co.in/books?id=D6BafR3f6rYC&dq=pdf+strategic+planning+in+information+system&source=gbs_navlinks> [Accessed 25 August 2011]. Pollack. T. A. • Strategic Information Systems Planning [pdf]Available at: <http://www.ascue.org/files/proceedings/2010/047.pdf> [Accessed 25 August 2011]. FP&M World Class Journey• . Strategic Planning. [Online]Available at: <http://www.fpm.iastate.edu/worldclass/strategic_planning.asp> [Accessed 25 August 2011].

Recommended ReadingMcleod, 2008. • Management Information Systems, 10/E, Pearson Education India. Satzinger, J. W., Jackson, R.B and Burd, S. D, 2008. • Systems Analysis and Design in a Changing World, Cengage Learning EMEA.Hoffer, 2000. • Modern Database Management, Pearson Education India.

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Self AssessmentMany organisations spend most of their time reacting to unexpected changes instead of anticipating and preparing 1. for them. This is called_________________.

emergency managementa. crisis managementb. tight spot managementc. mishap managementd.

_______________isastepbystepprocesswithdefiniteobjectivesandendproductsthatcanbeimplemented2. and evaluated.

Strategic planninga. Implementation b. Designing c. Emergency management d.

_________________ include census demographic statistics, economic indicators, government policies, and 3. technological advances.

signsa. metersb. markersc. Indicatorsd.

Which of the following are the three keys to successful strategy? 4. Commitment, credibility, and communicationa. Money, man and method b. Status, scheme and schedule c. Plan, projection and period d.

Which of the following sentences is true?5. A strategic management committee researches, collects input, and makes recommendations.a. A human resource management committee researches, collects input, and makes recommendations.b. A crisis management committee researches, collects input, and makes recommendations.c. A strategic planning committee researches, collects input, and makes recommendations.d.

Which of following sentences is false? 6. The strategic planning committee should have representatives from all areas of the organisation and adhere a. to the steps of the process. The companies should document all of its research and activities to serve as the basis for the strategic plan b. and its background materials. The committee should document all of its research and activities to serve as the basis for the strategic plan c. and its background materials. It is important to explain the principles and goals of strategic planning to everyone in the organisation. d.


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_____________ is created and maintained representative participation, adherence to the complete process, and 7. clear documentation guideline.

stationa. Credibilityb. insincerityc. untrustworthinessd.

___________, feedback, and understanding are crucial at every step of strategic planning. 8. Money a. Patience b. Inputc. Reports d.

___________successfactorsdefinefewareasofperformancethatareessentialfortheorganisationtoaccomplish9. its mission.

Centrala. Importantb. Criticalc. Essentiald.

Strategicplanningandmanagementcanhelpafirmtobuilditscompetitiveadvantagein10. the_______________.

industries a. organisation b. worldc. marketplaced.

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Chapter VII

Networks and Distributed Processing

Aim


discuss network topology •

explain network components•

enlist the types of network•

Objectives


discuss basic network type •

elaborate peer-to peer network •

explain client-server network •

Learning outcome


explain the type of area network•

discuss communication model employed by the nodes•

under• stand switching model employed by the nodes


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7.1 Introduction to Network TechnologyComputer networks are established using different software and hardware technologies. Computer networks canbe establishedusingdifferent hardware structures such asEthernet, opticalfiber ormerelyusingwirelessconnections.

Ethernet network is the most common and widely used technology to establish any computer network. The network based on the use of Ethernet network is formed by physically connecting the individual computer units to each other through wiring.

Various types of devices used for the Ethernet network are switches, bridges, routers and hubs mostly. Ethernet network can be started with the help of employing different types of cables such as twisted pair wire, coaxial cable andfiberopticsmostly

Network componentsThe network is made up of two types of components: nodes and communication lines.

The nodes typically handle the network protocols and provide switching capabilities. •Anodeisusuallyitselfacomputer(generalorspecial)whichrunsspecificnetworksoftware.•The communication lines may take many different shapes and forms, even in the same network. •Forexample,copperwirecables,opticalfiber,radiochannels,andtelephonelines.•A host is connected to the network by a separate communication line which connects it to one of the nodes. •In most cases, more than one host may be connected to the same node. •From a host’s point of view, the entire network may be viewed as a black box, to which many other hosts are •connected. Each host has a unique address allocated to it by the network. •For a host to communicate with another host, it needs to know the latter’s address.•All communication between hosts passes through the nodes, which in turn determine how to route messages •across the network, from one point to another.Figure given below shows an abstract view of a network and its hosts.•

Network

Nodes

Hosts

Fig. 7.1 An abstract network(Source: http://www.pragsoft.com/books/CommNetwork.pdf)

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7.2 Network TypesNetworks may be divided into different types and categories according to four different criteria:

7.2.1 Basic Type of NetworksWhen setting up a network there are basically three different types of networks.

Peer-to-peer•Client-Server•Application-Server Networks. •

Eachtypehascertainbenefitsanddownsides,wewilldescribeeachtype,alongwithwhyitcouldorshouldbeimplemented.

Peer-to-peer networksNearly all Operating Systems come with the ability to act as some kind of a server to share resources.

One can setup different computers to allow others to use its peripherals such as printers or CDROM drives, and •othercomputerstoallowotherstoreadorwritetoitsharddiskallowingsharingoffiles,whileothercomputersmay allow access to its Internet connection. When one allows workstation computers to become servers and share things in this manner, it is called a Peer-•to-peer network.

Example of a peer-to-peer networkLetusconsiderasmallofficeasanexampleofaPeer-to-Peernetwork.

Inthissmallbusinessoffice,thesecretaryusesthebestcomputer,andhasthemostdrivespace;shealsohasa•fast laser printer connected to her computer. The accountant has a mediocre computer that has a colour ink jet printer. •The owner has a good computer with a zip drive to take work home. •All of these computers are networked together, with no central server.•The secretary uses the zip drive through the network to backup important documents, and also uses the ink jet •printerontheaccountant’scomputertoprintoutfliers.The accountant uses the laser printer on the secretary’s computer to print out checks, accesses some important •documents on the secretary’s computer, and backs up the accounting data on the zip drive on the owner’s computer. The owner uses both printers on the other computers, and accesses important documents on the secretary’s •computer.All of the computers share Internet access through the secretary’s computer.•All of this gets done with no passwords or user names since all the shared devices use no access control, or other •type of security measure. Also in order for the accountant’s computer and the owner’s computer to be able to readthecompaniesimportantdocuments,thesecretary’scomputermustbeturnedonfirst.

Benefits of peer-to-peer networkPeer-to-peer networks are very cheap to implement because more than likely the Operating System software one •have installed on your computers should have the ability to share items with other computers on the network, even though the feature may be limited. Nearly all of the most popular desktop operating systems have this feature, including Microsoft Windows and •Apple’s Mac OS, as well as Unix like OS, such as Linux and the BSD. So the only cost will be the networking hardware(cards,wiring,hubsorswitches),andthelabourtoconfiguretheworkstationsforthistypeofnetworksharing.


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Disadvantages of a peer-to-peer networkEven though a peer-to-peer network is very cost effective up front, there are a number of downsides one must •consider before implementing this type of network.Withoutacentralserver,itisverydifficult,ornearlyimpossibletosecurethistypeofnetworkinanyway.•One can implement passwords on each different network share, but in order for the network to usable, the •exact same username and password must be entered into each computer acting as a server. Thus, to change a password for a user could literally take hours of work, especially if the network consists of computers located indifferentbuildingsordifferentfloors.Because of this, what usually happens with peer-to-peer networks is that passwords are implemented to begin •with, but after time, either everyone starts using the exact same username and password, or the passwords endupbecomingblank,orthenetworksharesareconfiguredtoallowanyoneaccesswithoutausernameorpassword. In any of these cases, security is pretty much non-existent, which can become a huge problem, especially if •your network has access to the Internet.Onapeer-to-peernetwork, it is alsoverydifficult to implementagoodbackup systembecause important•documents tend to be stored on different hard disks on different computers. If one do manage to implement a good backup policy, chances are great that after a while some very important •documents will not get archived because someone “accidentally” saved them to the wrong location on the network.Peer-to-peer networks also tend to become very costly over time. Since each computer that shares anything to •theothercomputersisapseudoserver,itmustbeconstantlyon,andconfiguredcorrectly.So instead of maintaining a small handful of servers, one must maintain all of the workstations as servers, •and as such any downtime with any computer on the network could cause considerable loss of labour or information. The following diagram illustrates all the theoretical connections that are needed for a peer-to-peer network to •operate with just 5 computers. Note that this illustration does not represent physical network connections, but the theoretical network connections •the operating system needs to operate the network properly.The computer operators of a peer-to-peer network must also be well acquainted with the intricacies of running •a computer in order for them to be able to do any work with the network. The users must be able to locate the different shares on the network, and be experienced enough to work through •small problems, such as password problems or network mapping problems. Insomeofficestheyusesuchacomplexdrivemappingsonapeer-to-peernetworkthattheyhadachecklist•showing which computers to turn in a certain order for the network to work properly.

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Fig. 7.2 Peer-to-peer network(Source: http://www.pcc-services.com/network_types.html)

Final words on peer-to-peer networksPeer-to-peer networks can be implemented with very little investment costs, but in order for the network to •work properly, the users must be very experienced with computers, and strict guidelines must be implemented and followed in order for the data to remain secure and archived properly. Peer-to-peer networks tend to become more of a headache instead of a help after about 6 computers, especially •if your company has a moderate employee turnover.

Client-server networkThe client-server network model usually consists of one or more server computers that provide services and •information to a number of workstation computers. Theseservicescanconsistofmanydifferentroles,including:fileservices,webservices,emailservices,domain•name lookup services, document version system services, Internet sharing services, etc. A great example of the client-server network model is actually the World Wide Internet.•On the Internet, clients or computer with web browsers, access web sites that are hosted on servers. •This model differs from the peer-to-peer network model in that the servers usually do not dually act as a •workstation, and the workstations usually do not act as servers, and if they do act as a server, they should be configuredtoallowthecentralserverstoprovideaccessrestrictionsonthesharestheyprovidethenetwork.

Example of a client-server networkLet us use a mid-size business with a network of 20 computers as an example.

Thenetworkissetupwithamainfileserverthatalsostoresalltheusersemail.Everynightthemainfileserver•isbackeduptoasecondaryfileserverthatislocatedinanadjacentbuilding.Thenetwork also has a networkfirewall computer that serves an Internet connection to the network, and•forwardsallemailtothefileserver.Thefileserverhasdifferentsharesforeachdepartmentsoonlypeopleinthatdepartmenthasaccesstothefiles,andalsohasacompanywidesharethateveryoneinthecompanyhasaccesstothefiles.Eachuser also has a homedirectory on themainfile server for personal documents that noone else can•access. The network also has two large laser printers and a commercial colour laser printer; all the printers are connected •tothemainfileserverthroughajetdirectinterface.


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The client computers all map a drive letter (L :) to the company wide share, and also map a drive letter (M :) •to the department share and the clients can print to whichever printer they need to. The drive mappings occur during a login script that is ran when the client computer logs in to the network. Each department has at least one zip drive on its computers which is shared for backups and convenience. Each •employeehasaseparateemailaccount,andallemailmessagesresideonthemainfileserver,soifanyoftheworkstation computers goes down, the emails are still intact.

Benefits of a client-server networkTheclient-servernetworkmodeloffersmanybenefitsthatstemsfromthefactthatonlyasinglecomputer,or•group of computers are the central repository for all the networking services that one may need.Security is relatively easy to implement with this type of network model, since one can setup a single server •computer to handle all information requests or login requests for the entire network, thus one only need one username and password for each user on the network. So if one ever needs to change a password, one only needs to change it at the server and the password would be changed for the entire network.Information control is also fundamentally easier with this type of network model because one can have individual •server computers store all the important documents of one’s company on a single store.In doing this, one gains the ability to easily archive all the companies documents, as well as provide a secure, •easy to access network store for all of your users, reducing the possibility of misplaced documents on your network. Other information can also be controlled by individual servers, such as all of the company’s email and contact •lists can be stored on a single mail server or all of the company’s policies and public documents can be store on an internal web server or ftp server.With the client-server network model, each workstation only really needs to have one theoretical connection •on the network, and that connection is to the main server as illustrated in the image below. Because of this, the maintenance cost for the network drops. Also, since all the important information of the network actually resides on the servers, the workstation •maintenance also drops since the users can access any information they need through any workstation, and a faulty workstation computer will have very little effect on the usefulness of the network. A setup of a proxy networks where the workstation computers are backed up to an image on a central server, •so if a workstation goes down, a technician can restore the image and have the workstation back up literally within minutes.

Fig. 7.3 Client-server

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There are numerous other benefits to this typeof network,most stem from the fact that one consolidates•information or security to a single computer, or groups of computers. Once this is done, adding other services to the network is both easier and more secure.

Disadvantages of a client-server networkEven though the client-server type of network has many advantages, there are some disadvantages that one should be aware of.

The cost of this type of network is relatively high up front, not only must one purchase the server hardware, but •most server software is very expensive, especially for larger networks since some software companies charge more for each client computer that will connect to the main server. Once the network is in place however, it is relatively easy to justify the cost since the overall cost to maintain •the network becomes less expensive.Another downside to consider is the possibility of the main server having problems. How fast must one have •the network working again? If one needs 24x7 operability, one should allow in your budget a second “redundant” server, so if the main server •goes down, the redundant server will step in and provide services until the primary server is back up again. An experienced administrator should be able to setup redundant servers that will assume control of failing •servers without user intervention.

Final words on client-server networksThe client-server network model provides important services to the network safely and securely, it also allows the convenience of allowing the users to work on their own workstation machine. However, this network model can be very expensive, not only because the software can be expensive, but one also must provide adequate hardware for both the servers and the individual workstation machines, which can become very expensive with revolving hardware updates.

If one has the funds to implement this type of network, the return on the investment is great, and one will have the knowledge that your network is well secured and archived.

Application-server networksThefinal network type thatwe are going to cover is the application server basednetworks, sometimes calledterminal server based. The idea behind this type of network is that one should basically have one high-end server or mainframe, and all the network clients are “dumb terminals”, meaning that none of the processing is actually done on the terminals, instead the only job the terminals have is to provide input and show the display on the monitor.

Most people equate application servers to the very old text-only terminals with no pointing devices. Today •application servers are very modern, and most people running on a “dumb terminal” will think they are working on a modern standalone computer.

Example of an application-server networkWewilluseametropolitanlibrarylocatedinathreestorybuilding,with20terminalcomputersoneachfloorasan example.

Eachfloor has its own application server running a version ofLinux.Each application server has basic•user applications, such as Internet browser, word processor, spreadsheet program, email application, image manipulationprogram,aswellasallthebasicapplicationsyoushouldfindonacomputer.Eachapplicationserver serves applications to 20 different terminals, which are older donated computers. Each terminal has the abilitytorunalloftheaboveapplications,printtoanyoftheprintersoneachfloorandhasaccesstothemaincard catalog through a web-based interface.Ifoneoftheapplicationserversgoesdown,thenetworkisconfiguredsothattheterminalswilllogintooneof•theotherfloorsserversuntilthecomputerisrepaired.Ifaterminalgoesdown,areplacementterminalcanbeinstalled with no downtime for the entire network, with no information loss.


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Alltheapplicationserversalsoshareasingle/homedirectoryfromaseparatefileserver,whichallowsthe•library the ability to offer an individual login name, email account and individual storage for a small charge. Alongwiththeloginname,emailaccountandstorage,thepatronalsohastheabilitytoaccessanyfileshemayhavesavedonthefileserverthroughasecureFTPserver.Theapplicationserverswouldcostthelibraryroughlyatotalof$6000($2000foreachofthem),thefirewall•costs$200,thefileserver$1000,(allincludingsetupfees)andalloftheterminalserverswereolddonatedcomputers. In total the library offers to the public 60 different terminals, individual email accounts, and limited individual Internet storage, all for a total cost of $7,200 (not including network wiring) or $120 for each terminal, including software.

Benefits of application-server networksThebiggestbenefitthatthistypeofnetworkprovidesiscost.Itisverycheaptoimplementandmaintainan•application server based network. The only high end component you need is a high quality server computer with lots and lots of memory. •As for the terminals, they can be purchased very cheaply, or one could even use old 486 and Pentium computers •and not notice any slowdown.The maintenance of this type of network is also very low cost, since you basically only need to maintain the •one or two servers that provide the applications. Also, to lower the cost even more, you can install and use commodity software, such as Linux or BSD Unix, which can be obtained with little or no cost.

Disadvantage of application-server networksThe downside to running all of the clients on one server is, of course, what happens when the server goes down. •This of course is a huge disadvantage, but one that can be overcome with installing a second or even third Application Server to the network. This would also spread out the connections across the servers, so that the performance would not diminish as much when more and more users access the servers.Another downside is the fact that most Proprietary Software packages are licensed, and most will not allow you •to run the software on Application Servers without a substantial monetary investment. You can combat this cost by sticking with Open Source variants of commodity software, such as Word Processors, •Web Browsers and Email Applications, and use standalone computers for the specialised software such as accounting software.

Final words on application-server networksEventhoughnoteverysoftwarepackagewillallowyoutorunitoffofanApplicationServer,thepricebenefitscanbe astounding when this type of network is implemented. If you need to provide public access to computers, or have separate departments that only need to use word processing, spreadsheets, and email, an Application Server could literally save you tens of thousands of dollars, even on a smaller network of 10-20 computers.

7.2.2 Geographic Spread of Nodes and Hosts

When the physical distance between the hosts is within a few kilometres, the network is said to be a Local Area •Network (LAN). LANsaretypicallyusedtoconnectasetofhostswithinthesamebuilding(e.g.,anofficeenvironment)oraset•of closely-located buildings (For example, a university campus). For larger distances, the network is said to be a Metropolitan Area Network (MAN) or a Wide Area Network •(WAN). MANs cover distances of up to a few hundred kilometres and are used for interconnecting hosts spread across •a city. WANs are used to connect hosts spread across a country, a continent, or the globe. LANs, MANs, and WANs •usually coexist: closely-located hosts are connected by LANs which can access hosts in other remote LANs via MANsandWANs,asillustratedinfiguregivenbelow.

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Perth

Darwin

Adelaide

Brisbane

Sydney

MelbourneWAN

LAN/MAN

Fig. 7.4 Example of a WAN between LANs(Source: http://www.pragsoft.com/books/CommNetwork.pdf)

One way to categorise the different types of computer network designs is by their scope or scale. •For historical reasons, the networking industry refers to nearly every type of design as some kind of area •network. Common examples of area network types are:•

LAN - Local Area Network �WLAN - Wireless Local Area Network �WAN - Wide Area Network �MAN - Metropolitan Area Network �SAN - Storage Area Network, System Area Network, Server Area Network, or sometimes Small Area �NetworkCAN - Campus Area Network, Controller Area Network, or sometimes Cluster Area Network �PAN - Personal Area Network �DAN - Desk Area Network �LAN and WAN were the original categories of area networks, while the others have gradually emerged over �many years of technology evolution.Note that these network types are a separate concept from network topologies such as bus, ring and star. �

LAN - Local Area NetworkA LAN connects network devices over a relatively short distance. •Anetworkedofficebuilding,school,orhomeusuallycontainsasingleLAN,thoughsometimesonebuilding•will contain a few small LANs (perhaps one per room), and occasionally a LAN will span a group of nearby buildings. In TCP/IP networking, a LAN is often but not always implemented as a single IP subnet.•In addition to operating in a limited space, LANs are also typically owned, controlled, and managed by a single •person or organisation. They also tend to use certain connectivity technologies, primarily Ethernet and Token Ring.•


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DSL Modem

Firewall

Network Printer

Switch 16 port 10/100

Fig. 7.5 Local Area Network (Source: http://www.van-computers.com/diagram-lan.jpg)

WAN - Wide Area NetworkAs the term implies, a WAN spans a large physical distance. •The Internet is the largest WAN, spanning the Earth.•A WAN is a geographically-dispersed collection of LANs. •A network device called a router connects LANs to a WAN. •In IP networking, the router maintains both a LAN address and a WAN address.•A WAN differs from a LAN in several important ways. •Most WANs (like the Internet) are not owned by any one organisation but rather exist under collective or •distributed ownership and management. WANs tend to use technology like ATM, Frame Relay and X.25 for connectivity over the longer distances.•

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Wide Area Network (WAN)

LANLAN

LAN

Fig. 7.6 Wide Area Network (Source: http://www.craynetworks.com/NewSite/images/wan.jpg)

LAN, WAN and Home NetworkingResidences typically employ one LAN and connect to the Internet WAN via an Internet Service Provider (ISP) •using a broadband modem. The ISP provides a WAN IP address to the modem, and all of the computers on the home network use LAN •(so-called private) IP addresses. All computers on the home LAN can communicate directly with each other but must go through a central •gateway, typically a broadband router, to reach the ISP.

PAN- Personal Area NetworkA personal area network (PAN) is a wireless network that connects information technology devices within a •range of 33 feet or so. One device serves as the controller during wireless PAN initialisation and this controller device mediate •communication within the PAN. The controller broadcasts a beacon that synchronises all devices and allocates time slots for the devices. •With a PAN, you can connect a laptop, digital camera, and portable printer without physical cables. •You can download digital image data from the camera to the laptop and then print it on a high-quality printer •all wirelessly.Ford and Microsoft collaborated to develop the Sync service for in-car communications and entertainment. •The Sync service creates a wireless connection to cell phones and MP3 players. •Sync enables car occupants to place “hands free” cell phone calls using voice commands.•UserscanalsorequestspecifiedsongsfromaconnectedmediaplayerusingvoiceCommands.•

MAN- Metropolitan Area NetworksA metropolitan area network (MAN) is a telecommunications network that connects users and their computers •in a geographical area that spans a campus or city. Most MANs have a range of roughly 30 to 90 miles. Forexample,aMANmightredefinethemanynetworkswithinacityintoasinglelargernetworkorconnect•several LANs into a single campus LAN. TheMiami-DadePoliceDepartmentconsistsof3,000officersand1,500civilianswhoserveandprotectmore•than two million citizens over a 2,100 square mile area.


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ThedepartmentimplementedaMANtoenableitsofficerstogaineasyaccesstothedatatheyneedwhilestaying•mobile on the streets rather than behind a desk. Officersincruisersconnecttohotspotsinstationparkinglotstogainaccesstothenetwork.Heretheycan•downloadreportsandaccesslocalandnationaldatabasesforfingerprints,mugshots,andotherinformationabout suspects. Officerscanalsoparticipateinpre-trialmeetingsviavideoconferencingattheirdistrictstationsandsavethe•hours required to go downtown and meet face-to-face with prosecutors and others.BobReyes,thesystemssupportmanager,says:“We’reinthemidstofafive-yearplan.Muchofwhatthat•involvesisputtingcomputersintothecarsandprovidingourofficerswithtimelyupgrades,patches,andviruscontrols through wireless connectivity when they enter their district station areas without having to go inside or wait in line to plug into the network.”

7.2.3 Other Types of Area NetworksWhile LAN and WAN are by far the most popular network types mentioned, one may also commonly see references to these others:

Wireless Local Area Network -• A LAN based on WiFi wireless network technologyMetropolitan Area Network -• A network spanning a physical area larger than a LAN but smaller than a WAN, such as a city. A MAN is typically owned an operated by a single entity such as a government body or large corporation.Campus Area Network -• A network spanning multiple LANs but smaller than a MAN, such as on a university or local business campus.Storage Area Network -• Connectsserverstodatastoragedevicesthroughatechnologylikefibrechannel.System Area Network -• Links high-performance computers with high-speed connections in a cluster configuration.AlsoknownasClusterAreaNetwork.

7.2.4 Communication Model Employed by the Nodes

The communication between the nodes is either based on a point-to-point model or a broadcast model. In the •point-to-pointmodel,amessagefollowsaspecificrouteacrossthenetworkinordertogetfromonenodetoanother. In the broadcast model, on the other hand, all nodes share the same communication medium and, as a result, a •message transmitted by any node can be received by all other nodes. A part of the message (an address) indicates for which node the message is intended. •All nodes look at this address and ignore the message if it does not match their own address.•

point-to-point broadcast

Fig. 7.7 Communication models(Source: http://www.pragsoft.com/books/CommNetwork.pdf)

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7.2.5 Switching Model Employed by the Nodes

In the point-to-point model, nodes either employ circuit switching or packet switching. Suppose that a host A •wishes to communicate with another host B. In circuit switching, a dedicated communication path is allocated between A and B, via a set of intermediate •nodes. The data is sent along the path as a continuous stream of bits. This path is maintained for the duration of •communication between A and B, and is then released. Inpacketswitching,dataisdividedintopackets(chunksofspecificlengthandcharacteristics)whicharesent•from A to B via intermediate nodes. Each intermediate node temporarily stores the packet and waits for the receiving node to become available to •receive it. Because data is sent in packets, it is not necessary to reserve a path across the network for the duration of communication between A and B.Different packets can be routed differently in order to spread the load between the nodes and improve performance. •However, this requires packets to carry additional addressing information.

7.3 Basic Processing AlternativesWhen an organisation needs to use two or more computer systems, it can implement one of three basic processing alternatives: centralised, decentralised, or distributed.

With centralised processing, all processing occurs in a single location or facility. This approach offers the highest •degree of control because a single centrally managed computer performs all data processing. The Ticketmaster reservation service is an example of a centralised system. One central computer with a database stores information about all events and records the purchases of seats. Ticket clerks at various ticket selling locations can enter order data and print the results, or customers can place orders directly over the Internet. With decentralised processing, processing devices are placed at various remote locations. Each processing device •is isolated and does not communicate with any other processing device. Decentralised systems are suitable for companies that have independent operating units, such as 7-Eleven, where each of its 5,800 U.S. stores is managed to meet local retail conditions. Each store has a computer that runs over 50 business applications such as cash. With distributed processing, processing devices are placed at remote locations but are connected to each other •viaanetwork.Onebenefitofdistributedprocessingisthatmanagerscanallocatedatatothelocationsthatcanprocessitmostefficiently.Krogeroperatesover2,400supermarkets,eachwithitsowncomputertosupportstore operations such as customer checkout and inventory management. These computers are connected to a network so that sales data gathered by each store’s computer can be sent to a huge data repository on a mainframe computerforefficientanalysisbymarketinganalystsandproductsupplychainmanagers.The September 11, 2001, terrorist attacks and the current relatively high level of natural disasters such as •Hurricane Katrina sparked many companies to distribute their workers, operations, and systems much more widely, a reversal of the previous trend toward centralisation. The goal is to minimise the consequences of a catastrophic event at one location while ensuring uninterrupted systems availability.

7.3.1 File Server SystemsUserscansharedatathroughfileservercomputing,whichallowsauthoriseduserstodownloadentirefilesfromcertaincomputersdesignatedasfileservers.Afterdownloadingdatatoalocalcomputer,ausercananalyse,manipulate,format,anddisplaydatafromthefile.


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File downloaded to user

File server computer

Fig. 7.8 File server system

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Summary Computer networks are established using different software and hardware technologies. Computer networks •canbeestablishedusingdifferenthardwarestructuressuchasEthernet,opticalfiberormerelyusingwirelessconnections. The nodes typically handle the network protocols and provide switching capabilities. •Anodeisusuallyitselfacomputer(generalorspecial)whichrunsspecificnetworksoftware.•The communication lines may take many different shapes and forms, even in the same network. •When one allows workstation computers to become servers and share things in this manner, it is called a peer-•to-peer network.The communication between the nodes is either based on a point-to-point model or a broadcast model. In the •point-to-pointmodel,amessagefollowsaspecificrouteacrossthenetworkinordertogetfromonenodetoanother. In the point-to-point model, nodes either employ circuit switching or packet switching. Suppose that a host A •wishes to communicate with another host B. In circuit switching, a dedicated communication path is allocated between A and B, via a set of intermediate •nodes. The data is sent along the path as a continuous stream of bits. This path is maintained for the duration of •communication between A and B, and is then released. Inpacketswitching,dataisdividedintopackets(chunksofspecificlengthandcharacteristics)whicharesent•from A to B via intermediate nodes. Userscansharedatathroughfileservercomputing,whichallowsauthoriseduserstodownloadentirefilesfrom•certaincomputersdesignatedasfileservers.Afterdownloadingdatatoalocalcomputer,ausercananalyze,manipulate,format,anddisplaydatafromthefile.The data is sent along the path as a continuous stream of bits. This path is maintained for the duration of •communication between A and B, and is then released. Inpacketswitching,dataisdividedintopackets(chunksofspecificlengthandcharacteristics)whicharesent•from A to B via intermediate nodes. Each intermediate node temporarily stores the packet and waits for the receiving node to become available to •receive it. Because data is sent in packets, it is not necessary to reserve a path across the network for the duration of communication between A and B.Different packets can be routed differently in order to spread the load between the nodes and improve performance. •However, this requires packets to carry additional addressing information.Wireless Local Area Network is a LAN based on WiFi wireless network technology.•Metropolitan Area Network is a network spanning a physical area larger than a LAN but smaller than a WAN, •such as a city. A MAN is typically owned an operated by a single entity such as a government body or large corporation.Campus Area Network is a network spanning multiple LANs but smaller than a MAN, such as on a university •or local business campus.

ReferencesStair, R. and Reynolds, G., 2011. • Principles of Information Systems, Cengage Learning, pp. 293-326. Martin, J., 1981. • Computer networks and distributed processing, software, techniques, architecture, pp. 400-550. Wei, W., Wang, B., Zhang, C., Twosley, D. and Kuorse, J• . Classification of Access Network Types: LAN, Wireless LAN, ADSL, Cable or Dialup? [pdf] Available at: <ftp://gaia.cs.umass.edu/pub/Wei04_wireless-wired-tech.pdf> [Accessed 24 August 2011].


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Hekmat, S. • Communication Networks [pdf] Available at: <http://www.pragsoft.com/books/CommNetwork.pdf> [Accessed 24 August 2011].

Recommended Reading Schultheis, 1999. • Management Information Systems: The Manager S View, Tata McGraw-Hill Education.Pan, Y., 2005. • Parallel and distributed processing and applications: third international symposium, ISPA 2005, Nanjing, China, November 2-5, 2005: proceedings, Birkhuauser.Das, N., 2004. • Distributed computing: IWDC 2004: 6th international workshop, Kolkata, India, December 27-30, 2004: proceedings, Springer.

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Self Assessment_________________networks are established using different software and hardware technologies.1.

Computera. Machine b. Device c. Component d.

ComputernetworkscanbeestablishedusingdifferenthardwarestructuressuchasEthernet,opticalfiberor2. merely using_________.

technologies a. wireless connectionsb. wired connection c. virtual connectiond.

________________network is the most common and widely used technology to establish any computer 3. network.

Etherneta. Extranet b. Internet c. Web net d.

Which of the following sentences is false? 4. The nodes typically handle the network protocols and provide switching capabilities. a. Anodeisusuallyitselfacomputer(generalorspecial)whichrunsspecificnetworksoftware.b. The entranet typically handle the network protocols and provide switching capabilities. c. A host is connected to the network by a separate communication line which connects it to one of the d. nodes.

Which of the following sentence is true? 5. From a master point of view, the entire network may be viewed as a black box, to which many other hosts a. are connected. From a server point of view, the entire network may be viewed as a black box, to which many other hosts b. are connected. From a client point of view, the entire network may be viewed as a black box, to which many other hosts c. are connected. From a host’s point of view, the entire network may be viewed as a black box, to which many other hosts d. are connected.

Which of the following allows workstation computers to become servers and share things?6. Server-Host network a. Peer-to-peer network b. Client- Server network c. Application- Server networkd.


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Which of the following sentences is true?7. Peer-to-peer networks are very expensivea. Peer-to-peer networks are not very costlyb. Peer-to-peer networks are very cheapc. Peer-to-peernetworksareveryinefficientd.

The client-server network model usually consists of one or more server computers that provide __________ to 8. a number of workstation computers.

services and informationa. safety and security b. data and passwordc. methods and rulesd.

Thenetworkissetupwithamainfileserverthatalsostoresalltheusers_______.9. Emaila. data b. password c. idd.

When the physical distance between the hosts is within a few kilometres, the network is said to be a 10. ____________.

MANa. PANb. WAN c. LANd.

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Chapter VIII

System Development

Aim


discuss system development •

explain development life cycle•

describe waterfall model•

Objectives


discuss investigation process •

elaborate approach used in waterfall model•

explain analysis in detail•

Learning outcome


enlist a design phases•

discuss implementation process•

under• stand maintenance in software development


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8.1 Introduction to System DevelopmentThe material in this section is organised according to a generic system development lifecycle. While no two development efforts are exactly alike, all projects should progress through the same six phases:

System Initiation

System Acceptance

Sytem Requirements

Analysis

System Design

System Implementation

System Construction

Fig. 8.1 Development life cycle

System initiation In system initialisation, the business case and proposed solution developed during project origination are re-•examinedtoensurethattheyarestillappropriatelydefinedandaddressanexistingorganisationalneed.Thisvalidationeffortprovidestheprojectteamwiththebasisforadetailedscheduledefiningthestepsneededtoobtainathoroughunderstandingofthebusinessrequirementsandaninitialviewofstaffingneeds.In addition, a high level schedule is developed for subsequent system development lifecycle phases.•

System requirements analysisThe analysis in which the needs of the business are captured in as much detail as possible. •Theprojectmanagerleadstheprojectteaminworkingwiththecustomerstodefinewhatitisthatthenew•system must do. By obtaining a detailed and comprehensive understanding of the business requirements, the project team can •developthefunctionalspecificationthatwilldrivethesystemdesign.

System design A system which builds upon the work performed during system requirements Analysis, and results in a translation •of the functional requirements into a complete technical solution. This solution dictates the technical architecture, standards,specificationsandstrategiestobefollowedthroughoutthebuilding,testing,andimplementationofthe system.

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The completion of system design also marks the point in the project at which the project manager should be •able to plan, in detail, all future project phases.

System constructionThroughout which the project team builds and tests the various modules of the application, including any utilities •that will be needed during system acceptance and system implementation. As system components are built, they will be tested both individually and in logically related and integrated •groupings until such time as a full system test has been performed to validate functionality. Documentation and training materials are also developed during this phase.

System acceptance During which the focus of system validation efforts shifts from those team members responsible for developing •the application to those who will ultimately use the system in the execution of their daily responsibilities.Inadditiontoconfirmingthatthesystemmeetsfunctionalexpectations,activitiesareaimedatvalidatingall•aspects of data conversion and system deployment.

System implementationThe final phase of the lifecycle,which comprises all activities associatedwith the deployment of the•application. These efforts include training, installation of the system in a production setting, and transition of ownership of •the application from the project team to the performing Organisation.

History of the Waterfall ModelOn the origin of the term “waterfall” is often said that Winston Royce introduced it in 1970, but Royce saw •them more in the repeated approach to software development and even used the term “waterfall”.Royce described the waterfall model as a method he ventured even an invitation to failure occurred.•In1970,Roycewas that thewaterfallmodel shouldbe seen as thefirst draft, he felt that themethodhas•flaws.He brought a document which examined how the initial concept to a recurrent method could be developed; •this new model in each phase was between feedbacks to the previous stage, as we now see in many current methods. Royce was just annoying for the initial focus method, the criticism he had on this method was largely ignored •despite Royce’s intentions to the waterfall model into a repeat method (iterative model), the use of this method is still very popular, but opponents of the waterfall model see it as a naive and inappropriate method for use in the real world.

8.2 InvestigationThe preliminary investigation phase may begin with a phone call from a customer, a memorandum from a vice presidenttothedirectorofsystemsdevelopment,aletterfromacustomertodiscussaperceivedproblemordeficiency,or a request for something new in an existing system.

Thepurposeofthepreliminaryinvestigationisnottodevelopasystem,buttoverifythataproblemordeficiencyreally exists, or to pass judgment on the new requirement. This phase is typically very short, usually not more than a day or two for a big project, and in some instances it can be as little as two hours.

The end result, or deliverable, from the preliminary investigation phase is either a willingness to proceed further, or the decision to ‘call it quits’. There are three factors, typically called constraints, which result in a ‘go’ or ‘no-go’ decision:


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TechnicalTheprojectcan’tbecompletedwiththetechnologycurrentlyinexistence.ThisconstraintistypifiedbyLeonardodaVinci’s inability to build a helicopter even though he is credited with designing one in the 16th century. Technological constraints made the construction of the helicopter impossible.

TimeThe project can be completed, but not in time to satisfy the user’s requirements. This is a frequent reason for the abandonment of the project after the preliminary investigation phase.

BudgetaryThe project can be completed, and completed on time to satisfy the user’s requirements, but the cost is prohibitive. It could be an individual constraint, or any combination of the three that prevents a project from being developed any further. When an agreement has been made to continue with the project, the second phase of the SDLC is implemented.

One common approach is referred as the waterfall because each phase must complete before the next one begins. Generallyitcontainsthestepsorphasesshowninthefigurebelow.

Analyze

Design

Build

Test

Deploy

Fig. 8.2 Approach for waterfall model

AnalyseAnalyseiswhereyoudefinewhattheproblemis,whichareasofthebusinesswillbeaffectedandwhothe•stakeholders are that will be affected. These activities are that make up the biggest part of the requirements management work that we have been •talking about.

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The main output from this systems development lifecycle step is the business requirements document. You •wouldalsodefinethetestscriptshere.

DesignDesigniswhereyoufigureoutthedetailsofhowtomakeithappen.Youalreadyhaveagoodideaofthesolution•from the analysis phase but know we have to provide more details.The functional designs and technical designs are the deliverables created in this Systems development lifecycle •step. They describe how the system will behave and what functions it will contain. They also describe what systems, •tables and programs will be created or impacted.

BuildBuild is the actual task of creating the programs and database components for the new system.•The main deliverables in this Systems development lifecycle phase are the actual programs and any required •documentation.

Test Test is Systems development lifecycle step ensures that what was built was what was required and that it works •properly with other systems running in the same environments. One will have to do various levels of testing including systems test, regression test and user acceptance test. •Thistestingissupportedbythetestscriptsthatyoucreatedduringthedefinitionphase.The main output is a fully tested system ready for production.•

DeployAfter the new system has been tested and everyone responsible accepts the new system, it is ready to be put •into production. Deployment can include everything from making the new system available to the end users and distributing the new application with new desktops.The main output from this systems development lifecycle step is a productionalised application now being used •bytheuserstoperformtheirjobfunctionsmoreefficiently.

8.3 AnalysisTheanalysephaseofmanagingrequirementsinvolvesdefiningprojectrequirementsonceaneedhasbeenidentifiedand the business requirements have been approved. The business requirements document (or Baseline) serves as the basis for deeper analysis of the established need.

Analyse phase should cover the proposed project’s scope, objectives, proposal and schedule, and review the •current system (if one exists) to determine the level of effort required.Impact on users should also be considered. For instance, how much training will be required and will users •react favourably to the new system?Analysis of a proposed project may reveal weaknesses in the concept and cast doubts on the feasibility of the •project.However,thatsameanalysismayprovidesolutionstoovercomeanydeficiencies.Iftheproposedprojectwillinteractwithorimpactanothersystem,thisfactmustbeidentifiedduringtheanalyse•phase. Such interactions may affect the development of the new project but also instigate changes in existing systems.Responsibility for successful completion of the analyse phase rests with the project manager. He may delegate •numerous tasks to his Project Team, but he is ultimately accountable. The technical review board-users and subject matter experts--provide constructive feedback on the proposed solution.The analyse phase results in the production of a functional requirements document that establishes design •parameters for both new systems and changes to be made to existing systems.


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Once analysis is complete, the project manager oversees production of a project status review, which will be •read and evaluated by approvers and other stakeholders.

8.4 DesignThedesignphaseofmanagingrequirementsinvolvesthecreationofthespecificdetailsoftheproductorservice.Systemarchitectureisfinalisedandthefunctionaldesignsarecompleted.

The design is based on the requirements established in the ysanalyse phase and provides the basis on how the •proposed system will be built.A functional design focuses on usability and reliability. Logical design includes outputs, inputs, presentation, •processes, storage, and personnel.The design phase could include the following activities:•

Establish the system environment �Design the system �Prototyping �User documentation �Preliminary design review �User training �User acceptance �Critical design review �Revise documentation from prior phases �

Depending on the nature of the project, the design may come from a programmer, an architect, a graphic designer, •or a quality specialist, to name but a few.Projectparametersshouldremainasfluidaspossibleandallowforchangestocosts,schedulesandoverallplans,•while remaining in line with Business Requirements. Project feasibility continues to be addressed through the Design Phase.Test plans are developed according to expectations derived from the design and implemented during the Test •Phase.By the end of the Design Phase, project deliverables should include System Design Document, Implementation •Plan, Training Plan, and Maintenance, Operations and User Manuals.Once design is complete, the Project Manager oversees production of a Project Status Review, which will be •read and evaluated by Approvers and other Stakeholders.

8.5 ImplementationMaking the new system available to a prepared set of users (the deployment), and positioning on-going support and maintenance of the system within the Performing Organisation (the transition).

Atafinerlevelofdetail,deployingthesystemconsistsofexecutingallstepsnecessarytoeducatetheconsumers•ontheuseofthenewsystem,placingthenewlydevelopedsystemintoproduction,confirmingthatalldatarequired at the start of operations is available and accurate, and validating that business functions that interact with the system are functioning properly. Transitioning the system support responsibilities involves changing from a system development to a system •support and maintenance mode of operation, with ownership of the new system moving from the project team to the performing is organisation. A key difference between system implementation and all other phases of the lifecycle is that all project activities •up to this point have been performed in safe, protected, and secure environments, where project issues that rise have little or no impact on day-to-day business operations.Once the system goes live, however, this is no longer the case. Any miscues at this point will almost certainly •translateintodirectoperationaland/orfinancialimpactsontheperformingisorganisation.

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It is through the careful planning, execution, and management of system implementation activities that the •project team can minimise the likelihood of these occurrences, and determine appropriate contingency plans in the event of a problem.

List of processes This phase consists of the following processes:

Prepare for System implementation, where all steps needed in advance of actually deploying the application are •performed, including preparation of both the production environment and the Consumer communities.Deploy System, where the full deployment plan, initially developed during System Design and evolved throughout •subsequent lifecycle phases, is executed and validated.Transition to Performing Organisation, where responsibility for and ownership of the application are transitioned •from the Project Team to the unit in the Performing Organisation that will provide system support and maintenance.The following chart illustrates all of the processes and deliverables of this phase in the context of the system •development lifecycle.

8.6 MaintenanceSoftware Development has many phases. These phases include Requirements Engineering, Architecting, Design, Implementation, Testing, Software Deployment, and Maintenance.

Maintenance is the last stage of the software life cycle. After the product has been released, the maintenance •phase keeps the software up to date with environment changes and changing user requirements. The earlier phases should be done so that the product is easily maintainable. The design phase should plan the •structure in a way that can be easily altered. Similarly, the implementation phase should create code that can beeasilyread,understood,andchanged.Maintenancecanonlyhappenefficientlyiftheearlierphasesaredoneproperly. There are four major problems that can slow down the maintenance process:•

Unstructured code �Maintenanceprogrammershavinginsufficientknowledgeofthesystem �Documentationbeingabsent,outofdate,oratbestinsufficient �Software maintenance having a bad image. �

Thesuccessofthemaintenancephasereliesontheseproblemsbeingfixedearlierinthelifecycle.•Maintenance consists of four parts.•

Correctivemaintenancedealswithfixingbugsinthecode. �Adaptive maintenance deals with adapting the software to new environments. �Perfective maintenance deals with updating the software according to changes in user requirements. �Finally, preventive maintenance deals with updating documentation and making the software more �maintainable.

All changes to the system can be characterised by these four types of maintenance. Corrective maintenance is •traditional maintenance’ while the other types are considered as ‘software evolution.’ Asproductsageitbecomesmoredifficulttokeepthemupdatedwithnewuserrequirements.•Maintenancecostsdeveloperstime,effort,andmoney.Thisrequiresthatthemaintenancephasebeasefficient•as possible. There are several steps in the software maintenance phase. •

Thefirstistotrytounderstandthedesignthatalreadyexists. �The next step of maintenance is reverse engineering in which the design of the product is re-examined and �restructured. Thefinalstepistotestanddebugtheproducttomakethenewchangesworkproperly. �


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This section will discuss what maintenance is, its role in the software development process, how it is carried •out, and its role in iterative development, agile development, component-based development, and open source development.

8.6.1 Four Types of Software Maintenance TherearefourtypesofmaintenanceaccordingtoLientzandSwansonasshowninthefiguebelow.

Corrective

Perfective Preventive

Software Maintenance

Adaptive

Fig. 8.3 Software maintenance

CorrectiveCorrective maintenance deals with the repair of faults or defects found. •A defect can result from design errors, logic errors and coding errors. •Design errors occur when, for example, changes made to the software are incorrect, incomplete, wrongly •communicated or the change request is misunderstood. Logicerrorsresultfrominvalidtestsandconclusions,incorrectimplementationofdesignspecifications,faulty•logicfloworincompletetestofdata.Coding errors are caused by incorrect implementation of detailed logic design and incorrect use of the source •code logic. Defects are also caused by data processing errors and system performance errors. •All these errors, sometimes called ‘residual errors’ or ‘bugs’, prevent the software from conforming to its agreed •specification.The need for corrective maintenance is usually initiated by bug reports drawn up by the end users.•Examples of corrective maintenance include correcting a failure to test for all possible conditions or a failure •toprocessthelastrecordinafile.

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AdaptiveAdaptive maintenance consists of adapting software to changes in the environment, such as the hardware or •the operating system. The termenvironment in thiscontext refers to the totalityofall conditionsand influenceswhichact from•outside upon the system, for example, business rule, government policies, work patterns, software and hardware operating platforms. The need for adaptive maintenance can only be recognised by monitoring the environment. •An example of a government policy that can have an effect on a software system is the proposal to have a ‘single •European currency’, the ECU. Anacceptanceofthischangewillrequirethatbanksinthevariousmemberstates,forexample,makesignificant•changes to their software systems to accommodate this currency. Other examples are an implementation of a database management system for an existing application system •and an adjustment of two programs to make them use the same record structures. A case study on the adaptive maintenance of an Internet application ‘B4Ucall’ is another example. •B4Ucall is an Internet application that helps compare mobile phone packages offered by different service •providers. In their study on B4Ucall, Bergin and Keating discuss that adding or removing a complete new service provider •to the Internet application requires adaptive maintenance on the system.

PerfectivePerfective maintenance mainly deals with accommodating to new or changed user requirements. •Perfective maintenance concerns functional enhancements to the system and activities to increase the system’s •performance or to enhance its user interface. A successful piece of software tends to be subjected to a succession of changes, resulting in an increase in the •number of requirements. This is based on the premise that as the software becomes useful; the users tend to experiment with new cases beyond the scope for which it was initially developed. Examples of perfective maintenance include modifying the payroll program to incorporate a new union settlement, •adding a new report in the sales analysis system, improving a terminal dialogue to make it more user-friendly, and adding an online HELP command.

PreventivePreventive maintenance concerns activities aimed at increasing the system’s maintainability, such as updating •documentation, adding comments, and improving the modular structure of the system. The long-term effect of corrective, adaptive and perfective changes increases the system’s complexity. •Asalargeprogramiscontinuouslychanged,itscomplexity,whichreflectsdeterioratingstructure,increases•unless work is done to maintain or reduce it. This work is known as preventive change. The change is usually initiated from within the maintenance organisation with the intention of making programs •easier to understand and hence facilitating future maintenance work. Examples of preventive change include restructuring and optimising code and updating documentation. •Among these four types of maintenance, only corrective maintenance is ‘traditional’ maintenance. •The other types can be considered software ‘evolution’. The term evolution has been used since the early 1960s •to characterise the growth dynamics of software.

Software evolution is now widely used in the software maintenance community. For example, the journal of software maintenanceaddedtheterm‘evolution’toitstitletoreflectthistransition.


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8.6.2 Software Development : The Waterfall ModelSoftware systems come and go through a series of passages that account for their inception, initial development, productive operation, upkeep, and retirement from one generation to another.

This article categorises and examines a number of methods for describing or modeling how software systems are developed.Itbeginswithbackgroundanddefinitionsoftraditionalsoftwarelifecyclemodelsthatdominatemosttextbook discussions and current software development practices. This is followed by a more comprehensive review of the alternative models of software evolution that are of current use as the basis for organising software engineering projects and technologies.

These classic software life cycle models usually include some version or subset of the following activities:

System Intiation/Planning

Software Integration and

Testing

Documentation Revision and

System Delivery

Requirement Analysis and Specification

Functional Specificationor

Prototyping

Partition and Selection

Componenet Implementation and

Debuggibg

Detailed component Design

Specification

Architectural Design and configurationSpecification

Deployment and installation

Training and use

Software Maintenance

Fig. 8.4 Software life cycle models

System initiation/planningWhere do systems come from? In most situations, new feasible systems replace or supplement existing information processing mechanisms whether they were previously automated, manual, or informal.

Requirement analysis and specificationIdentifiestheproblemsanewsoftwaresystemissupposetosolve,itsoperationalcapabilities,itsdesiredperformancecharacteristics, and the resource infrastructure needed to support system operation and maintenance.

Functional specification or prototypingIdentifiesandpotentiallyformalisestheobjectsofcomputation,theirattributesandrelationships,theoperationsthat transform these objects, the constraints that restrict system behaviour, and so forth.

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Partition and selection (build vs. buy vs. reuse)Givenrequirementsandfunctionalspecifications,dividethesystemintomanageablepieces thatdenote logicalsubsystems, and then determine whether new, existing, or reusable software systems correspond to the needed pieces.

Architectural design and configuration specificationDefinestheinterconnectionandresourceinterfacesbetweensystemsubsystems,components,andmodulesinwayssuitablefortheirdetaileddesignandoverallconfigurationmanagement.

Detailed component design specificationDefinestheproceduralmethodsthroughwhichthedataresourceswithinthemodulesofacomponentaretransformedfrom required inputs into provided outputs.

Component implementation and debuggingCodifies the preceding specifications into operational source code implementations and validates their basicoperation.

Software integration and testingAffirmsandsustainstheoverallintegrityofthesoftwaresystemarchitecturalconfigurationthroughverifyingtheconsistency and completeness of implemented modules, verifying the resource interfaces and interconnections against theirspecifications,andvalidatingtheperformanceofthesystemandsubsystemsagainsttheirrequirements.

Documentation revision and system deliveryPackaging and rationalising recorded system development descriptions into systematic documents and user guides, all in a form suitable for dissemination and system support.

Deployment and installationToprovide directions for installing the delivered software into the local computing environment, configuringoperating systems parameters and user access privileges, and running diagnostic test cases to assure the viability of basic system operation.

Training and useTo provide system users with instructional aids and guidance for understanding the system’s capabilities and limits in order to effectively use the system.

Software maintenance:Sustaining the useful operation of a system in its host/target environment by providing requested functional enhancements, repairs, performance improvements, and conversions.

8.6.3 What is a Software Life Cycle Model? A software life cycle model is either a descriptive or prescriptive characterisation of how software is or should be developed. A descriptive model describes the history of how a particular software system was developed.

Descriptive models may be used as the basis for understanding and improving software development processes •or for building empirically grounded prescriptive models (Curtis, Krasner, Iscoe, 1988). A prescriptive model prescribes how a new software system should be developed.•Prescriptive models are used as guidelines or frameworks to organise and structure how software development •activities should be performed, and in what order. Typically, it is easier and more common to articulate a prescriptive life cycle model for how software systems •should be developed. This is possible since most such models are intuitive or well reasoned. •


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This means that many idiosyncratic details that describe how a software system is built in practice can be ignored, •generalised, or deferred for later consideration. This, of course, should raise concern for the relative validity and robustness of such life cycle models when •developing different kinds of application systems, in different kinds of development settings, using different programming languages, with differentially skilled staff, etc. However, prescriptive models are also used to package the development tasks and techniques for using a given •set of software engineering tools or environment during a development project.These two characterisations suggest that there are a variety of purposes for articulating software life cycle •models. These characterisations serve as follows:

Guideline to organise, plan, staff, budget, schedule and manage software project work over organisational �time, space, and computing environments. Prescriptive outline for what documents to produce for delivery to client. �Basis for determining what software engineering tools and methodologies will be most appropriate to �support different life cycle activities. Framework for analysing or estimating patterns of resource allocation and consumption during the software �life cycle (Boehm 1981).Basis for conducting empirical studies to determine what affects software productivity, cost, and overall �quality.

8.6.4 What is a Software Process Model?In contrast to software life cycle models, software process models often represent a networked sequence of activities, objects, transformations, and events that embody strategies for accomplishing software evolution. Such models can be used to develop more precise and formalised descriptions of software life cycle activities. Their power emerges from theirutilisationofasufficientlyrichnotation,syntax,orsemantics,oftensuitableforcomputationalprocessing.

Software process networks can be viewed as representing multiple interconnected task chains. •Task chains represent a non-linear sequence of actions that structure and transform available computational •objects(resources)intointermediateorfinishedproducts.Non-linearity implies that the sequence of actions may be non-deterministic, iterative, accommodate multiple/•parallel alternatives, as well as partially ordered to account for incremental progress. Task actions in turn can be viewed a non-linear sequences of primitive actions which denote atomic units of •computing work, such as a user’s selection of a command or menu entry using a mouse or keyboard. Winograd and others have referred to these units of cooperative work between people and computers as “structured •discoursesofwork”,whiletaskchainshavebecomepopularisedunderthenameof“workflow”.Task chains can be employed to characterise either prescriptive or descriptive action sequences.•Prescriptive task chains are idealised plans of what actions should be accomplished, and in what order. •For example, a task chain for the activity of object-oriented software design might include the following task •actions:

Developaninformalnarrativespecificationofthesystem. �Identify the objects and their attributes. �Identify the operations on the objects. �Identify the interfaces between objects, attributes, or operations. �Implement the operations. �

Clearly, this sequence of actions could entail multiple iterations and non-procedural primitive action invocations •in the course of incrementally progressing toward an object-oriented software design.Task chains join or split into other task chains resulting in an overall production network or web. •The production web represents the “organisational production system” that transforms raw computational, •cognitive, and other organisational resources into assembled, integrated and usable software systems.

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The production lattice therefore structures how a software system is developed, used, and maintained. •However, prescriptive task chains and actions cannot be formally guaranteed to anticipate all possible •circumstances or idiosyncratic foul-ups that can emerge in the real world of software development. Thus, any software production web will in some way realise only an approximate or incomplete description of •software development.Articulation work is a kind of unanticipated task that is performed when a planned task chain is inadequate or •breaks down.It is work that represents an open-ended non-deterministic sequence of actions taken to restore progress on the •disarticulatedtaskchain,orelsetoshifttheflowofproductiveworkontosomeothertaskchain.Thus, descriptive task chains are employed to characterise the observed course of events and situations that •emerge when people try to follow a planned task sequence.Articulation work in the context of software evolution includes actions people take that entail either their •accommodation to the contingent or anomalous behaviour of a software system, or negotiation with others who maybeabletoaffectasystemmodificationorotherwisealtercurrentcircumstances.This notion of articulation work has also been referred to as software process dynamism.•


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Summary In system initialisation, the business case and proposed solution developed during project origination are re-•examinedtoensurethattheyarestillappropriatelydefinedandaddressanexistingorganisationalneed.Thisvalidationeffortprovidestheprojectteamwiththebasisforadetailedscheduledefiningthestepsneededtoobtainathoroughunderstandingofthebusinessrequirementsandaninitialviewofstaffingneeds.In system requirements analysis the needs of the business are captured in as much detail as possible.•Theprojectmanagerleadstheprojectteaminworkingwiththecustomerstodefinewhatitisthatthenew•system must do. A system construction is a system in which builds upon the work performed during system requirements •analysis, and results in a translation of the functional requirements into a complete technical solution. This solutiondictatesthetechnicalarchitecture,standards,specificationsandstrategiestobefollowedthroughoutthe building, testing, and implementation of the system. As system components are built, they will be tested both individually and in logically related and integrated •groupings until such time as a full system test has been performed to validate functionality. Documentation and training materials are also developed during this phase.During which the focus of system validation efforts shifts from those team members responsible for developing •the application to those who will ultimately use the system in the execution of their daily responsibilities.Royce was just annoying for the initial focus method, the criticism he had on this method was largely ignored •despite Royce’s intentions to the waterfall model into a repeat method (iterative model), the use of this method is still very popular, but opponents of the waterfall model see it as a naive and inappropriate method for use in the real world.Analyseiswhereyoudefinewhattheproblemis,whichareasofthebusinesswillbeaffectedandwhothe•stakeholders are that will be affected. These activities are that make up the biggest part of the requirements management work that we have been •talking about.Designiswhereyoufigureoutthedetailsofhowtomakeithappen.Youalreadyhaveagoodideaofthesolution•from the analysis phase but know we have to provide more details.Build is the actual task of creating the programs and database components for the new system.•Test is systems development lifecycle step ensures that what was built was what was required and that it works •properly with other systems running in the same environments. After the new system has been tested and everyone responsible accepts the new system, it is ready to be put •into production. Deployment can include everything from making the new system available to the end users and distributing the new application with new desktops.

References Parson, J. J., 2010. • New Perspectives on computer concepts 2011, Cengage learning. pp. 554-600. Alexander, L.F. and Maiden, N., 2005. • System Requirement & Development Life Cycle, Wiley-India. pp. 300-457. Kissel, R., Stine, K. and Scholl, M.,• Information security [pdf] Available at: <http://csrc.nist.gov/publications/nistpubs/800-64-Rev2/SP800-64-Revision2.pdf> [Accessed 24 August 2011]. Bhattacharjee, S., Software Development Life Cycle (SDLC) [pdf] Available at: <http://cab.org.in/Lists/•Knowledge%20Bank/Attachments/83/SDLC.pdf > [Accessed 24 August 2011].

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Recommended Reading Kamel, M., 1999. • System development life cycle: obstacles along the way, Wiley-India. Lewis, J., 2008. • Sdlc 100 Success Secrets - Software Development Life Cycle (Sdlc) 100 Most Asked Questions, Sdlc Methodologies, Tools, Process and Business Models, Lulu.com. Connolly, 2008. • Database Systems: A Practical Approach To Design, Implementation And Management, 4/E, Pearson Education India.


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Self AssessmentA high level schedule is developed for subsequent system _____________ lifecycle phases.1.

development a. maintenanceb. recycle c. analysis d.

In which analysis the needs of the business are captured in as much detail as possible?2. System Design a. System Constructionb. System Requirement Analysisc. System Acceptanced.

______________ is a system which builds upon the work performed during System Requirements Analysis, 3. and results in a translation of the functional requirements into a complete technical solution.

System construction a. System design b. System Acceptance c. System implementation d.

Who is responsible to plan all future project phases after completion of system design? 4. Project managera. HRb. Bossc. C.E.Od.

Which of the following sentences are true?5. One common approach is referred as the waterfall because each phase must complete and stop. a. One common approach is referred as the waterfall because each phase must complete before the next one b. beginsOne common approach is referred as the waterfall because each phase must complete in advance the next c. goes in loop. Onecommonapproachisreferredasthewaterfallbecauseeachphasemustcompleteatfixtime.d.

Documentation and training materials are also developed during _______________ phase.6. system design a. system acceptance b. system implementation c. system construction d.

Whichofthefollowingisthefinalphaseofsystemlifecycle?7. System design a. System Acceptance b. System implementation c. System construction d.

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______________iswhereyoudefinewhattheproblemis,whichareasofthebusinesswillbeaffectedandwho8. the stakeholders are that will be affected.

Analysea. Design b. Deploy c. Test d.

______________iswhereyoufigureoutthedetailsofhowtomakeithappen.9. Analysea. Design b. Deploy c. Test d.

__________ is the actual task of creating the programs and database components for the new system.10. Analysea. Design b. Deploy c. Buildd.


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Case Study I

Client Case Study on Internet Development

Client’s Industry: Chemicals and Minerals

Business Challenges:Easy Document and Content Management•Secure, Online Human Resource Management•Scalability of Developed Application for Other Uses •Including Internet Systems Integration•

SolutionWeb-based Intranet application using the existing IT, legacy systems and data warehousing infrastructure at •the company.

Internet Technologies have changed the way individuals and organisations interact and manage information via the World Wide Web. Geography has become irrelevant, and Intranet applications span continents linking organisations and individuals over a global network. A study by Hambrecht and Quist found that 85% of Fortune 200 companies are implementing Intranet strategies as outlined in this case study.

Intranet applications can help organisations improve their communication channels, implement virtual collaboration tools for projects and streamline business operations, thus reducing the cost of Information Technology ownership.

Typically,organisationsbeginimplementinganIntranetforitemssuchasonlineemployeeprofilesandpersonalbenefitdetails,staffdirectory,surveys,andorganisationalpoliciesandprocedures.Therehasbeenasignificantreturnoninvestmentonthesekindsofapplications.AccordingtotheconsultingfirmMeatGroup,astudyof41companies shows that 80% achieved positive returns on their investment with an annual return of 38%. The Azavar client mentioned here achieved a similar return on investment. After analyzing the existing IT infrastructure at the company, Azavar Technologies determined that an Intranet application using Internet media would address the client’s business and knowledge management goals. The client/server application would better serve the purpose of centralised Human Resource services and document management. For this purpose Microsoft’s technology - NT 4.0, Site Server and Active Server Pages - combined with existing IBM legacy systems and data warehousing were chosen as the primary development tools.

The functionality of the Intranet application includes: Personalisedandintegratedinformationforallofficesaroundtheworld.•WithOnlineHumanResourceManagement, employees canmakebenefits elections, change their existing•benefitsandprofileandmodifyotherpersonalinformationrelatedtothebenefitstheyarereceiving.Employeescananalyzethebenefitsthattheyarereceiving.Theapplicationalsodisplaysotherrelatedoptions•available to the user and guides them in making the decision by providing online aid. Provide information about company’s policies, rules and regulations and request forms. The Intranet also serves •as a knowledge base for employees and managers. A full-text database-driven search engine using Site Server. •Web-based document management. Employees can submit all white papers and other documents to the server, •which become part of the corporate knowledge base. Administrators can easily add information to FAQs or other sections based on the requests they receive from •employees. The information in these sections helps managers in understanding the culture within the organisation, and facilitates decision making.

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Benefits and Results Increased productivity•Streamlined business operations•Improved communication channels•Manageableandefficientknowledgebasefortheorganisation•Global connectivity•Global access•Empowering employees•Quick dissemination of information•Reduced costs •Centralised data storage (real time)•Centralised control over data•

Tools Used Microsoft NT•Microsoft Site Server Commerce Edition •Microsoft Exchange Server•IBM DB2 •IBM AS/400•Active Server Pages•VBScript•JavaScript•Web Trends•ActiveX Data Objects (ADO)•

(Source: http://www.azavar.com/pdfs/intranet%20developement.pdf )

Questions

What are the business challenges in case study?1. AnswerBusiness Challenges:Easy Document and Content Management•Secure, Online Human Resource Management•Scalability of Developed Application for Other Uses •Including Internet Systems Integration.•

What so you understand by internet technology?2. AnswerInternet Technologies have changed the way individuals and organisations interact and manage information via the World Wide Web. Geography has become irrelevant, and Intranet applications span continents linking organisations and individuals over a global network. A study by Hambrecht and Quist found that 85% of Fortune 200 companies are implementing Intranet strategies as outlined in this case study.


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Intranet applications can help organisations improve their communication channels, implement virtual collaboration tools for projects and streamline business operations, thus reducing the cost of Information Technology ownership.

What are the functionalities of intranet technology?3. AnswerThe functionality of the Intranet application includes: Personalisedandintegratedinformationforallofficesaroundtheworld.•OnlineHumanResourceManagement.Employeescanmakebenefitselections,changetheirexistingbenefits•andprofileandmodifyotherpersonalinformationrelatedtothebenefitstheyarereceiving.Employeescananalyzethebenefitsthattheyarereceiving.Theapplicationalsodisplaysotherrelatedoptions•available to the user and guides them in making the decision by providing online aid. Provide information about company’s policies, rules and regulations and request forms. The Intranet also serves •as a knowledge base for employees and managers. A full-text database-driven search engine using Site Server. •Web-based document management. Employees can submit all white papers and other documents to the server, •which become part of the corporate knowledge base. Administrators can easily add information to FAQs or other sections based on the requests they receive from •employees. The information in these sections helps managers in understanding the culture within the organisation, and facilitates decision making.

Whatarethebenefitsoftheintranet?4. AnswerBenefits and Results Increased productivity •Streamlined business operations •Improved communication channels •Manageableandefficientknowledgebasefortheorganisation•Global connectivity •Global access •Empowering employees •Quick dissemination of information •Reduced costs •Centralised data storage (real time) •Centralised control over data•

Which Tools are used in the intranet technology? 5. AnswerTools Used Microsoft NT •Microsoft Site Server Commerce Edition •Microsoft Exchange Server •IBM DB2 •IBM AS/400 •Active Server Pages •

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VBScript •JavaScript •Web Trends •ActiveX Data Objects (ADO)•


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Case Study II

Cybersoft Information Technologies

CompanyCybersoft is the leading software house in Turkey, specialising in enterprise-scale information system development projects fore-governmentandfinancial services. Ithas implementedsolutions forERP,corebanking, Internetbanking and insurance, aswell as tax office automation and labour office automation. In addition to systemdevelopment, Cybersoft is the largest software technology provider in Turkey, delivering “Software Product Line” (SPL) technology, called Aurora.

The company’s main lines of business are technology development, customised solutions, training, and technology monitoringforsoftwaresystems.ThecompanyisheadquarteredinAnkarawithbranchofficesinIstanbul.

The strategic objective of Cybersoft is the continual improvement of processes in order to enhance the organisation’s performance and customer satisfaction. There has been an ongoing improvement effort based on plan-do-check-act approach and ISO 15504-assessment framework.

ChallengesIn order to rapidly automate and improve existing business processes, government organisations and large companies around the world turn to independent, information technology professionals.

Since 1995, Cybersoft has been developing turn-key software applications for large-scale enterprises in Turkey. WhentheRepublicofTurkey’sMinistryofFinancewantedtocompletelyautomateitstaxoffices,itcalleduponCybersoft to design and develop the new infrastructure.

Increasethequalityofservicepresentedtotaxpayers.TheTaxOfficeCompleteAutomationProject(VEDOP)beganasapilotprojectin1995.Followingitssuccess,thefirstphaseofVEDOPbeganin1998.Asoneofitsgoals,theMinistrywantedtoimprovethequalityofservicethatTurkey’staxpayerswerereceivingbyallowingthemtofileelectronically.Thiswouldeliminatetheneedformanytaxpayerstovisittaxofficesinperson,savingconstituents’time.

Inaddition,theMinistryestimatedthatworkburdenontaxofficeemployeeswoulddecrease,creatingapersonnelpower savings of more than 4,000 person/ months yearly.

Enhance tax collectionIn April 2004, the Ministry initiated the second phase of the project, VEDOP-2, which would include providing an e filingsystemfortaxreturnsandadatawarehouse,therebydeliveringautomationthroughoutthecountry.Amongthekey components of phase two, the Ministry sought to automate and electronically archive the paper associated with tax collection in an effort to eliminate the usage of more than 6,000 tons of paper annually. Tax collection process has been enhanced by building automation system together with data ware house and on-line tax collection.

Integrate the Ministry of Finance with other institutionsInordertoimprovecommunicationsandenhanceoperationalefficiencies,theMinistryrequiredthenewsystemto support integration and data exchange with other institutions, organisations, banks and external systems using XML.Thiseffortwouldthenremovethewallsbetweentaxoffices,providingtaxpayerswithmoreuniformservicecountrywide. In addition, the Ministry wanted to supply necessary, accurate information to decision-makers for developing successful tax policies and audit strategies.

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SolutionFor its two-phased engagement with the Ministry of Finance, Cybersoft deployed the Borland Application •Lifecycle Management (ALM) solution to replace manual processes with an automated system that enabled the agency to support electronic document submission over the Internet and centralise accurate information and policiesforusethroughoutthecountry’staxoffices.ThecomprehensivesolutionconsistsofBorland®StarTeam®forsoftwareconfigurationandchangemanagement,•Borland® Together® for visual UML modeling, and Borland® CaliberRM™ for requirements management.Cybersoft also leveraged the professional services expertise of local Borland Business Partner, KTG (Bilgi ve •Teknoloji Grubu Ltd.), for training, consulting, on-site support, installation and project implementation. To support its development effort, the Borland solution provided the Cybersoft team with the ability to deliver a •highlyflexible,component-based,open,n-tiersoftwarearchitecturethatiseasytouseandmaintain,yetensureshigh performance and high security, as well as hardware independence. “With the Borland ALM solution, we were able to implement the full cycle from requirements management •andUMLmodeling to development, testing and configuration and changemanagement solutions,whichoperated independently of platforms, including Windows and Solaris,” Hasan Turgut, Project Manager from Cybersoft.Specifically,thesolutionsCybersoftbuiltfortheMinistryofFinanceincludedane-declarationsystemtoprovide•electronicdocumentsubmissionthroughInternet;ane-TaxReturnSystemtominimisefilingerrors;RegionalIncome Directorates, where approximately 3,000 tax auditors access information online via a centralised system formoreefficientcontrols;adatawarehousetobringunregisteredeconomyintoregistration,whichexpandsthetaxbaseandprovidesmoreaccurateinformationfornewpoliciesandcontrolmechanisms;webbasedtaxofficeapplications, which are applied all over Turkey through an intranet; the ability to integrate with and exchange data with other institutions, organisations, banks and external systems using XML; as well as a help desk and call center that now operates with taxpayers as its clients. “In every case, the Borland ALM solution improved our software development process. We were able to •bettercontrolconfigurations,moreefficientlyintegrateothertechnologiesandprovidefulltraceabilityfromrequirements to deployment, including design artifacts, tests, development code and change requests,”Hasan Turgut, Project Manager from CyberSoft. Additionally, Cybersoft applies ISO 9001:2000 and ISO •15504 (SPICE Level 3) standards to all of its business processes and the Ministry of Finance project was no different. “We were extremely pleased that the Borland ALM solution was able to effectively support the quality initiatives •that we rigorously follow,” Hasan Turgut, Project Manager from CyberSoft.

ResultsThe automated system Cybersoft built for the Ministry of Finance using the Borland ALM solution increased the quality of service for taxpayers, saved time and money.

450Turkishtaxofficesnowautomatedthroughthelargeste-GovernmentportalinTurkey•Expanded tax base and increased employee productivity.•Improved quality and availability of services.•

(Source: http://www.borland.com/resources/en/pdf/case_studies/cybersoft.pdf)

QuestionsWrite about the company mentioned in case study.1. What are the challenges faced by the company?2. What do you mean by enhance tax collection? 3. Explain the results of this case study. 4.


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Case Study III

MIS

Overview of Case Study of Company YThe case will look at the problems that a chemical company (Company Y) experienced when it decided to implement MRP II in its plants and put forward some possible solutions to them. The case study is based on interviews with Mr Dave Rantor, production director.

Some Background to Company YCompany Y manufactures over £40 million worth of organic chemicals a year for the pharmaceutical and agricultural industries. 75% of its production is exported to over 100 countries throughout the world. It employs approximately 600 people on two sites in the North East of England. It has four plants on these two sites. Site one has a single plantonitthatproducesonlyonepharmaceuticalproduct.Thissitecontainsthefirstproductionunit(Unitone)built by the company when it was founded in the early 1960’s. Unit one on site one does not play any part in this case study.

The other site, site two, was purpose built in 1969 and contains the remaining three production units, unit’s two, threeandfour,aswellaslaboratories,engineeringservicesandheadofficesofthecompany.Unittwoproducesthesame product as Unit one, Unit three produces a variety of chemical intermediates for the pharmaceutical industry and Unit four produces a variety of chemical intermediates for the agricultural industry.

The original American parent company was taken over by another American multinational in 1988 to integrate the selling of their own range of chemicals with those produced by Company Y. The current American parent company also has interests in a range of companies that produce pharmaceutical products. There is no sales department as all sales are dealt with elsewhere in the group. At present the three most senior managers at Company Y are

The operations director, Dr Church, who is responsible for engineering, production, personnel, health and safety, •QC, the operations function. The vice president of development, Mr Zimmer who is responsible for R&D but also liases with customers. Mr •Zimmer took day to day responsibility for the implementation of the new MRP II system. ThefinancialdirectorMrWaterswhoisresponsiblefortheaccountingfunction.•

Dr Church and Mr Waters, report directly to the vice president of the parent company, Ms Kling. Mr Zimmer, also reports to Ms Kling but indirectly through Dr Church. In addition to the above there is also Mr Rantor, the Production Director, Mr Trainer, the Purchasing Director, Mr Smith the MIS manager and Mr Jones the warehouse manager. Mr Rantor reports directly to Dr Church and has Mr Jones reporting to him. Mr Trainer reports directly to Mr Waters. In the past, Mr Smith reported to Mr Trainer but since the implementation of MRP II, Mr Smith reports directly to Dr Church. Dr Church and Mr Ratnor were earliest and the strongest advocates of MRP II at board level

The choice of the Software:CompanyYhasalwayshada“progressive”viewontheuseofInformationTechnology.Thefirstdepartmenttousea computer was the accounts department who used them to automate repetitive manual processes such as Payroll, Accounts Payable, General Ledger, Financial Modelling and Standard Costing. From there Company Y developed a Plant Inventory Control System that was essentially a computer based Warehouse System to replace the classic card based warehouse stock system.

At that time, an American sister company supported all software developments on the site. There were no programmers on the site and only two operators. In November 1983, an MIS department was formed which initially was only responsible for installing software produced by the American Parent company. In 1985 it began to employ its own programmers and began to make improvements to the existing software by adding modules for purchasing and distribution: all of which were produced in house. The MRP project was launched in May 1987.

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A project team consisting of a director, Mr Zimmer, two full time members of staff and 12 part time members of staff was set up. The American parent company had a bulk Purchase Agreement with IBM and IBM supplied almost all of Company Y’s hardware and software. The American parent company informed Company Y that MAPICS II, an IBM product, should be included in the evaluation process as “interfaces with other divisions must be considered”. By September 1987, a short-list of Software had been agreed upon which consisted of three products - MAPICS II, DATA3 and BPCS.

In November 1987, after visits to other users of MRP II, the majority of the project team selected BPCS as the preferred software. The only dissenting voice at this time was the MIS dept who felt that a better system could have been written in-house. The choice of BPCS was not acceptable to the US parent company who asked Company Y to look at MAPICS II again. The feeling in Company Y was that although MAPICS II was perfectly adequate for most of the businesses in the parent company (essentially manufacturers of Pharmaceuticals) it was not suited to their operations.

Your Task. Thewholeclassshouldfirstsplitintogroupsoffive.Then:

1. As individuals. Each member of the group should read one of the following interviews and note down both the original aims behind the introduction of MRP II and the problems that Company Y is now experiencing. Decide among yourselves who will read what. Note: each interview only contains part of the whole picture.

2. As a group When you have each read one interview discuss, as a group, the problems faced by the company as a whole. You should produce a list of problems that you all agree face the company. This list will form the basis of the next stage of the exercise.

3. As individuals. Using the material that has been covered in the lectures so far, analyse the agreed list of problems and prepare notes on:

Where Company Y successful, or unsuccessful, in the introduction of MRP II? •Did Company Y identify all of the factors relevant to the introduction of a new system at the outset and, if not, •what did they miss? What were the organisational impacts of the MRP II and how well were they managed? •

4. As a group Reformingroupsandbrieflydiscusseachother’sreportandattempttoproduceanagreedstatementoneachoftheabove points.

Interview with Mr Dave Rantor, Production Director This interview with Dave Rantor was held shortly before the new MRP II system went live. In it, he explains what his expectations about the impact of the system are. These views were shared by all of the senior management of Company Y.

Q: Can you tell me a bit more about the role of the MRP II system in the production area, what sort of uses will you be making of it? A: Well, I suppose it’s better to talk about the reason we felt that we wanted to put an MRP II system in to start with. Itstartedabout4yearsagoIsupposewefirststartedgrapplingwiththeproblemofhowtobecomemoreefficientand more effective in the future. I suppose that there were two driving forces.

Thefirstonewastheneedtocontaincostsandtomakebetteruseoftheresourcesthatwehad.


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There was a shortfall in capacity. We have enough people, we have enough management resources and we give out warehouse space. It was actually the manufacturing capacity that was defective. So there were options there. We could either build a new plant which could have cost us about £200 million, or, we could not take the business, or, we could better optimise the utilisation of our existing capacity. It was apparent that we would not be able to justify huge sums of capital for additional equipment in the future when we still had some of our existing resource un-utilised. The problem was to make better use of our existing resources to free up that spare time so that we could bring in new business, and, to make better use of the people who weren’t fully utilised.

We needed something that was going to help us to plan our resources more effectively and when we looked at MRP II that seemed as though it was going to do just that. MRP II was going to ensure that we only manufactured that which we needed, it was going to reduce our inventory, and it’s got potential for planning our materials right the way through the whole of the manufacturing process. It was also going to enable us to plan the utilisation of our peoplemuchbetter.Theobviousresultofusingourresourcesinamoreeffectiveandmoreefficientwaywasthatwe would bring our unit cost down and that should make us more competitive. The other beauty is that we’d be able to bring in more business without having to go to the corporation and ask for more capital. So it seemed to fulfilanumberofproblemsthatweweregrapplingwith.Iguesstheotherareathatcausedusalotofconcernwasthat, over the years, different departments were working with different pieces of data. It was becoming increasingly apparent that much of the time was being spent in trying to defend the different pieces of data against all the other data that was around. There was no common database from which the company operated.

There was a lot of different information, and all that did was to confuse people because, depending upon who you asked,yougotadifferentanswer.Itwasalsoleadingtomuchunnecessaryworkherejusttryingtofigureoutwhichnumbers were correct, if any of them was correct, and what the basis of those numbers was. We saw an enormous advantage if we could bring in one common database across the company that was available to everyone and was being constantly updated. So, once again, MRP II was an obvious way of tackling that problem.

So, that’s where we started from. We started by saying these are the problems we’ve got and MRPIIappearedtobeasolutiontotheseproblems.Thenwebegantoseeanumberofotherbenefitsthatweregoing to come from having MRP II that was to do with changing our culture, for want of a better expression. Our feeling was that responsibility was not being taken at the appropriate level in the organisation. There was a need to force responsibility and accountability down the management line to the place where the accountability should rest. It varied throughout the organisation but in general we felt the accountability was one or maybe two layers above where it ought to be. We saw that MRP II was going to help us because everyone was going to be part of the same system.

I guess the second big advantage we saw in the culture change was to do with the way us wanted to implement MRP - we wanted to implement it companywide. It was going to have an effect on everyone within the company and it was going to give us an opportunity to do a lot of team building and to encourage team work, to focus people’s attention on common objectives.

There was going to be a need to do a lot of training, training if done within the right groups, could do a great deal to enhance the feeling of teamwork amongst the various departments and also within departments.

So, it started off with two particular problems that we wanted to solve but, as we got more into MRP II, we realised that this was an opportunity to bring about some more fundamental changes in some areas that we didn’t even contemplate right at the very beginning. I think what we said is, well here’s a system that depends upon people, and the advantage of this system is that it’s got a computer that’s going to enable us to ensure that our data is accurate. We will be able to pull information out of that computer a lot easier than we can get hold of the information at the moment. However, it’s only going to work for us if people accept that the computer is merely something that’s going to play with the numbers and that it’s the people that are still going to make the decisions. It’s the people that are going to determine how successfully we make use of that computer system. That’s something that we’ve been hammering right from day one, that it’s not MRP II that’s going to change the way in which we operate, it’s going to be the way the people handle MRP II. The way that people make decisions when they’ve got the better information that’s going to make the system work.

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(Source: http://www.chris-kimble.com/Courses/mis/case_study_one/case_study_one.pdf)

Question:Which software is chosen in this case study and why?1. What is an individual task?2. What is a group task?3. Who all are the involved in the interview? 4.


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Bibliography

ReferencesAbrams, M. D. and Podell, H. J., • Local Area Networks [pdf] Available at: <http://www.acsac.org/secshelf/book001/16.pdf> [Accessed 5 September 2011]. Agarwal, V. V., Huddleston, J., Raghuram, R., Gilani, S.F. and Jacob, J. R., 2008. • Beginning C# 2008 Databases: From Novice to Professional, Hammer Pedersen, pp. 4- 49. Alexander, L.F. and Maiden, N., 2005. • System Requirement & Development Life Cycle, Wiley-India. pp. 300-457. Bhattacharjee, S., Software Development Life Cycle (SDLC) [pdf] Available at: <http://cab.org.in/Lists/•Knowledge%20Bank/Attachments/83/SDLC.pdf > [Accessed 24 August 2011]. Cassidy. A., 2005. • A practical guide to information systems strategic planning, Auerbach Publications, pp. 376datatechnologytoday, 2011. • Data and Technology Today [Online]. Available at: <http://datatechnologytoday.wordpress.com/2011/03/28/the-importance-of-database-design-reviews/> [Accessed 29 August 2011].English, L. P., 1999. • Improving data warehouse and business information quality [pdf] Available At: <http://www.infoimpact.com/IQBook/iq.pdf>. [Accessed 1 September 2011].Falkenberg, E. D., Lyytinen, K. and Stuart, V., 2000. • Information systems concepts, Springer, pp. 3-47. FP&M World Class Journey• . Strategic Planning. [Online]Available at: <http://www.fpm.iastate.edu/worldclass/strategic_planning.asp> [Accessed 25 August 2011].Ghosh, M. and Avasia, M. • Intra, extra and Internet: Information Management And Sharing In Libraries [pdf] Available at: <http://eprints.rclis.org/bitstream/10760/8218/1/Kharagpur_conference.pdf>. [Accessed 2 September 2011]. Hekmat, S. • Communication Networks [pdf] Available at: <http://www.pragsoft.com/books/CommNetwork.pdf> [Accessed 24 August 2011].Helmer, R. and Hespanhol, I. Chapter 9* - • Information Systems. [pdf] Available at: < http://www.who.int/water_sanitation_health/resourcesquality/wpcchap9.pdf>. [Accessed 30 August 2011]. HP innovation, 2005. • WAN Design Guide, The Lower Layers [pdf]. Available at: <http://www.hp.com/rnd/pdfs/WANDesignGuide.pdf> [Accessed 5 September 2011].Inmon, W.H., 2005. • Building The Data Warehouse, 4th ed., Wiley-India, pp. 71-210. Jarke, M., 2003. • Fundamentals of data warehouses, Springer, pp.1-83. Josh, J. and Johnsons, E. • Data Modelling and Design in Information System [pdf] Available at: <http://www.ca.com/files/whitepapers/part1_db_modeling_design_information_systems.pdf>[Accessed29August2011].Kissel, R., Stine, K. and Scholl, M.,• Information security [pdf] Available at: <http://csrc.nist.gov/publications/nistpubs/800-64-Rev2/SP800-64-Revision2.pdf> [Accessed 24 August 2011]. Liddy, E. D., 2007. • Information Technology Trends [pdf] Available at: < http://www.cnlp.org/presentations/slides/Liddy.ITtrends.pdf> [Accessed 6 September 2011]. Martin, J., 1981. • Computer networks and distributed processing, software, techniques, architecture, pp. 400-550 Muller, R. J., 1999. • Database design for smarties: using UML for data modeling, Morgan Kaufmann, pp. 1-139. O’brien, 2010. • Introduction to Information Systems, Tata McGraw-Hill Education. pp. 10-290. Parson, J. J., 2010. • New Perspectives on computer concepts 2011, Cengage learning. pp. 554-600. Pollack. T. A. • Strategic Information Systems Planning [pdf]Available at: <http://www.ascue.org/files/proceedings/2010/047.pdf> [Accessed 25 August 2011]. Schmidt, J.W. and Stogny, A. A., 1990. • Next generation information system technology, Springer, pp. 1-45.

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Schultheis, 1999. • Management Information Systems: The Manager S View. Education. [Online] Available at: <http://books.google.co.in/books?id=D6BafR3f6rYC&dq=pdf+strategic+planning+in+information+system&source=gbs_navlinks> [Accessed 25 August 2011]. Seifert, E.K., 2010. • Information system for sustainable development [pdf] Available at: <http://www.dss.dpem.tuc.gr/pdf/Information%20Systems%20for%20Sustainable%20Development.pdf>. [Accessed 30 August 2011]. Sheth, N. J., • Strategic Importance of information technology [pdf] Available at: <http://www.jagsheth.net/docs/Strategic%20Importance%20of%20Information%20Technology.pdf> [Accessed 6 September 2011]. Singh, K.A., 2005. • Computer Networks, Firewall Media, pp. 1- 21. Stair, R and Reynolds, G., 2011. • Principles of Information Systems, Cengage Learning, pp. 375-400. Stair, R. and Reynolds, G., 2011. • Principles of Information Systems, Cengage Learning, pp. 293-326. Tanenbaum, A. S., 2003. • Computer networks, Prentice Hall Professional, pp. 14-40.Ward. J and Peppard, J., 2002. • Strategic planning for information systems. John Wiley and Sons, pp. 26-89. Wei, W., Wang, B., Zhang, C., Twosley, D. and Kuorse, J• . Classification of Access Network Types: LAN, Wireless LAN, ADSL, Cable or Dialup? [pdf] Available at: <ftp://gaia.cs.umass.edu/pub/Wei04_wireless-wired-tech.pdf> [Accessed 24 August 2011].

Recommended Reading Ralph, M., Stair, and Reynolds. G. W., 2008. • Fundamentals of Information Systems, Cengage Learning. Effy, Oz., 2008. • Management Information Systems, Cengage Learning.Curtis, G. and Cobham, D., 2008. • Business Information Systems: Analysis, Design and Practice, Pearson Education.Peterson, L. L. and Davie, B. S., 2011.• Computer Networks: A Systems Approach, Elservier.Stair, R. M., Reynolds, G. and Reynolds, G. W., 2009. • Principles of Information Systems, Cengage Learning.Kwiecien, A., Gaj, P. and Sterna, P., 2011. • Computer Networks, Springer.Devlin, B., 1997. • Data warehouse: from architecture to implementation, Addison-Wesley.Kimball, R. and Ross, M., 2011.• The Data Warehouse Toolkit: The Complete Guide to Dimensional Modeling, John Wiley and son.Rainardi, V. 2008, • Building a Data Warehouse: With Examples in SQL Server, Wiley-India.Stair, R. and Reynolds, G., 2011. • Fundamentals of Information Systems, Cengage Learning.Hall, J. A., 2010. • Accounting Information Systems, Cengage Learning.Mcleod, 2008. • Management Information Systems, 10/E. Pearson Education India.Halpin, T. A., Evans, and Halloc, K. P., 2003. • Database modeling with Microsoft Visio for Enterprise Architects, Morgan Kaufmann. Coronel. C., Morris, S. and Poss, P., 2009.• Database systems: design, implementation, and management, Cengage Learning. Carpenter, T., 2010. • SQL Server 2008 Administration: Real-World Skills for MCITP Certification and Beyond (Exams 70-432 and 70-450), John Wiley and Sons.Mcleod, 2008. • Management Information Systems, 10/E, Pearson Education India. Satzinger, J. W., Jackson, R.B and Burd, S. D, 2008. • Systems Analysis and Design in a Changing World, Cengage Learning EMEA, Hoffer, 2000. • Modern Database Management, Pearson Education India.Schultheis, 1999. • Management Information Systems: The Manager S View, Tata McGraw-Hill Education.


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Pan, Y., 2005. • Parallel and distributed processing and applications: third international symposium, ISPA 2005, Nanjing, China, November 2-5, 2005: proceedings, Birkhuauser.Das, N., 2004. • Distributed computing: IWDC 2004: 6th international workshop, Kolkata, India, December 27-30, 2004: proceedings, Springer.Kamel, M., 1999. • System development life cycle: obstacles along the way, Wiley-India. Lewis, J., 2008. • Sdlc 100 Success Secrets - Software Development Life Cycle (Sdlc) 100 Most Asked Questions, Sdlc Methodologies, Tools, Process and Business Models, Lulu.com. Connolly, 2008. • Database Systems: A Practical Approach To Design, Implementation And Management, 4/E, Pearson Education India.

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Self Assessment Answers

Chapter Id1. a2. a3. b4. b5. c6. a7. b8. a9. c10.

Chapter IId1. a2. b3. d4. c5. b6. a7. c8. a9. a10.

Chapter IIIa1. b2. a3. d4. a5. b6. c7. b8. b9. a10.

Chapter IVd1. a2. d3. b4. a5. c6. d7. b8. a9. c10.


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Chapter Va1. d2. c3. b4. a5. d6. a7. c8. a9. b10.

Chapter VIb1. a2. d3. a4. d5. b6. b7. b8. c9. d10.

Chapter VIIa1. b2. a3. c4. d5. b6. c7. a8. a9. d10.

Chapter VIIIa1. c2. b3. a4. b5. d6. c7. a8. b9. d10.

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