Information Technology (Master Revision Notes) · 2020. 4. 14. · BPR Success Factors / Critical...

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INFORMATION FOR CA IPC TECHNOLOGY MASTER REVISION NOTES Master Revision Notes

Transcript of Information Technology (Master Revision Notes) · 2020. 4. 14. · BPR Success Factors / Critical...

  • INFORMATION

    FOR CA IPC

    TECHNOLOGY

    MASTER

    REVISION

    NOTES

    Master Revision Notes

  • Table of Contents

    Topic Coverage (From to To) CHAPTER 1 2 – 9 CHAPTER 2 10 – 22 CHAPTER 3 23 – 32 CHAPTER 4 33 – 40 CHAPTER 5 41 – 46

    HARDWORK IN THE RIGHT DIRECTION

    IS THE ONLY SHORT-CUT TO SUCCESS.

    © All Rights Reserved

    All rights reserved with the Author. No part of this book may be reproduced,

    stored in any electronic retrieval system, or transmitted in any form or by

    any means, electronic, mechanical, photocopying, recording, or otherwise,

    without prior permission, in writing, from the Author.

  • C-1 of IT (Business Process Management & IT) Page 2

    Process & Business Process

    Process is a coordinated and standardized flow of activities performed by people or machines, which can

    traverse functional or departmental boundaries to achieve a business objective and creates value for

    internal or external customers.

    Business Process is a prescribed sequence of steps performed in order to produce a desired result. Each

    business process is enacted by a single organization, but it may interact with business processes performed

    by other organizations as per the needs and requirements of the organisation. Examples of key business

    processes are accounting, sales and purchase, finance etc.

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  • Organizational Business Processes Operational Business Processes High level processes specified in

    textual form by their inputs, outputs,expected results & dependencies onother business processes.

    These processes act as supplier orconsumer processes.

    Like managing incoming rawmaterial is an example of it.

    Multiple operational processes workstowards the attainment of oneorganizational business process.

    These are the basis for developingimplemented business processes.

    Here activities and their relationshipsare determined.

    Business Process Management (BPM)BPM is defined as “The achievement of an organization’s objectives through the improvement, management & control of essential business processes”.

    BPM Principles BPM Practices a. First is processes are assets for the organisation.b. Second is managed process produces consistent

    value to customers and has the foundation for theprocess to be improved.

    c. Third is continuous improvement of processes.d. Fourth is Information technology is an essential

    enabler for BPM.

    a. Process-oriented organizational structureb. Appoint Process Ownersc. Top-Down Commitment, Bottom - Up Executiond. Use IT to Manage Processese. Collaborate with Business Partnersf. Continuous Learning & Process Improvementg. Utilize BPR, TQM or Other Process Improvement

    Tools

    Classification of Business Processes

    Business Process Management Life Cycle

    Also known as BPM-L Cycle, It involves five phases:

    I. Analysis

    II. Design

    III. Implementation

    IV. Run and Monitor

    V. Optimize

    C-1 of IT (Business Process Management & IT) Page 3

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  • Page 4

    Six Sigma is customer focused.

    Produces higher return compared to others.

    Changes how management operates.

    C-1 of IT (Business Process Management & IT)

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  • a. Organization wide commitmentb. BPR team compositionc. Business needs analysisd. Adequate IT infrastructuree. Effective change managementf. Ongoing continuous improvement

    BPR Success Factors / Critical

    success Factors for BPR

    Suppose a customer goes bank for loan, ATM card & open a savings account. Now he may visit three different desks. When BPR is applied to bank, he will communicates with only one person, called "CASE MANAGER", for all three inquiries. Under BPR, while loan application team processes loan application, CASE MANAGER "triggers" account team to open a savings account and ATM team to supply ATM card.

    Example

    of BPR

    Value Chain Automation

    C-1 of IT (Business Process Management & IT) Page 5

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  • Need or Importance of BPM Implementation

    • Create long-term future positioning of the business;

    • Create short-term effectiveness;

    • Initiate a culture of continuous improvement;

    • Introduce a knowledge of product & customer profitability;

    • Provide a clear competitive differentiation;

    • Introduce leadership role for managers

    • Empowering staff.

    Page 6

    Value Chain Automation

    Value chain is defined as a chain of activities that a firm performs to deliver product or service to the

    market. Value Chain is based on process view. Value chain involves six business functions.

    Automation of the entire activities of value chain provides significant competitive advantage to the

    organization as in the automated value chain different functions acts in the integrated manner.

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  • Documentation of Information System

    • Depicts how the system works

    • Assists in user training

    • Designing new systems

    • Controlling system development & maintenance costs

    • Auditing Information Systems

    • Documenting business processes

    Mapping of Information System

    The purpose of mapping is to define the activities involved in a business process and to find

    opportunities for improvements in current process. Some popular mapping techniques are:

    A. Entity Relationship Diagram;

    B. Data Flow Diagram;

    C. Flowchart;

    D. Decision Tree; and

    E. Decision Table

    C-1 of IT (Business Process Management & IT) Page 7

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  • A. Entity Relationship (ER) DiagramER diagram creates a graphical representation of the entities, and the relationships between entities, within an information system.

    Symbols used in ER Diagram Advantages Boxes: It represents entities.

    Diamonds: It represents relationship among entities.

    Ovals: It represents attributes.

    Simple and easily understandable

    Helps in Database creation.

    Generalized or specialized based on needs

    Gives higher level description of system.

    Limitations

    May have some inconsistency

    May lead to misinterpretations

    B. Data Flow Diagram (DFD)Data Flow Diagram (DFD) is a graphical representation of the flow of data through an information system.

    Major components of DFD Types of DFD Entity: Data source or destination. Represented by

    rectangles.

    Process: It receives input & generates output. Shownby circles or segmented rectangles.

    Data Store: Data is stored for later retrieval.

    Data Flow: Shows movement of data.

    Logical DFD

    Physical DFD

    Context Level DFD

    Advantages

    Easies to understand

    Helps in system documentation

    Straightforward technique

    Limitation

    Takes long time to create

    Makes cause confusion in programmer

    C. FlowchartFlowchart is a diagram prepared by the programmer for the sequence of steps involved in solving a problem. It is an essential tool for programming. A flowchart helps the programmer avoid fuzzy thinking & accidental omissions of intermediate steps.

    Advantages Types Quicker grasp of relationships

    Effective Analysis f system

    Helps in documentation of system

    Helps in effective coding of coding

    Helps in program debugging

    Helps in program maintenance

    Effective communication of business problems

    Document Flowchart

    System Flowchart

    Program Flowchart

    Limitations

    Complex Logic

    Modification is difficult

    Lack of standardisation

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  • D. Decision TreeAlso termed as an Inference or Logical tree, it is a tree-like representation and is defined as a collection of a basis (condition) and a conclusion (action).

    Advantages Limitations Simple to understand & interpret

    Possible scenarios can be considered

    May be complex & costly

    Needs lot of time in analysis

    E. Decision TableFlowchart is a diagram prepared by the programmer for the sequence of steps involved in solving a problem. It is an essential tool for programming. A flowchart helps the programmer avoid fuzzy thinking & accidental omissions of intermediate steps.

    Advantages Parts of Decision Table Easy to Draw

    Compact Documentation

    Simplicity

    Better Analysis

    Non-technical

    Standardization

    Condition Stub

    Action Stub

    Condition Entries

    Action Entries

    Limitations

    Programmers may not be aware of it

    Flowchart is better in representing logics

    C-1 of IT (Business Process Management & IT) Page 9

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  • Use of IT for Gaining Strategic Edge

    Companies which use IT for gaining strategic

    edge over competitors differs from their

    competitor’s in following two ways:

    • They view IT as strategic business enabler

    & not as just cost component.

    • They work to maximize the efficiency of

    their IT operations.

    Reasons of using IT

    Today, Companies have multi country

    presence & environment is complex, dynamic

    & uncertain. Use of proper IT tools is essential

    and few reasons of the same are as follows:

    • Communication capabilities

    • Data & Information Management

    • Process Automation

    C-2 of IT (Information Systems & IT Fundamentals) Page 10

    Overview of the Chapter

    In today’s highly competitive world, Companies has to respond very quickly according to the changes

    happening in the market. Not only this, Companies have to plan their policies accordingly. Information

    System and Information Technology assists the Company in the entire exercise and plays most vital

    role in the successful functioning of the organisation. This chapter introduces Information System and

    Information Technology and how it is helpful in the organisation. This chapter also covers Cloud

    Computing & Mobile Computing which is very important in today’s business world.

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  • Auditing in IT Environment

    Auditing in IT environment significantly differs from manual audit. In IT system, since there is no clearly visible audit trail. In IT environment, auditor would conduct audit as per the objectives of audit. The following are the general objectives of audit:

    Verify that assets, liabilities etc. are real

    Verify that event occurred in accordance with management’s intent.

    Verify that accounting values fairly presents items worth. .

    Verify that entity complies with laws, regulations etc.

    Ensure that there are proper & effective internal controls.

    Verify that entity’s information system is free from unauthorized intrusion.

    Controls in Information System

    A well designed Information System must have proper

    controls built-in for all sensitive areas. Following are

    important aspects for control in this regard:

    • Access to IT resources, data & programs controls;

    • System development methodologies controls;

    • Control over Programming;

    • Logical Access Controls;

    • Physical Access Controls;

    • Business Continuity Planning (BCP)

    • Disaster Recovery Planning (DRP);

    • Control over Network & Communication;

    Technology Risk & IT Auditor

    “Technologies Risk” arises when Entity is

    very dependent on technology. Auditors

    can help Entity to understand technology

    risk with following questions:

    • What type of processes entity use to

    identify technology risk & how

    effective these process are?

    • What risk would business face when

    it makes changes to critical system?

    Business Process Automation (BPA)

    BPA is defined as the automation of business

    process using the latest technologies.

    Critical Pillars of BPA / Elements needed to tied

    up for establishing BPA

    • Integration

    • Orchestration

    • Automation

    Proper Integration, Orchestration & Automation

    helps entity in achieving Rule Based Automation

    of Business Processes.

    Steps involved in BPA

    • Define why we plan to implement BPA.

    • Understand the rules / regulations.

    • Document process we wish to automate.

    • Define goals to be achieved by

    implementing BPA.

    • Engage Business process consultant.

    • Calculate the ROI for project.

    • Development of BPA.

    • Testing the BPA.

    More Details about BPA

    in Chapter No. 5.

    C-2 of IT (Information Systems & IT Fundamentals) Page 11

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  • Server & Its Types

    Powerful computers which provides services like

    computing, database management etc. & resources

    like storage etc. to all connected clients. Server are

    dedicated in nature meaning they perform no other

    tasks besides their server task. Some of the types of

    servers are:

    • File server

    • Print server

    • Network server

    • Database server

    • Mail server

    • Application server

    • Web servers

    Computer Architecture

    It is the science & art of selecting and

    interconnecting hardware components.

    Computer architecture includes three

    main subcategories:

    A. Instruction Set & Instruction Set

    Architecture (ISA)

    B. Micro Architecture

    C. System Design

    A. Instruction Set & Instruction Set Architecture (ISA)

    Instruction set is the set of machine code instructions that processor can carry out. Each

    processor has its own unique instruction set. These instruction set tells the processor how to

    execute various instructions. There are two types of Instruction Sets namely:

    • Complex Instruction Set Computing (CISC)

    • Reduced Instruction Set Computing (RISC)

    On the other hand, Instruction Set Architecture (ISA) is related to the programming of a

    computer that is, how the computer understands what each element is. It acts as a ‘bridge’

    between software & hardware.

    C-2 of IT (Information Systems & IT Fundamentals) Page 12

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  • B. Micro Architecture

    • Also known as Computer Organization.

    • It is a lower level detailed description

    of the system.

    • It describes the operation of all parts of

    the computing system, and how they

    are inter-connected.

    • This describes the data paths, data

    processing elements and data storage

    elements, and describes how they

    should implement ISA.

    B. System Design

    It includes all other hardware components within a

    computing system such as:

    • Computer Buses: It is a communication system

    that transfers data between components inside

    a computer, or between computers. E.g. I/O Bus,

    Memory Bus, Data Bus, Address Bus etc.

    • Memory controllers: It is a digital circuit which

    manages the flow of data going to and from the

    main memory (RAM). It can be a separate chip

    or integrated into another chip.

    • Direct Memory Access (DMA): It allows certain

    hardware subsystems within the computer to

    access system memory independently of the

    central processing unit (CPU). This process is

    managed by a chip known as a DMA controller.

    • Multiprocessing: Multiprocessing is the use of

    two or more Central Processing Units (CPUs)

    within a single computer system to allocate

    tasks between them. Such devices are known as

    Dual Core, Quad Core or even Octa Core devices.•

    CISC vs. RISC Processors Basis CISC RISC

    Instruction Type Complex (Multi) Reduced

    Coding Simple compared to RISC

    Difficult

    No. of Instruction set Large Small Power Consumption High Low

    Cost High Low Instruction Set Length Variable Fixed

    Example Intel i3, i5, i7 etc Qualcomm Snapdragon

    C-2 of IT (Information Systems & IT Fundamentals) Page 13

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  • Emerging Computing Model

    Few emerging computing technologies which is creating significant impact on businesses &

    organizations are CLOUD COMPUTING & MOBILE COMPUTING.

    C-2 of IT (Information Systems & IT Fundamentals) Page 14

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  • Cloud Computing Architectures

    It consists of front end platforms, back end platforms, middleware & cloud based delivery & network (internet, intranet etc). The combination of all these components becomes clouds computing architectures.

    • Front End - It comprises of the clients devices & other applications needed for accessingcloud computing system.

    • Back End - In cloud computing back end is cloud itself which encompasses variouscomputer hardware, data storage devices, servers etc.

    Middleware - Cloud computing uses a special type of software called Middleware thatallows computers that are connected to cloud to communicate with each other.

    C-2 of IT (Information Systems & IT Fundamentals) Page 15

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  • Characteristics of Cloud Computing

    Elasticity and Scalability

    Pay-per-Use:

    On-demand

    Resiliency

    Multi Tenancy

    Workload Movement

    Advantages of Cloud Computing

    Cost Efficient

    Unlimited Storage

    Backup and Recovery

    Automatic Software Integration

    Access to Information from anywhere any time

    Quick Deployment

    Disadvantages of Cloud Computing

    Technical Issues

    Security in the Cloud

    Prone to Attack

    Information System Layers

    A. Application Software

    B. System Software

    C. Hardware

    D. Network Links

    E. Database Management System

    F. People / Users

    C-2 of IT (Information Systems & IT Fundamentals) Page 17

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  • A.

    B.

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  • D. Network Links

    Computer Network is a collection of computers & other devices connected by communication channels that allows sharing of resources & information. Terms associated are:

    Routing – Process of deciding on how to communicate data from source to destination.

    Bandwidth – Amount of data which can be transferred in network in given time frame.

    Resilience – Ability to provide service in the face of faults & challenges.

    Contention – It allows the different nodes to contend when there a conflict for somecommon resources in a network.

    C-2 of IT (Information Systems & IT Fundamentals) Page 20

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  • F. People / Users

    People includes users, information systems personals etc.

    C-2 of IT (Information Systems & IT Fundamentals) Page 21

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  • “Difference between Questions”

    A. Public vs. Private Clouds

    Basis Public Cloud Private Cloud Meaning Cloud computing service established &

    maintained by the third party vendors. This cloud computing service are being established & used by the company itself.

    Access It is a shared cloud computing service which can be accessed by any one.

    This cloud computing service is access by the entity which established it.

    Cost Cheaper compared to private cloud. Costs more compared to public cloud.

    Security As many people have access to the public cloud & it is open to public, security may be a big concern.

    More secure compared to the public cloud as it is only accessed by the persons internal to the entity.

    Scalability Services are infinitely scalable. Services are scalable upto a certain point & beyond that, company may have to expand the capacity of its private cloud.

    Examples Amazon Web Services, Microsoft Azure, IBM, Google Cloud Platform etc.

    Cloud networks developed for internal purposes.

    C-2 of IT (Information Systems & IT Fundamentals) Page 22

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  • C-3 of IT (Telecommunication & Network) Page 23

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  • A. Area Coverage Based ClassifcationLocal Area Network (LAN) Metropolitan Area Network (MAN)

    LAN connects devices within a limited physical area like Offices, Classrooms, Manufacturing plant etc. Advantages o Security.o Distributed processing of data.o Electronic mail and Message Broadcastingo Organizational Benefits like reduced cost.o Data management like easy backup.o Software cost and up-gradation reduces.

    MAN refers a networks which provides connectivity within a metropolitan area (within a City or Town). MAN interconnects computer in a geographic area larger than LAN but smaller than WAN.

    Wide Area Network (WAN)

    WAN covers large geographic areas with various communication facilities like satellite and under-sea cables etc. These networks cover areas such as large city, country or even many countries and continents.

    C-3 of IT (Telecommunication & Network) Page 25

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  • C. Ownership Based ClassifcationVirtual Private Network (VPN) Public Data Network

    VPN is a private network that uses a public network. VPN is a secure network that uses Internet as its main backbone, but relies on the firewalls and other security features to establish a secure connection.

    It is a network accessed by users not belonging to single organization & used for providing data transmission services to public. Like Internet.

    Private Data Network

    It provide businesses & government agencies a dedicated network to continuously receive and transmit data. An intranet is a private network.

    Centralized vs. Decentralized ComputingOne of the biggest concerns for companies managing multiple remote sites is whether to centralize all computing resources or manage their infrastructure in a distributed way.

    Centralized Computing Decentralized Computing Entire computing is done at central location. Benefits:

    Lower capital and operational cost,

    Security,

    Less administrative overhead etc.The downside is that if the central server is down, it will put the entire organization at complete halt.

    Here there is the allocation of resources, (hardware & software), to each individual site. Each site is self-sustained & very limited connectivity to primary datacenter is required. The benefit is that each site can ‘survive’ on its own. There is no Single Point of Failure in this regard. However this causes huge cost.

    Page 27 C-3 of IT (Telecommunication & Network)

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  • Computer NetworkA Computer Network is two or more computers linked together to share information and resources. There are several types of computers networks, but most important types are Internet, Intranet and Extranet.

    Internet Intranet Extranet Massive global system connecting computer networks around the world. Business uses are:

    E-mail, video conferencing etc.

    e-Commerce

    Providing online customer

    Collaboration with partners

    Developing new markets anddistribution channels.

    Intranet is company’s private network accessible only to the employees of that company. Intranet can be used for:

    Communications

    Collaboration

    Web Publishing

    Business Operations

    Extension of company’s intranet which can also be accessed by organization’s suppliers, customers, etc. Companies can use an extranet for following tasks:

    Share product catalogues

    Collaborate with other companies

    Develop & use training programs withother companies;

    Access services of group companies

    Share news of common interest

    Mobile CommerceMeaning Industries affected

    Also known as m-Commerce, it is buying and selling of goods and services through wireless handheld devices like smart phones. The technology behind m-commerce, which is based on the Wireless Application Protocol (WAP), made huge impact on businesses all around.

    • Financial services• Mobile banking• Brokerage services• Service/retail

    Information services

    C-3 of IT (Telecommunication & Network) Page 31

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  • Electronic CommerceAlso known as e-Commerce, it is the process of doing business electronically. It refers to the use of technology for commercial transactions between a company, its customers and its business partners.

    Benefits of e-Commerce Risks in e-Commerce Key aspects in implementing e-Commerce Reduction in costs to buyers

    Reduction in costs to sellers

    Prices of goods lowered

    Easier entry into new market

    Reduction in inventories

    Reduction in advertisement

    Repudiation of contract

    Data Loss or theft

    Attack from hackers

    Denial of Service

    Non-recognition of .. e- transactions

    Problem of piracy

    Involving all stake holders. Implementing appropriate policies & guidelines

    Performing cost benefit analysis.

    Implementing appropriate security level.

    Establishing controls at various levels

    Providing adequate user training.

    Performing post implementation review

    Types of e-CommerceBusiness-to-Business (B2B) e-Commerce It refers to the exchange of products & services from one business to another. Here end consumers are not involved & trading volume is huge. E.g. Alibaba.

    Business-to-Consumer (B2C) e-Commerce It refers to the exchange of products and services from a business to a consumer. Here end users can purchase goods & services from the business organisations electronically. E.g. Amazon, Flipkart etc.

    Consumer-to-Business (C2B) e-Commerce Here consumers directly contact with businesses by posting their work online so needy companies can contact the consumer with an offer. The consumer reviews all offers & selects company he wants to provide the service. E.g. Freelancer.com.

    Consumer-to-Consumer (C2C) e-Commerce C2C is a form of e-Commerce where consumers can sell a product or service to another customer electronically. Here there is no business house involved and one final consumer is dealing with another final consumer. E.g. Quikr, OLX etc.

    Business-to-Government (B2G) e-Commerce B2G e-Commerce, also known as e-Government is an emerging area where business organisations offers their products & services directly to government, its agencies.

    Business-to-Employee (B2E) e-Commerce Through B2E e-Commerce, business organisations offers products and services to its employees electronically.

    Electronic Fund Transfer (EFT)Meaning Examples

    EFT is fast and secure means for the receipt or payment of money where the money is transferred from or received to the bank account of the customer.

    • Automated Teller Machines (ATMs)• Point-of-Sale (PoS) Transactions• Pre-authorized Transfers• Telephone Transfers

    C-3 of IT (Telecommunication & Network) Page 32

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  • C-4 of IT (Business Information System) Page 33 T

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  • Business Process Automation (BPA) Meaning Objectives of BPA

    BPA is defined as automation of business process

    using the latest technologies. Through BPA, we want

    to remove the human element from business process

    by automating the repetitive business processes.

    Confidentiality

    Integrity

    Availability

    Timeliness

    Advantages / Benefits of BPA Applications helps in achieving BPA • Reducing the Impact of Human Error• Transforming Data into Information• Improving performance & process effectiveness• Making employees more productive• Making the business more responsive• Cost Saving• Fast customers service

    • TALLY• SAP R/3• MS Office Applications:• Attendance Systems• Automated Toll Collection Systems• Educational Institute Management Systems• Other Systems

    Classification of Business Applications Business applications are software or set of software used for business purposes. Business applications can be classified based on various parameters like:

    A. Based on Nature of Processing B. Based on Source of Application Batch Processing – Transaction are accumulated for

    a specific time & then processed in one go. Like

    credit card statements etc.

    Online Processing – Data is processed immediately

    when it is entered by the user.

    Real-time Processing – Processing is carried out in

    real-time (immediately). Here input is provided via

    sensors. E.g. Warning systems, Guided missiles etc.

    Custom-built Application: These applications are

    developed to meet specific needs of company. Like

    ERP Software, CRM software etc.

    Packaged Software: These are standard applications

    purchased by the company. Like MS Office.

    Leased Application: Here we take applications on

    lease & pays fixed rent for using the application.

    C. Based on Size & Complexity of Business D. Based on Nature of Application• Small and Medium Enterprise (SME): Popular

    software used by such entities are accounts, officeproductivity, email etc.

    • Large Business: The business tools favoured bylarger businesses include CRM, human resourcessoftware; ERP and supply chain management toolsbased on the specific requirements and needs.

    • Accounting Applications: Like TALLY, OfficeManagement Software: Like word processors

    • Compliance Applications: Software for e-filing ofdocuments, e-payments taxes etc.

    • Enterprise Resource Planning Software• Logistics Management Software• Other Industry Specific Applications

    Steps involved in Business Process Automation (BPA) Step 1: Define why we plan to implement BPA?

    The answer to this question will provide justification forimplementing BPA.

    Step 2: Understand the rules/ regulation

    The underlying issue is that any BPA created needs to comply withapplicable laws and regulations.

    C-5 of IT (BPA Through Application Software) Page 41

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  • Step 3: Document the process, we wish to automate

    The current processes which are planned to be automated needs tobe documented.

    Step 4: Define goals to be achieved The goals needs to be precise and clear.

    Step 5: Engage business process consultant.

    Once entity has been able to define the above, entity shouldappoint an expert, who can implement it.

    Step 6: Calculate RoI for project. Here we try to justify the investment needed for the BPA against thepossible advantages from the BPA.

    Step 7: Development of BPA. After ensuring everything, the BPA is developed.

    Step 8: Testing the BPA. Before making the process live, BPA should be fully tested.

    Step 1: Define why we plan to implement BPA / Generic Reasons of Implementing BPA

    Step 6: Calculating the ROI of Project

    Errors in manual processes

    Payment processes not streamlined

    Poor debt management

    Not being able to find documents quickly

    Lack of management understanding of business

    processes

    Poor customer service

    Entity should automate only those processes which can justify investment. Some advantages due to automation may be: • Cost savings from the automated process.• Reduced requirement of manpower• Saving in cost of space file cabinets etc.• Eliminating fines and penalties• Improved collection mechanism• Increased in revenue

    Controls in BPA Meaning & Type Control Objectives

    Control is defined as policies, procedures, practices

    etc. designed to provide reasonable assurance that

    business objectives are achieved & undesired events

    are prevented or detected and corrected.

    • Preventive Control

    • Detective Control

    • Corrective Control

    • Authorization

    • Completeness

    • Accuracy

    • Error Handling

    • Validity

    • Physical Safeguards and Security

    • Segregation of Duties

    ]

    Information System Controls For information systems and their audit, controls can be divided into two major parts namely Managerial controls and Application Controls.

    Managerial Controlss Application Controls Here we examine controls over managerial functions

    that must be performed to ensure the development,

    implementation, operation & maintenance of

    information system in planned & controlled manner.

    Application controls deals with controls related to

    various functions of applications itself like control

    over input, output, database, communication etc.

    C-5 of IT (BPA Through Application Software) Page 42

    For More Notes Visit: www.ClearIPCC.in/blog

  • Managerial Controls

    Control from Fire, Water, Pollution,

    Viruses, Hackers, Energy Variations

    Application Controls

    C-5 of IT (BPA Through Application Software) Page 43

    For More Notes Visit: www.ClearIPCC.in/blog

  • Manual vs. Computerized Information Processing

    Manual Information Processing Cycle Computerized Information Processing Cycle Systems where the level of manual intervention is very high.

    Systems where computers are used at every stage of processing and human intervention is minimal.

    Components:

    • Input: Put details in register.• Processing: Performing calculations on data.• Output: Present information in the form of

    reports.

    Components:

    • Input: Entering data into the computer• Process: Performing operations on the data;• Storage: Saving data or output for future use;• Output: Presenting the results.• Feedback: For any change or modification.

    Delivery ChannelsDelivery channels refer the mode through which information or products are delivered to the users. It is important to have proper and accurate delivery channels for information or product distribution.

    For Information For Products Intranet

    E-mails

    Internal newsletters and handouts;

    Notice boards;

    Manuals, guides and other printed resources;

    Social networking sites like Facebook, WhatsApp.

    Traditional models, brick and mortar type;

    Home delivery of products;

    Buying from a departmental store; and

    Buying online, getting home delivery and makingcash payment on delivery.

    (Q-1) Describe any four output Controls that have to be enforced by the entity both in a batch-

    processing environment as well as in an online environment. (4 MARKS, NOV 2016)

    Answer: Output Controls that have to be enforced both in a batch-processing environment as well as in

    an online environment are as follows:

    Storage of Sensitive Forms: Pre-printed stationery should be stored securely to avoid any misuse.

    Controls over Printing: Unauthorized disclosure of information printed is prevented.

    Report Distribution and Collection Controls: It should be made in secure way.

    Retention Controls: Duration for which outputs should be retained before being destroyed.

    Recovery Controls: These controls are needed to recover output in case it is lost or destroyed.

    C-5 of IT (BPA Through Application Software) Page 44

    For More Notes Visit: www.ClearIPCC.in/blog

  • VirtualizationVirtualization is the act of creating a virtual (not actual) version of hardware (Hardware Virtualization), storage devices (Storage Virtualization), & computer network resources (Network Virtualization).

    Types Advantages A. Hardware / Platform Virtualization

    Creates virtual machine that acts like real computer with an operating system.

    Software executed on such machines is separated from underlying hardware.

    Like computer running Windows may host a virtual machine with the Linux OS.

    Consolidate many small servers into one large server.

    Disaster Recovery

    Server Consolidation

    Testing and Training

    Isolating Applications

    Reduced Cost

    B. Network Virtualization

    Combines available network resources & splits up availablebandwidth into channels.

    This allows a large physical network to be provisioned intomultiple smaller logical networks.

    It improves network traffic control and security.

    C. Storage Virtualization

    It pools data from multiple or differenttypes of storage devices into singledevice.

    Helps in data backup & archiving.

    Data recovery task becomes easy & quick.

    Grid ComputingIt is a computer network in which each computer's resources are shared with other computer in the system. It is a distributed architecture of large numbers of computers connected with each other through Internet.

    Types of Resources Shared Grid Computing security Computation

    Storage

    Communication Software & Licenses

    Single sign on

    Protection of credentials

    Interoperability with local security solutions

    Support for secure group communication

    Benefits of Grid Computing Application Areas of Grid Computing Making use of Underutilized Resources

    Resource Balancing

    Parallel CPU Capacity

    Virtual resource organizations for collaboration:

    Access to additional resources

    Reliability

    • Civil engineers collaborations• Insurance companies• Application service providers• Large-scale science and engineering experiments

    etc.

    Using Grid: User’s Perspective Using Grid: Administrator’s Perspective a. Enrolling and installing Grid Software

    b. Logging onto the grid

    c. Queries and submitting jobs

    d. Data configuration

    e. Monitoring progress and recovery

    f. Reserving resources

    a. Planning

    b. Installation

    c. Managing enrolment of users

    d. Certificate Authority

    e. Resource Management

    f. Data sharing

    C-5 of IT (BPA Through Application Software) Page 45

    For More Notes Visit: www.ClearIPCC.in/blog

  • (Q-2) A company is reluctant to setup Grid Computing infrastructure. As a consultant, explain the

    management the benefits of Grid Computing. (RTP NOV 2016)

    Answer: Major benefits of Grid Computing are as follows:

    Making use of Underutilized Resources: Grid computing helps in using underutilized resources.

    Resource Balancing: Grid helps in balancing resources from high to low utilization machine.

    Parallel CPU Capacity: With grid, there can be usage of massive parallel CPU capacity.

    Virtual resources organizations for collaboration: Grid provides an environment for

    collaboration among users. They can share their resources such as data, software etc.

    Access to additional resources: In addition to CPU and storage resources, a grid can provide

    access to other resources as well like network capacity sharing etc.

    Reliability: Grid computing provides a secure and reliable system.

    (Q-3) A company is reluctant to setup Grid Computing infrastructure. As a consultant, explain the

    management the benefits of Grid Computing. (RTP NOV 2016)

    Answer: Major benefits of Grid Computing are as follows:

    Making use of Underutilized Resources: Grid computing helps in using underutilized resources.

    Resource Balancing: Grid helps in balancing resources from high to low utilization machine.

    Parallel CPU Capacity: With grid, there can be usage of massive parallel CPU capacity.

    Virtual resources organizations for collaboration: Grid provides an environment for

    collaboration among users. They can share their resources such as data, software etc.

    Access to additional resources: In addition to CPU and storage resources, a grid can provide

    access to other resources as well like network capacity sharing etc.

    Reliability: Grid computing provides a secure and reliable system.

    C-5 of IT (BPA Through Application Software) Page 46

    For More Notes Visit: www.ClearIPCC.in/blog