Management Information System-MIS
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Management Information System
Management Information System
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What Is ManagementWhat Is Management
• Management• the process of coordinating work activities
so that they are completed efficiently and effectively with and through other people• Process - represents ongoing functions or
primary activities engaged in by managers• Coordinating - distinguishes a managerial
position from a non-managerial one
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What is ManagementWhat is Management
• Management (cont.)• Efficiency - getting the most output from the least
amount of inputs• “doing things right” (not wasting resources)• concerned with means• Examples: cutting inventory levels• Decreasing the amount of time to manufacture
products• Effectiveness - completing activities so that
organizational goals are attained• “doing the right things” • concerned with ends
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Efficiency and Effectiveness in Management
Efficiency and Effectiveness in Management
Management Strives For:Low resource waste (high efficiency)
High goal attainment (high effectiveness)
ResourceUsage
Efficiency (Means)
GoalAttainment
Effectiveness (Ends)
Low Waste High Attainment
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Key Resources of MIS Information
Key Resources of MIS Information
• DataAre raw facts that describe a particular phenomenone.g Current Temperature, Price of property, Age of a person etc.
A message which source wants to communicate to the receivere.g Text, Voice, Image, movies, Music etc
• Information: Data that is organized, meaningful, and useful• data with context
• processed data
• value-added to data
• summarized• organized• analyzed
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Data and InformationData and Information
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Changing Data into Information
• Data – Raw facts stored in databases– Need additional processing to become useful
• Information– Required by decision maker – Data processed and presented in a meaningful form– Transformation (any process that changes data into information).
Program instructions
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Data collected within an organisation
Data collected within an organisation
Data collected Where from? Used for?
Order details, customer details complaints
customers
Financial data bank
Cost of goods, new products
suppliers
Sales data Sales Dept
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Data collected within an organisation
Data collected within an organisation
Data collected Where from? Used for?
Order details, customer details complaints
customers Supplying goods, creating invoices and statements
Improved performance
Financial data bank Planning strategic decisions
Cost of goods, new products
suppliers Selling to customers
Sales data Sales Dept Monitor sales against forecasts, re-order of stock
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Characteristics of Valuable Information
1. Accuracy.
2. Verifiable.
3. Timeliness.
4. Organized.
5. Meaningful.
6. Cost effective.
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1.Accuracy
• The information a user receives has been processed correctly
• Correct information
• Free from errors
• Inaccurate information can lead to incorrect decisions
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2. Verifiable
User can confirm and verify the information.
Identify source of information
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Having information when users need it.
Right information must be produced to users at right time.
3.Timely Information
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4. Organized
Information is arranged to suit the needs and
requirements of the users.
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5. Meaningful Relevant to the user who
receives or uses it.
Unnecessary information must be eliminated.
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6.Cost-effective
The cost to produce the information should be less than the
actual cost of the information.
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What is a System?What is a System?
• A system is…• A set of interrelated components• With a clearly defined boundary• Working together• To achieve a common set of objectives• By accepting inputs and producing
outputs• In an organized transformation process
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Basic Functions of a System
Basic Functions of a System
• Input:• Capturing and assembling elements that enter the system to be
processed
• Processing:
• Transformation process that converts input into output
• Output:
• Transferring transformed elements to their ultimate destination
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IT and IS• What is Information Technology?
Any form of technology used by people to handle information.
• What are Information Systems?“A collection of hardware, software, data, people, and procedures that are designed to generate information that support day-to-day
activities of users in an organization”
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• The branch of Engineering that deals with the use of Computers and Telecommunications to retrieve, store and transmit information
• Any computer based tool that people use to work with information & support the information & information processing needs of an organization
Information Technology (IT)
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Definition of Information Systems
“A collection of hardware, software, data, people, and procedures that
are designed to generate information that support day-to-
day activities of users in an organization”
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Components of Information Systems
• Data
• Software
• Hardware
• People
• Procedures
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Information System Activities
Information System Activities
• Input of data resources• Data entry activities
• Processing of data into information• Calculations, comparisons, sorting, and so on
• Output of information products• Messages, reports, forms, graphic images
• Storage of data resources• Data elements and databases
• Control of system performance• Monitoring and evaluating feedback
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Types of Information SystemsTypes of Information Systems
• Operations Support Systems:• TPS( Sales, Inventory, and accounting systems)• PCS( Monitor and control industrial processes ( Petroleum refining,
power generation and steel production systems.• Enterprise collaboration systems, such as e-mail, chat and
videoconferencing systems.
• Management Support Systems:• MIS( Provide information as reports and displays)• DSS(such as products pricing, profitability forecasting, and risk
analysis.• EIS( Provides critical information from MIS, DSS such as system
for easy access to analysis of business performance, action of competitors, and strategic planning
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Types of Operations Support SystemsTypes of Operations Support Systems
• Transaction Processing Systems• Record and process business transactions• Examples: sales processing, inventory systems,
accounting systems
• Process Control Systems• Monitor and control physical processes• Example: using sensors to monitor chemical processes
in a petroleum refinery
• Enterprise Collaboration Systems• Enhance team and workgroup communication• Examples: email, video conferencing
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Transaction Processing SystemsTransaction Processing Systems
• TPS is the important examples of Operations support systems that record and process data resulting from business transactions.
• Computerized systems that perform and record the daily routine transactions necessary to conduct the business; they serve the organization’s operational level
• Examples• Accounting information systems• TCS, DHL, all have systems that are TPS
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Two Ways to Process TransactionsTwo Ways to Process Transactions
• Batch Processing:
• Accumulate transactions over time and process periodically
• Example: a bank processes all checks received in a batch at night
• Online Processing:
• Process transactions immediately• Example: a bank processes an ATM withdrawal
immediately
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Example of TPSExample of TPS
1. An inventory control system keeps a file of records about the stock of goods that a business has on hand (the inventory) which is one aspect of the state of the business.
2. When items are shipped or received, the state of the
business is affected, and the inventory control system makes changes about the inventory in the stored records.
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• 4. It also prints a report giving the quantity on hand for each item in inventory, which is a characteristic of the state of the business.
• Finally, when inventory is low, the system produces output that causes more inventory to be ordered, which is another type of business transaction.
Example of TPSExample of TPS
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Types of TPS Systems
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Transaction Processing System Functions
Transaction Processing System Functions
Input function
• Capture input data• Enter input data• Validate input data
Processing function:
• perform computation• make decision
Output function:
• produce screen output• print output
Storage function:
• stored data• Access data• Update data
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• Transaction processing systems perform input, output, storage, and processing functions.
• Input functions include capturing data on a source document, entering the input data into the system, and checking input data for errors, a process called data validation
• Output functions include producing screen or paper reports, such as detail reports, summary reports, and exception reports.
Transaction Processing SystemTransaction Processing System
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• Storage functions include storing data in files and databases, accessing stored data, sorting stored data, and updating stored data.
• Processing functions involve the manipulation of data, including computation and decision making
Transaction Processing SystemTransaction Processing System
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Transaction Processing SystemsTransaction Processing Systems
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Management Information Systems
Management Information Systems
• MIS provides information in the form of reports and displays to managers and many business professionals. Such as sales analysis, production performance.
• Provides information to business professionals in a variety of easy-to-use formats.
• Examples– Systems that provide managers with reports and online real-
time access to company performance and historical records.
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Management Information System (MIS)
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Decision Support Systems
Decision Support Systems
Decision Support Systems are concerned with providing useful information to support the decision process.
A Production Manager may use a DSS to decides how much product to manufacture based on the expected sales associated with a future promotion and the location and availability of the raw materials necessary to manufacture the product.
• Examples– May take data from both internal sources (TPS, MIS) but
also from external sources (Stock prices or product prices of competitors)
– Shipping companies use voyage-estimating systems that take various shipping information into account and give advice on costs, freight rates for various types of cargo and port expenses etc
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Voyage-estimating Decision Support System
Voyage-estimating Decision Support System
• Needs voyage-estimating system to calculate• financial details
• Ship/time costs (fuel, labour, capital)• Freight rates for various types of cargo• Port expenses
• technical details• Ship cargo capacity• Speed• Port distances• Fuel and water consumption• Cargo loading patterns
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Decision Support Systems
Decision Support Systems
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Decision Support System (DSS)
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Executive Information SystemsExecutive Information Systems
• Information Systems at the organizations strategic level designed to address unstructured decision making through advanced graphics and communications.
• Examples:– Incorporate data about external events such as tax
laws or competitors, but also draw summarized information from internal MIS and DSS.
– Filter, compress and track critical data, emphasizing the reduction of time and effort required to obtain information useful to executives.
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Executive Support System (ESS)
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What is a human resources information system (HRIS)?
Manages human resources functions Employee relationship management (ERM) system
facilitates communication with employees
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Human Resource Systems
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• To view information systems as more than a set of technologies that support efficient business operations, work group and enterprise collaboration. Or effective business decision making.
• IT can change the way businesses compete
• A strategic information system is any information system that uses IT to help an organization…• Gain a competitive advantage• Reduce a competitive disadvantage• Or meet other strategic enterprise objectives
Strategic ITStrategic IT
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The major role of information systems applications in business is to provided effective support a company’s strategies for gaining competitive advantage.
This strategic role of information systems involves using information technology to develop products, services, and capabilities that give a company major advantages over the competitive forces it faces in the global marketplace.
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Strategic ITStrategic IT
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• This is accomplished through a strategic information architecture ---the collection of strategic information systems that support the competitive position and strategies of a business enterprise. So a strategic information system can be any kind of information system that uses information technology to help an organization gain a competitive advantage, reduce a competitive disadvanrage.
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Strategic ITStrategic IT
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• To succeed, a business must develop strategies to counter these forces…• Rivalry of competitors within its industry
• New entrants into an industry and its markets
• Substitute products that may capture market share
• Bargaining power of customers
• Bargaining power of suppliers
Competitive ForcesCompetitive Forces
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Competitive Forces and StrategiesCompetitive Forces and Strategies
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• Competition is a positive characteristic in business, and competitors share a natural and often healthy, rivalry.
• This rivalry encourage and sometimes require a constant effort to gain competitive advantage in the marketplace.
• Against the threat of new entrants also expands significant organizational resources.
• The threat of substitutes is another competitive force confronting a business. The effect of this force is seen almost daily in a wide variety of industries.
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Competitive Forces and StrategiesCompetitive Forces and Strategies
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• It is often at its strongest during periods of rising costs or inflation. When airline prices get too high, peoples substitute care travel on their vacations. Exp.
• If the customers’ bargaining power gets to strong, they can drive prices to unmanageably low level or simply refuse to buy the products or service.
• If a key suppliers’ bargaining power gets to strong, it can force the price of goods and services to unmanageably high levels. 2-53
Competitive Forces and StrategiesCompetitive Forces and Strategies
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• Cost Leadership• Become low-cost producers• Help suppliers or customers reduce costs• Increase cost to competitors
• Differentiation Strategy• Differentiate a firm’s products from its
competitors’• Focus on a particular segment or niche of market.• PIMSAT, focus on IT programs, and IU focus on
Business studies
Five Competitive StrategiesFive Competitive Strategies
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• Innovation Strategy• Unique products, services, or markets• Radical changes to business processes
• Example: Amazon’s online, full-service customer systems
• Growth Strategy• Expand company’s capacity to produce• Expand into global markets• Diversify into new products or services
• Example: Wal-Mart’s merchandise ordering via global satellite tracking
Competitive Strategies (continued)Competitive Strategies (continued)
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• Alliance Strategy• Establish linkages and alliances with customers,
suppliers, competitors, consultants, and other companies
• Includes mergers, acquisitions, joint ventures, virtual companies
• Example: Wal-Mart uses automatic inventory replenishment by supplier.
• As a consultants,
Competitive Strategies (continued)Competitive Strategies (continued)
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• These strategies are not mutually exclusive• Organizations use one, some, or all• A given activity could fall into one or more
categories of competitive strategy
• Not everything innovative serves to differentiate one organization from another• Likewise, not everything that differentiates
organizations is necessarily innovative
Using Competitive StrategiesUsing Competitive Strategies
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Ways to Implement Basic StrategiesWays to Implement Basic Strategies
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• Lock in Customers and Suppliers• Deter them from switching to competitors
• Build in Switching Costs• Make customers and suppliers dependent on the
use of innovative IS
• Erect Barriers to Entry• Discourage or delay other companies from
entering the market• Increase the technology or investment needed to
enter
Other Competitive StrategiesOther Competitive Strategies
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• Build Strategic IT Capabilities• Take advantage of strategic opportunities when
they arise• Improve efficiency of business practices
• Leverage Investment in IT• Develop products and service that would not be
possible without a strong IT capability
Other Competitive StrategiesOther Competitive Strategies
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• What is the business value in being customer-focused?• Keep customers loyal• Anticipate their future needs• Respond to customer concerns• Provide top-quality customer service
• Focus on customer value• Quality, not price, has become the primary
determinant of value• Consistently
Customer-Focused BusinessCustomer-Focused Business
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• Companies that consistently offer the best value from the customer’s perspective…• Track individual preferences• Keep up with market trends• Supply products, services, and information
anytime, anywhere• Tailor customer services to the individual• Use Customer Relationship Management (CRM)
systems to focus on the customer
Providing Customer ValueProviding Customer Value
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Building Customer Value via the InternetBuilding Customer Value via the Internet
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• View the firm as a chain of basic activities that add value to its products and services• Primary processes directly relate to
manufacturing or delivering products• Support processes help support the day-to-day
running of the firm and indirectly contribute to products or services
• Use the value chain to highlight where competitive strategies will add the most value
The Value Chain and Strategic ISThe Value Chain and Strategic IS
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Using IS in the Value ChainUsing IS in the Value Chain
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• A company that emphasizes strategic business use of IT would use it to gain a competitive differentiation• Products
• Services
• Capabilities
Strategic Uses of ITStrategic Uses of IT
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• Called BRP or simply Reengineering• Fundamental rethinking and radical redesign of
business processes• Seeks to achieve improvements in cost, quality,
speed, and service
• Potential payback is high, but so is risk of disruption and failure
• Organizational redesign approaches are an important enabler of reengineering• Includes use of IT, process teams, case managers
Reengineering Business ProcessesReengineering Business Processes
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BPR Versus Business ImprovementBPR Versus Business Improvement
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• IT plays a major role in reengineering most business processes• Can substantially increase process efficiencies
• Improves communication
• Facilitates collaboration
The Role of Information TechnologyThe Role of Information Technology
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• Many processes are reengineered with…• Enterprise resource planning software
• Web-enabled electronic business and commerce systems
A Cross-Functional ProcessA Cross-Functional Process
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• IT that supports this process…• CRM systems using intranets and the Internet• Supplier-managed inventory systems using the
Internet and extranets• Cross-functional ERP software to integrate
manufacturing, distribution, finance, and human resource processes
• Customer-accessible e-commerce websites for order entry, status checking, payment, and service
• Customer, product, and order status databases accessed via intranets and extranets
Reengineering Order ManagementReengineering Order Management
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• Agility is the ability to prosper• In rapidly changing, continually fragmenting
global markets• By selling high-quality, high-performance,
customer-configured products and services• By using Internet technologies
• An agile company profits in spite of• Broad product ranges• Short model lifetimes• Individualized products• Arbitrary lot sizes
Becoming an Agile CompanyBecoming an Agile Company
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• An agile company…• Presents products as solutions to customers’
problems• Cooperates with customers, suppliers and
competitors• Brings products to market as quickly and cost-
effectively as possible• Organizes to thrive on change and uncertainty• Leverages the impact of its people and the
knowledge they possess
Strategies for AgilityStrategies for Agility
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How IT Helps a Company be AgileHow IT Helps a Company be Agile
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• A virtual company uses IT to link…• People• Organizations• Assets• Ideas
• Inter-enterprise information systems link…• Customers• Suppliers• Subcontractors• Competitors
Creating a Virtual CompanyCreating a Virtual Company
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A Virtual CompanyA Virtual Company
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• Basic business strategies• Share information and risk with alliance partners• Link complimentary core competencies• Reduce concept-to-cash time through sharing• Increase facilities and market coverage• Gain access to new markets and share market or
customer loyalty• Migrate from selling products to selling solutions
Virtual Company StrategiesVirtual Company Strategies
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• A knowledge-creating company or learning organization…• Consistently creates new business knowledge• Disseminates it throughout the company• Builds it into its products and services
Building a Knowledge-Creating CompanyBuilding a Knowledge-Creating Company
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• Explicit Knowledge• Data, documents, and things written down or
stored in computers
• Tacit Knowledge• The “how-to” knowledge in workers’ minds• Represents some of the most important
information within an organization• A knowledge-creating company makes such tacit
knowledge available to others
Two Kinds of KnowledgeTwo Kinds of Knowledge
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• Successful knowledge management• Creates techniques, technologies, systems,
and rewards for getting employees to share what they know
• Makes better use of accumulated workplace and enterprise knowledge
Knowledge ManagementKnowledge Management
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Knowledge Management TechniquesKnowledge Management Techniques
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• Knowledge management systems• A major strategic use of IT• Manages organizational learning and know-how• Helps knowledge workers create, organize, and
make available important knowledge• Makes this knowledge available wherever and
whenever it is needed
• Knowledge includes• Processes, procedures, patents, reference works,
formulas, best practices, forecasts, and fixes
Knowledge Management Systems (KMS)Knowledge Management Systems (KMS)
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Produces and stores results
Electronic device operating under the control of instructions stored in its own memory
Processes data into informationinformation
Data that is organized, meaningful, and useful
Accepts datadata
Raw facts, figures, and symbols
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What is HardwareWhat is Hardware
• Hardware is the general term that is used to describe physical artifacts of technology.
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What is an input device?
Hardware used to enter dataand instructions
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Input DevicesInput Devices
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Input DevicesInput Devices
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What is an output device?
Hardware that conveys information to one or morepeople
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What is storage?
Storage mediaStorage media
Physical material on which data, instructions, and information are stored
Storage mediaStorage media
Physical material on which data, instructions, and information are stored
Storage deviceStorage device
Records and retrieves items to and from a storage medium
Storage deviceStorage device
Records and retrieves items to and from a storage medium
Holds data, instructions, and information for future use
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Computer For Individual UsersComputer For Individual Users
• Desktop computers• The most common type of computer• Sits on the desk or floor• Performs a variety of tasks
• Workstations• Specialized computers• Optimized for science or graphics• More powerful than a desktop
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Mainframe Very powerful, expensive computer that supports thousands of connected users[Also called an Enterprise Server]
Supercomputer The fastest, most powerful, most expensive computer. Used for applications requiring complex mathematical calculations
Server Controls access to network resources and provides centralized storage
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What is a notebook computer?
Portable, small enough to fit on your lap
Also called a laptop computer
Generally more expensive than desktop computers with equal capabilities
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What is a Tablet PC?
Especially useful for taking notes
Resembles a letter-sized slate Allows you to write on the
screen using a digital pen
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Consists of a seriesof instructions thattells the computer
what to do andhow to do it
Consists of a seriesof instructions thattells the computer
what to do andhow to do it
What is software?
Also called aprogram
Also called aprogram
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Computer SoftwareComputer Software
• Definition:• Key to productive use of computers. • A computer program that tells the computer how to
perform particular tasks.• Information that the computer uses to get the job done.
• Types of Software• Software can be categorized into two types:
• System Software• Application Software.
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What is system software?
Operating System (OS)Operating System (OS)is a set of programs that coordinates all activities among computer hardware devices
Operating System (OS)Operating System (OS)is a set of programs that coordinates all activities among computer hardware devices
Utility ProgramsUtility Programs allow the user to perform maintenance-type tasks usually related to managing a computer, its devices or its programs
Utility ProgramsUtility Programs allow the user to perform maintenance-type tasks usually related to managing a computer, its devices or its programs
Programs that control or maintain the operations of the computer and its devices
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What is application software?
Presentation Graphics
Spreadsheet
Database
Word Processing
Programs designed to make users more productive
Create/Produce useful data
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Word ProcessingWord Processing
• Word Processing software is used to create and print documents. A key advantage of word processing software is that users easily can make changes in documents.
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Electronic SpreadsheetsElectronic Spreadsheets
• Electronic spreadsheet software allows the user to add, subtract, and perform user-defined calculations on rows and columns of numbers. These numbers can be changed and the spreadsheet quickly recalculates the new results.
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Database SoftwareDatabase SoftwareDatabase SoftwareDatabase Software
• Allows the user to enter, retrieve, and update data in an organized and efficient manner, with flexible inquiry and reporting capabilities.
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Computer SoftwareComputer Software
What is a programmer?
Someone who developsapplication or system software Programmer writes
the instructions todirect the computer toprocess data intoinformation
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What is a graphical user interface (GUI)?
Allows you to interact with the software using graphics and visual images such as icons
Controls how you enter data and instructions and how the screen displays information
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Bit and ByteBit and Byte
• Bit• Short for binary digit• Smallest element of data• Either zero or one
• Byte• Group of eight bits, which operate as a single
unit• Represents one character or number
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Representing Characters in BytesRepresenting Characters in Bytes
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Using Binary Code to CalculateUsing Binary Code to Calculate
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Storage Capacity MeasurementStorage Capacity Measurement
• Kilobyte (KB): one thousand bytes
• Megabyte (MB): one million bytes
• Gigabyte (GB): one billions bytes
• Terabyte (TB): one trillion bytes
• Petabyte (PB): one quadrillion bytes
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Common Number SystemsCommon Number Systems
System Base Symbols
Used by humans?
Used in computers?
Decimal 10 0, 1, … 9 Yes No
Binary 2 0, 1 No Yes
Octal 8 0, 1, … 7 No No
Hexa-decimal
16 0, 1, … 9,
A, B, … F
No No
107
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Quantities/Counting (1 of 3)Quantities/Counting (1 of 3)
Decimal Binary Octal
Hexa-decimal
0 0 0 0
1 1 1 1
2 10 2 2
3 11 3 3
4 100 4 4
5 101 5 5
6 110 6 6
7 111 7 7108
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Quantities/Counting (2 of 3) Quantities/Counting (2 of 3)
Decimal Binary Octal
Hexa-decimal
8 1000 10 8
9 1001 11 9
10 1010 12 A
11 1011 13 B
12 1100 14 C
13 1101 15 D
14 1110 16 E
15 1111 17 F109
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Quantities/Counting (3 of 3) Quantities/Counting (3 of 3)
Decimal Binary Octal
Hexa-decimal
16 10000 20 10
17 10001 21 11
18 10010 22 12
19 10011 23 13
20 10100 24 14
21 10101 25 15
22 10110 26 16
23 10111 27 17 Etc.
110
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Quick ExampleQuick Example
2510 = 110012 = 318 = 1916
Base
111
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Decimal to Decimal (just for fun)Decimal to Decimal (just for fun)
Hexadecimal
Decimal Octal
Binary
112
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12510 => 5 x 100 = 52 x 101 = 201 x 102 = 100
125
Base
Weight
113
Decimal to Decimal (just for fun)
Weight “0”
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Binary to DecimalBinary to Decimal
Hexadecimal
Decimal Octal
Binary
114
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Binary to DecimalBinary to Decimal
• Technique• Multiply each bit by 2n, where n is the “weight”
of the bit• The weight is the position of the bit, starting from
0 on the right• Add the results
115
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ExampleExample
1010112 => 1 x 20 = 11 x 21 = 20 x 22 = 01 x 23 = 80 x 24 = 01 x 25 = 32
4310
Bit “0”
116
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Octal to DecimalOctal to Decimal
Hexadecimal
Decimal Octal
Binary
117
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Octal to DecimalOctal to Decimal
• Technique• Multiply each bit by 8n, where n is the “weight”
of the bit• The weight is the position of the bit, starting from
0 on the right• Add the results
118
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ExampleExample
7248 => 4 x 80 = 42 x 81 = 167 x 82 = 448
46810
119
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Hexadecimal to DecimalHexadecimal to Decimal
Hexadecimal
Decimal Octal
Binary
120
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Hexadecimal to DecimalHexadecimal to Decimal
• Technique• Multiply each bit by 16n, where n is the “weight”
of the bit• The weight is the position of the bit, starting from
0 on the right• Add the results
121
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ExampleExample
ABC16 => C x 160 = 12 x 1 = 12 B x 161 = 11 x 16 = 176 A x 162 = 10 x 256 = 2560
274810
122
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Decimal to BinaryDecimal to Binary
Hexadecimal
Decimal Octal
Binary
123
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Decimal to BinaryDecimal to Binary
• Technique• Divide by two, keep track of the remainder• First remainder is bit 0 (LSB, least-significant bit)• Second remainder is bit 1• Etc.
124
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ExampleExample
12510 = ?22 125 62 12 31 02 15 12 7 12 3 12 1 12 0 1
12510 = 11111012
125
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Decimal to OctalDecimal to Octal
Hexadecimal
Decimal Octal
Binary
126
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Decimal to OctalDecimal to Octal
• Technique• Divide by 8• Keep track of the remainder
127
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ExampleExample
123410 = ?8
8 1234 154 28 19 28 2 38 0 2
123410 = 23228
128
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Decimal to HexadecimalDecimal to Hexadecimal
Hexadecimal
Decimal Octal
Binary
129
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Decimal to HexadecimalDecimal to Hexadecimal
• Technique• Divide by 16• Keep track of the remainder
130
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ExampleExample
123410 = ?16
123410 = 4D216
16 1234 77 216 4 13 = D16 0 4
131
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Octal to BinaryOctal to Binary
Hexadecimal
Decimal Octal
Binary
132
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Octal to BinaryOctal to Binary
• Technique• Convert each octal digit to a 3-bit equivalent
binary representation
133
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ExampleExample
7058 = ?2
7 0 5
111 000 101
7058 = 1110001012
134
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Hexadecimal to BinaryHexadecimal to Binary
Hexadecimal
Decimal Octal
Binary
135
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Hexadecimal to BinaryHexadecimal to Binary
• Technique• Convert each hexadecimal digit to a 4-bit
equivalent binary representation
136
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ExampleExample
10AF16 = ?2
1 0 A F
0001 0000 1010 1111
10AF16 = 00010000101011112
137
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Binary to OctalBinary to Octal
Hexadecimal
Decimal Octal
Binary
138
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Binary to OctalBinary to Octal
• Technique• Group bits in threes, starting on right• Convert to octal digits
139
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ExampleExample
10110101112 = ?8
1 011 010 111
1 3 2 7
10110101112 = 13278
140
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Binary to HexadecimalBinary to Hexadecimal
Hexadecimal
Decimal Octal
Binary
141
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Binary to HexadecimalBinary to Hexadecimal
• Technique• Group bits in fours, starting on right• Convert to hexadecimal digits
142
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ExampleExample
10101110112 = ?16
10 1011 1011
2 B B
10101110112 = 2BB16
143
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Octal to HexadecimalOctal to Hexadecimal
Hexadecimal
Decimal Octal
Binary
144
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Octal to HexadecimalOctal to Hexadecimal
• Technique• Use binary as an intermediary
145
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ExampleExample
10768 = ?16
1 0 7 6
001 000 111 110
2 3 E
10768 = 23E16
146
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Hexadecimal to OctalHexadecimal to Octal
Hexadecimal
Decimal Octal
Binary
147
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Hexadecimal to OctalHexadecimal to Octal
• Technique• Use binary as an intermediary
148
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ExampleExample
1F0C16 = ?8
1 F 0 C
0001 1111 0000 1100
1 7 4 1 4
1F0C16 = 174148
149
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Exercise – Convert ...Exercise – Convert ...
Don’t use a calculator!
Decimal Binary Octal
Hexa-decimal
33
1110101
703
1AF
150
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Exercise – Convert …Exercise – Convert …
Decimal Binary Octal
Hexa-decimal
33 100001 41 21
117 1110101 165 75
451 111000011 703 1C3
431 110101111 657 1AF
Answer
151
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WEB BROWSERSWEB BROWSERS
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WORD PROCESSING & DESKTOP PUBLISHING
WORD PROCESSING & DESKTOP PUBLISHING
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ELECTRONIC SPREADSHEETS & PRESENTATION GRAPHICS
ELECTRONIC SPREADSHEETS & PRESENTATION GRAPHICS
Electronic Spreadsheets Worksheet of rows and columns Used for calculations and charts E.g., Lotus 1-2-3, Microsoft Excel, Corel
QuattroPro, BO XIPresentation Graphics
Convert numeric data into graphics displays Prepare multimedia presentations including
graphics, photos, animation, and video clips E.g., Microsoft PowerPoint, Lotus Freelance,
Corel Presentations
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ELECTRONIC SPREADSHEETS & PRESENTATION GRAPHICS
ELECTRONIC SPREADSHEETS & PRESENTATION GRAPHICS
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PERSONAL INFORMATION MANAGER & GROUPWARE
PERSONAL INFORMATION MANAGER & GROUPWARE
Personal Information Manager (PIM) Software for end user productivity and collaboration Store information about clients, schedules, manage appointments,
manage tasks E.g., Lotus Organizer, Microsoft Outlook
Groupware Software that helps workgroups collaborate on group assignments E-mail, discussion groups, databases, videoconferencing E.g., Lotus Notes, Novell GroupWise, Microsoft Exchange
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PERSONAL INFORMATION MANAGER & GROUPWARE
PERSONAL INFORMATION MANAGER & GROUPWARE
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SOFTWARE ALTERNATIVESSOFTWARE ALTERNATIVES
• Outsourcing development and maintenance of software
• Application service providers (ASPs)• Companies that own, operate and maintain
application software and computer system resources
• Use the application for a fee over the Internet• Pay-as-you-go
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SOFTWARE ALTERNATIVESSOFTWARE ALTERNATIVES
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SOFTWARE LICENSINGSOFTWARE LICENSING
• All software (COTS, ASP) is licensed
• You don’t buy software: you buy a license to use the software under the terms of the licensing agreement
• Licensed to protect the vendor’s property rights
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SYSTEM SOFWARESYSTEM SOFWARE
Software that manages and supports a computer system
System management programs Programs that manage hardware, software,
network, and data resources E.g., operating systems, network management
programs, database management systems, systems utilities
Systems development programs Programs that help users develop information
system programs
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SYSTEM MANAGEMENT PROGRAMS
SYSTEM MANAGEMENT PROGRAMS
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OPERATING SYSTEMOPERATING SYSTEM
• Integrated system of programs that• Manages the operations of the CPU• Controls the input/output and storage resources
and activities of the computer system• Provides support services as computer executes
applications programs
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OS BASIC FUNCTIONSOS BASIC FUNCTIONS
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USER INTERFACEUSER INTERFACE
• Part of the operating system that allows you to communicate with it
• Three main types:• Command-driven• Menu-driven• Graphical user interfaces (GUI)
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USER INTERFACEUSER INTERFACE
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RESOURCE MANAGEMENTRESOURCE MANAGEMENT
• Part of operating system that manages the hardware and networking resources of a computer system• Includes CPU, memory, secondary storage
device, telecommunications, and input/output peripherals
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FILE MANAAGEMENTFILE MANAAGEMENT
• Part of the operating system that controls the creation, deletion, and access of files of data and programs
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FILE MANAGEMENTFILE MANAGEMENT
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TASK MANAGEMENTTASK MANAGEMENT
• Part of the operating system that manages the accomplishment of computing tasks of the end users
• Multitasking• Task management approach that allows for
several tasks to be performed in a seemingly simultaneous fashion
• Also called multiprogramming or time-sharing
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TASK MANAGEMENTTASK MANAGEMENT
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POPULAR OSPOPULAR OS
• Windows• GUI, multitasking, networking, multimedia• Microsoft’s operating system• Different versions manage servers
• Unix• Multitasking, multiuser, network-managing• Portable – can run on mainframes, midrange and PCs
• Linux• Low-cost, powerful reliable Unix-like operating system• Open-source
• MAC OS X• Apple operating system for the iMac• GUI, multitasking, multimedia
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OTHER SYSTEM SOFTWAREOTHER SYSTEM SOFTWARE
Utilities Miscellaneous housekeeping functions Example, Norton utilities includes data backup,
virus protection, data compression, etc.Performance monitors
Programs that monitor and adjust computer system to keep them running efficiently
Security monitors Programs that monitor and control use of
computer systems to prevent unauthorized use of resources
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WEB LANGUAGESWEB LANGUAGES
• HTML • A page description language that creates hypertext documents for the
Web
• XML• Describes the contents of Web pages by applying identifying tags or
contextual labels to the data in Web documents
• Java• Object-oriented programming language that is simple, secure and
platform independent• Java applets can be executed on any computer
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WEB LANGUAGESWEB LANGUAGES
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Data Resource ManagementData Resource Management
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Foundation Data ConceptsFoundation Data Concepts
Data Organization Structure is logically organized into:-Data Organization Structure is logically organized into:- Character Field Record File Database
Like writing can be organized into letters, word, paragraph & sentences
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CHARACTERCHARACTER
• Consists of a single alphabets, numeric or other symbol.
• It is a byte used to represent a particular character.
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fieldfield
• Consists of a grouping of related characters.• E.g., person names represent the name field. i.e.,
last name, first name, state, city, telephone #
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RECORDRECORD
• Fields when grouped together make a record.
• An allocation of attributes to describe any entity.• E.g.,
• Person payroll records• Employee claims record• Student academic records
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FILEFILE
• Group of related records is a data file or table.
• A single table may be referred to as a flat file.
• E.g., • Employee file• Student file• Inventory file• Payroll file etc
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DATABASEDATABASE
• An integrated collection of logically related data elements.
• It contains all the records
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Foundation Data ConceptsFoundation Data Concepts
EmployeeRecord 1
EmployeeRecord 2
EmployeeRecord 3
EmployeeRecord 4
NameField
SS No.Field
SalaryField
NameField
SS No.Field
SalaryField
NameField
SS No.Field
SalaryField
NameField
SS No.Field
SalaryField
Jones T.A. 275-32-3874 20,000 Klugman J.L. 349-88-7913 28,000 Alverez, J.S. 542-40-3718 100,000 Porter, M.L. 617-87-7915 50,000
Human ResourceDatabase
Payroll File Benefit File
Data Organization StructureData Organization Structure
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Foundation Data ConceptsFoundation Data Concepts
Electric Utility Database
Entities: Customers, Meters, Bills, Payments, Meter Readings
Relationships: Bills Sent to Customers Customers Make Payments Customers Use Meters
Billing
MeterReading
PaymentProcessing
ServiceStart/Stop
Example: An Electric Utility DatabaseExample: An Electric Utility Database
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DATABASE STRUCTURESDATABASE STRUCTURES
• DBMS packages are designed to use specific data structures to provide end users with quick; easy access to information stored in the databases.
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DATABASE STRUCTURESDATABASE STRUCTURES
Five Major Database StructuresFive Major Database Structures
•Hierarchical Structure•Network Structure•Relational Model•Object-Oriented•Multidimensional Structure
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HIERARCHICAL STRUCTUREHIERARCHICAL STRUCTURE
• One-to-many relationship
• Relationship b/w records from a hierarchy structure all of them are dependent.
• Root element
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NETWORK STRUCTURENETWORK STRUCTURE
• Allow many-to-many relationships among records.
• E.g., employee records can be related to more than one project record & vice versa.
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RELATIONAL STRUCTURERELATIONAL STRUCTURE
• It is used by most microcomputers DBMS packages as well as by both midrange & mainframes systems.
• In this, all data elements within the database are viewed as being stored in the form of simple two dimensional tables sometimes referred to as relations .
Department Table Employee Table
Deptno Dname Dloc Dmgr Empno Ename Etitle Esalary DeptnoEmp 1Emp 2Emp 3Emp 4Emp 5Emp 6
Dept ADept BDept C
Dept ADept B
Dept A
Dept BDept CDept B
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MULTIDIMENSIONAL STRUCTUREMULTIDIMENSIONAL STRUCTURE
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Object-oriented structureObject-oriented structure
Attributes•Customer•Balance•Interest Operations•Deposit (Amount)•Withdraw (Amount)•Get Owner
Attributes•Credit Line•Monthly Statements Operations•Calculate Interest•Print Monthly Statement
Attributes•Number of Withdrawals•Quarterly Statement Operations•Calculate Interest Paid•Print Quarterly Statement
Bank Account Object
Checking Account Object Savings Account Object
Inheritance Inheritance
Web based Web based applicationsapplications
Describing the Describing the attributes of an attributes of an entity, plus the entity, plus the
operations that can operations that can be performs upon the be performs upon the
datadata
Supports Supports inheritanceinheritance
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Object-oriented structureObject-oriented structure
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Database DevelopmentDatabase Development
Database management packages like Microsoft Access or Lotus Approach allow end users to easily develop the database they need.
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Database DevelopmentDatabase Development• Database Administrators (DBAs)• Data Definition Language (DDL)
• Oracle 10g or IBM DB2 • Data Dictionary or Metadata Repository
• Database management catalog or directory that contain metadata.
• Relies on specialized database software component to manage a database.
• Metadata• Data on data
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Data MiningData Mining• Identify New Product Bundles• Find Root Causes to Quality or Manufacturing
Problems• Prevent Customer Attrition• Cross-Sell to Existing Customers• Profile Customers with More Accuracy
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Types of DatabasesTypes of Databases• Operational Databases• Distributed Databases• External Databases• Hypermedia Databases
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Distributed Database ModelDistributed Database Model
Client PC
DistributedDatabases
on Intranetsand OtherNetworks
End UserDatabases
DataWarehouse
DataMarts
OperationalDatabases
of theOrganization
NetworkServer
ExternalDatabases
on theInternet and
OnlineServices
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Operational DatabasesOperational Databases
Types of DatabasesTypes of Databases
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Web-Based Information SystemWeb-Based Information System
WebBrowser
The InternetIntranetsExtranets Web
ServerSoftware
HTMLXML
Web PagesImage FilesVideo FilesAudio Files
NetworkServer
Client PCsHypermedia
Database
Types of DatabasesTypes of Databases
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Data WarehousesData WarehousesApplications Data Marts
Finance
Marketing
Sales
Accounting
ManagementReporting
ERP
Purchasing
CRM
InveentoryControl
Shipping
Logistics
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5-202
Data Warehouse ComponentsData Warehouse Components
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5-203
Applications and Data MartsApplications and Data Marts
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Database Management SystemDatabase Management System
• In mainframe and server computer systems, a software package that is used to…• Create new databases and database applications
• Maintain the quality of the data in an organization’s databases
• Use the databases of an organization to provide the information needed by end users
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Common DBMS Software ComponentsCommon DBMS Software Components
• Database definition• Language and graphical tools to define entities,
relationships, integrity constraints, and authorization rights
• Nonprocedural access• Language and graphical tools to access data
without complicated coding
• Application development• Graphical tools to develop menus, data entry
forms, and reports
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Common DBMS Software ComponentsCommon DBMS Software Components
• Procedural language interface• Language that combines nonprocedural access
with full capabilities of a programming language
• Transaction processing• Control mechanism prevents interference from
simultaneous users and recovers lost data after a failure
• Database tuning• Tools to monitor, improve database performance
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Database Management SystemDatabase Management System
• Database Development• Defining and organizing the content,
relationships, and structure of the data needed to build a database
• Database Application Development• Using DBMS to create prototypes of queries,
forms, reports, Web pages
• Database Maintenance• Using transaction processing systems and other
tools to add, delete, update, and correct data
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DBMS Major FunctionsDBMS Major Functions
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Database InterrogationDatabase Interrogation
• End users use a DBMS query feature or report generator• Response is video display or printed report• No programming is required
• Query language • Immediate response to ad hoc data requests
• Report generator• Quickly specify a format for information you
want to present as a report
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Database InterrogationDatabase Interrogation
• SQL Queries• Structured, international standard query language
found in many DBMS packages• Query form is SELECT…FROM…WHERE…
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Database InterrogationDatabase Interrogation
• Boolean Logic• Developed by George Boole in the mid-1800s
• Used to refine searches to specific information
• Has three logical operators: AND, OR, NOT
• Example• Cats OR felines AND NOT dogs OR Broadway
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Database InterrogationDatabase Interrogation
• Graphical and Natural Queries• It is difficult to correctly phrase SQL and other
database language search queries
• Most DBMS packages offer easier-to-use, point-and-click methods
• Translates queries into SQL commands
• Natural language query statements are similar to conversational English
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Graphical Query WizardGraphical Query Wizard
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Database MaintenanceDatabase Maintenance
• Accomplished by transaction processing systems and other applications, with the support of the DBMS• Done to reflect new business transactions and
other events
• Updating and correcting data, such as customer addresses
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Application DevelopmentApplication Development
• Use DBMS software development tools to develop custom application programs• Not necessary to develop detailed data-handling
procedures using conventional programming languages
• Can include data manipulation language (DML) statements that call on the DBMS to perform necessary data handling
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Telecommunicationsand Networks
Telecommunicationsand Networks
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Types of Communications NetworksTypes of Communications Networks
• Primary types of communications networks• Wide Area • Local Area • Virtual Private • Client/Server• Peer-to-peer
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Wide Area Network (WAN)Wide Area Network (WAN)
• Telecommunication network that covers a large geographic area
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Local Area Network (LAN)Local Area Network (LAN)
• Connects computers within a limited physical area, such as an office, classroom, or building
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Virtual Private Networks (VPN)Virtual Private Networks (VPN)
• Used to establish secure intranets and extranets• The Internet is the main backbone network• Relies on network firewalls, encryption, and
other security features to build a “pipe” through the Internet
• Creates a private network without the high cost of a separate proprietary connection
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Virtual Private NetworkVirtual Private Network
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Client/Server NetworksClient/Server Networks
• Clients• End user personal computers or networked
computers
• Servers• Used to manage the networks
• Processing• Shared between the clients and servers• Sometimes called a two-tier architecture
• Larger computer systems are being replaced with multiple client/server networks
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Client/Server NetworkClient/Server Network
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Network ComputingNetwork Computing
• Networks are the central computing resource of the organization• Thin clients provide a browser-based user
interface for processing applets
• Thin clients include• Network computers• Net PCs• Other low-cost network devices or
information appliances
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Network ComputingNetwork Computing
• Application and database servers provide• The operating system• Application software• Applets• Databases• Database management software
• Sometimes called a three-tier client/server model because it consists of• Thin clients• Application servers• Database servers
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Network ComputingNetwork Computing
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Peer-to-Peer NetworksPeer-to-Peer Networks
• Central Server Architecture• P2P file-sharing software connects all PCs
to a central server• When a PC requests a file, the server searches
all active peers on the network• The server sends the requesting PC a list of
links to all active peers who have the file• Clicking a link connects the two PCs and
automatically transfers the file to the requesting PC
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Peer-to-Peer NetworksPeer-to-Peer Networks
• Pure Peer-to-Peer Architecture• No central directory or server• File-sharing software connects one PC to
another online user• When you request a file, the software searches
every online user and sends you a list of active file names
• Clicking a link automatically transfers the file from that user’s hard drive to yours
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Central Server Peer-to-Peer NetworksCentral Server Peer-to-Peer Networks
• Advantages• Can better protect the integrity and security
of the content and users of the network
• Disadvantages• Directory server can be slowed or overwhelmed
by too many users or technical problems
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Peer-to-Peer Network DiagramsPeer-to-Peer Network Diagrams
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Digital and Analog SignalsDigital and Analog Signals
• Analog or digital refers to the method used to convert information into an electrical signal• Analog: an electrical current is generated that
is proportional to the quantity being observed• Digital: the quantity being observed is expressed
as a number• Analog: if the temperature is 83 degrees, a measuring
device would generate 8.3 volts
• Digital: a measurement of 83 degrees would be displayed as the number 83
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Telecommunications MediaTelecommunications Media
• Twisted-Pair Wire• Ordinary telephone wire• Copper wire is twisted
into pairs
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Telecommunications MediaTelecommunications Media
• Coaxial Cable• Sturdy copper or
aluminum wire wrappedwith spacers to insulateand protect it
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Telecommunications MediaTelecommunications Media
• Fiber-Optic Cable• One or more hair-thin
filaments of glass fiber wrapped in a protective jacket
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The Problem of “The Last Mile”The Problem of “The Last Mile”
• Network providers use fiber optic cable as a communications backbone• Houses connected to the backbone are wired
with twisted pair• Users don’t benefit from the faster, better
technology
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Wireless TechnologiesWireless Technologies
• Terrestrial Microwave• Earthbound microwave systems transmit
high-speed radio signals• Follows a line-of-sight path between relay
systems spaced about 30 miles apart
• Communications Satellites• Serve as relay stations• Use microwave radio signals• Earth stations beam signals to the satellites• Not suitable for interactive, real-time processing
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Wireless TechnologiesWireless Technologies
• Cellular and PCS Telephone and Pager Systems• Geographic areas are divided into cells• Each cell has a low-power transmitter or radio
relay antenna• Computers and other communications processors
coordinate and control the transmissions to and from mobile users
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Wireless TechnologiesWireless Technologies
• Wireless LANS• Uses wireless radio-wave technology to
connect PCs within an office or a building• Can be high-frequency, similar to digital
cellular, or low frequency (spread spectrum)
• Bluetooth• Short-range wireless technology• Connects PCs to devices, such as a printer • Fairly low cost to implement
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Wireless TechnologiesWireless Technologies
• Other Wireless Systems• Cellular phones• Mobile radio• PDAs
• Telecommunications networks now play vital and pervasive roles in• Web-enabled e-business processes• Electronic commerce• Enterprise collaboration• Other applications that support business
operations, management, and strategic objectives
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The Wireless WebThe Wireless Web
• Wireless Internet access is growing as Web-enabled information appliances proliferate• Smart telephones, pagers, PDAs• All are very thin clients in wireless networks
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Telecommunications ProcessorsTelecommunications Processors
• Modems• The most common type of communications
processor• Converts a digital signal to an analog frequency
that can be transmitted over phone lines, then back into a digital signal
• Modulation and demodulation
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Comparing TechnologiesComparing Technologies
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Inter-Network ProcessorsInter-Network Processors
• Switch… makes connections between telecommunications circuits in a network
• Router… intelligent communications processor that interconnects networks based on different protocols
• Hub… a port-switching communications processor
• Gateway… connects networks with different communications architectures
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Communications ProcessorsCommunications Processors
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Communications ProcessorsCommunications Processors
• Multiplexer… allows a single communications channel to carry simultaneous data transmissions from many terminals• In time division multiplexing (TDM), the
multiplexer divides the time each terminal can use the high-speed into short time slots
• Multiplexers increase the number of transmissions possible
• Does not increase the number of physical data channels
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Telecommunications SoftwareTelecommunications Software
• May reside in PCs, servers, mainframes, and communications processors• Vital part of all telecommunications networks• Used to manage network performance• WANs often use telecommunications monitors
or teleprocessing monitors• Other networks use operating system software• Middleware helps diverse networks
communicate with each other
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Network Management FunctionsNetwork Management Functions
• Traffic Management• Manage network resources and traffic to
avoid congestion and optimize service levels
• Security• Provide authentication, encryption, firewall,
auditing, and enforcement
• Network Monitoring• Troubleshoot and watch over the network,
alerting administrators of potential problems
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Network Management FunctionsNetwork Management Functions
• Capacity Planning• Survey network resources, traffic patterns, and
users’ needs• Determine the best way to accommodate the
needs of the network as it grows and changes
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Network TopologiesNetwork Topologies
• Topology• The structure of a network
• Star Network• Ties end user computers to a central computer
• Ring Network• Ties local computer processors together in a ring
on a relatively equal basis
• Bus Network• Local processors share the same communications
channel
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Network TopologiesNetwork Topologies
• Mesh Network• Uses direct communications lines to connect
some or all of the computers in the ring to each other
• Switch• A message-switching computer that handles
data communication between autonomous local computers
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Network TopologiesNetwork Topologies
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Network Architectures and ProtocolsNetwork Architectures and Protocols
• Protocol• A standard set of rules and procedures for the
control of communications in a network
• Handshaking• The process of exchanging predetermined
signals and characters• Establishes a telecommunications session
between terminals and computers
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Network Architectures and ProtocolsNetwork Architectures and Protocols
• Network Architecture• Master plan of standard protocols, hardware,
software, and interfaces between end users and computer systems
• Goal is to promote an open, simple, flexible, and efficient telecommunications environment
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OSI and TCP/IP ModelsOSI and TCP/IP Models
• Open Systems Interconnection (OSI) Model• A seven-layer model that serves as a standard
model for network architectures• Model for how messages should be transmitted
between two points in a network• Each layer adds functions
• Transmission Control Protocol/Internet Protocol (TCP/IP)• A five-layer telecommunications protocol used by
the Internet
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OSI and TCP/IP ModelsOSI and TCP/IP Models
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Voice Over IPVoice Over IP
• Internet Telephony• Using an Internet connection to pass voice
data using IP instead of a telephone network• Often referred to as voice over IP or VoIP• Works like a regular phone, but skips long-
distance charges• Runs over standard network infrastructure• Requires a well-configured network to work
smoothly
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BandwidthBandwidth
• Bandwidth• The frequency range of a telecommunications
channel that determines the maximum transmission rate
• Speed and capacity typically measured in bits per second (bps)
• Sometimes call baud rate
• Transmission Rates• Narrow-band = low speed• Broadband = high speed
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Transmission SpeedsTransmission Speeds
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Switching AlternativesSwitching Alternatives
• Circuit Switching• Switch opens a circuit to establish a link
between a sender and a receiver• It remains open until the communication
session is completed
• Packet Switching• Breaks messages into groups called packets• Transmits packets separately
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Network InteroperabilityNetwork Interoperability
• Ensures that anyone anywhere on one network can communicate with anyone anywhere on another network• From a telecommunications perspective, no
need to speak a common language
• Telecommunications would be possible without• Complete accessibility• Transparency• Seamless interoperability across all networks
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Electronic Business SystemsElectronic Business Systems
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Enterprise Business SystemsEnterprise Business Systems
• E-business means using the Internet, other networks, and IT to support• Electronic commerce• Enterprise communications and collaboration• Web-enabled business processes
• E-commerce is the buying, selling, and marketing of products, services, and information over the Internet and other networks
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Cross-Functional SystemsCross-Functional Systems
• Cross the boundaries of traditional business functions • Used to reengineer and improve vital business
processes all across the enterprise
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Enterprise Application ArchitectureEnterprise Application Architecture
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Enterprise Application ArchitectureEnterprise Application Architecture
• Provides a conceptual framework• Helps visualize the basic components, processes,
and interfaces of major e-business applications
• Focuses on accomplishing fundamental business processes in concert with• Customers• Suppliers• Partners• Employees
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Enterprise Application ArchitectureEnterprise Application Architecture
• Enterprise Resource Planning (ERP)• Concentrates on the efficiency of internal
production, distribution, and financial processes
• Customer Relationship Management (CRM)• Focuses on acquiring and retaining profitable
customers via marketing, sales, and services
• Partner Relationship Management (PRM)• Aims at acquiring and retaining partners who
can enhance the selling and distribution of products and services
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Enterprise Application ArchitectureEnterprise Application Architecture
• Supply Chain Management (SCM)• Focuses on developing the most efficient and
effective sourcing and procurement processes
• Knowledge Management (KM)• Focuses on facilitating internal group
collaboration and decision support
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Enterprise Application IntegrationEnterprise Application Integration
• EAI software connects cross-functional systems
• Serves as middleware to provide• Data conversion• Communication between systems• Access to system interfaces
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Transaction Processing SystemsTransaction Processing Systems
• Cross-functional information systems that process data resulting from the occurrence of business transactions• Transactions include sales, purchases, deposits,
withdrawals, refunds, and payments
• Online transaction processing (OLTP) is a real-time system that captures transactions immediately
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Transaction Processing SystemsTransaction Processing Systems
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The Transaction Processing CycleThe Transaction Processing Cycle
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Enterprise Collaboration Systems (ECS)Enterprise Collaboration Systems (ECS)
• EC systems are cross-functional information systems that enhance team and workgroup• Communication• Coordination• Collaboration
• Systems may include• Networked PC workstations• Servers• Databases• Groupware and application packages
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ECS ToolsECS Tools
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Functional Business SystemsFunctional Business Systems
• A variety of types of information systems that support the business functions of• Accounting• Finance• Marketing• Operations management• Human resource management
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IT in BusinessIT in Business
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Marketing SystemsMarketing Systems
• Marketing systems are concerned with• Planning, promotion, and sale of existing
products in existing markets
• Development of new products and new markets
• Better attracting and serving present and potential customers
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Marketing Information SystemsMarketing Information Systems
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Interactive MarketingInteractive Marketing
• Interactive Marketing• A customer-focused marketing process• Uses the Internet, intranets, and extranets• Establishes two-way transactions between a
business and its customers or potential customers
• Goal• Profitably use networks to attract and keep
customers• Get customers to help create, purchase, and
improve products and services
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Targeted MarketingTargeted Marketing
• An advertising and promotion management concept with five targeting components
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Targeted Marketing ComponentsTargeted Marketing Components
• Community: customized ads to appeal to specific virtual communities
• Content: ads placed on a variety of selected websites, aimed at a specific audience
• Context: ads placed on web pages that are relevant to a product or service
• Demographic/Psychographic: web marketing aimed at specific types or classes of people
• Online behavior: promotions tailored to each visit to a site by an individual
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Sales Force AutomationSales Force Automation
• Outfit sales force with notebook computers, web browsers, and sales contact software• Connect them to marketing websites and the
company intranet
• Goals• Increase personal productivity• Speed up capture and analysis of sales data• Gain strategic advantage
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Manufacturing Information SystemsManufacturing Information Systems
• Supports the production/operations functions• Includes all activities concerned with planning
and control of the processes producing goods or services
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Computer-Integrated ManufacturingComputer-Integrated Manufacturing
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CIM ObjectivesCIM Objectives
• Simplify production processes, product designs, and factory organization
• Automate production processes and the business functions that support them
• Integrate all production and support processes using• Networks• Cross-functional business software• Other information technologies
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CIM SystemsCIM Systems
• Computer-aided manufacturing (CAM)• Automate the production process
• Manufacturing execution systems (MES)• Performance monitoring information systems
for factory floor operations
• Process control• Control ongoing physical processes
• Machine control• Controls the actions of machines
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Human Resource Management (HRM)Human Resource Management (HRM)
• Information systems designed to support• Planning to meet personnel needs
• Development of employees to their full potential
• Control of all personnel policies and programs
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HRM SystemsHRM Systems
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HRM and the InternetHRM and the Internet
• Recruiting employees using the corporate website and commercial recruiting services
• Posting messages in selected Internet newsgroups
• Communicating with job applicants via e-mail
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HRM and Corporate IntranetsHRM and Corporate Intranets
• Corporate intranet uses• Process common HRM transactions
• Allow around-the-clock HRM services
• Disseminate information faster than through previous company channels
• Collect information from employees online
• Allow HRM tasks to be performed with little HRM department intervention
• Training
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Employee Self-ServiceEmployee Self-Service
• Intranet applications can allow employees to• View benefits
• Enter travel and expense reports
• Verify employment and salary information
• Access and update personal information
• Enter time-sensitive data
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Accounting Information SystemsAccounting Information Systems
• The oldest and most widely used information system in business• Records and reports business transactions and
economic events
• Produces financial statements
• Forecasts future conditions
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Accounting Information SystemsAccounting Information Systems
• Typically consists of• Order processing
• Inventory control
• Accounts receivable
• Accounts payable
• Payroll
• General ledger systems
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Accounting Information SystemsAccounting Information Systems
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Financial Management SystemsFinancial Management Systems
• Supports business managers and professionals making decisions concerning• The financing of a business
• The allocation and control of financial resources within a business
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Financial Management System ExampleFinancial Management System Example
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Enterprise Business SystemsEnterprise Business Systems
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What is CRM?What is CRM?
• Managing the full range of the customer relationship involves• Providing customer-facing employees with a
single, complete view of every customer at every touch point and across all channels
• Providing the customer with a single, complete view of the company and its extended channels
• CRM uses IT to create a cross-functional enterprise system that integrates and automates many of the customer-serving processes
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Application Clusters in CRMApplication Clusters in CRM
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Contact and Account ManagementContact and Account Management
• CRM helps sales, marketing, and service professionals capture and track relevant data about• Every past and planned contact with prospects
and customers• Other business and life cycle events of customers
• Data are captured through customer touchpoints• Telephone, fax, e-mail• Websites, retail stores, kiosks• Personal contact
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SalesSales
• A CRM system provides sales reps with the tools and data resources they need to• Support and manage their sales activities• Optimize cross- and up-selling
• CRM also provides the means to check on a customer’s account status and history before scheduling a sales call
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Marketing and FulfillmentMarketing and Fulfillment
• CRM systems help with direct marketing campaigns by automatic such tasks as• Qualifying leads for targeted marketing• Scheduling and tracking mailings• Capturing and managing responses• Analyzing the business value of the campaign• Fulfilling responses and requests
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Customer Service and SupportCustomer Service and Support
• A CRM system gives service reps real-time access to the same database used by sales and marketing• Requests for service are created, assigned,
and managed• Call center software routes calls to agents• Help desk software provides service data
and suggestions for solving problems
• Web-based self-service enables customers to access personalized support information
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Retention and Loyalty ProgramsRetention and Loyalty Programs
• It costs 6 times more to sell to a new customer
• An unhappy customer will tell 8-10 others
• Boosting customer retention by 5 percent can boost profits by 85 percent
• The odds of selling to an existing customer are 50 percent; a new one 15 percent
• About 70 percent of customers will do business with the company again if a problem is quickly taken care of
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Retention and Loyalty ProgramsRetention and Loyalty Programs
• Enhancing and optimizing customer retention and loyalty is a primary objective of CRM• Identify, reward, and market to the most loyal
and profitable customers• Evaluate targeted marketing and relationship
programs
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The Three Phases of CRMThe Three Phases of CRM
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Benefits of CRMBenefits of CRM
• Benefits of CRM• Identify and target the best customers• Real-time customization and personalization
of products and services• Track when and how a customer contacts
the company• Provide a consistent customer experience• Provide superior service and support across
all customer contact points
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CRM FailuresCRM Failures
• Business benefits of CRM are not guaranteed• 50 percent of CRM projects did not produce
promised results• 20 percent damaged customer relationships
• Reasons for failure• Lack of understanding and preparation• Not solving business process problems first• No participation on part of business stakeholders
involved
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Trends in CRMTrends in CRM
• Operational CRM• Supports customer interaction with greater
convenience through a variety of channels• Synchronizes customer interactions consistently
across all channels• Makes the company easier to do business with
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Trends in CRMTrends in CRM
• Analytical CRM• Extracts in-depth customer history, preferences,
and profitability from databases• Allows prediction of customer value
and behavior• Allows forecast of demand• Helps tailor information and offers to
customer needs
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Trends in CRMTrends in CRM
• Collaborative CRM• Easy collaboration with customers,
suppliers, and partners• Improves efficiency and integration
throughout supply chain• Greater responsiveness to customer needs
through outside sourcing of products and services
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Trends in CRMTrends in CRM
• Portal-based CRM• Provides users with tools and information
that fit their needs• Empowers employees to respond to
customer demands more quickly• Helps reps become truly customer-faced• Provides instant access to all internal and
external customer information
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ERP: The Business BackboneERP: The Business Backbone
• ERP is a cross-functional enterprise backbone that integrates and automates processes within• Manufacturing• Logistics• Distribution• Accounting• Finance• Human resources
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What is ERP?What is ERP?
• Enterprise resource planning is a cross-functional enterprise system • An integrated suite of software modules• Supports basic internal business processes• Facilitates business, supplier, and customer
information flows
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ERP Application ComponentsERP Application Components
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ERP Process and Information FlowsERP Process and Information Flows
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Benefits and Challenges of ERPBenefits and Challenges of ERP
• ERP Business Benefits• Quality and efficiency• Decreased costs• Decision support• Enterprise agility
• ERP Costs• Risks and costs are considerable• Hardware and software are a small part
of total costs• Failure can cripple or kill a business
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Costs of Implementing a New ERPCosts of Implementing a New ERP
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Causes of ERP FailuresCauses of ERP Failures
• Most common causes of ERP failure• Under-estimating the complexity of planning,
development, training• Failure to involve affected employees in
planning and development• Trying to do too much too fast• Insufficient training• Insufficient data conversion and testing• Over-reliance on ERP vendor or consultants
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Trends in ERPTrends in ERP
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Supply Chain Management (SCM)Supply Chain Management (SCM)
• Fundamentally, supply chain management helps a company• Get the right products• To the right place• At the right time• In the proper quantity• At an acceptable cost
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Goals of SCMGoals of SCM
• The goal of SCM is to efficiently• Forecast demand• Control inventory• Enhance relationships with customers, suppliers,
distributors, and others• Receive feedback on the status of every link in
the supply chain
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What is a Supply Chain?What is a Supply Chain?
• The interrelationships• With suppliers, customers, distributors, and
other businesses • Needed to design, build, and sell a product
• Each supply chain process should add value to the products or services a company produces• Frequently called a value chain
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Supply Chain Life CycleSupply Chain Life Cycle
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Electronic Data InterchangeElectronic Data Interchange
• EDI• One of the earliest uses of information
technology for supply chain management
• The electronic exchange of business transaction documents between supply chain trading partners
• The almost complete automation of an e-commerce supply chain process
• Many transactions occur over the Internet, using secure virtual private networks
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Typical EDI ActivitiesTypical EDI Activities
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Roles and Activities of SCM in BusinessRoles and Activities of SCM in Business
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Planning & Execution Functions of SCMPlanning & Execution Functions of SCM
• Planning• Supply chain design• Collaborative demand and supply planning
• Execution• Materials management• Collaborative manufacturing• Collaborative fulfillment• Supply chain event management• Supply chain performance management
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Benefits and Challenges of SCMBenefits and Challenges of SCM
• Key Benefits• Faster, more accurate order processing• Reductions in inventory levels• Quicker times to market• Lower transaction and materials costs• Strategic relationships with supplier
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Goals and Objectives of SCMGoals and Objectives of SCM
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Benefits and Challenges of SCMBenefits and Challenges of SCM
• Key Challenges• Lack of demand planning knowledge, tools,
and guidelines• Inaccurate data provided by other information
systems• Lack of collaboration among marketing,
production, and inventory management• SCM tools are immature, incomplete, and
hard to implement
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Trends in SCMTrends in SCM
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Electronic Commerce SystemsElectronic Commerce Systems
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The Scope of e-CommerceThe Scope of e-Commerce
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E-Commerce TechnologiesE-Commerce Technologies
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Categories of e-CommerceCategories of e-Commerce
• Business-to-Consumer• Virtual storefronts, multimedia catalogs,
interactive order processing, electronic payment, online customer support
• Business-to-Business• Electronic business marketplaces, direct links
between businesses, auctions and exchanges
• Consumer-to-Consumer• Online auctions, posting to newspaper sites,
personal websites, e-commerce portals
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Essential e-Commerce ArchitectureEssential e-Commerce Architecture
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Access Control and SecurityAccess Control and Security
• E-commerce processes must establish mutual trust and secure access between parties• User names and passwords• Encryption key• Digital certificates and signatures
• Restricted access areas• Other people’s accounts• Restricted company data• Webmaster administration areas
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Profiling and PersonalizingProfiling and Personalizing
• Profiling gathers data on you and your website behavior and choices• User registration• Cookie files and tracking software• User feedback
• Profiling is used for• Personalized (one-to-one) marketing• Authenticating identity• Customer relationship management• Marketing planning• Website management
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Search ManagementSearch Management
• Search processes help customers find the specific product or service they want• E-commerce software packages often include
a website search engine• A customized search engine may be acquired
from companies like Google or Requisite Technology
• Searches are often on content or by parameters
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Content and Catalog ManagementContent and Catalog Management
• Content Management Software• Helps develop, generate, deliver, update, and
archive text and multimedia information at e-commerce websites
• Catalog Management Software• Helps generate and manage catalog content
• Catalog and content management software works with profiling tools to personalize content• Includes product configuration and
mass customization
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Workflow ManagementWorkflow Management
• E-business and e-commerce workflow manage-ment depends on a workflow software engine• Contains software model of business processes
• Workflow models express predefined• Sets of business rules• Roles of stakeholders• Authorization requirements• Routing alternative• Databases used• Task sequences
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Example of Workflow ManagementExample of Workflow Management
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Event NotificationEvent Notification
• Most e-commerce applications are event driven• Responds to such things as customer’s first
website visit and payments• Monitors all e-commerce processes• Records all relevant events, including problem
situations• Notifies all involved stakeholders• Works in conjunction with user-profiling software
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Collaboration and TradingCollaboration and Trading
• Processes that support vital collaboration arrangements and trading services• Needed by customers, suppliers, and other
stakeholders
• Online communities of interest• E-mail, chat, discussion groups• Enhances customer service• Builds loyalty
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Electronic Payment ProcessesElectronic Payment Processes
• Complex processes• Near-anonymous and electronic nature
of transactions• Many security issues• Wide variety of debit and credit alternatives• Financial institutions may be part of the process
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Electronic Payment ProcessesElectronic Payment Processes
• Web Payment Processes• Shopping cart process• Credit card payment process• Debit and other more complex processes
• Electronic Funds Transfer (EFT)• Major payment system in banking, retail• Variety of information technologies capture
and process money and credit card transfers• Most point-of-sale terminals in retail stores
are networked to bank EFT systems
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Electronic Payment ExampleElectronic Payment Example
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Securing Electronic PaymentsSecuring Electronic Payments
• Network sniffers easily recognize credit card formats• Encrypt data between customer and merchant• Encrypt data between customer and financial
institution• Take sensitive information off-line
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E-Commerce Application TrendsE-Commerce Application Trends
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E-Commerce Success FactorsE-Commerce Success Factors
• Some of the success factors in e-commerce• Selection and value• Performance and service• Look and feel• Advertising and incentives• Personal attention (one-to-one marketing)• Community relationships• Security and reliability
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Differences in MarketingDifferences in Marketing
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Web Store RequirementsWeb Store Requirements
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Developing a Web StoreDeveloping a Web Store
• Build a website• Choose or set up web hosting• Use simple design tools and templates• Include a shopping cart and payment support
• Market the website• Include Web page and e-mail advertising
and promotions• Exchange advertising with other Web stores• Register with search engines and directories• Sign up for affiliate programs
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Serving Your CustomersServing Your Customers
• Convert visitors into loyal customers• Develop one-to-one relationship with customers• Create incentives to encourage registration• Use Web cookies to identify visitors• Use tracking services to record and analyze
website behavior and customer preferences• Create an attractive, friendly, efficient store• Offer fast order processing and payment• Notify when orders are processed and shipped• Provide links to related websites
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Managing a Web StoreManaging a Web Store
• Manage both the business and the website• Record and analyze traffic, inventory, sales• Use CRM features to help retain customers• Link sales, inventory data to accounting systems
• Operate 24 hours a day, seven day a week
• Protect transactions and customer records• Use security monitors and firewalls• Use redundant systems and power sources• Employ passwords and encryption• Offer 24-hour tech support
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B2B E-CommerceB2B E-Commerce
• B2B is the wholesale and supply side of the commercial process• Businesses buy, sell, or trade with other
businesses
• Relies on multiple electronic information technologies• Catalog systems• Trading systems• Data interchange• Electronic funds transfers
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E-Commerce MarketplacesE-Commerce Marketplaces
• One to Many• Sell-side marketplaces• One supplier dictates product offerings and prices
• Many to One• Buy-side marketplaces• Many suppliers bid for the business of a buyer
• Some to Many• Distribution marketplaces• Unites suppliers who combine their product
catalogs to attract a larger audience
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E-Commerce MarketplacesE-Commerce Marketplaces
• Many to Some• Procurement marketplaces• Unites major buyers who combine purchasing
catalogs• Attracts more competition and thus lower prices
• Many to Many• Auction marketplaces• Dynamically optimizes prices
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E-Commerce PortalsE-Commerce Portals
• B2B e-commerce portals offer multiple marketplaces• Catalogs• Exchanges• Auctions
• Often developed and hosted by third-party market-maker companies• Infomediaries serve as intermediaries in
e-business and e-commerce transactions
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B2B E-Commerce Web PortalB2B E-Commerce Web Portal
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Clicks and BricksClicks and Bricks
• Success will go to those who can integrate Internet initiatives with traditional operations• Merging operations has trade-offs
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E-Commerce IntegrationE-Commerce Integration
• The business case for merging e-commerce with traditional business operations• Move strategic capabilities in traditional
operations to the e-commerce business• Integrate e-commerce into the traditional
business• Sharing of established brands• Sharing of key business information• Joint buying power and distribution efficiencies
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Other Clicks and Bricks StrategiesOther Clicks and Bricks Strategies
• Partial e-commerce integration• Joint ventures and strategic partnerships
• Complete separation• Spin-off of an independent e-commerce company
• Barnes and Noble’s experience• Spun off independent e-commerce company• Gained venture capital, entrepreneurial culture,
and flexibility• Attracted quality management• Accelerated decision making• Failed to gain market share
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E-Commerce Channel ChoicesE-Commerce Channel Choices
• An e-commerce channel is the marketing or sales channel created by a company for its e-commerce activities• There is no universal strategy or e-commerce
channel choice• Both e-commerce integration and separation
have major business benefits and shortcoming• Most businesses are implementing some
measure of clicks and bricks integration
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E-Commerce Strategy ChecklistE-Commerce Strategy Checklist
• Questions to ask and answer• What audiences are we attempting to reach?• What action do we want those audiences to take?• Who owns the e-commerce channel within the
organization?• Is the e-commerce channel planned alongside
other channels?• Is there a process for generating, approving,
releasing, and withdrawing content?• Will our brand translate to the new channel?• How will we market the channel itself?
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Decision Support SystemsDecision Support Systems
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Levels of Managerial Decision MakingLevels of Managerial Decision Making
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Decision StructureDecision Structure
• Structured (operational)• The procedures to follow when decision
is needed can be specified in advance
• Unstructured (strategic)• It is not possible to specify in advance
most of the decision procedures to follow
• Semi-structured (tactical)• Decision procedures can be pre-specified,
but not enough to lead to the correct decision
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Decision Support SystemsDecision Support Systems
Management Information
SystemsDecision Support
Systems
Decision support provided
Provide information about the performance of the
organization
Provide information and techniques to analyze
specific problems
Information form and frequency
Periodic, exception, demand, and push reports
and responses
Interactive inquiries and responses
Information format
Prespecified, fixed format Ad hoc, flexible, and adaptable format
Information processing methodology
Information produced by extraction and manipulation
of business data
Information produced by analytical modeling of
business data
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Decision Support TrendsDecision Support Trends
• The emerging class of applications focuses on• Personalized decision support• Modeling• Information retrieval• Data warehousing• What-if scenarios• Reporting
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Business Intelligence ApplicationsBusiness Intelligence Applications
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Decision Support SystemsDecision Support Systems
• Decision support systems use the following to support the making of semi-structured business decisions• Analytical models• Specialized databases• A decision-maker’s own insights and judgments• An interactive, computer-based modeling process
• DSS systems are designed to be ad hoc, quick-response systems that are initiated and controlled by decision makers
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DSS ComponentsDSS Components
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DSS Model BaseDSS Model Base
• Model Base• A software component that consists of
models used in computational and analytical routines that mathematically express relations among variables
• Spreadsheet Examples• Linear programming• Multiple regression forecasting• Capital budgeting present value
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Applications of Statistics and ModelingApplications of Statistics and Modeling
• Supply Chain: simulate and optimize supply chain flows, reduce inventory, reduce stock-outs
• Pricing: identify the price that maximizes yield or profit
• Product and Service Quality: detect quality problems early in order to minimize them
• Research and Development: improve quality, efficacy, and safety of products and services
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Management Information SystemsManagement Information Systems
• The original type of information system that supported managerial decision making• Produces information products that support
many day-to-day decision-making needs
• Produces reports, display, and responses
• Satisfies needs of operational and tactical decision makers who face structured decisions
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Management Reporting AlternativesManagement Reporting Alternatives
• Periodic Scheduled Reports• Prespecified format on a regular basis
• Exception Reports• Reports about exceptional conditions• May be produced regularly or when an
exception occurs
• Demand Reports and Responses• Information is available on demand
• Push Reporting• Information is pushed to a networked computer
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Example of Push ReportingExample of Push Reporting
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Online Analytical ProcessingOnline Analytical Processing
• OLAP• Enables managers and analysts to examine
and manipulate large amounts of detailed and consolidated data from many perspectives
• Done interactively, in real time, with rapid response to queries
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Online Analytical OperationsOnline Analytical Operations
• Consolidation• Aggregation of data• Example: data about sales offices rolled up
to the district level
• Drill-Down• Display underlying detail data• Example: sales figures by individual product
• Slicing and Dicing• Viewing database from different viewpoints• Often performed along a time axis
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OLAP ConfigurationOLAP Configuration
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Geographic Information SystemsGeographic Information Systems
• GIS• DSS uses geographic databases to construct
and display maps and other graphic displays
• Supports decisions affecting the geographic distribution of people and other resources
• Often used with Global Positioning Systems (GPS) devices
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Data Visualization SystemsData Visualization Systems
• DVS• Represents complex data using interactive,
three-dimensional graphical forms (charts, graphs, maps)
• Helps users interactively sort, subdivide, combine, and organize data while it is in its graphical form
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DVS ExampleDVS Example
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Using Decision Support SystemsUsing Decision Support Systems
• Using a decision support system involves an interactive analytical modeling process• Decision makers are not demanding
pre-specified information• They are exploring possible alternatives
• What-If Analysis• Observing how changes to selected variables
affect other variables
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Using Decision Support SystemsUsing Decision Support Systems
• Sensitivity Analysis• Observing how repeated changes to a single
variable affect other variables
• Goal-seeking Analysis• Making repeated changes to selected variables
until a chosen variable reaches a target value
• Optimization Analysis• Finding an optimum value for selected variables,
given certain constraints
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Data MiningData Mining
• Provides decision support through knowledge discovery• Analyzes vast stores of historical business data• Looks for patterns, trends, and correlations• Goal is to improve business performance
• Types of analysis• Regression• Decision tree• Neural network• Cluster detection• Market basket analysis
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Analysis of Customer DemographicsAnalysis of Customer Demographics
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Market Basket AnalysisMarket Basket Analysis
• One of the most common uses for data mining• Determines what products customers purchase
together with other products
• Results affect how companies• Market products• Place merchandise in the store• Lay out catalogs and order forms• Determine what new products to offer• Customize solicitation phone calls
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Executive Information SystemsExecutive Information Systems
• EIS• Combines many features of MIS and DSS• Provide top executives with immediate and
easy access to information• Identify factors that are critical to accomplishing
strategic objectives (critical success factors)• So popular that it has been expanded to
managers, analysis, and other knowledge workers
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Features of an EIS Features of an EIS
• Information presented in forms tailored to the preferences of the executives using the system• Customizable graphical user interfaces
• Exception reports
• Trend analysis
• Drill down capability
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Enterprise Information PortalsEnterprise Information Portals
• An EIP is a Web-based interface and integration of MIS, DSS, EIS, and other technologies• Available to all intranet users and select
extranet users• Provides access to a variety of internal and
external business applications and services• Typically tailored or personalized to the user
or groups of users• Often has a digital dashboard• Also called enterprise knowledge portals
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Dashboard ExampleDashboard Example
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Enterprise Information Portal ComponentsEnterprise Information Portal Components
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Enterprise Knowledge PortalEnterprise Knowledge Portal
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Artificial Intelligence (AI)Artificial Intelligence (AI)
• AI is a field of science and technology based on• Computer science• Biology• Psychology• Linguistics• Mathematics• Engineering
• The goal is to develop computers than can simulate the ability to think• And see, hear, walk, talk, and feel as well
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Attributes of Intelligent BehaviorAttributes of Intelligent Behavior
• Some of the attributes of intelligent behavior• Think and reason• Use reason to solve problems• Learn or understand from experience• Acquire and apply knowledge• Exhibit creativity and imagination• Deal with complex or perplexing situations
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Attributes of Intelligent BehaviorAttributes of Intelligent Behavior
• Attributes of intelligent behavior (continued)• Respond quickly and successfully to new
situations• Recognize the relative importance of
elements in a situation• Handle ambiguous, incomplete, or
erroneous information
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Domains of Artificial IntelligenceDomains of Artificial Intelligence
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Cognitive ScienceCognitive Science
• Applications in the cognitive science of AI• Expert systems• Knowledge-based systems• Adaptive learning systems• Fuzzy logic systems• Neural networks• Genetic algorithm software• Intelligent agents
• Focuses on how the human brain works and how humans think and learn
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RoboticsRobotics
• AI, engineering, and physiology are the basic disciplines of robotics• Produces robot machines with computer
intelligence and humanlike physical capabilities
• This area include applications designed to give robots the powers of• Sight or visual perception• Touch• Dexterity• Locomotion• Navigation
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Natural InterfacesNatural Interfaces
• Major thrusts in the area of AI and the development of natural interfaces• Natural languages• Speech recognition• Virtual reality
• Involves research and development in• Linguistics• Psychology• Computer science• Other disciplines
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Latest Commercial Applications of AILatest Commercial Applications of AI
• Decision Support• Helps capture the why as well as the what of
engineered design and decision making
• Information Retrieval• Distills tidal waves of information into simple
presentations• Natural language technology• Database mining
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Latest Commercial Applications of AILatest Commercial Applications of AI
• Virtual Reality• X-ray-like vision enabled by enhanced-reality
visualization helps surgeons• Automated animation and haptic interfaces
allow users to interact with virtual objects
• Robotics• Machine-vision inspections systems• Cutting-edge robotics systems
• From micro robots and hands and legs, to cognitive and trainable modular vision systems
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Expert SystemsExpert Systems
• An Expert System (ES)• A knowledge-based information system
• Contain knowledge about a specific, complex application area
• Acts as an expert consultant to end users
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Components of an Expert SystemComponents of an Expert System
• Knowledge Base• Facts about a specific subject area• Heuristics that express the reasoning procedures
of an expert (rules of thumb)
• Software Resources• An inference engine processes the knowledge
and recommends a course of action• User interface programs communicate with
the end user• Explanation programs explain the reasoning
process to the end user
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Components of an Expert SystemComponents of an Expert System
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Methods of Knowledge RepresentationMethods of Knowledge Representation
• Case-Based • Knowledge organized in the form of cases• Cases are examples of past performance,
occurrences, and experiences
• Frame-Based• Knowledge organized in a hierarchy or
network of frames• A frame is a collection of knowledge about
an entity, consisting of a complex package of data values describing its attributes
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Methods of Knowledge RepresentationMethods of Knowledge Representation
• Object-Based• Knowledge represented as a network of objects• An object is a data element that includes both
data and the methods or processes that act on those data
• Rule-Based• Knowledge represented in the form of rules
and statements of fact• Rules are statements that typically take the
form of a premise and a conclusion (If, Then)
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Expert System Application CategoriesExpert System Application Categories
• Decision Management• Loan portfolio analysis• Employee performance evaluation• Insurance underwriting
• Diagnostic/Troubleshooting• Equipment calibration• Help desk operations• Medical diagnosis• Software debugging
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Expert System Application CategoriesExpert System Application Categories
• Design/Configuration• Computer option installation• Manufacturability studies• Communications networks
• Selection/Classification• Material selection• Delinquent account identification• Information classification• Suspect identification
• Process Monitoring/Control
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Expert System Application CategoriesExpert System Application Categories
• Process Monitoring/Control• Machine control (including robotics)• Inventory control• Production monitoring• Chemical testing
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Benefits of Expert SystemsBenefits of Expert Systems
• Captures the expertise of an expert or group of experts in a computer-based information system• Faster and more consistent than an expert• Can contain knowledge of multiple experts• Does not get tired or distracted• Cannot be overworked or stressed• Helps preserve and reproduce the knowledge
of human experts
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Limitations of Expert SystemsLimitations of Expert Systems
• The major limitations of expert systems• Limited focus• Inability to learn• Maintenance problems• Development cost• Can only solve specific types of problems
in a limited domain of knowledge
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Developing Expert SystemsDeveloping Expert Systems
• Suitability Criteria for Expert Systems• Domain: the domain or subject area of
the problem is small and well-defined
• Expertise: a body of knowledge, techniques, and intuition is needed that only a few people possess
• Complexity: solving the problem is a complex task that requires logical inference processing
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Developing Expert SystemsDeveloping Expert Systems
• Suitability Criteria for Expert Systems• Structure: the solution process must be able
to cope with ill-structured, uncertain, missing, and conflicting data and a changing problem situation
• Availability: an expert exists who is articulate, cooperative, and supported by the management and end users involved in the development process
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Development ToolDevelopment Tool
• Expert System Shell• The easiest way to develop an expert system
• A software package consisting of an expert system without its knowledge base
• Has an inference engine and user interface programs
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Knowledge EngineeringKnowledge Engineering
• A knowledge engineer• Works with experts to capture the knowledge
(facts and rules of thumb) they possess
• Builds the knowledge base, and if necessary, the rest of the expert system
• Performs a role similar to that of systems analysts in conventional information systems development
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Neural NetworksNeural Networks
• Computing systems modeled after the brain’s mesh-like network of interconnected processing elements (neurons)• Interconnected processors operate in parallel
and interact with each other• Allows the network to learn from the data it
processes
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Fuzzy LogicFuzzy Logic
• Fuzzy logic• Resembles human reasoning• Allows for approximate values and
inferences and incomplete or ambiguous data• Uses terms such as “very high” instead of
precise measures• Used more often in Japan than in the U.S.• Used in fuzzy process controllers used in
subway trains, elevators, and cars
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Example of Fuzzy Logic Rules and QueryExample of Fuzzy Logic Rules and Query
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Genetic AlgorithmsGenetic Algorithms
• Genetic algorithm software • Uses Darwinian, randomizing, and other
mathematical functions• Simulates an evolutionary process, yielding
increasingly better solutions to a problem• Being uses to model a variety of scientific,
technical, and business processes• Especially useful for situations in which
thousands of solutions are possible
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Virtual Reality (VR)Virtual Reality (VR)
• Virtual reality is a computer-simulated reality• Fast-growing area of artificial intelligence• Originated from efforts to build natural, realistic,
multi-sensory human-computer interfaces• Relies on multi-sensory input/output devices• Creates a three-dimensional world through
sight, sound, and touch• Also called telepresence
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Typical VR ApplicationsTypical VR Applications
• Current applications of virtual reality• Computer-aided design• Medical diagnostics and treatment• Scientific experimentation• Flight simulation• Product demonstrations• Employee training• Entertainment
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Intelligent AgentsIntelligent Agents
• A software surrogate for an end user or a process that fulfills a stated need or activity• Uses built-in and learned knowledge base
to make decisions and accomplish tasks in a way that fulfills the intentions of a user
• Also call software robots or bots
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User Interface AgentsUser Interface Agents
• Interface Tutors – observe user computer operations, correct user mistakes, provide hints/advice on efficient software use
• Presentation Agents – show information in a variety of forms/media based on user preferences
• Network Navigation Agents – discover paths to information, provide ways to view it based on user preferences
• Role-Playing – play what-if games and other roles to help users understand information and make better decisions
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Information Management AgentsInformation Management Agents
• Search Agents – help users find files and databases, search for information, and suggest and find new types of information products, media, resources
• Information Brokers – provide commercial services to discover and develop information resources that fit business or personal needs
• Information Filters – Receive, find, filter, discard, save, forward, and notify users about products received or desired, including e-mail, voice mail, and other information media