MANAGEMENT INFORMATION SYSTEMS

COURSE PLAN
&
COURSE MATERTIAL

SEMESTER II

DR. PRANAV KAYANDE

Subject Teacher

INSTITUTE OF MANAGEMENT EDUCATION

RESEARCH AND TRAINING, PUNE
Need and Purpose of IS
1. a. IS framework for Business Professionals

Five areas of knowledge are important to end users in order to

understand information systems:
Foundation Concepts. End users must be familiar with with
the basic components and types of information systems there
are. But they also need to be familiar with general systems
theory and theories of information processing (machine and
human).

Information Technology. End users should understand

technology, more precisely, the information technology of
hardware, software, telecommunications, database
management, and how all these elements interaction in a
dynamic process of very rapid change, development, and new
ways of doing business.

Business Applications. How information systems are applied

to business problems is more complex than it might seem.
The informed end users seeks to learn both about how to use
information systems to solve existing problems and to begin
using IS as a new way of defining problems and meeting
business opportunities. End users should gain a basic
understanding in the areas of user needs, office automation,
transaction processing, the functional areas of business,
management reporting, decision support, executive support,
competitive advantage, and artificial intelligence.

Development Processes. End users of IS need to know the

fundamental concepts of problem-solving and development.
Here you should become familiar with methodologies such as
the systems approach, the systems development life cycle,
and prototyping.

Management Challenges. How managers make use of IS

resources is a key concern for end users. More than ever, a
knowledge of management methods is required by each end
users, as IT demands that end users make more independent
decisions that support the company's overall objectives.

1. b. Components of IS
An Information System is an organized combination of
people, hardware, software, communications networks,
and data resources that collects, transforms, and
disseminates information in an organization.

Key concepts of the text include:

Information Technology (IT). The dynamic interaction of
computer-based information systems with
telecommunications forms the backbone of IT.

End User Perspective. An end user is anyone who uses

an information system or the information it produces. As
a perspective on management information systems, the
end user focuses designers, developers, and all
information systems personnel on how the system does
and should function in use. Information systems are
powerful tools -- and all the more powerful when made
to fit the needs of those who use them everyday. This
involves adapting the system to the user, not the other
way around.

An Enterprise Perspective. Information technology can

provide the information a business needs for efficient
operations. It can even be the foundation of a
company's competitive advantage. But to function
properly, an information system must be developed in
support of the strategic objectives, business operations,
and management needs of the enterprise.

Fig An Information System

 This information system model expresses a fundamental
conceptual framework for the major components and
activities of information systems. An information system
depends on the resources of people (end users and IS
specialists), hardware (machines and media), software
(programs and procedures), data (data and knowledge
bases), and networks (communications media and
network support) to perform input, processing, output,
storage, and control activities that covert data resources
into information products.

• Data resources are transformed by information

processing activities into a variety of information products
for end users.

• Information processing consists of input, processing,

output, storage and control activities.
 Fig. System

System concepts underlie the field of information systems.

From the end user perspective, it is necessary to understand
the fundamentals of systems theory:

System. A system is a group of interrelated components

working together toward a common goal by accepting inputs
and producing outputs in an organized transformation
process. Systems have the following three basic interacting
functions.

Input. Input involves capturing and assembling elements that

enter the system to be processed.
Processing. Processing involves the transformation of input
into output.

Output. Output is the end result of the transformation

process. Output involves transferring elements that have been
produced by a transformation process to their ultimate
destination.

1. c. Data Vs Information

Data:
• Data is the plural of datum, though data commonly
represents both singular and plural forms.
• Data are raw facts or observations, typically about
physical phenomena or business transactions.
 • Data should be viewed as raw material resources that are
processed into finished information products.
• Data are usually subjected to a value-added process
(data processing or information processing) where
• Its form is aggregated, manipulated, and organized
• Its content is analyzed and evaluated
• It is placed in a proper context for a human user
Information:
• Information can be defined as data that have been
converted into a meaningful and useful context for
specific end users.
• Information should be viewed as processed data which
has been placed in a context that gives it value for
specific end users.

1. d. Attributes of information quality

Time Dimension:
Timeliness Information should be provided when it is
needed
Currency Information should be up-to-date when it is
provided
Frequency Information should be provided as often as
needed
Time Period Information can be provided about past,
present, and future time periods.

Content Dimension:
Accuracy Information should be free from errors
Relevance Information should be related to the
information needs of a specific recipient for a specific
situation
Completeness All the information that is needed should
be provided
Conciseness Only the information that is needed should
be provided
Scope Information can have a broad or narrow scope,
or an internal or external focus
Performance Information can reveal performance by
measuring activities accomplished, progress made, or
resources accumulated.

Form Dimension:
Clarity Information should be provided in a form that is
easy to understand
Detail Information can be provided in detail or
summary form
Order Information can be arranged in a predetermined
sequence
Presentation Information can be presented in narrative,
numeric, graphic, or other forms.
Media Information can be provided in the form of
printed paper documents, video displays, or other media.
1. e. logical data element

Storage is the information activity in which data and

information are retained in an organized manner for latter use.
For storage purposes, data are typically organized into the
following categories:

Field. A field is a grouping of characters that represent a

characteristic of a person, place, thing, or event. On the
slide, a person's name constitutes a field.

Record. A record is a collection of interrelated fields. For

example, an employee's payroll record usually contains
several fields, such as their name, social security number,
department, and salary.
File. A file is a collection of interrelated records. For
example, a payroll file might contain all of the payroll files for
all the employees of a firm.

Database. A database is an integrated collection of

interrelated records or files. For example, the personnel
database of a firm might contain payroll, personnel action,
and employee skills files.

1. f. Major roles of IS

Information Technology is increasingly important in the

competitive marketplace. Managers need all the help they
can get. Information systems perform three vital roles in
business:
Support Business Operations. From accounting to tracking
customers' orders, information systems provide management
with support in day-to-day business operations. As quick
response becomes more important, the ability of information
systems to gather and integrate information across business
functions is become crucial.

Support Managerial Decision Making. Just as information

systems can combine information to help run the business
better, the same information can help managers identify
trends and to evaluate the outcome of previous decisions. IS
helps managers make better, quicker, and more informed
decisions.

Support Strategic Advantage. Information systems designed

around the strategic objectives of the company help create
competitive advantages in the marketplace.
Types of Information systems
2. a. History of the role of Information Systems

Data Processing: 1950s - 1960’s:

Electronic data processing systems. Transaction
processing, record-keeping, and traditional accounting
applications

Management Reporting: 1960s - 1970’s:

Management Information systems. Management reports
of pre specified information to support decision making.

Decision Support: 1970s - 1980s:

Decision Support systems. Interactive ad hoc support of
the managerial decision-making process.

Strategic and End User Support: 1980s - 1990’s:

End User computing systems. Direct computing support
for end user productivity and work group collaboration.
 Executive information systems. Critical information for
top management
Expert systems: Knowledge-based expert advice for end
users
Strategic Information Systems. Strategic products and
services for competitive advantage

Electronic Business and Commerce: 1990’s - 2000’s:

Internetworked e-business and e-commerce Systems.
Internetworked enterprise and global e-business
operations and e-commerce on the Internet, intranets,
extranets, and other networks.

2. b. The e-Business Enterprise

The Internet and related technologies and applications is
revolutionizing the way businesses are operated and people
work, and how information technology supports business
operations and end user work activities.

Businesses are quickly becoming e-business enterprises.

The Internet and Internet-like networks - inside the enterprise
(intranets), and between an enterprise and its trading partners
(extranets) - have become the primary information technology
infrastructure that supports the business operations of many
companies.

E-business enterprises rely on such technologies as to:

1. Reengineer and revitalize internal business processes
2. Implement electronic commerce systems among
businesses and their customers and suppliers.
3. Promote enterprise collaboration among business teams
and workgroups.

E-Business: is defined as the use of Internet technologies to

internetwork and empower business processes, electronic
commerce, and enterprise communication and collaboration
within a company and with its customers, suppliers, and other
business stakeholders.

2. c. Types of Information Systems

Information Systems can be classified by the type of the
support they provide an organization.

• Operations support systems process data generated by

and used in business operations. They produce a variety
of information products for internal and external use.
Operations support systems do not emphasize producing
the specific information products that can best be used
by managers. Further processing by management
information systems is usually required. The role of a
business firm’s operations support systems is to:
1. Effectively process business transactions
2. Control industrial processes
3. Support enterprise communications and collaboration
4. Update corporate databases.
 • Management support systems assist managers in
decision making. Providing information and support for
decision making by all types of managers and business
professionals is a complex task. Conceptually, several
major types of information systems support a variety of
decision-making responsibilities.

1. Management information systems - provide information in

the form of reports and displays to managers and many
business professionals.

2. Decision support systems - give direct computer support

to managers during the decision-making process.

3. Executive information systems - provide critical

information from a wide variety of internal and external
sources in easy-to-use displays to executives and managers.

2. d. Other categories of Information Systems

Expert Systems: Knowledge-based systems that provide
expert advice and act as expert consultants to users.
Examples: credit application advisor, process monitor, and
diagnostic maintenance systems.

Knowledge Management Systems: are knowledge-based

information systems that support the creation, organization,
and dissemination of business knowledge to employees and
managers throughout a company. Examples: intranet access
to best business practices, sales proposal strategies, and
customer problem resolution systems.

Functional Business Systems: Support a variety of operational

and managerial applications in support of basic business
functions of a company. Examples: information systems that
support applications in accounting, finance, marketing,
operations management, and human resource management.

Strategic Information Systems: are information systems that

support operations or management processes that provide a
firm with strategic products, services, and capabilities for
competitive advantage. Examples: online stock trading,
shipment tracking, and e-commerce Web systems.

Cross-Functional Information Systems: are information

systems that are integrated combinations of business
information systems, thus sharing information resources
across the functional units of an organization
 Information
as a
Strategic resource

3. a. Competitive environment
A firm can survive in the long run if it successfully develops
strategies to confront five generic competitive forces that
operate in the firm's relevant environment. As illustrated on
the slide these forces include:

Threat of New Entrants. Many threats to long run survival

come from companies that do not yet exist or have a
presence in a given industry or market. The threat of new
entrants forces top management to monitor the trends,
especially in technology, that might give rise to new
competitors. .
Bargaining Power of Suppliers. Suppliers with access to key
or limited resources, or who dominate their industries, may
exert undue influence on the firm. Many firms seek to reduce
their dependence on a single firm to limit the suppliers'
bargaining power.
Rivalry Among Existing Firms. In mature industries, existing
competitors are not much of the threat: typically each firm
has found its "niche". However, changes in management,
ownership, or "the rules of the game" can give rise to serious
threats to long term survival from existing firms.

Bargaining Power of Customers. Customers can grow large

and powerful as a result of their market share. For example,
Wal-Mart is the largest customer for consumer package
goods and often dictates terms to the makers of those goods
-- even a giant like Procter & Gamble.

Threat of Substitutes. To the extent that customers can use

different products to fulfill the same need, the threat of
substitutes exists.

3.b. Competitive strategies

Competitive Advantage is created or maintained with the
company succeeds in performing some activity of value to
customers significantly better than does its competition.
According to Porter, competitive advantage can be developed
by following one or more of these strategies:

Cost Strategies. Becoming a low-cost producer in the

industry allows the company to lower prices to customers.
Competitors with higher costs cannot afford to compete with
the low-cost leader on price.

Differentiation Strategies. Some companies create

competitive advantage by distinguishing their products on one
or more features important to their customers. Unique
features or benefits may justify price differences and/or
stimulate demand.
Innovation Strategies. Unique products or services or
changes in business processes can cause fundamental
changes in the way an industry does business.

Growth Strategies. Significantly expanding production

capacity, entering new global markets, diversifying into new
areas, or integrating related products or services can all be a
springboard to strong company growth.

Alliance Strategies. Establishing new business linkages and

alliances with customers, suppliers, former competitors,
consultants, and others can create competitive advantage

3.c. Strategic uses of IT

• Develop inter enterprise information systems whose
convenience and efficiency create switching costs that
lock in customers or suppliers.

• Make major investments in advanced IT applications that

build barriers to entry against industry competitors or
outsiders.

• Include IT components in products and services to make

substitution of competing products or services more
difficulty.

• Leverage investment in IS people, hardware, software,

databases, and networks from operational uses into
strategic applications.
3.d. Value chain

The Value Chain Concept developed by Michael Porter views a

firm as a series of basic activities (the "chain") that add value
to its products and services that support a profit margin for
the firm. In the value chain concept, some business activities
are primary activities and others support activities. For each
activity, the role of strategic information systems (SIS) can
contribute significantly to that activity's contribution to the
value chain:

Support Activities. Support activities create the internal

infrastructure that provides direction to and support for the
specialized work of primary activities:
• Management and Administrative Services. The key
role of SIS here is in automated office systems.
• Human Resources Management. SIS role:
Employee Skills Database.
 • Technology Development. SIS role: Computer-
Aided Design.
• Procurement of Resources. SIS role: EDI with
suppliers.

Primary Activities. These activities directly contribute to the

transformation process of the organization.
• Inbound Logistics. SIS role: Automated
Warehousing, JIT.
• Operations. SIS role: Computer-Aided
Manufacturing.
• Outbound Logistics. SIS role: Online Data Entry.
• Marketing and Sales. SIS role: Market Analysis.
• Service. SIS role: Diagnostic Expert System.

Fig. Internet value chain

Value chains can be used to strategically position a
company’s Internet-based applications to gain competitive
advantage.

1. This value chain model outlines several ways that a

company’s Internet connections with its customers could
provide business benefits and opportunities for competitive
advantage.
Example: Company-managed Internet newsgroups, chat
rooms, and e-commerce websites are powerful tools for
market research and product development, direct sales, and
customer feedback and support.

2. Company Internet connections with its suppliers could be

used for competitive advantage.
Example: Online auctions and exchanges at suppliers’ e-
commerce websites and online shipping, scheduling, and
status information at an e-commerce portal that gives
employees immediate access to up-to-date information from
a variety of vendors. This can substantially lower costs,
reduce lead times, and improve the quality of products and
services.

Conclusion:
• Value chain concept can help you decide where and how
to apply the strategic capabilities of information
technology.
• Value chain shows various types of information
technologies that might be applied to specific business
processes to help a firm gain competitive advantages in
the marketplace.
3. e. Customer focused e-business

There are other key strategies enabled by IT that can be used

to enable a business to become successful and to maintain
their success. These will be discussed on the next slides.
A key strategy for becoming a successful e-business is to
maximize customer value. This strategic focus on customer
value recognizes that quality rather than price becomes the
primary determinant in a customer’s perception of value. A
Customer-Focused e-business, then, is one that uses Internet
technologies to keep customer loyal by anticipating their future
needs, responding to concerns, and providing top quality
customer service.

As the slide indicates, such technologies like intranets, the

Internet, and extranet websites create new channels for
interactive communications within a company, with
customers, and with suppliers, business partners, and others
in the external business environment. Thereby, encouraging
cross-functional collaboration with customers in product
development, marketing, delivery, service and technical
support.

A successful Customer-Focused e-business attempts to

‘own’ the customer's total business experience through such
approaches as:

• Letting the customer place orders directly, and through

distribution partners
• Building a customer database that captures customers'
preferences and profitability, and allowing all employees
access to a complete view of each customer.
• Letting customers check order, history and delivery
status. Nurturing an online community of customers,
employees, and business partners.
 Information Systems Architecture
&
Telecommunication

4. a. Overview of Hardware
Fig. Generations of computer (Microprocessor)

What is a computer system? A computer system is an

interrelated combination of components performing specialized
functions to provide end users with a powerful information-
processing tool.

Computers have radically changed from their early beginnings.

As the figure indicates, the…
First Generation. First generation computers (1951-1958)
used hundreds or thousands of vacuum tubes for their
processing and memory circuitry. These were room size
computers that generated a great deal of heat requiring large
air conditioning and maintenance support.

Second Generation. Second generation computers (1959-

1963) used transistors and other solid-state semiconductor
devices wired to circuit boards. Magnetic cores were used for
memory and removable magnetic disk packs and magnetic
tape were used for secondary storage.

Third Generation. Third generation computers (19654-1979)

began using integrated circuits consisting of thousands of
transistors and other circuit elements etched on tiny chips of
silicon allowing for increased memory and processing speeds
of several millions of instructions per second (MIPS).

Fourth Generation. Fourth generation computers (1979-

present) use large scale integration (LSI) and very large scale
integration (VLSI) that cram hundreds of thousands or millions
of transistors and other circuit elements on each chip.

Fifth Generation. The next generation of computers should

continue the trend toward more power, more speed, smaller
size, and longer terms of service. Fifth generation computers
may use superconductor circuits or other developing
technologies to process and store information
Fig. Computer System component

A computer system is an interrelated combination of

components performing specialized basic functions to provide
end users with a powerful information processing tool. Key
functions include:

Input. The input devices of a computer system include

keyboards, touch screens, pens, electronic "mice," optical
scanners, and other peripheral hardware components that
convert electronic data into electronic machine-readable
form. Input may be direct entry (by the end user) or through
telecommunications links.

Processing. The central processing unit (CPU) is the main

processing component of a computer system. A key
component of the CPU is the arithmetic-logic unit (ALU),
which performs the arithmetic and logic functions required in
computer processing.

Output. Output devices convert the electronic information

produced by the computer system (binary or digital
information) into human-intelligible form for presentation to
end users. Output devices include video display units,
printers, audio response units, and other peripheral hardware
components specialized in this function.

Storage. Storage devices store data and programs

instructions needed for processing. A computer's primary
storage or memory is used to hold key information needed to
run the computer while secondary storage (such as magnetic
disks and tape units) hold larger parts of programs used less
frequently and the content files created by end users.

Control. The control unit of the CPU interprets computer

program instructions and transmits directions to the other
components of the computer system.

Fig. Input devices

Let’s take a moment to review some of the more popular

means and devices used for capturing input.
Keyboards. Are the most widely used devices for entering
data and text.

Pointing Devices. Are widely used with operating systems that

have a graphical user interface. They include a range of
devices:
 Electronic mouse
  Trackball
 Pointing stick-- a small button-like device
centered on a row above the keyboard in some
notebook PCs.
 Touchpads-- rectangular touch-sensitive
surface usually below the keyboard, found in
notebook PCs
 Touch screens-- devices that allow you to use
a computer by touching the face of its video
display screen.

Pen-based Computing Devices. Are used in many handheld
computers. These computers use special software to
recognize and digitize handwriting and drawings using a
stylus.

Speech Recognition Systems. Use software to digitize,

analyze, and classify your speech and its sound patterns.
Recognized words are then passed to your application
software.

Optical Scanning. Are devices that read text or graphics and

convert them into digital input. There are various types of
optical scanning devices including:
 Desktop Scanners-- used with PCs to capture images
 Optical Character Recognition (OCR)-- reads special
OCR characters and codes on documents
Magnetic Ink Character Recognition (MICR). Used by the
banking industry to read checks. Uses special ink and a
special reader to read bank and customer identification data
written on the bottom of the check.
Magnetic Stripe. Uses a magnetic stripe on the back of cards
to store up to 200 bytes of data. Data is read using a
magnetic stripe reader.

Smart Cards. Embeds a microprocessor chip with several

kilobytes of memory.

Digital Cameras. Enables you to capture and store still

photos or full motion video in digital form.

Fig. Output devices

Video displays and printed documents have been, and still

are, the most common forms of output from computer
systems. But other natural and attractive output technologies
such as voice response systems and multimedia output are
increasingly found along with video displays in business
applications.
Video images can serve as input as well as output. TV signals
or photographs can be digitized and used by the computer.
Video displays are the most common type of computer
output. Typical video displays include:

Cathode Rate Tube (CRT). Most video displays use a cathode

ray tube technology similar to the picture tubes used in home
TV sets. Although the clarity of the display is dependent upon
the graphic capability of the computer, CRTs are capable of a
very high level of clarity. This is especially important for
graphics-intensive work needed in research and development
and visual presentations.
Liquid Crystal Displays (LCDs). LCDs are the same technology
used in electronic calculators and digital watches. LCDs can
be made small and require very little current to operate,
making them ideal for portable devices.

Plasma Displays. Plasma displays are generated when

electrically charged particles of gas are trapped between glass
plates. These displays produce very high quality graphics on
a flat service at faster speeds than LCDs. They are much
more expensive than LCD output but necessary in portable
computers that require very high resolution video output, such
as full motion video and full color business presentations.
Printed output on paper is still the most common form of
output after video displays.

Inkjet printers: spray ink onto a page one line at a time.

Laser printers: use an electrostatic process similar to a
photocopying machine to produce many pages per minute of
high-quality output.

Types of secondary storages

Magnetic Storages Optical Storages

Semiconductor storages

Data and information need to be stored after input, during

processing, and before output. The figure on the slide
illustrates the speed, capacity, and cost relationships of
several alternative primary and secondary storage media.
High speed storage media cost more per byte and provide
lower total capacities. Conversely, large-media storage is
less expensive but slower. Storage media also differ in how
they are accessed by the computer:

Direct Access. Primary storage media such as semiconductor

memory chips and secondary storage devices like magnetic
disks and optical disks have direct access. This means that
any element of data can be directly stored and retrieved by
the CPU by selecting and using any of the locations on the
storage media. Each location is unique and is available to the
CPU independently of other stored elements.

Sequential Access. Sequential access storage media such as

magnetic tape do not have unique storage addresses.
Instead, data must be stored and retrieved using a sequential
or serial process. Locating an individual item of data requires
searching from the beginning of the sequence procedure
through all of the data elements that proceed it in the
sequence.

Semiconductor Memory. The primary storage of your

computer is composed of microelectronic semiconductor
memory chips. This includes specialized memory like external
cache memory and flash memory. There are tow types of
semiconductor memory:

• Random Access Memory (RAM). Volatile memory

that can be sensed (read) and changed written).
• Read Only Memory (ROM). Nonvolatile memory that
are used for permanent storage.

Magnetic Disk. The most common form of secondary storage

consists of metal or plastic disks covered with an iron oxide
recording material. Data are recorded on tracks in the form of
magnetized spots to form binary digits. Electromagnetic
read/write heads, positioned by access arms are used to read
and write data. The two most popular forms of magnetic
disks are floppy disks and hard disks.
Fig. Hard disk

Magnetic Tape. Sequential access secondary storage that

uses read/write heads within magnetic tape drives to read and
write data in the form of magnetized spots on the iron oxide
plastic coating of plastic tape. Magnetic tape devices include
tape reels and cartridges in mainframes and midrange
systems, and small cassettes or cartridges for PCs. Magnetic
tape is most often used for archival storage and backup.

Optical Disk Storage. Are a popular storage medium for

image processing that records data by using a laser to burn
pits in a plastic disk and reads data by using a laser to read
the binary codes formed by those pits. There are several
different types of optical disks.
• Compact Disk-Read Only Memory (CD-ROM)--
each disk can store more than 600MB.
• Compact Disk Recordable (CD-R)-- Enables users
to record their own data once on a CD, and read the
data indefinitely.
• Compact Disk Rewriteable (CD-RW)-- Enables
users to record and erase (rewrite) data.
• Digital Video Disk (DVD)-- each disk can store from
3.0 to 8.5 GB of data on each side of a compact
disk. It is expected that DVD will replace CD-ROM
and CD-RW technologies.

On optical discs such as compact discs (CDs) and digital

videodiscs (DVDs), information is stored as a series of lands,
or flat areas, and pits. A laser assembly reads the spinning
disc, converting lands and pits into sequences of electric
signals. When the beam hits a land, it is reflected onto a
photodiode, which produces an electric signal. Laser beams
are scattered by pits, so no signal is generated.

4.b. Software

Fig. Categories of Computer Software

Information systems depend on software resources to help

end users use computer hardware to transform data into
information products. Software handles the input,
processing, output, storage, and control activities of
information systems. Computer software is typically classified
into two major types of programs:
Systems Software. These are programs that manage and
support the resources and operations of a computer system.
A. System Management Programs. These programs help run
the hardware and communicate critical information throughout
the IS. Examples are operating systems, operating
environments (such as GUI interfaces), database
management systems, and telecommunications monitors.
B. System Development Programs. These programs are
used to build new application programs or specific information
systems applications. Examples include programming
language translators, programming environments, and CASE
packages.

Applications Software. These are programs that direct the

performance of a particular use, or application, of computers
to develop specific information products by end users.
A. General-Purpose Application Programs. These programs
allow end users to create a great many different information
products within a general knowledge category. Examples
include word processing, spreadsheets, database managers,
graphics, and integrated packages.
B. Application-Specific Programs. These programs are
dedicated to very
specific functions within a knowledge area. Examples include
programs for accounting, generating marketing plans, or
handling financing.
A programming language allows a programmer or end user to
develop the set of instructions that constitute a computer
program. Each programming language has its own unique
vocabulary, grammar, and uses. The major categories of
programming languages are identified on the slide and
described below:

Machine Languages. Machine languages (or first-generation

languages) are the most basic level of programming
languages. These use binary codes unique to the computer,
requiring programmers to have a detailed knowledge of the
specific CPU they wish to write software for.

Assembler Languages. Assembler languages (or second-

generation languages) reduce the difficulties in writing
language code by using translator programs (assemblers) that
convert the symbolic language of the code into machine
language.
High-Level Languages. High-level languages (or third-
generation languages) use instructions, called statements that
closely resemble human language or the standard notation of
mathematics. They are translated into machine language by
compilers or interpreters.

Fourth-Generation Languages. Fourth-generation languages

describe a variety of programming languages that are more
nonprocedural and conversational than previous languages.
Nonprocedural languages have programmers specify the
results they want while the program works with the computer
to determine the sequence of instructions that will accomplish
those results.

Object-Oriented Languages. Object-oriented programming

(OOP) ties data and instructions together into objects that can
be combined in many different ways with other objects to
create programs. Unlike procedural languages, OO systems
objects tell other objects to perform actions on themselves.
Thus, objects are more efficient and can be reused to create
new programs. Java is an example of an OOP, which is
specifically designed for real-time, interactive, web-based
network applications. What makes Java so special is that it is
computing platform independent. This means that any
computer and any operating system anywhere in a network
can execute Java programs.

HTML. Is a page description language that creates hypertext

or hypermedia web documents. HTML embeds control
codes, or tags, in the ASCII text of a document. These tags
are used to designate titles, headings, graphics, multimedia
components, as well as hyperlinks within the document.

XML. Unlike HTML, XML describes the content of web pages

by applying identifying tags or contextual labels to the data in
web documents. By classifying data in this way, an XML
website's information is more searchable, sortable, and easier
to analyze.

4. c. Telecommunication

Fig. Telecommunication capabilities

The figure of the slide outlines the four major strategic

capabilities of information technology:
Time Barriers. Strategic use of information systems helps
overcome time barriers by focusing on interval reduction and
just-in-time operations. The goal is to shorten the response
time to customer demands and reduce inventory investment to
a minimum. Operating in real time means no time lag
between the identification and fulfillment of a need.

Geographic Barriers. Telecommunications and computing

technologies make it possible to distribute key business
activities to where they are needed most, where they are best
performed, or where they best support the competitive
advantage of a business. Telecommunication networks allow
instantaneous access to all members and resources of the
organization, however remote, so that the best combination of
talent and ability can be brought to bear on problems or
opportunities.

Cost Barriers. Information systems help reduce costs in many

areas: production, inventory, distribution, or communications.
For example, decentralized decision making can be combined
with centralized implementation of those decisions for greater
economy without sacrificing the efficiency of the process.

Structural Barriers. Structural barriers in business include

traditional constraints in how business is conducted (such as
hours of operation and labor costs) and the processing time
various firms in a channel of distribution take to act on
customer demand. An IS can extend hours of operation
(example: automatic teller machines at banks), service
support (example: 24 hour customer support for software
products), and improve distribution (example: EDI between
manufacturers and suppliers, or wholesalers and retailers).

Fig. WAN

Wide Area Networks (WAN) cover a large geographic areas.

Networks that cover a large city or metropolitan area (MAN)
are also included in this category. Such large networks have
become a necessity for carrying out the day-to-day activities
of many business and government organizations and their end
users.

Example: WANs are used by many multinational companies

to transmit and receive information among their employees,
customers, suppliers, and other organizations across cities,
regions, countries, and the world.
Local Area Networks (LAN) connect computers and other
information processing devices within a limited physical area,
such as an office, classroom, building, manufacturing plant,
or other work site. LANs have become commonplace in many
organizations for providing telecommunications network
capabilities that link end users in offices, departments, and
other workgroups.

Fig.LAN

Local Area Networks (LANs) connect computers and other

information processing devices within a limited physical area,
such as an office, a building, or work site. LANs use a variety
of telecommunications media. Key concepts and
components of LANs include:

Network Interface Card. PCs on a network must have a circuit

board installed to handle the network interface. This is the
typical way of expanding PC capability.

Network Server. As mentioned earlier, this is a dedicated PC

with a large hard disk capacity for secondary storage. Many
servers also have more RAM than the individual workstations
on the network.

Network Operating System. Just as individual PCs have their

own operating systems, the network operating system controls
the interface between users and machine hardware as well as
the telecommunications peripherals linking them.
Internetworks. Most LANs are connected via
telecommunications to other networks, which might be other
LANs, wide area networks (WANs), mainframes, or very large
networks like the Internet.

Network topology is the arrangement of the various elements

(links, nodes, etc.) of a computer.

Physical topology refers to the placement of the network's

various components, including device location and cable
installation, while

Logical topology shows how data flows within a network,

regardless of its physical design.
There are several basic types of network topologies, or
structures, in telecommunications networks. Three basic
topologies used in wide area and local area
telecommunications networks are:
1. Star: A star network ties end user computers to a central
computer.
2. Ring: A ring network ties local computer processors
together in a ring on a more equal basis.
3. Bus: A bus network is a network in which local processors
share the same bus, or communications channel.
Ring
Tree

Mesh
Telecommunications Communication Media 1. Twisted Pair, 2.
Coaxial Cable 3. Fiber Optics 4.Terrestrial Microwave

Telecommunications channels make use of a wide variety of

media. In some cases, the media are complementary and
the use of more than one media increases the functions and
features of the telecommunications network. In other cases,
the media are in direct competition with each other, hoping to
capture customers from other media choices.
Discussion Note: The dual nature of telecommunications has
implications yet to be resolved for open systems architecture.
Some major types of telecommunications media include:
Twisted-Pair Wire. This is the traditional phone line used
throughout the world. It is the most widely distributed
telecommunications media but is limited in the amount of
data and speed of transmission.
Coaxial Cable. This is a sturdy copper or aluminum wire
wrapped in spacers to insulate and protect it. Coaxial cable
can carry more information and at higher speeds than twisted
pair wires. It also is a higher-quality carrier, with little
interference.
Fiber Optics. These are hair-thin glass filaments spun into
wires and wrapped in a protective jacket. Fiber optics
transmit light pulses as carriers of information and so are
extremely fast and produce no electromagnetic radiation.
This makes them extremely reliable channels, although
splicing cables for connections is difficult.
Terrestrial Microwave. Earthbound microwave radiation
transmit high-speed radio signals in line-of-sight paths
between relay stations..

Fig. Microwave

Communications Satellites. Satellites in geosynchronous orbit

are used to transmit microwave signals to any place on earth
using dish antennas for sending and receiving.

Cellular Radio. Low power transmitters on each cell of the

system allow users to take advantage of several frequencies
for communications.
Wireless LANs. Using radio or infrared transmission, some
LANs are completely wireless, thus eliminating the cost of
installing wire in existing structures.

Fig. Wireless LAN

Architectures

Distributed Systems

Distributed computing also refers to the use of distributed

systems to solve computational problems. In distributed
computing, a problem is divided into many tasks, each of
which is solved by one or more computers,[3] which
communicate with each other by message passing.

Distributed programming typically falls into one of several

basic architectures: client–server, three-tier, n-tier, or peer-
to-peer; or categories: loose coupling, or tight coupling.
Fig. Client Server architecture

Client Server architecture

A network is a system of microcomputers linked together with
telecommunications hardware and software. Networked
computers draw additional computing power from the other
computers on the network, which can include other
microcomputers, minicomputers, and mainframes. Key
concepts of networked computing include:

Client. A client on a network is typically a microcomputer that

serves an end user for most of her or his processing needs.
Programs for the client and extra processing capacity are
provided as needed by the network.

Server. A server is a host or central computer that is

dedicated to managing the logistics of routing data,
information, and processing capacity among the clients on
the system. In small networks, the server might be a single
PC. On larger networks, the server can be a minicomputer or
a mainframe. In very large organizations, several networks
might be served, each by their own minicomputer, which in
turn, is linked to the host mainframe.

Network Computers. Provide a browser-based user interface

for processing small applications programs called applets.
Thin clients include network computers, Net PCs and other
low-cost network devices or information appliances.
Application and database servers provide the operating
system, application software, applets, databases, and
database management software needed by the end users in
the network.

Network computing is sometimes called a three-tier

client/server model, since it consists of thin clients,
application servers, and database servers.

Peer to Peer Distributed architecture

A collection of autonomous computers

a) linked by a network
b) using software to produce an integrated computing facility
Peer-to-Peer System : The term peer-to-peer is used to
describe distributed systems in which labour is divided among
all the components of the system. All the computers send and
receive data, and they all contribute some processing power
and memory. As a distributed system increases in size, its
capacity of computational resources increases. In a peer-to-
peer system, all components of the system contribute some
processing power and memory to a distributed computation.

Key characteristics of distributed system

Resource Sharing
Resource:
hardware - disks and printers
software - files, windows, and data objects
Hardware sharing for:
convenience
reduction of cost
Data sharing for:
consistency - compilers and libraries
 exchange of information - database
cooperative work - groupware

Concurrency
Multi-programming
Multi-processing

Cloud Computing

Cloud computing involves deploying groups of remote servers

and software networked that allow centralized data storage
and online access to computer services or resources.
Infrastructure as a service (IaaS)
IaaS clouds often offer additional resources such as a virtual-
machine disk image library, raw block storage, and file or
object storage, firewalls, load balancers, IP addresses, virtual
local area networks (VLANs) and software bundles.

Telecommunications Processors and Software

• Modems
• Multiplexers
• Internetwork Processors
– Switches
– Routers
– Hubs
– Gateways
 • Fire walls
• Network Operating System
• Telecommunications Monitor
• Middleware
• Network Management Software

Modem (Modulator-DEModulator). A device that converts the

digital signals from input/output devices into appropriate
frequencies at a transmission terminal and converts them
back into digital signals at a receiving terminal.

Multiplexer: An electronic device that allows a single

communications channel to carry simultaneous data
transmission from many terminals.
Internetwork Processors: Communications processors used by
local area networks to interconnect them with other local area
and wide area networks. Examples include switches, routers,
hubs, and gateways.

The router forwards data packets along networks. It is

connected to at least two networks, commonly
two LANs or WANs or a LAN and its ISP's network. A network
router is quite different from a switch or hub since its primary
function is to route data packets to other networks, instead of
just the local computers. Essentially, a router bridges the gap
between other networks and gives your network access to
more features, e.g., a firewall, traffic monitoring and more.

In networks the switch is the device that filters and forwards

packets between LAN segments. When a switch receives a
packet of data, it determines what computer or device the
packet is intended for and sends it to that computer only. It
does not broadcast the packet to all computers as a hub does
which means bandwidth is not shared and makes the network
much more efficient.

A hub is a common connection point for devices in a network

A network hub is designed to connect computers to each
other with no real understanding of what it is transferring

Fire wall: Computers, communications processors, and

software that protect computer networks from intrusion by
screening all network traffic and serving as a safe transfer
point for access to and from other networks.
Network Operating System: Is a program that controls
telecommunications and the use and sharing of network
resources.

Telecommunications Monitor: Computer programs that control

and support the communications between the computers and
terminals in a telecommunications network.

Middleware: Software that helps diverse networked computer

systems work together, thus promoting their interoperability.

Network Management Software: Software packages such as

network operating systems and telecommunications monitors
used to determine transmission priorities, route (switch)
messages, poll terminals in the network, and form waiting
waiting lines (queues) of transmission requests

The Internet’s TCP/IP

The International Standards Organization (ISO) has developed
a seven-layer Open Systems Interconnection (OSI) model to
serve as a standard model for network architecture.
Application Layer. This layer provides communications
services for end user applications.
Presentation Layer. This layer provides appropriate data
transmission formats and codes.
Session Layer. This layer supports the accomplishment of
telecommunications sessions.
Transport Layer. This layer supports the organization and
transfer of data between nodes in the network.
Network Layer. This layer provides appropriate routing by
establishing connections among network links.
Data Link Layer. This layer supports error free organization
and transmission of data in the network.
Physical Layer. This layer provides physical access to the
telecommunications media in the network.
 Data Base Management Systems

A database management system (DBMS) is system software

for creating and managing databases. TheDBMS provides
users and programmers with a systematic way to create,
retrieve, update and manage data.
The relational model (RM) for database management is an
approach to managing data using a structure and language
consistent with first-order predicate logic, first described in
1969 by Edgar F. Codd, where all data is represented in terms
of tuples, grouped into relations. A database organized in
terms of the relational model is a relational database.

Customer table

[More
Customer ID Tax ID Name Address
fields…]

555- 323
1234567890 Munmun …
5512222 Broadway

555- 1200 Main

2223344556 Wile E. …
5523232 Street
 555- 871 1st
3334445563 Ekta …
5533323 Street

555- E. F.
4232342432 123 It Way …
5325523 Codd

 To understand databases, it is useful to remember that the

elements of data that make up the database are divided
into hierarchical levels. These logical data elements make
 up the foundation data concepts upon which a database is
built.
 Character. The most basic logical element is the
character, which consists of a single alphabetic, numeric,
or other symbol. While it may take several bits or bytes to
represent a character digitally, remember that these refer
to physical storage, not the logical concept of the
character itself.
 Field. A field is a grouping of characters that represent a
characteristic of a person, place, thing, or event. A
person's name is typically placed in a field. A field is a
data item. A data field represents an attribute or some
entity.
 Record. A record is a collection of interrelated fields. For
example, an employee's payroll record usually contains
several fields, such as their name, social security number,
department, and salary. Records may be fixed-length or
variable-length.
 File. A file is a collection of interrelated records. For
example, a payroll file might contain all of the payroll files
for all the employees of a firm. Files are usually classified
by the application for which they are used.
 Database. A database is an integrated collection of
logically interrelated records or files. For example, the
personnel database of a firm might contain payroll,
personnel action, and employee skills files. The data
stored in a database is independent of the application
programs using it and of the type of secondary storage
devices on which it is stored.
Under the database management approach, data records are
consolidated into databases that can be accessed by many
different application programs. A database management
system (DBMS) is a set of computer programs that control the
creation, maintenance, and use of the databases of an
organization and its end users. Four major DBMS facilities
include:
Database Development. A DBMS allows control of
development to be placed with database administrators. The
administrator uses a data definition language (DDL) to develop
and specify the data contents, relationships, and structure of
each database, and to modify these specifications when
necessary. This approach improves integrity and security for
the organizational databases. The information is stored in a
data dictionary, which uses data definitions to specify what all
the records and files are, can be, and, if desired, to
automatically enforce data element definitions when fields,
records, or files are modified.
Database Interrogation. A DBMS allows end users without
programming skills to ask for information from a database
using a query language or report generator. Queries are
usually made one of two ways:
 SQL (Structured Query Language). This uses the basic
form of SELECT ...FROM...WHERE. After SELECT the
user lists the data fields to be retrieved. After FROM the
user lists the files or tables from which the data must be
retrieved. After WHERE the user specifies conditions that
limit the search.
 QBE (Query by Example). This method allows users to
point and click on display boxes for each of the data
fields in one or more files to specify the rules of the
search
Database Maintenance. Updating the databases and other
maintenance are conducted by transaction processing
programs.
Application Development. A DBMS makes application
development much easier and quicker by allowing developers
to include data manipulation language (DML) statements in
their programs that let the DBMS perform necessary data-
handling activities.
DDL
DDL is short name of Data Definition Language, which deals
with database schemas and descriptions, of how the data
should reside in the database.

 CREATE – to create database and its objects like (table,

index, views, store procedure, function and triggers)
 ALTER – alters the structure of the existing database
 DROP – delete objects from the database
 TRUNCATE – remove all records from a table, including all
spaces allocated for the records are removed
 COMMENT – add comments to the data dictionary
 RENAME – rename an object
DML
DML is short name of Data Manipulation Language which
deals with data manipulation, and includes most common
SQL statements such SELECT, INSERT, UPDATE, DELETE
etc, and it is used to store, modify, retrieve, delete and
update data in database.

 SELECT – retrieve data from the a database

 INSERT – insert data into a table
 UPDATE – updates existing data within a table
 DELETE – Delete all records from a database table
 MERGE – UPSERT operation (insert or update)
 CALL – call a PL/SQL or Java subprogram
 EXPLAIN PLAN – interpretation of the data access path
 LOCK TABLE – concurrency Control

DCL
DCL is short name of Data Control Language which includes
commands such as GRANT, and mostly concerned with
rights, permissions and other controls of the database
system.

 GRANT – allow users access privileges to database

 REVOKE – withdraw users access privileges given by using
the GRANT command

TCL
TCL is short name of Transaction Control Language which
deals with transaction within a database.

 COMMIT – commits a Transaction

 ROLLBACK – rollback a transaction in case of any error
occurs
 SAVEPOINT – to rollback the transaction making points
within groups
 SET TRANSACTION – specify characteristics for the
transaction

Six major types of databases are illustrated on the slide and

used by computer-based organizations:
Operational Databases. These databases store detailed data
needed to support the operations of the entire organization.
They are also called subject area databases (SADB),
transaction databases, and production databases. These also
include databases of Internet and electronic commerce
activity, such as click stream data or data describing online
behavior of visitors at a company’s website.
Data Warehouse Databases. These store data from current
and previous years that has been extracted from the various
operational and management databases of the organization.
As a standardized and integrated central source of data,
warehouses can be used by managers for pattern processing,
where key factors and trends about operations can be
identified from the historical record.
Data Marts. Are subsets of the data included in a Data
Warehouse which focus on specific aspects of a company,
e.g. department, business process, etc.
Distributed Databases. These are the databases of local
workgroups and departments at regional offices, branch
offices, and other work sites needed to complete the task at
hand. They include relevant information from other
organizational databases combined with data and information
generated only at the particular site. These databases can
reside on network servers, on the World Wide Web, or on
Intranets and Extranets.
End User Databases. These consist of a variety of data files
developed by end users at their workstations. For example, an
end user in sales might combine information on a customer’s
order history with her own notes and impressions from face-
to-face meetings to improve follow-up.
External Databases. Many organizations make use of privately
generated and owned online databases or data banks that
specialize in a particular area of interest. Access is usually
through a subscription for continuing links or a one-time fee
for a specific piece of information (like the results of a single
search). Other sources like those found on the Web are free.
Systems Analysis and Design
Systems Approach to Problem Solving

The systems approach views a business process as a system

that has 5 components: input, process, output, feedback and
control. The systems approach to problem solving uses the
systems orientation to conceptualize the nature of the
problem. Under the systems orientation, all elements of a
problem interact with one another. Consequently, the
systems approach considers each "step" to influence and
provide feedback on every other step:

Define the Problem. A problem is a basic condition that is

causing an undesirable result. An opportunity is a basic
condition that presents the potential for desirable results. A
key task at this stage is to separate symptoms -- signs that
a problem exists -- from the actual problems themselves.

Develop Alternative Solutions. It is almost always true that

every problem or opportunity has more than one effective
course of action. As a problem solver, you must resist the
tendency to move to the most immediate solution that comes
to mind. It is good management practice to generate several
alternatives and choose among them on the basis of clearly
defined evaluative criteria.

Select the Solution. On the basis of evaluative criteria, it is

possible to compare alternatives to each other. Selection is
important because there must be firm commitment to the
alternative before committing organizational resources to
solving the problem.

Design the Solution. The selected solution to an IS problem

next requires designing how the solution will be created. Here
it is a good idea to meet with business end users and
technical staff to develop design specifications and an
implementation plan.

Implement the Solution. When ready, the solution must be

implemented. It is a good idea to monitor implementation
carefully so that an assessment of the solution, design, and
the logistics of bringing it into action can all be evaluated
objectively.

System Development Life Cycle

The traditional information systems development cycle is

based upon the stages in the systems approach to problem
solving, where each step is interdependent on the previous
step:
Systems Investigation. This stage may begin with a formal
information systems planning process to help sort out choices
from many opportunities. Typically, due to the expense
associated with information systems development this stage
includes a cost/benefit analysis as part of a feasibility study.
Systems Analysis. This stage includes an analysis of the
information needs of end users, the organizational
environment, and any system currently used to develop the
functional requirements of a new system.
Systems Design. This stage develops specifications for the
hardware, software, people, network, and data resources of
the system. The information products the system is expected
to produce are also designated.
Systems Implementation. Here the organization develops or
acquires the hardware and software needed to implement the
system design. Testing of the system and training of people
to operate and use the system are also part of this stage.
Finally, the organization converts to the new system.
Systems Maintenance. In this stage, management uses a
post implementation review process to monitor, evaluate, and
modify the system as needed.

Prototype
A prototype is an early sample, model, or release of a product
built to test a concept or process or to act as a thing to be
replicated or learned from.

Fig. A prototype of the Polish economy hatchback car Beskid

106 designed in the 1980s.

Prototyping

Prototyping is the rapid development and testing of working

models, or prototypes, of new applications. Prototyping is an
iterative, interactive process that combines steps of the
traditional development cycle with the increased involvement
of end users to provide feedback that improves the prototype
and the final IS.
Application development using prototyping proceeds through
the following steps:
Identify Requirements. Here end users identify their
information needs and assess the feasibility of several
alternative information system solutions.
Develop Prototype. Here end users and/or systems analysts
use application development packages to interactively design
and test prototypes of information system components that
meet end user information needs.
Revise Prototype. During this stage, the information system
prototypes are used, evaluated, and modified repeatedly until
end users find them acceptable.
Use and Maintain. The accepted system can be modified
easily since most system documentation is stored on disk.

CASE stands for Computer Aided Software Engineering. It

means, development and maintenance of software projects
with help of various automated software tools.
CASE Tools
CASE tools are set of software application programs, which
are used to automate SDLC activities. CASE tools are used
by software project managers, analysts and engineers to
develop software system.
There are number of CASE tools available to simplify various
stages of Software Development Life Cycle such as Analysis
tools, Design tools, Project management tools, Database
Management tools, Documentation tools are to name a few.
Use of CASE tools accelerates the development of project to
produce desired result and helps to uncover flaws before
moving ahead with next stage in software development.
  Upper Case Tools - Upper CASE tools are used in
planning, analysis and design stages of SDLC.
 Lower Case Tools - Lower CASE tools are used in
implementation, testing and maintenance.
 Integrated Case Tools - Integrated CASE tools are helpful
in all the stages of SDLC, from Requirement gathering to
Testing and documentation.

CASE tools can be grouped together if they have similar

functionality, process activities and capability of getting
integrated with other tools.
Case Tools Types
Now we briefly go through various CASE tools
Diagram tools
These tools are used to represent system components, data
and control flow among various software components and
system structure in a graphical form. For example, Flow Chart
Maker tool for creating state-of-the-art flowcharts.
Process Modeling Tools
Process modeling is method to create software process
model, which is used to develop the software. Process
modeling tools help the managers to choose a process
model or modify it as per the requirement of software
product. For example, EPF Composer
Project Management Tools
These tools are used for project planning, cost and effort
estimation, project scheduling and resource planning.
Managers have to strictly comply project execution with every
mentioned step in software project management. Project
management tools help in storing and sharing project
information in real-time throughout the organization. For
example, Creative Pro Office, Trac Project, Basecamp.
Documentation Tools
Documentation in a software project starts prior to the
software process, goes throughout all phases of SDLC and
after the completion of the project.
Documentation tools generate documents for technical users
and end users. Technical users are mostly in-house
professionals of the development team who refer to system
manual, reference manual, training manual, installation
manuals etc. The end user documents describe the
functioning and how-to of the system such as user manual.
For example, Doxygen, DrExplain, Adobe RoboHelp for
documentation.
Analysis Tools
These tools help to gather requirements, automatically check
for any inconsistency, inaccuracy in the diagrams, data
redundancies or erroneous omissions. For example, Accept
360, Accompa, CaseComplete for requirement analysis,
Visible Analyst for total analysis.
Design Tools
These tools help software designers to design the block
structure of the software, which may further be broken down
in smaller modules using refinement techniques. These tools
provides detailing of each module and interconnections
among modules. For example, Animated Software Design
Configuration Management Tools
An instance of software is released under one version.
Configuration Management tools deal with –

 Version and revision management

 Baseline configuration management
 Change control management
CASE tools help in this by automatic tracking, version
management and release management. For example, Fossil,
Git, Accu REV.
Change Control Tools
These tools are considered as a part of configuration
management tools. They deal with changes made to the
software after its baseline is fixed or when the software is first
released. CASE tools automate change tracking, file
management, code management and more. It also helps in
enforcing change policy of the organization.
Programming Tools
These tools consist of programming environments like IDE
(Integrated Development Environment), in-built modules
library and simulation tools. These tools provide
comprehensive aid in building software product and include
features for simulation and testing. For example, Cscope to
search code in C, Eclipse.
Prototyping Tools
Software prototype is simulated version of the intended
software product. Prototype provides initial look and feel of
the product and simulates few aspect of actual product.
Prototyping CASE tools essentially come with graphical
libraries. They can create hardware independent user
interfaces and design. These tools help us to build rapid
prototypes based on existing information. In addition, they
provide simulation of software prototype. For example,
Serena prototype composer, Mockup Builder.
Web Development Tools
These tools assist in designing web pages with all allied
elements like forms, text, script, graphic and so on. Web
tools also provide live preview of what is being developed and
how will it look after completion. For example, Fontello,
Adobe Edge Inspect, Foundation 3, Brackets.
Quality Assurance Tools
Quality assurance in a software organization is monitoring the
engineering process and methods adopted to develop the
software product in order to ensure conformance of quality as
per organization standards. QA tools consist of configuration
and change control tools and software testing tools. For
example, SoapTest, AppsWatch, JMeter.
Maintenance Tools
Software maintenance includes modifications in the software
product after it is delivered. Automatic logging and error
reporting techniques, automatic error ticket generation and
root cause Analysis are few CASE tools, which help software
organization in maintenance phase of SDLC. For example,
Bugzilla for defect tracking, HP Quality Center.

Computer Aided Design CAD technology is used in the design

of tools and machinery and in the drafting and design of all
types of buildings, from small residential types (houses) to the
largest commercial and industrial structures (hospitals and
factories).[8]
CAD is mainly used for detailed engineering of 3D models or
2D drawings of physical components, but it is also used
throughout the engineering process from conceptual design
and layout of products, through strength and dynamic analysis
of assemblies to definition of manufacturing methods of
components. It can also be used to design objects such as
jewelry, furniture, appliances, etc. Furthermore, many CAD
applications now offer advanced rendering and animation
capabilities so engineers can better visualize their product
designs.
Computer-aided manufacturing (CAM) is an application
technology that uses computer software and machinery to
facilitate and automate manufacturing processes. In addition
to materials requirements, modern CAM systems include real-
time controls and robotics
Example :- CATIA (an acronym of computer-aided three-
dimensional interactive application) is a multi-
platform software suite for computer-aided
design (CAD), computer-aided manufacturing (CAM).

CASE tools are similar to and were partly inspired

by computer-aided design (CAD) tools used for designing
hardware products. CASE tools are used for developing high-
quality, defect-free, and maintainable software.

Rapid Application Development RAD

RAD approaches to software development put less emphasis
on planning and more emphasis on an adaptive process.
Prototypes are often used in addition to or sometimes even in
place of design specifications.
The James Martin approach to RAD divides the process into
four distinct phases:

1.Requirements planning phase – combines elements of the

system planning and systems analysis phases of
the Systems Development Life Cycle (SDLC). Users,
managers, and IT staff members discuss and agree on
business needs, project scope, constraints, and system
requirements. It ends when the team agrees on the key
issues and obtains management authorization to
continue.
2.User design phase – during this phase, users interact with
systems analysts and develop models and prototypes
that represent all system processes, inputs, and outputs.
The RAD groups or subgroups typically use a
combination of Joint Application Development (JAD)
techniques and CASE tools to translate user needs into
working models. User Design is a continuous interactive
process that allows users to understand, modify, and
 eventually approve a working model of the system that
meets their needs.
3.Construction phase – focuses on program and application
development task similar to the SDLC. In RAD, however,
users continue to participate and can still suggest
changes or improvements as actual screens or reports
are developed. Its tasks are programming and
application development, coding, unit-integration and
system testing.
4.Cutover phase – resembles the final tasks in the SDLC
implementation phase, including data conversion,
testing, changeover to the new system, and user
training. Compared with traditional methods, the entire
process is compressed. As a result, the new system is
built, delivered, and placed in operation much sooner.[6]
 Business Intelligence and Analytics

Data Warehousing

• A Data Warehouse (DW) is a database used for reporting

and analysis.

• The data stored in the warehouse is uploaded from the

operational systems.
 • Data warehouses can be subdivided into data marts.

• Data Warehouse focuses on data storage.

• Data Warehousing includes business intelligence tools,

tools to extract, transform and load data into the
repository, and tools to manage and retrieve metadata.

• The main source of the data is cleaned, transformed,

catalogued and made available for use by managers and
other business professionals for

• Data Mining,

• Online Analytical processing,

• Market research and decision support.

Bottom-up design of DWH

• The single data mart often models a specific business

area such as "Sales" or "Production."

• These data marts can eventually be integrated to create a

comprehensive data warehouse.

Top-down design of DWH

 • Data at the lowest level of detail, are stored in the data
warehouse

• Dimensional data marts containing data needed for

specific business processes or specific departments are
created from the data warehouse. Bill Inmon

Data Mining

• Data Mining : The analysis step of the knowledge

discovery in databases process

• The process of discovering new patterns from large data

sets

Data mining involves six tasks

• Anomaly detection (deviation detection) – The

identification of unusual data records, that might be
interesting or data errors and require further investigation.

• Association rule learning (Dependency modeling) –

Searches for relationships between variables.

For example a supermarket might gather data on customer

purchasing habits. Using association rule learning, the
supermarket can determine which products are frequently
bought together and use this information for marketing
purposes.

• Clustering – is the task of discovering groups and

structures in the data that are in some way or another
"similar", without using known structures in the data.

Rather than randomly contacting a prospect or customer

through a call center or sending mail, a company can
concentrate its efforts on prospects that are predicted to have
a high likelihood of responding to an offer.

Data clustering can also be used to automatically discover the

segments or groups within a customer data set.

• Classification – is the task of generalizing known structure

to apply to new data.
For example, an email program might attempt to classify an
email as legitimate or spam.

• Regression – Attempts to find a function which models

the data with the least error.

• Summarization – providing a more compact

representation of the data set, including visualization and
report generation

OLAP On-Line Analytical Processing

OLAP tools enable users to interactively analyze
multidimensional data from multiple perspectives.
Typical applications of OLAP include
 business reporting for sales, marketing, management
reporting,
 business process management (BPM),
 budgeting and forecasting, financial reporting and similar
areas
In computing, online analytical processing, or OLAP is an
approach to swiftly answer multi-dimensional analytical (MDA)
queries

OLAP cubes can be thought of as extensions to the two-

dimensional array of a spreadsheet.

Slicing

A slice is a subset of a multi-dimensional array corresponding

to a single value.

Dicing
The sales figures of all sales regions and all product
categories of the company in the year 2004 are "sliced" out
the data cube.

The new cube shows the sales figures of a limited number of

product categories, the time and region dimensions cover the
same range as before.
Drill Down

There is a better understanding of the sales figures of the

product category "Outdoor-Schutzausrüstung" since you now
see the sales figures for the single products of this category.

Pivoting
This operation is also called rotate operation. The whole cube
is rotated, giving another perspective on the data.

DSS Decision Support System

Decision support systems (DSS) are computer-based systems
that provide managers and business professionals interactive
information support for semi-structured and unstructured
decisions. Unlike management information systems, DSS rely
on model bases.
A model base is a software component that consists of
models used in computational and analytical routines that
mathematically express relationships between variables.
There are various types of DSS analytical model bases. These
include:
What-If Analysis. An end user makes changes to variables, or
relationships among variables, and observes the resulting
change in the value of other variables.
Sensitivity Analysis. A special type of what-if analysis in which
the value of only one variable is changed repeatedly, and the
resulting changes on other variables are observed.
Sensitivity analysis is a way to predict the outcome of a
decision if a situation turns out to be different compared to
the key prediction(s).

Goal-Seeking Analysis. Instead of observing how changes in a

variable affect other variables, goal-seeking analysis sets a
target value for a variable, and then repeatedly changes other
variables until the target value is achieved.
Optimization analysis. A more complex goal-seeking model.
Instead of setting a specific target value for a variable, the
goal is to find the optimum value for one or more target
variables, given certain constraints.

Enterprise Information Portals and DSS

Cross-platform integration is one of the main objectives of
today’s e-business. As shown in the figure, newer DSS
packages not only are capable of running under different
computer platforms, but can be integrated with corporate data
resources, including operational databases, data marts, and
data warehouses.

These packages are no longer limited to numeric input and

response, but can use data visualization systems to represent
complex data using interactive three dimensional graphical
forms. This in turns helps users discover patterns and links
between decision variables quicker and easier.
As we stated earlier, the objective of today’s e-business is to
provide information to anyone that needs it, whenever, and
wherever they are. More and more companies are developing
Enterprise Information Portals to provide web-enabled access
to information. When deployed successfully, this portal
provides a universal interface to both corporate knowledge
and decision-making tools as well as a wealth of other tools.

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
• Respond quickly and successfully to new situations.
• Recognize the relative importance of elements in a
situation
• Handle ambiguous, incomplete,or erroneous information

Artificial intelligence (AI) is a field of science and technology

based on disciplines such as computer science, biology,
psychology, linguistics, mathematics, and engineering.

The goal of AI is to develop computers that can think, as well

as see, hear, walk, talk, and feel.

A major thrust of AI is the development of computer functions

normally associated with human intelligence, such as
reasoning, learning, and problem solving.

Alan Turing in 1950 proposed a test for determining if

machines could think. According to the Turing test, a
computer could demonstrate intelligence of a human
interviewer, conversing with an unseen human and an unseen
computer, could not tell which was which. Critics believe that
no computer can truly pass the Turing test. They claim that
developing intelligence to impart true humanlike capabilities to
computers is simply not possible. But progress continues,
and only time will tell if the ambitious goals of AI will be
achieved.

Artificial Intelligence Applications

Artificial Intelligence (AI) is a science and technology based

on disciplines such as computer science, biology,
psychology, linguistics, mathematics, and engineering. AI
works to develop computer functions normally associated with
human intelligence. Its goal is to develop computers that can
think, see, hear, walk, talk, and even feel. The major
application areas of AI can be grouped into three categories:
Cognitive Science. Much of AI development is based upon
research in human information processing, which focuses on
understanding how the human brain works and how humans
think and learn. Major applications in this area include:
expert systems, learning systems, fuzzy logic, genetic
algorithms, neural networks, and intelligent agents.
Robotics. Robotics is concerned with deploying computers in
ways that duplicate the actions (and even the appearance) of
humans. Areas of development include visual perception,
tactility, dexterity, locomotion, and navigation.
Natural Interface. AI developers hope to make the human-
computer interface as natural as possible. Natural language
programming, speech recognition, multisensory interfaces,
and virtual reality are all areas of development.

AI Application Areas in Business

There are numerous AI application areas in business. These
include:
Neural Networks. Computing systems modeled after the
brain’s mesh-like network of interconnected processing
elements, called neurons. The interconnected processors in a
neural network operate in parallel and interact dynamically.
This enables the network to learn to recognize patterns and
relationships in the data it processes. For example, a neural
network can be used to learn which credit characteristics result
in good or bad loans.
Fuzzy Logic. A method of reasoning that allows for
approximate values and inferences. This enables fuzzy
systems to process incomplete data and quickly provide
approximate, but acceptable solutions. Fuzzy systems are
used in fuzzy process controller microchips that are
incorporated in many Japanese appliances.
Genetic Algorithms. Uses Darwinian randomizing and other
mathematical functions to simulate an evolutionary process
that yields increasingly better solutions to a problem. They are
especially useful for situations in which thousands of solutions
are possible and must be evaluated to produce an optimal
solution.
Virtual Reality. Is a computer-simulated reality that uses such
devices as tracking headsets and data gloves to. create virtual
worlds that can be experienced through sight, sound, and
touch. Current applications of virtual reality include computer-
aided design, medical diagnostics, flight simulation, and 3-D
video arcade games.

Components of Expert Systems

An Expert System (ES) is a knowledge-based information
system that uses its knowledge about a specific, complex
application area to act as an expert consultant to end users.
The components of an ES include:
Knowledge Base. A knowledge base contains knowledge
needed to implement the task. There are two basic types of
knowledge:
Factual knowledge. Facts, or descriptive information, about a
specific subject area.
Heuristics. A rule of thumb for applying facts and/or making
inferences, usually expressed as rules.
Inference Engine. An inference engine provides the ES with its
reasoning capabilities. The inference engine processes the
knowledge related to a specific problem. It then makes
associations and inferences resulting in recommended
courses of action.
User Interface. This is the means for user interactions.
To create an expert system a knowledge engineer acquires the
task knowledge from the human expert using knowledge
acquisition tools. Using an expert system shell, which
contains the user interface and inference engine software
modules, the KE then encodes the knowledge into the
knowledge base. A reiterative approach is used to test and
refine the expert system's knowledge base until it is deemed
complete.
Expert System Applications

Expert Systems can be used to accomplish many business

tasks:
Decision Management. This includes systems that appraise
situations or consider alternatives and make
recommendations based on criteria supplied during the
discovery process. Examples include loan portfolio analysis,
employee evaluation, insurance underwriting, demographic
forecasts.
Diagnostic/Troubleshooting. This is the use of systems that
infer underlying causes from reported symptoms and history.
Examples include equipment calibration, help desk
operations, software debugging, medical diagnosis.
Maintenance/Scheduling. This includes systems that prioritize
and schedule limited or time-critical resources. Examples
include maintenance scheduling, production scheduling,
education scheduling, project management.
Design/Configuration. This is the use of systems that help
configure equipment components, given existing constraints
that must be taken into account. Examples include computer
option installation, manufacturability studies, communications
networks, optimum assembly plan.
Selection/Classification. These are systems that help users
choose products or processes from among large or complex
sets of alternatives. Examples include material selection,
delinquent account identification, information classification,
suspect identification.
Process Monitoring/Control. This includes systems that
monitor and control procedures or processes. Examples
include machine control (including robotics), inventory control,
production monitoring, chemical testing.
Expert systems provide a business with faster, consistent
expertise. They also help preserve organizational knowledge.
However, they are not without limitations. ES are not suitable
for every problem situation. They excel only in solving specific
types of problems in a limited domain of knowledge. They fail
to solve problems requiring a broad knowledge base. Expert
Systems are also difficult and costly to develop and maintain.
Digital firm Perspective
An e-business model is simply the approach a company takes
to become a profitable business on the Internet.

Eg.,Yahoo Inc. in Santa Clara, Calif., operates a successful

portal site, providing content and an Internet search engine.

E-commerce business models can generally be categorized

into the following categories.

 Business - to - Business (B2B)

 Business - to - Consumer (B2C)
 Consumer - to - Consumer (C2C)
 Consumer - to - Business (C2B)
 Business - to - Government (B2G)
 Government - to - Business (G2B)
 Government - to - Citizen (G2C)

Business - to - Business
A website following the B2B business model sells its products
to an intermediate buyer who then sells the product to the
final customer.
Business - to - Consumer
A website following the B2C business model sells its products
directly to a customer. A customer can view the products
shown on the website. The customer can choose a product
and order the same.

Consumer - to - Consumer
A website following the C2C business model helps
consumers to sell their assets like residential property, cars,
motorcycles, etc., or rent a room by publishing their
information on the website.
Consumer - to - Business
In this model, a consumer approaches a website showing
multiple business organizations for a particular service. The
consumer places an estimate of amount he/she wants to
spend for a particular service. For example, the comparison
of interest rates of personal loan/car loan provided by various
banks via websites. A business organization who fulfills the
consumer's requirement within the specified budget,
approaches the customer and provides its services.
Business - to - Government
B2G model is a variant of B2B model. Such websites are
used by governments to trade and exchange information with
various business organizations. Such websites are accredited
by the government and provide a medium to businesses to
submit application forms to the government.
Example :- FirstTender.Com Is The Most Comprehensive
Tender-Specific Search Engine On The Internet Driven By The
Latest Search Engine Technology. We At FirstTender.Com
Believe In Customer Satisfaction. FirstTender.Com Helps
Companies Derive The Measurable Business Value That They
Have Always Been Looking For From Tender Related
Business.

If You Are Looking For New Business Opportunities Originating

Via Tender, Request For Information (RFI) Or Request For
Proposal (RFP) Processes, You Have Come To The Right
Place.

Government - to - Business
Governments use B2G model websites to approach business
organizations. Such websites support auctions, tenders, and
application submission functionalities.
Government - to - Citizen
Governments use G2C model websites to approach citizen in
general. Such websites support auctions of vehicles,
machinery, or any other material. Such website also provides
services like registration for birth, marriage or death
certificates. The main objective of G2C websites is to reduce
the average time for fulfilling citizen’s requests for various
government services.

G2B (Government to Business) is a term that refers to the

relationships between organizations of public
administration and businesses.

In G2B model the initiative comes from a government

organization and businesses are the target group.

To distinguish B2G (Business to Government) where the

initiative comes from businesses. While some other sources
consider both G2B and B2G as equal without important no
significant difference.
Government-to-Business (G2B) is the online non-commercial
interaction between local and central government and the
commercial business sector with the purpose of providing
businesses information and advice on e-business 'best
practices'. G2B:Refers to the conduction through the Internet
between government agencies and trading companies.

B2G:Professional transactions between the company and the

district, city, or federal regulatory agencies. B2G usually
include recommendations to complete the measurement and
evaluation of books and contracts.
Management Issues in MIS
Security and Ethical Challenges

Information technology can support both beneficial and

detrimental effects to a business and society on a whole. The
use of information technology in e-business operations
presents major security challenges, poses serious ethical
questions, and affects society in significant ways. Some of
the important aspects are shown on this slide. In this lecture
we will discuss these issues and describe how business
professionals should act to minimize the detrimental effects of
e-business systems.
Privacy Issues. The power of information technology to store
and retrieve information can have a negative effect on the
individuals’ right to privacy. The Internet itself gives users a
feeling of anonymity while actually being quite the opposite.
Important privacy issues being debated in business and
government include:
Violation of Privacy. Accessing individuals’ private e-mail
conversations, and/or collecting and sharing information
about individuals without their knowledge or consent.
Unauthorized Personal Files. Collecting telephone numbers,
credit card numbers, e-mail addresses, and other personal
information to build individual customer profiles.
Computer Monitoring. Using technology to monitor
conversations, employee productivity or an individual’s
movement.
Computer Matching. Using customer information gained from
multiple sources to create customer profiles that can be sold
to information brokers or other companies and used to market
business services.
User Privacy Protection. Privacy Laws attempt to address
some of these issues. The Electronic Communications
Privacy Act and the Computer Fraud and Abuse Act prohibit
intercepting data communication messages, stealing or
destroying data. The Computer Matching and Privacy Act
regulates the matching of data held in federal agency files.
Individuals can also protect their privacy by using such
software and services like encryption and anonymous
remailers.
Censorship. The right of people to know about matters others
may want to keep quiet, the rights of people to express their
opinion, and to publish those opinions, is the center of a
major debate between the rights of the individual and the
rights of society. Issues regarding spamming, flaming,
pornography, and copyright protection are just some of the
issues being debated by various groups and government.

Computer Crime

Computer crime is a growing threat to today’s e-business. It

is defined as the unauthorized use, access, modification, and
destruction of information, hardware, software or network
resources, and the unauthorized release of information. There
are several major categories of computer crime that include:
Hacking. The unauthorized access and use of networked
computers. Examples of common hacking tactics include
Spoofing, Trojan Horses, Logic Bombs, Denial of Service,
War Dialing, and Scans. These tactics can be used to retrieve
passwords, access or steal network files, overload computer
systems, or damage data and programs.
Cyber Theft. Electronic breaking and entering involving the
theft of money. More recent examples involve using the
Internet to access major banks’ computer systems.
Unauthorized Use at Work. Unauthorized use of computer
systems and networks by employees. Recent surveys suggest
90% of U.S workers admit to using work resources for
personal use.
Piracy. Software piracy is the unauthorized copying of
software and is a violation of federal copyright laws. Such
piracy results in millions of dollars of lost profits by software
publishers.
Computer Viruses. A virus is a program that once inserted into
another program can spread destructive program routines that
can result in destroying the contents of memory, hard disks,
and other storage devices. The use of antivirus programs can
reduce the risk of receiving a virus.

Employment Challenges
he impact of information technologies on employment is a
major ethical concern to managers of today’s e-business.
Lost Job Opportunities. Information technology has created
new jobs and increased productivity, while also causing a
significant reduction in some types of job opportunities.
Individuality. A frequent criticism of e-business systems
concerns their negative effect on the individuality of people.
Computerized systems can depersonalize human
transactions, forcing people to confront and respond to
impersonal programmed logic. Information systems also
often require strict adherence to detailed procedures. Such
regimentation is incompatible with human ideals of flexibility
and empathy. However, widespread use of personal
computers and the Internet has dramatically improved the
development of people-oriented and personalized systems.
Working Conditions. Many others suggest that while computers
have eliminated monotonous or obnoxious tasks in the office
place, thereby improving the quality of work, they have also
made some jobs both repetitive and routine.
Computer Monitoring. Computer monitoring is used by many
employers to collect productivity data about their employees.
However, many argue that such technology can be used to
monitor individuals, not just their work, thus, violating their
privacy. Moreover, such ‘Big Brotherism’ increases stress in
the workplace. Political pressure is building to outlaw or
regulate computer monitoring in the workplace.
Stress is not the only health-related issue raised by the use of
information technology. Heavy use of computers is linked to
eyestrain, damaged arm and neck muscles, and radiation
exposure.
Solutions to some of these health problems are based on the
science of ergonomics. The goal of ergonomics is to design
healthy work environments that are safe, comfortable, and
pleasant for people to work in, thus increasing employee
morale and productivity.
Ergonomics examines three major factors in the workplace:
 The tools used by the worker; e.g. computer screens,
computer human interfaces, etc.;
 The work environment, e.g. lighting, work surfaces,
climate etc.; and
• The job content and context, e.g. characteristics of the
task, shift work, rest breaks etc.
Security Management of e-Business

As discussed earlier, there are many significant threats to the

security of e-business and e-commerce. Business managers
are responsible for the security, quality, and performance of
their e-business systems. Hence, these corporate resources
must be protected. The goal of security management is to
ensure the accuracy, integrity, and safety of all e-business
processes and resources. The slide illustrates many of the
types of security measures needed by the e-business today.
These include:
Encryption. Is an important way to protect data that is
transmitted via the Internet, intranets, or extranets. The
contents of files can be scrambled using special
mathematical algorithms. Users must have access to
passwords that engage the scrambling and descrambling
processing.
Fire Walls. A network fire wall is a computer that protects
computer networks from intrusion by serving as a safe transfer
point for access to and from other networks. The fire wall
computer screens external connections and requests to make
sure that they are valid and compatible with the network.
Irregular or unauthorized access requests are denied. Hence,
fire walls serve as ‘gatekeepers’; keeping the system safe
from intrusion.
Denial of Service Defenses. Denial of Service is a hacking
tactic that can be used to crash a site by clogging the system
with too many requests for information. To defend against
such attacks an e-business must set and enforce security
policies to prevent the infiltration of destructive programs like
Trojan Horses. They should monitor and block traffic spikes,
and should install multiple intrusion-detection systems and
multiple routers for incoming traffic in order to reduce choke
points.
Monitor e-Mail. While there is considerable debate about the
violation of employee privacy, it is also true that e-mail is one
of the favorite avenues of attack by hackers for spreading
viruses or breaking into networked computers. Moreover,
companies often have an interest in preventing illegal,
personal, or damaging messages by employees. Companies
should establish a clear e-mail monitoring policy that
communicates to employees the reasons for monitoring, the
appropriate use of e-mail, and disciplinary actions that can
be taken in the case of violations.
Virus Defenses. Many companies are building defenses
against the spread of viruses by centralizing the distribution
and updating of antivirus software.

Other e-Business Security Measures

There are hosts of other security measures that can be used

to protect network resources.
Security Codes. Multilevel passwords can be used to control
access to information assets. For example, a user might be
required to have one password for logging on to the system,
another password to gain access to a particular application
and still another password to access a particular file.
Passwords can also be encrypted to avoid theft or improper
use. In some companies smart cards are used to generate
random numbers to add to the end of a user’s password,
providing an additional level of security.
Backup Files. Duplicate or back up files are an important
security measure. Files can also be protected by file retention
measures that involve storing copies from previous periods.
These can be used to reconstruct current files. Such files
may be stored off-premises and can be a key component in
disaster recovery.
Security Monitors. These are programs that monitor the use of
computer systems and networks and protect them from
unauthorized use, fraud, and destruction. Security monitors
can control the use of hardware, software, and data resources
of a computer. They can also be used to collect statistics on
any attempt of misuse.
Biometric Security Controls. Biometric controls include such
detection devices as voice recognition and fingerprinting,
which must correspond to the authorized person before
admitting personnel to the system.

Disaster Recovery

• Who will participate?

• What will be their duties?

• What hardware and software will be used?

• Priority of applications to be run?

 • What alternative facilities will be used?

• Where will databases be stored?

Natural and man-made disasters can effectively disrupt a

company’s systems. For many companies the loss of a few
hours of computer processing capabilities can spell disaster.
To survive such an event businesses develop disaster recovery
procedures and formalize them in a disaster recovery plan.
Such a plan describes:
 Which employees will participate in disaster recovery
and what their duties will be?
 What hardware, software and facilities will be used?
 The priority of applications to be processed.
 Identification of alternative facilities for disaster
recovery site.
 Identification of off-site storage of databases.

Intellectual Property

Ideas and knowledge form the quintessential of trade in

modern times.

The value of a new product lies in the amount of invention,

innovation, research, design and testing that go behind its
successful production.

Information or Information Product such as business rule,

business model, pattern, layout, diagram or specific
compilation in certain format used for business advantage can
be classified as Intellectual property.
Corporations, particularly those having multi-national
operations need to prevent others from using their inventions,
designs or other creations - and to use that right to negotiate
payment in return for others using them. These are referred to
as "intellectual property rights - IPR" in the present day
parlance.

Trade-related Aspects of Intellectual Property Rights

The TRIPs Agreement divided intellectual property rights into
the following seven heads -
1. Patents,
2. Trademarks,
3. Copyrights,
4. Industrial designs,
5. Layout designs of integrated circuits,
6. Undisclosed information (trade secrets), and
7. Geographical indications.

Trade Secrets
A trade secret refers to data or information relating to the
business which is not generally known to the public and which
the owner reasonably attempts to keep secret and
confidential.

Software if it is unique in design, architecture, process, and it

is creation from within the organization then the software is a
Trade Secret.

It must not be generally known or readily accessible by people

who normally deal with such type of information
It must have commercial value as a secret

The lawful owner must take reasonable steps to keep it secret.

Examples of Trade Secrets

A business may have certain internal business processes that
it follows for its day-to-day operations that give it an edge
over its competitors.

The formula for making coke is considered to be the most well

guarded trade secret in the world.

Unlike the US and other developed countries India has no

legislation dealing with trade secrets.

In India protection of trade secrets is Common Law based.

However, section 27 of the Indian Contract Act provides some
sort of limited remedy, it bars any person from disclosing any
information which he acquires as a result of a contract.

Tools to Protect Trade Secrets

• Employment agreement
• Trade Secret Policy
• Non-disclosure Agreements (NDAs)
• Adequate Documentation
• Security Systems

Trade secret law protects ideas in a work product, not only

their manifestations.
It is difficult to prevent ideas in work from falling into public
domain when the software is widely distributed.

Copyright

Copyright is a form of intellectual property protection granted

under Indian law to the creators of original works of authorship
such as literary works (including computer programs, tables
and compilations including computer databases which may be
expressed in words, codes, schemes or in any other form,
including a machine readable medium), dramatic, musical
and artistic works, cinematographic films and sound
recordings.

Copyright law protects manifestations of ideas rather than the

ideas.

A Competitor can use your software, understand how it works,

and build a new software that follows the same concepts
without infringing on a copyright.

These rights can be exercised only by the owner of copyright

or by any other person who is duly licensed in this regard by
the owner of copyright.

These rights include the right of adaptation, right of

reproduction, right of publication, right to make translations,
communication to public etc.
Original means, that the work has not been copied from any
other source.

Copyright protection commences the moment a work is

created, and its registration is optional.

However it is always advisable to obtain a registration for a

better protection.
The reference to on-line copyright issues can be found in the
following two major enactments:

(1) The Copyright Act, 1957, and

(2) The Information Technology Act, 2000.

The copyright in a work is infringed if it is copied or published

without its owner’s consent
without a license granted by the owner of the copyright.

If a person knowingly makes use on a computer of an

infringing copy of a computer Programme, he shall be held
liable for punishment of imprisonment for a term which shall
not be less than seven days but which may extend to three
years and with fine which shall not be less than fifty thousand
rupees but which may extend to two lakh rupees.

Information Technology Act, 2000

If any person without permission of the owner or any other
person who is in charge of a computer, accesses or secures
access to such computer, or downloads, copies or extracts
any data, computer data base or information from such
computer, including information or data held or stored in any
removable storage medium, he shall be liable to pay
damages by way of compensation not exceeding one crore
rupees to the person so affected.

Indian Patents Act, 1970

The object of patent law is to encourage scientific research,

new technology and industrial progress.

The price of the grant of the monopoly is the disclosure of the

invention at the Patent Office, which, after the expiry of the
fixed period of the monopoly, passes into the public domain.

The fundamental principle of Patent law is that a patent is

granted only for an INVENTION which must have novelty and
utility.

To decide whether an alleged invention involves novelty and

an inventive step, certain broad criteria can be indicated.

Firstly if the "manner of manufacture" patented, was publicly

known, used or practiced in the country before or at the date
of the patent, it will negative novelty.