2010

ASSIGNMNET NO 1
MANAGMENET INFORMATION SYSTEM
SUBMITTED TO: MISS

DEPARTMENT OF BUSINESS SCIENCES

ALAMA IQBAL OPEN UNIVERSITY (ISLAMABAD)
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Q# 1
(a) Describe the three vital roles that Information Systems perform for a
business enterprise? Support your answer with examples.

Information System

Information system is a combination of certain elements, ie People, Hardware, Software,

Communication Network, and Data Resource. The system is usually capable of performing the
functions of storing, retrieving, transforming and disseminating the information within as well as
outside the organization. IS encompasses many multifaceted technologies, abstract behavioral
concepts, and specialized applications in innumerable in every area of life. As a business
professional you don’t need to absorb all that knowledge.

IS encompasses many multifaceted technologies, abstract behavioral concepts, and specialized

applications in innumerable in every area of life. As a business professional you don’t need to
absorb all that knowledge. An 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, hardware, software, data, and networks to perform
input, processing, output, storage, and control activities that convert data resources into
information products. The information systems model outlined in the text emphasizes four
major concepts that can be applied to all types of information systems:

People, hardware, software, data, and networks, are the five basic resources of
information systems.

People resources include end users and ARE specialists, hardware resources consist of
machines and media, software resources include both programs and procedures, data
resources can include data and knowledge bases, and network resources include
communications media and networks.

Data resources are transformed by information processing activities into a variety of

information products for end users.

Information processing consists of input, processing, output, storage, and control

activities.

Roles of Information System in a business Enterprise

There are three fundamental reasons for all business applications of information technology.
They are found in the three vital roles that information systems can perform for a business.

Support of its Business Processes and Operations:

As a consumer we regularly encounter information system that supports the business process
and operations at the many retail stores where we shop. For example, most retail stores now use

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computers based information system to help them record customer purchases, keep track of
inventory, pay employees, buy new merchandise, and evaluate sales trends.
Store operations would grind to a halt without the support of such information system.

Support Business Decision Making:

IS also help store managers and other business professionals make better decisions. For
example, decisions on what lines of merchandise need to be added or discontinued, or on what
kind of investment they require, are typically made after an analysis provided by computer-
based information systems. This not only support the decisions making of store managers,
buyers, and others, but also helps them look for ways of gain an advantage over other retailers
in the competition for customers.

Support to its Strategies for Competitive Advantage:

Gaining a strategic advantage over competitors requires innovative application of information
technologies. For example, store management might make a decision to install touch-screen
kiosks in all of their stores, with links to their e-commerce website for online shopping. This
might attract new customers and built customer loyalty because of the ease of shopping and
buying merchandise provided by such information systems. Thus, strategic information systems
can help provide products and services that give a business a comparative advantage over its
competitors.

(b) Define the following and give an example of each:

Batch Processing:
Batch processing is execution of a series of programs ("jobs") on a computer without manual
intervention. A batch processing system is one where programs and data are collected together
in a batch before processing starts. Each piece of work for a batch processing system is called a
job. A job usually consists of a program and the data to be run. Jobs are stored in job queues
until the computer is ready to process them.

Example:
Payroll system - A large business may run the wages program for all its employees at the end of
every month. When a company calculates the wages for its workforce and prints pay slips

A system that takes a set (a "batch") of commands or jobs executes them and returns the results,
all without human intervention. This contrasts with an interactive system where the user's
commands and the computer's responses are interleaved during a single run.

Online Processing (Real-Time):

Real time processing is a recurrent input, processing and output of data. Data has to be
processed in a small stipulated time period (real time); otherwise it will create problems for the
system.

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Example:

Fabrication system control on an Assembly line based operation

Controlling of unmanned intelligent devices

Reconnaissance and Radar system

System:
A system is a group of interrelated components with a clearly defined boundary, working
together towards a common goal by accepting input and producing outputs in an organized
transformation process. It’s a prearranged and purposeful structure regarded as a 'whole'
consisting of interrelated and interdependent elements. These elements continually influence
one another to maintain their activity and the existence of the system, in order to achieve the
common purpose the 'goal' of the system. All systems have basic properties, like:

Input:
It involves capturing and assembling elements that enter the system to be processed. For
example raw materials, energy, data, and human efforts must be secured and organized for
processing.

Processing
It involves transformation processes that convert input into output. Examples are manufacturing
Process, the human breathing process, or mathematical calculation.

Output:
It involves transferring elements that have been produced by a transformation process to their
ultimate destination. For example, finished products, human services, and management
information must be transmitted to their human users.

Example:

Self-monitoring, self- regulating, thermostat-controlled heating system

Human body

Procedures
A procedure is a specified series of actions or operations which have to be executed in the same
manner in order to always obtain the same result under the same circumstances. They are
operating instructions for the people who will use an information system. In other words, they
are sequence of tasks, steps, decisions, calculations and processes, that when undertaken in the
sequence laid down produces the described result, product or outcome. A procedure usually
induces a change.
Example:
The operation of any logical and continues working body, ie Computers, Airplanes, Machinery

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Q# 2
(a) Read the following scenario and answers the questions below:

The owner of a chain of five leather goods stores has decided to install a
computerized information system to support the accounting, sales, operations,
and human resource functions for the stores. Located in small suburban shopping
centers, these stores carry an assortment of luggage, briefcases, wallets, and other
leather products as well as travel accessories and small electronic products. So far,
each store in the chain has operated independently, with a single personal
computer to support store functions at the manager’s discretion. Some stores use
it to record transactions; others maintain inventory records on it; still others use it
for primitive payroll systems.

1. Diagnose the situation critically and list the types of information each store
manager requires.
2. Discuss which information can be part of computerized information systems?

Currently, the stores operations are running independently as no communication system has
been witnessed in the scenario. Therefore, it is quite obvious that there will be no coordination
in the processes among the stores. It is also expected that the only information which generally
have been shared might be the sales, stocks or the expanses. But to run the system efficiently, it
is necessary to share a lot of information directly relation to the operations of the stores system.
To run the MIS in the network, certain basic as well as computer system related information. The
breakdown of the segregation is as under.

Management related Information:

Stock Information
Employee Information
Sales Information
Stores Overheads
Creditors Information
Debtors Information
Sales Returns
Claimed Items
Employee’s Appraisals
Training information

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Computer System Related Information:
All the information mentioned above is required by the manager, but a few of them is required a
complete computerized system to function efficiently. These are as follows.

Inventory control
Online System
CCTV System

Inventory Control
It provides the inflow as well as the outflow of the saleable items present in the stores. The
activity in the business will bring change in the inventory and the process will show the business
productivity. Inventory system is a system which helps mangers to record all the financial
activities according to the date. Following are the main parts and information stored in inventory
system.

Sales information
Purchases information
Sales returns
Stock information
Orders placed
Orders cleared
Pending Orders

Online System:
Online system help mangers to check the stock available in his stock record or the other stores’
stock record. Online system can also be use full for the customer. They can online purchases the
items which they required and can check the available item on the store. They don’t need to
come at store for purchasing. All new coming items can be uploaded on the site of the
company.

CCTV System:
CCTV stands for Closed Circuit Television. The main purpose of the CCTV system is to increase
the performance of security in the store. Manager could watch their employees and activities of
the customers’ sitting in his office.

(b) What is prototyping approach of system development? Explain the

process of prototyping in detail and discuss the advantages of using prototyping
approach.

Prototype:
A prototype is a new product, experimentally developed for testing, gauging the operational
limitation and experimentation. It is pertinent to mention that a proto type is 100% a same thing
which is planned for a new product. But after experimentation, the approving body can bring

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modification in the product. It is an original type, form, or instance of something serving as a
typical example, basis, or standard for other things of the same category.

Computer Software Prototyping:

Quite like for the development of a physical product, Software prototyping is an activity during
certain software development, is the creation of prototypes, i.e., incomplete versions of the
software program being developed.

A prototype normally replicates nearly all the basic features of proposed software. The testing
then highlights the short comings in the system. Therefore, the actual product may be quite
different than prototyped product.

The conventional purpose of a prototype is to allow users of the software to evaluate

developers' proposals for the design of the eventual product by actually trying them out, rather
than having to interpret and evaluate the design based on descriptions. Prototyping can also be
used by end users to describe and prove requirements that developers have not considered, so
"controlling the prototype" can be a key factor in the commercial relationship between
developers and their clients.

Types of prototypes
Horizontal Prototype
This kind of prototypes are generally used for just intimating the final user the basic outlook of
the interface, design, basic specifications and functions, few limitations, the efficiency and last
but not the least, cost of the system. But it is pertinent that the final user only gets a small idea
about the final product from the horizontal prototype. Feedback from the assessor gives the
guidelines to the developer to build a final product.

Vertical Prototype
A vertical prototype is a nearly a complete elaboration of a single subsystem or function. It is
useful for obtaining detailed requirements for a given function, ie refinement database design,
obtain information on data volumes and system interface needs, for network sizing and
performance engineering and clarifies complex requirements by drilling down to actual system
functionality

Steps in Prototyping
The process of prototyping involves the following steps

Identifying the basic needs and requirements

Development of initial prototype
Experimentation and testing
Modification as per the feedback and development of final product.

Prototyping has several benefits: The software designer and implementer can obtain feedback
from the users early in the project. The client and the contractor can compare if the software

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made matches the software specification, according to which the software program is built. It
also allows the software engineer some insight into the accuracy of initial project estimates and
whether the deadlines and milestones proposed can be successfully met. The degree of
completeness and the techniques used in the prototyping have been in development and
debate since its proposal in the early 1970s.

This process is in contrast with the 1960s and 1970s monolithic development cycle of building
the entire program first and then working out any inconsistencies between design and
implementation, which led to higher software costs and poor estimates of time and cost The
monolithic approach has been dubbed the "Slaying the (software) Dragon" technique, since it
assumes that the software designer and developer is a single hero who has to slay the entire
dragon alone. Prototyping can also avoid the great expense and difficulty of changing a finished
software product.

Advantages of Prototyping:
Cost Reduction:
The prototyping lets the developer to build only a single product, which bears all the
specifications proposed initially. This does not only reduce the time in the production but also it
reduces the cost as only one item is built. Meanwhile, the developer gets the confidence that he
has completed the necessary research and development of the final product.

Improved product and increased user involvement:

The testing in this concern brings the total involvement of the user; hence, the user feels a sense
of owner ship by the manufacturer. This ultimately leads towards the improvement of the
product. Prototyping requires user involvement and allows them to see and interact with a
prototype allowing them to provide better and more complete feedback and specifications. The
presence of the prototype being examined by the user prevents many misunderstandings and
miscommunications that occur when each side believe the other understands what they said.

Real Feedback:
One other major advantage of prototyping is that it brings the real feedback of the customers,
which can be beneficial for the development of some other product’s R&D.

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Q# 3
(a) Select any functional area (e.g finance, human resource, marketing,
etc.)Within any large organization (such as the government or a bank) and then
describe the business functions and the major processes and procedures within
that functional area. Also discuss what MIS exist to support these areas.

Introduction:
The business cannot be run without the close cooperation of the main departments. These main
departments are generally remembered as the functional areas of the business. Each area does
its own specific task and the results are communicated to the concerned sister department
accordingly. The communication does not just shows the communication of results; rather, it
includes a huge level of information for which sometimes people say unnecessary information.
But if the information system in the business is efficient, then only pure information is
transported. Therefore, MIS is an Information system which helps in providing the operational as
well as top management of an organization with information which is used by management for
decision making. A management information system (MIS) is a subset of the overall internal
controls of a business covering the application of people, documents, technologies, and
procedures by management accountants to solving business problems such as costing a
product, service or a business-wide strategy.

Every organization generally constitutes following operational areas:

Finance
Marketing
Production & Operation
Human Resource Management Department
Procurement and Logistics
Quality Assurance
Information Technology

Functions and Procedures Marketing Department in Pakistan

International Airlines
Following are some of the important functions of marketing department in PIA:

Product Development:
This section continuously monitors the standards of services as well as the introduction of some
new components in the service for the betterment as well as the competitive edge over others.

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Inventory Control, Pricing and Demand Forecasting:
Revenue management section foresees demands, the existing inventory available for sales as
well as prices the space against accordingly.

Reservation and Ticketing:

This section is responsible for the ticketing and its branches are located worldwide.

Sales:
Keeping in view the demand and the supply, the sales force is responsible for doing such efforts
that may lead into the higher sales.

Branding:
Brand management promotes the image of the airline thorough certain advertising campaigns,
promotional activities and the promotional product developments ect.

Market Analysis:
This section analyses the market for new routes, develops the network, builds the schedules ets.

How MIS Works in PIA Marketing

Information Technology department of PIA has built the MIS for the complete organization. The
system constitutes many highly specialized soft wares, interlinked through MIS to disseminate
the information among the departments. Marketing department also uses the softwares like
AIMS, SABRE, PCS and NTSS etc to control the activities in certain sections of the Marketing
department. The reports generated through any of the section is visible to the concerned in
other section, who can evaluate the figures and can use the for their future and present
purposes. One very pertinent example of the use of information is seen between the Revenue
Management and the Reservation and Ticketing section. The price tagged to any of the space is
visible at every reservation counter and hence sold to the concerned passenger. The network
control department also communicates its information to the RM for their necessary actions.
This complete information is visible to the director marketing, who controls the activities
according to the objectives of the organization as well as other departments.

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(b) Differentiate between information technology (IT) and information systems
(IS)

Information System (IS)

According to the Encyclopedia Britannica, information system is an integrated set of
components for collecting, storing, processing, and communicating information. Business firms,
other organizations, and individuals in contemporary society rely on information systems to
manage their operations, compete in the marketplace, supply services, and augment personal
lives. For instance, modern corporations rely on computerized information systems to process
financial accounts and manage human resources; municipal governments rely on information
systems to provide basic services to its citizens; and individuals use information systems to
study, shop, bank, and invest.

Information systems are the means by which people and organizations, utilizing technologies,
gather, process, store, use and disseminate information.

Understanding of how data, information and knowledge can be modelled, stored, managed,
processed and disseminated by computer systems. Knowledge of techniques and technologies
used to organise data and information and enable their effective use by individuals, groups and
organisations. Information systems, as a discipline, focuses on exploring the interface between
management, information science and computer science. Some make a clear distinction
between information systems, ICT and business processes. Information systems are distinct from
information technology in that an information system is typically seen as having an ICT
component. Information systems are also different from business processes. Information
systems help to control the performance of business processes. Computer Science focuses on
information technology: software. Information Systems mediates the two opposing worlds of
human activity systems and information technology. In all, an Information System (IS) is any
combination of information technology and people's activities using that technology to support
operations, management, and decision-making.

Information Technology (IT)

Information technology (IT), as defined by the Information Technology Association of America
(ITAA), is "the study, design, development, implementation, support or management of
computer-based information systems, particularly software applications and computer
hardware. IT (information technology) is a term that encompasses all forms of technology used
to create, store, exchange, and use information in its various forms (business data, voice
conversations, still images, motion pictures, multimedia presentations, and other forms,
including those not yet conceived). It's a convenient term for including both telephony and
computer technology in the same word. It is the technology that is driving what has often been
called "the information revolution."

In contrast the term information technology refers to the various hardware components
necessary for the system to operate. In theory, an information system could use simple hardware
components such as pencil and paper of file folders to capture and store its data. For our

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purpose, however, we will concentrate on computer-based information system and their use of
the following information technologies. In other words, Information technology (IT) is "the study,
design, development, implementation, support or management of information systems".
Information technology is a general term that describes any technology that helps to produce,
manipulate, store, communicate, and/or disseminate information.

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Q# 4
(a) Write notes on the following

Input technologies
Computer input devices are hardware components that help you transfer information, data, etc.
to the computer. Without the computer input devices, you computer will be more or less just
like a television set. These devices help you send data into the computer or even help you
retrieve the data into a hard copy. So an input device is any peripheral device that helps provide
data and control signals of a computer. The input devices can be classified into the following
categories:

Modality of input like audio, video and mechanical devices.

A continuous input device like the mouse who's position is fast enough to be
considered as continuous.

The freedom provided to the user while using the device like a 2 dimensional
mouse or 3 dimensional navigators (especially for CAD applications).

Computer Input Devices List

Let us now have a look at the various computer input devices list. These input devices help in
manipulating various informations on the computer. The following are some of the most
commonly used input devices. You can read more on computer uses.

Keyboard:
The oldest and most widely used computer input device is the keyboard. It is available with the
desktop computers, laptops, etc. The computer keyboard contains all the alphabetical and
numerical keys for input of data and commands. The keyboard is generally connected to the
computer with a wire but nowadays wireless keyboards are also very common.

Mouse:
The small hand held computer device that helps make selection and navigation of the screen
easy is the mouse. The computer mouse displays a cursor on the screen that serves as a guide
for opening files and folders, and making selections. The mouse, like the keyboard, is either
connected with the computer through a wire or has a wireless connection.

Graphics Tablets:
The graphic tablet uses a pen-like computer input device that is called a stylus. This helps one
write on tablets or touch-screens like a pen. Some tablets and stylus have buttons that help the

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user use it like a mouse. Many tablet models, allow the user to use their fingers instead of a
stylus.

Joysticks:
If you are an ardent fan of gaming and love to play many advanced games, then you may be
aware of a joystick. This is a movable stick with a button or two that helps one control the
movements of characters in the game. Many latest joystick models come with different buttons
to help you make complex movements with just a push with your fingers.

Scanners:
Scanners are computer input devices that help you make virtual photocopies of your hard copy
document or even a photograph. You can copy an image of the document you wish to copy and
save it on the computer or take print outs. This copy can be edited by running a graphics
program.

Headsets:
The headsets are computer input devices that have an earphone as well as a
microphone. This helps you record your voice, dictate data or even commands to the
computer. Some headsets help you keep your hands free for working on different tasks.
You can even add voice recognition software, so that only your voice will be accepted by
the computer to dictate commands.

Computer Input Devices Examples

There are many different devices that help you share information with your computer in
different formats. The following are a few computer input devices examples that help you
digitize images and videos from other devices into your computer. You can read more on
computer output devices.

Computer Input Device Examples for Video Formats

Web cam
Image scanner
Digital camera
Barcode reader
Finger print scanner
3D scanner
Laser rangefinder
Video capture hardware
MIDI Keyboard

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Types of Telecommunications Networks

Telecommunications network
A telecommunications network is a network of telecommunications links and nodes arranged so
that messages may be passed from one part of the network to another over multiple links and
through various nodes. Telecommunications network links (including their endpoints or "nodes")
may in turn be built out of hierarchical transmission systems.

Examples of telecommunications networks are:

Computer network

The Internet Network- The internet network is a global ‘network of networks’. The
internet is connected via an Internet Service Provider (ISP) and then becomes part
of a network. This network then connects to a larger corporate network that
interconnects with several other similar networks through Network Access Points
(NAPs).

The Public switched telephone network

The global Telex network

The aeronautical ACARS network

All telecommunication networks are made up of five basic components that are present in each
network environment regardless of type or use. These basic components include terminals,
telecommunications processors, telecommunications channels, computers, and
telecommunications control software.

Terminals are the starting and stopping points in any telecommunication network
environment. Any input or output device that is used to transmit or receive data
can be classified as a terminal component.

Telecommunications processors are support data transmission and reception

between terminals and computers by providing a variety of control and support
functions. (i.e. convert data from digital to analog and back)

Telecommunications channels are the way by which data is transmitted and

received. Telecommunication channels are created through a variety of media of
which the most popular include copper wires and coaxial cables. Fiber-optic
cables are increasingly used to bring faster and more robust connections to
businesses and homes.

In a telecommunication environment computers are connected through media to

perform their communication assignments.

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 Telecommunications control software is present on all networked computers and
is responsible for controlling network activities and functionality.

Early networks were built without computers, but late in the 20th century their switching centers
were computerized or the networks replaced with computer networks.

Types of Telecommunication Networks

In its most basic form a network is an interconnected system of things or people. From a
technical standpoint a network is a data communication system that interconnects computer
systems at different sites, or the connection of two or more computers using a communications
system.

Most networks can be classified into one of five different types. These include wide area
networks (WAN), local area networks, (LAN), virtual private networks (VPN), client/server
networks, network computing, and peer-to-peer networks.

Wide Area Network (WAN)

Any network that encompasses a large geographic area is referred to as a WAN or Wide Area
Network. Many large businesses and government agencies use WANs to keep their employees
and citizens connected as well as provide a quick and effective way to send and receive
information.

Metropolitan Area Network (MAN)

A MAN or Metropolitan Area Network is a network that covers a region, often a metropolitan
area that is bigger than a Local Area Network and smaller than a Wide Area Network and
consists of several interconnected LANs. This network often serves regional businesses that have
several locations throughout the region or entire cities. With this configuration, a MAN often is
then connected to larger WAN networks.

There are three features that differentiate MANs from LANs or WANs:

The area of the network size is between LANs and WANs. The MAN will have a
physical area between 5 and 50 km in diameter.

MANs do not generally belong to a single organization. The equipment that

interconnects the network, the links and the MAN itself are often owned by an
association or a network provider that provides or leases the service to others.

A MAN is a means for sharing resources at high speeds within the network. It
often provides connections to WAN networks for access to resources outside the
scope of the MAN. Campus Area Network (CAN)

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A CAN or Campus Area Network is a network that is restricted to a small geographic area such
as a building complex or a college campus. It is smaller than a Metropolitan Area Network but
larger than a Local Area Network. The CAN incorporates several LANs and usually has
connections to a MAN or WAN.

Local Area Network (LAN)

Similar in many ways to WANs; Local Area Networks or LANs are responsible for connecting
computers in a much smaller limited physical area. A good example of a LAN would be a hotel's
wireless Internet offering which is self-contained within their own facility.

There are multiple standards for Local Area Networks.

Examples include IEEE 802.3 (Ethernet), IEEE 802.11 (Wi-Fi) or ITU-T G.hn (using existing home
wires, such as power lines, phone lines and coaxial cables). Personal Area Network (PAN)

Personal Area Network (PAN)

A Personal Area Network is a network that is restricted to the area of a person's body. It is much
smaller than Local Area Network. It typically incorporates ad hoc connections to other PANs or
directly to BlueTooth devices.

Virtual Private Network (VPN)

Virtual Private Networks or VPNs are a type of network that builds on the concept of a WAN
however relies upon the internet and an encrypted connection mechanism to establish a secure
environment for internal or external employees or customers.

Client/Server Network
The Client-Server network architecture continues to be the main architectural choice for most
enterprise network computing. In a client/server environment the client (i.e. PC) relies on a LAN
to connect with a back office network server that is responsible for the connection, retrieval, and
storage of data and other critical company or personal information.

Network Computing
Network computing is a network architecture that has grown with the Internet and resulting
connection speeds. In a network computing architecture a computer uses its web browser to
connect to another network computer that actually is running the application. A good example
of this architecture in use is Google Docs, or Microsoft Office online. Both services allow users
the ability to login to Google or Microsoft servers respectively and work similarly to how it
would be performed on their own computing environment.

Peer-to-Peer Network
Peer to peer networks are now beginning to be realized for the positive benefits they provide
and not as only used for the sharing of copyrighted material. Peer-to-peer networks can be
separated into two major types: Central Server and Pure.

In a central server environment one host server maintains all active connections and shared
information. When information is requested the central server informs the user where they can

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receive the file and allows the connection directly to the other PC to download. The best
example of this type was the original Napster file sharing service.

A pure peer-to-peer network type has no central server to maintain active users relies instead on
the individual computers to seek out all other computers offering the same information being
requested. A good example of this type would be BitTorrent software which allows small parts of
information to be pulled from many sources which once completed compiles into a single file.

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Q# 5
Read the following scenario and answer the questions below:

Bankers Trust believes it has saved up to 50 percent of potential development

time by rewriting its internally developed global risk management system, using
object-oriented technology rather than basing it on the relational model.
The investment bank began developing its new system, based on Objects Design’s
Object-store database, in March and delivered the first phase of the project in
August, when it was rolled out to 25 traders in the firm’s offices in London and
Newyork. The second phase, supporting a further 25 Newyork traders, is due to
follow by the end of the year. The software will be deployed across the
organization world wide over the next two years. Thousands of support staff are
expected to use it.
Colin Savery, Bankers Trust’s vice president of technology, said, “We needed a lot
of flexibility because a risk management application is a complex thing. It’s also a
very dynamic industry, so we needed the ability to extend, change, and evolve
over time, and to do it fast. Object technology is the clear paradigm to meet those
requirements.”
He added that if he had based the object-oriented application on a relational
database, it would have taken 25 percent more programming time to code
persistence into it and 25 percent extra time to test the end result. This would
have added six months to the development.
But the risk involved in choosing an object database led the organization to
develop its application in the C++ language rather than use an object-based
fourth-generation language. “Object-oriented databases are not employed widely
and we weren’t in R&D mode this is a production systems”, Savery explained. “We
felt, we had enough risk with the database, so we went for C++, which also
offered better performance.”

Why did Colin Savery reject a relational database solution? Explain.

How did the selection of an object-oriented DBMS address Bankers Trust’s
information needs?
What are the advantages and risks of an object database design?
How did Bankers Trust minimize the risks of using an object DBMS for its
new system?

Object-oriented database management system (OODBMS), sometimes shortened to ODBMS for

object database management system), is a database management system that supports the
modelling and creation of data as objects. This includes some kind of support for classes of
objects and the inheritance of class properties and methods by subclasses and their objects.
There is currently no widely agreed-upon standard for what constitutes an, and products are
considered to be still in their infancy. In the meantime, the object-relational database

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management system, the idea that object-oriented database concepts can be superimposed on
relational databases, is more commonly encountered in available products. An object-oriented
database interface standard is being developed by an industry group, the Object Data
Management Group. The Object Management Group has already standardized an object-
oriented data brokering interface between systems in a network.

An object-oriented database management system (OODBMS) helps programmers make objects

created in a programming language behave as a database object. Object-oriented programming
is based on a series of working objects. Each object is an independently functioning application
or program, assigned with a specific task or role to perform. An object-oriented database
management system is a relational database designed to manage all of these independent
programs, using the data produced to quickly respond to requests for information by a larger
application.

Advantages:
Flexibility:
They needed a lot of flexibility because a risk management application is a complex thing. It’s
also a very dynamic industry, so they needed the ability to extend, change, and evolve over time,
and to do it fast. Object technology is the clear paradigm to meet those requirements.”

Speed:
They needed the ability to extend, change, and evolve over time, and to do it fast. ODD have the
ability to do it fast.

Changes to Schema
The table schema can be changed and it is not platform dependent. Therefore, the tables in the
system can be edited to add new columns and rows without hampering the applications, that
depend on that particular database.

Table Joins
The data in two or more tables can be integrated into a single table. This enables to reduce the
size of the database and also helps in easy retrieval of data.

Data Security
Data is the most important asset. Therefore, there is a need for data security. Database
management systems help to keep the data secured.

Privileges
Different privileges can be given to different users. For example, some users can edit the
database, but are not allowed to delete the contents of the database.

No Primary Keys

The user of an RDBMS has to worry about uniquely identifying tuples by their values and
making sure that no two tuples have the same primary key values to avoid error conditions. In
an OODBMS, the unique identification of objects is done behind the scenes via OIDs and is
completely invisible to the user. Thus there is no limitation on the values that can be stored in an
object.

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Data Consistency
Data consistency ensures a consistent view of data to every user. It includes the accuracy,
validity and integrity of related data. The data in the database must satisfy certain consistency
constraints, for example, the age of a candidate appearing for an exam should be of number
datatype and in the range of 20-25. When the database is updated, these constraints are
checked by the database systems.

Risks
Risk involved in choosing an object database led the organization to develop its application in
the C++ language rather than use an object-based fourth-generation language.

Minimize the Risks of using an object DBMS for New System

They felt, they had enough risk with the database, so they went for C++, which also offered
better performance.” So how they can minimize the risk.

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