c
 (a) Describe the three vital roles that Information Systems perform for a

business enterprise? Support your answer with examples.

(b) Define the following and give an example for each:
i. Batch processing
ii. Online (real-time) Processing
iii. System
iv. Procedures






Definition:à
à  
 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.

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
enterprise.
R
áupport of its business processes and operations
R
áupport of decision making by its employees and managers
R
áupport of its strategies for competitive advantage

Support business process:

On any business organization, data is the most important thing. Different type of
information is produced from the data. When the amount of data is large, it becomes more
difficult to process this data manually. On order to get quick results and timely information,
electronic

Data processing is used in almost all organizations. As business grow up, the amount of
data also increase. As a result, it becomes more difficult to process this data manually. On
electronic data processing, the data can be processed with rapid speed and information is
generated quickly. To run a business successfully, effective and timely decision-making is very
important. This decision-making is based on the information we get from the stored data.

As a customer, you regularly encounter information systems that support the business
processes and operations at the many retail stores where you shop. For example, most retail
stores now use computer-based information systems to help them record customer purchases,
keep track of inventory, pay employees, buy new merchandise, and evaluate sales trends. átore
operations would grind to a halt without the support of such information systems.
Support decision making:

^lectronic data processing provides the required information in a computer in a

complete and comprehensive way. Ot helps in taking effective decisions about the business. On
electronic data processing system, the information can be sent to many people is less time.
Different software packages are available for electronic data processing. These software
packages give the facility to represent the information in different flexible ways.

Today͛s managers depend on information systems for decision making. The managers
have handful of data around them but manually they cannot process the data accurately and
within the short period of time available to them due to heavy competition in modern world.
Therefore mangers depend on information systems.

MOá is a technique for making programmed decisions. Of we include the computer and
management science as integral parts or tools of computer ʹbased information systems, the
prospects for a revolution in programmed decision making are very real. Just as a
manufacturing process is becoming more and more automated so is the automation of
programmed decisions increasing to support this production and other information needs
throughout the organization.

Support competitive advantage:

Technology has taken the business environment by storm. Processes that used to be
manual are now automated, and methods for communication have been transformed. The
arrival of technology has completely transformed today's business practices.

Oá allows you to strategically define your organization in a way that makes your business
stand out from the competition. You can integrate Oá in such a way where you can offer your
customers something no one else does. With a unique design that makes your business
appealing to do business with, you can easily increase your customer base.





Batch processingë a category of data processing in which data are
accumulated into batches and processed periodically. A  
à  
 is one
where programs and data are collected together in a batch before processing starts.
^ach piece of work for a batch processing system is called a  . A job usually consists of
a program and the data to be run. Jobs are stored in 

 until the computer is
ready to process them. There is no interaction between the user and the computer
 while the program is being run. Computers which do batch processing often operate at
night.

Batch processing has these benefits:

R
Ot allows sharing of computer resources among many users and programs,
R
Ot shifts the time of job processing to when the computing resources are less busy,
R
Ot avoids idling the computing resources with minute-by-minute manual intervention
and supervision,
R
By keeping high overall rate of utilization, it better amortizes the cost of a computer,
especially an expensive one

ii. Online (real-time) Processing: data processing in which data are

processed immediately rather than periodically. Online processing means users directly
enter information online (usually, online, in this case, means online to a central
processor, rather than its modern connotation of the Onternet, but it could mean both!),
it is validated and updated directly onto the master file. No new file is created in this
case. Therefore, there is near immediate input process, and output. Omagine a cash
dispenser transaction or booking a holiday at a travel agent or over the Onternet.
Compared with batch processing the number of transactions will be few.

Online comes in many different flavors such as centralized, distributed, time-share etc.
and the choice of architecture will depend on cost, speed needed, number of users,
number of transactions and time needed for a response.

iii. System: a system is a set of interrelated components, with clearly defined

boundary, working together achieve a common set of objectives. The concept of an
'à 

 
 can also be stated in terms of a system embodying a set of
relationships which are differentiated from relationships of the set to other elements.

Most systems share common characteristics, including:

R
áystems have structure, defined by parts and their composition;

R
áystems have behavior, which involves inputs, processing and outputs of material,
energy, information, or data;

R
áystems have interconnectivity: the various parts of a system have functional as well as
structural relationships between each other.

R
áystems have by themselves functions or groups of functions


Procedures: set of instructions used by people to complete a task. A 

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 (for example,
emergency procedures). Less precisely speaking, this word can indicate a m
  of
tasks, steps, decisions, calculations and processes, that when undertaken in the
sequence laid down produces the described result, product or outcome.

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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. Ot 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 related to the operations of the stores
system to run the MOá in the network, certain basic as well as computer system
related information is needed. The breakdown of the segregation is as under:

Œ

  

 


R
átock information
R
^mployee information
R
áales information
R
átores overheads
 R
Creditors information
R
áales returns
R
Claimed items
R
^mployee͛s appraisals
R
Training information

  

 


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

R
Onventory control
R
Online system
R
CCTV system

O


 

Ot provides the inflows as well as the outflows 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. Onventory system is a system which helps managers to
record all the financial activities according to the date. Following are the main parts and
information stored in inventory system.

R
áales information
R
Purchase information
R
áales return
R
átock information
R
Orders places
R
Orders cleared
R
Pending orders

r


 
Online system helps managers to check the stock record or the other stores͛ stock
record. Online system can also be useful for the customer. They can online purchase the
items which they required and can check the available item on the store. They don͛t
need to come at store for purchasing. All new coming items can be uploaded on the site
of the company.


 
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 customers͛ sitting in his office.

 . Discuss which information can be part of computerized information
systems?

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

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

= à  
 




ë

The system development process frequently takes the form of, or includes a
prototyping approach. Prototyping is the rapid development and testing of working
models, or prototypes, of new applications in an interactive, iterative process that can
be used by Oá specialists and business professionals. Prototyping, as a development tool,
makes the development process faster and easier, especially for projects where end
user requirements are hard to define. Prototyping has also opened up the application
development process to end users because it simplifies and accelerates system design.
Thus prototyping has enlarged the role of the business stakeholders affected by
proposed system and helps make possible a quicker and more responsive development
process called agile system development (AáD).


 à 
ë
Prototyping can be used for both large and small applications. Typically large
business system still require using a traditional systems development approach, but
parts of such system can frequently be prototyped. A prototype of a business
application needed by an end user is developed quickly using a variety of application
development software tools. The prototype system is then repeatedly refined until it is
acceptable.








 



O
 



O
à
 # $
  % O 
àà &'  à ^nd users identify their business needs Business

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   and assess the feasibility of several alternative information system solutions.


(à
  % '  à&

à ^nd users and/or Oá specialists use application development
 
= 
   tools to interactively design and test prototypes of information system
components that meet end user͛s business needs.


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à &O

à The business system prototypes are tested,
(

)

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   evaluated and modified repeatedly until end users find them acceptable.

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 )à à 
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à &)à 
 
The accepted business system can be
 '

(à
  modified easily since most system documentation is stored on disk.
  


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The advantages of prototyping are:
R
faster development
R
easier for end users to learn/use
R
fewer changes needed after implementation
R
development backlog decreases
R
end-user involvement
R
users know what to expect at implementation
R
user/analyst communication enhanced
R
user requirements easier to determine
R
development costs reduced

The advantages of prototyping include the potential for making changes early in the
process, stopping development on an unworkable system, and developing a system that
more closely meets the needs and expectations of the end user. Disadvantages include
 the fact that managing the process may be more difficult because of its rapid, iterative
nature. Also, incomplete prototypes may be regarded as complete systems.

c. 3 (a) Select any functional area (e.g. finance, human resources,

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.

There are three types of business processes:

Management processes, the processes that govern the operation of a system. Typical
management processes include "Corporate Governance" and "átrategic Management".

Operational processes, processes that constitute the core business and create the
primary value stream. Typical operational processes are Purchasing, Manufacturing, Advertising
and Marketing, and áales.

áupporting processes, which support the core processes. ^xamples include Accounting,
Recruitment, Call center, Technical support.

A business process begins with a mission objective and ends with achievement of the
business objective. Process-oriented organizations break down the barriers of structural
departments and try to avoid functional silos.A business process can be decomposed into
several sub-processes, which have their own attributes, but also contribute to achieving the
goal of the super-process. The analysis of business processes typically includes the mapping of
processes and sub-processes down to activity level.Business Processes are designed to add
value for the customer and should not include unnecessary activities. The outcome of a well
designed business process is increased effectiveness (value for the customer) and increased
efficiency (less costs for the company).

Business Processes can be modeled through a large number of methods and techniques.
For instance, the Business Process Modeling Notation is a Business Process Modeling technique
that can be used for drawing business processes in a workflow.There are many tasks every
business needs to do if it is going to succeed. ^ach of these tasks is described as being a
function of a business. The following is a brief introduction to each of these functions:

R
‰uman Resources - ensures the business has the best staff for the job and that they are
able to work effectively in a safe environment;
R



 - will keep a record of all money coming in and going out of the business. They
have responsibility for securing finances for future expansion and paying staff and
suppliers;

R
0 


 


O  ensure the smooth running of the business on a
day-to-day basis. They have responsibility for clerical duties, cleaning, computer and
software support, security and health and safety;

R
r 

- have the task of producing the goods or service in the most efficient way.
This is done by making best use of the business's staff, machinery, building and raw
materials;

R
 


  will try and maximize the level of sales by carrying out market
research and promoting the goods or service through a motivated sales team;

R

 will help the customer before and after a sale has been made by
providing information, giving advice, providing credit facilities, delivering goods and
providing after-sales support!





  

  



 

O



0



Following are some of the important functions of marketing department in POA:

  
 

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.

O







 
 

 

Revenue management section foresees demands, the existing inventory available for sales
as well as prices the space against accordingly.

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




 

Brand management promotes the image of the airline thorough certain advertising
campaigns, promotional activities and the promotional product developments etc.
 Π

 

This section analyses the market for new routes, develops the network, builds the schedules
etc.

 ŒO

O0Π

 
Onformation technology department of POA has built the MOá for the complete organization.
The system constitutes much highly specialized software, interlinked through MOá to
disseminate the information among the departments. Marketing department also uses
thesoft wares like AOMá, áABR^, PCá, and NTáá etc. to control the activities in certain
sections of the Marketing department. The report generated through any of the section is
visible to the concerned in other section, which can evaluate the figures and can use the
information for the 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 Regional manager 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.

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

(IS)

The terms information system and information technology are sometimes used
interchangeably, yet they are two different concepts. The information system describes all of
the components and resources necessary to deliver its information and functions to the
organization. On contrast the term information technology refers to the various hardware
components necessary for the system to operate.

As it pertains to technology, O
à 

  O is the "technology" used for
the study, understanding, planning, design, construction, testing, distribution, support and
operations of software, computers and computer related systems that exist for the purpose of
Data, Onformation and Knowledge processing.

O
à  
O is a professional and academic discipline concerned with the
strategic, managerial and operational activities involved in the gathering, processing, storing,
distributing and use of information, and its associated technologies, in society and
organizations. As an area of study, Oá bridges the multidisciplinary business field and the
interdisciplinary computer science field that is evolving toward a new scientific discipline. An
information systems discipline therefore is supported by the theoretical foundations of
information and computations such that undergraduate students have unique opportunities to
explore the academics of various business models as well as related algorithmic processes
within a computer science discipline. Typically, information systems or the more common
legacy information systems include people, procedures, data, software, and hardware (by
degree) that are used to gather and analyze digital information. ápecifically computer-based
information systems are complementary networks of hardware/software that people and
organizations use to collect, filter, and process, create, & distribute data (computing).

O
à 
  is a study, design, development, implementation, support or
management of computer-based information systems, particularly software applications and
computer hardware. OT is a term that encompasses all forms of technology used create, store,
exchange, and use information in its various forms. Ot͛s a convenient term for including both
telephony and computer technology in the same word. Ot is the technology that is diriving what
has often been called the ͞information revolution͟

The term information technology refers to the various hardware components necessary
for the system to operate. On theory, an information system could use simple hardware
components such as pencil and paper of file folders to capture and store its data. ‰owever, we
will concentrate on computer-based information system and their use of the following
information technologies. On other words, Onformation technology (OT) is "the study, design,
development, implementation, support or management of information systems". Onformation
technology is a general term that describes any technology that helps to produce, manipulate,
store, communicate, and/or disseminate information.

c. 4 Write notes on the followings:

1. Input Technologies

Onput technologies now provide a more natural user interface for computer users. You can
enter data and commands directly and easily into a computer system through pointing devices
like electronic mice and touch pads, and technologies like optical scanning, handwriting
recognition, and voice recognition. These developments have made it unnecessary to always
record data on paper source documents (such as sales order forms, for example) and then
keyboard the data into a computer in an additional data entry step. Further improvements in
voice recognition and other technologies should enable an even more natural user interface in
the future.

rO O
O  

Keyboards are still the most used devices for entering data and text into computer system.
‰owever pointing devices are a better alternative for issuing commands, making choices, and
responding to prompts displayed on your video screen. They work with your operating system͛s
graphical user interface (GUO), which presents you with icons, menus, windows, buttons, bars,
and so on, for your selection. For example, pointing devices such as an electronic mouse,
trackball, and touchpad allow you to easily choose from menu selections and icon displays
using pointing-and-click or point-and-drag methods.

The electronic mouse is the most popular pointing device used to move the cursor on the
screen, as well as issue commands and make icon and menu selections. The trackball, pointing
stick, and touchpad are other pointing devices most often used in place of a mouse. A trackball
is a stationary device related to the mouse. You turn a roller with only its top exposed outside
its case to move the cursor on the screen. A pointing stick is a small button-like device,
sometimes likened to the eraser head of a pencil. The cursor moves in the direction of the
pressure you place on the stick. The touchpad is a small rectangular touch-sensitive surface
usually placed below the keyboard. The cursor moves in the direction your finger moves on the
pad. Touch screens are devices that allow you to use a computer by touching the surface of its
video display screen.

 0 rŒ! O

Pen-based computing technologies are being used in many hand-held computers and personal
digital assistants. Tablet PCs and PDAs contain fast processors and software that recognizes and
digitizes handwriting, hand-printing and hand drawing. They have a pressure sensitive layer
similar to that of a touch screen, under their LCD screen. A variety of other pen-like devices are
available. One example is the digitizer pen and graphic tablet.
  rO Or" Œ
ápeech recognition may be the future of data entry and certainly promises to be the
easiest method for word processing, application navigation, and conversational computing,
since speech is the easiest, most natural mode of human communication. ápeech input has now
become technologically and economically feasible for a variety of applications. ^arly speech
recognition products used ˜ m  m   
 
 where you had to pause between each
spoken word. New 
 
m m    
 
 (CáR) soft recognizes continuous
conversationally paced speech.

ápeech recognition systems digitize, analyze, and classify your speech and its sound
patterns. The software compares your speech patterns to a database of sound patterns in
vocabulary and recognized words to your application software. Typically, speech recognition
systems require training your computer to recognize your voice and its unique sound patterns
to achieve a high degree of accuracy. Training such systems require repeating a variety of words
and phrase in a training session, as well as using the system extensively.

r O0 0O
Optical scanning devices read text or graphics and convert them into digital input for
your computer. Thus, optical scanning enables the direct entry of data from source documents
into a computer system. For example, you can use a compact desktop scanner to scan pages of
text and graphics into your computer for desktop publishing and Web publishing applications.
Or you can scan documents of all kinds into your system and organize them into folders as part
of a ˜
   library system for easy reference or retrieval.

There are many types of optical scanners, but all employ photoelectric devices to scan
the characters being read. Reflected light patterns of the data are converted into electronic
impulses which are then accepted as input to the computer system. Compact desktop scanners
have become very popular due to their low cost and ease of use with personal computers
systems. ‰owever, larger, more expensive  ˜ m m are faster and provide higher
resolution color scanning.
 Another optical scanning technology is called à 

 àà *+. OCR
scanners can read the characters and codes on merchandise tags, product labels, credit cards
receipts, utility bills, insurance premiums, airline tickets, and other documents. OCR scanners
are also used to automatically sort mail, score tests, and process a wide variety of forms in
business and government. Devices such as hand-held optical scanning   are frequently
used to read 
˜ m, codes that utilize bars to represent characters.

r  O!  r rO 

)
à à
technology is a familiar form of data entry that helps computers read credit
cards. The coating of the magnetic stripe on the back of such cards can hold about 200 bytes of
information. Customer account numbers can be recorded on mag stripes so it can be read by
the bank ATMs, credit card authorization terminals, and many other types of magnetic stripe
readers.

  that embed a microprocessor chip and several kilobytes of memory into
debit, credit, and other cards are popular in ^urope, and becoming available in the rest of the
world. One example is in ‰olland, where millions of smart debit cards have been issued by
Dutch banks. ámart debit cards enable you to store a cash balance on the card and
electronically transfer some of it to others to pay for small items and services. The balance on
the card can be replenished in ATMs or other terminals.

The smart debit cards in ‰olland feature a microprocessor and either 8 or 16 kilobytes
of memory, plus the usual magnetic stripe. The smart cards are widely used to make payments
in parking meters, vending machines, newsstand, pay telephones and retail stores.

àà 
 represent another fast growing set of input technologies. Digital still
cameras and digital video cameras (digital camcorders) enable you to shoot, store, and
download still photos or full motion video with audio into your PC. Then you can use image-
editing software to edit and enhance the digitized images and include them in newsletters,
reports, multimedia presentations, and Web pages.
 3. Types of Telecommunications Networks.

 

 


On 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.


0 #0
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.

Œ

0 #Œ0
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.

 0 # 0

áimilar 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 Onternet offering which is self-contained within their own facility. There are multiple
standards for Local Area Networks.
^xamples include O^^^ 802.3 (^thernet), O^^^ 802.11 (Wi-Fi) or OTU-T G.hn (using existing home
wires, such as power lines, phone lines and coaxial cables). Personal Area Network (PAN)


0 #0

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

 
 #

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.



$
The Client-áerver network architecture continues to be the main architectural choice for most
enterprise network computing. On 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 is a network architecture that has grown with the Onternet and resulting
connection speeds. On 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 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 áerver and Pure. On 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 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 an active user 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.



c. 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  5 traders in the firm¶s offices in
London and Newyork. The second phase, supporting a further  5 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, ³We

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  5 percent more programming time to
code persistence into it and  5 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. ³Object-oriented databases are not employed widely
and we weren¶t in R&D mode this is a production systems´, Savery explained.
³We felt, we had enough risk with the database, so we went for C++, which also
offered better performance.´

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

^ven though RDBMá have provided database users with the best mix of simplicity,
robustness, flexibility, performance, scalability, and compatibility, their performance in each of
these areas is not necessarily better than that of an alternate solution pursuing one of these
benefits in isolation. This has not been much of a problem so far because the universal
dominance of RDBMá has outweighed the need to push any of these boundaries. Nonetheless,
if you really had a need that couldn't be answered by a generic relational database, alternatives
have always been around to fill those niches.

You shouldn't use a relational database when any one of these criteria are true:

R
your data is structured as a hierarchy or a graph (network),

R
the typical access pattern emphasizes reading over writing, or

R
There͛s no requirement for ad-hoc queries.

Ultimately, there are four reasons why you would choose a non-relational key/value database
platform for your application:
 1.
Your data is heavily document-oriented, making it a more natural fit with the key/value
data model than the relational data model.
2.
Your development environment is heavily object-oriented, and a key/value database
could minimize the need for "plumbing" code.
3.
The data store is cheap and integrates easily with your vendor's web services platform.
4.
Your foremost concern is on-demand, high-end scalability -- that is, large-scale,
distributed scalability, the kind that can't be achieved simply by scaling up.

But in making your decision, remember the database's limitations and the risks you face by
branching off the relational path.

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 . How did the selection of an object-oriented DBMS address Bankers

Trust¶s information needs?

The bank needed a lot of flexibility because a risk management application is a complex thing.
Ot͛s 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.

3. What are the advantages and risks of an object database design?

' 
ëThe main benefit of creating a database with objects as data is speed. OODBMá
are faster than relational DBMá because data isn͛t stored in relational rows and columns but as
objects. Objects have a many to many relationship and are accessed by the use of pointers.
Pointers are linked to objects to establish relationships. Another benefit of OODBMá is that it
can be programmed with small procedural differences without affecting the entire system. This
is most helpful for those organizations that have data relationships that aren͛t entirely clear or
need to change these relations to satisfy the new business requirements.

Benchmarks between OODBMás and RDBMás have shown that an OODBMá can be clearly
superior for certain kinds of tasks. The main reason for this is that many operations are
performed using navigational rather than declarative interfaces, and navigational access to data
is usually implemented very efficiently by following pointers.
Compared to relational databases another major advantage of OODBMás is that they do not
need any object relational mapping layer and object marshaling to map the application object
model to the database object model. On RDBMá, this mapping is also source of the impedance
mismatch, which does not occur when using OODBMá. Avoiding this layer also improves
performance and saves effort for implementation and maintenance.

à-ëCritics of navigational database-based technologies like ODBMá suggest that pointer-

based techniques are optimized for very specific "search routes" or viewpoints; for general-
purpose queries on the same information, pointer-based techniques will tend to be slower and
more difficult to formulate than relational. Thus, navigation appears to simplify specific known
uses at the expense of general, unforeseen, and varied future uses. ‰owever, with suitable
language support, direct object references may be maintained in addition to normalised,
indexed aggregations, allowing both kinds of access; furthermore, a persistent language may
index aggregations on whatever its content elements return from a call to some arbitrary object
access method, rather than only on attribute value, which allows a query to 'drill down' into
complex data structures.

Other things that work against ODBMá seem to be the lack of interoperability with a great
number of tools/features that are taken for granted in the á L world, including but not limited
to industry standard connectivity, reporting tools, OLAP tools, and backup and recovery
standards.Additionally, object databases lack a formal mathematical foundation, unlike the
relational model, and this in turn leads to weaknesses in their query support. ‰owever, this
objection is offset by the fact that some ODBMás fully support á L in addition to navigational
access, e.g. Objectivity/á L++, Matisse, and Ontersystem CAC‰
. ^ffective use may require
compromises to keep both paradigms in sync.

On fact there is an intrinsic tension between the notion of encapsulation, which hides data and
makes it available only through a published set of interface methods, and the assumption
underlying much database technology, which is that data should be accessible to queries based
on data content rather than predefined access paths. Database-centric thinking tends to view
the world through a declarative and attribute-driven viewpoint, while OOP tends to view the
world through a behavioral viewpoint, maintaining entity-identity independently of changing
attributes. This is one of the many impedance mismatch issues surrounding OOP and
databases.

Although some commentators have written off object database technology as a failure, the
essential arguments in its favor remain valid, and attempts to integrate database functionality
more closely into object programming languages continue in both the research and the
industrial communities.
 4. How did Bankers Trust minimize the risks of using an object DBMS for
its new system?

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