Mis 4

11 April 2014 1
Introduction
to
Management
Information
System
Course Developed by :K.K.Nigam
11 April 2014 Course Developed by :K.K.Nigam 2
Information System
A management information
system (MIS) provides information
that organizations need to manage
themselves efficiently and
effectively.

Management information systems are
typically computer systems used for
managing three primary components:
technology, people (individuals,
groups, or organizations), and data
(information for decision making).
Information System
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Let us first try
to understand
What is

Information System
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Information System
Information systems
provide an organization
with support for
business operations,
managerial decision
making, and strategic
advantage.
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Information System
This framework
outlines the major
areas of information
systems knowledge
needed by business
end users.
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Information System
The components of an
information system. All
information systems use
people, hardware, software,
data, and network resources
to perform input,
processing, output, storage,
and control activities that
transform data resources
into information products.
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Information System
Operations and management classifications of information
systems. Note how this conceptual overview emphasizes the
main purpose of information systems that support business
operations and managerial decision making.
Information System
An information system(IS) is typically considered to be a set of
interrelated elements or components that collect(input),
manipulate(processes), and disseminate (output) data and
information and provide a feedback mechanism to meet an
objective.
- Open System
- Close System

Manufacturing
Process

Input of
Raw Materials

Output of
Finished Products
Environment
Other Systems

Control by
Management
Control
Signals
Control
Signals
Feedback
Signals
Feedback
Signals
System Boundary
A Typical Manufacturing System: Generic
Components
Corporate
databases
of
internal
data
Databases
of
external
data
Databases
of
valid
transactions
Operational
databases
Transaction
processing
systems
Management
information
systems
Decision
support
systems
Executive
support
systems
Expert
systems
Business
transactions
Input and
error list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled
reports
Employees
Corporate
intranet
Application
databases
Information System
11 April 2014 11 Course Developed by :K.K.Nigam
History of the Role of IS
Data
Processing
Management
Reporting
Decision
Support
Strategic &
End User
Electronic
Commerce
1950-1960 1960-1970 1970-1980 1980-1990 1990-2000
Electronic
Data
Processing
- TPS
Management
Information
Systems
Decision
Support
Systems
- Ad hoc
Reports
End User
Computing
Exec Info Sys
Expert Systems
SIS
Electronic
Business &
Commerce
-Internetworked
E-Business &
Commerce
11 April 2014 13
Introduction to MIS
What
is
MIS?

11 April 2014 14
Introduction to MIS
An information collection and
analysis system, usually
computerized, that facilitates
access to program and available
information.
Definitions:
Introduction to MIS
It is designed/developed for
decision making at various
levels in the organization.
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Introduction to MIS
An MIS is a system using formalized
procedures to provide management at all
levels with appropriate information, based on
data from internal and if required from
external sources also, to enable them to
make timely and effective decisions for
planning, directing, and controlling the
activities for which they are responsible.
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Introduction to MIS
A system designed by an organization
to collect and report information which
enables managers to plan, monitor,
and evaluate the operations and the
performance of the whole
Organization.
Definitions:
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Introduction to MIS
A computer system for a business or
other organization which collects and
analyzes data from all departments,
and is designed to provide an
organization's management with up-
to-date information (such as financial
reports, inventory, etc.) at any time.
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Introduction to MIS
An information system is
comprised of all the components
that collect, manipulate, and
disseminate data or information.
Introduction to MIS
It usually includes Hardware ,
Software, people, communications
systems such as telephone lines/
broadband connectivity, and the data
itself.
Introduction to MIS
The activities involved include
inputting data, processing of
data into information, storage of
data and information, and the
production of outputs such as
management reports.
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Introduction to MIS
Classification
of
MIS
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There are various types of MIS.
Mason and Swanson (1981) describe four categories
of MIS:
(1) Databank Information System
(2) Predictive Information System
(3) Decision-Making Information System, and
(4) Decision-taking information system.

The classification is based on the level of support that
the information system provides in the process of
decision making.
Introduction to MIS
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Introduction to MIS
Databank Information System.
The responsibility of this information
system is to observe, classify, and store
any item of data which might be
potentially useful to the decision maker.
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Introduction to MIS
Predictive Information System.
This system moves beyond pure data
collection and the determination of trends
over time.
Predictive information systems provide
for drawing of inferences and predictions
that are relevant to decision making.
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Introduction to MIS
Decision-Making Information System.
This system goes one step further in the
process of decision making and incorporates
the value system of the organization or its
criteria for choosing among alternatives.
An extension organization's values are many
and varied.
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Decision-Taking Information System.
Decision-Taking information systems is the
outcome of Decision making and hence both
complement each other.
This is a decision system in which the
information system and the decision maker are
one and the same.
Introduction to MIS
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Introduction to MIS
The choice of an appropriate MIS
category primarily depends on the nature
of the decisions it supports.
While unstructured decisions may use
lower MIS-category and the highly
structured ones, such as production
schedules in an industry, may use higher
MIS-category .
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Introduction to MIS
There is another view of looking at MIS that is
MIS may be classified by their level in the
organisation, all of which enhance
organisational decision making and provide
competitive advantage.
Together they have the following function:
Support for Strategic Planning
Support for Management Control
Support for Operational Control
Improved/Better Product Quality
Improved/Better Product Delivery
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Strategic
Advantage
with
MIS
Information systems that provide a company
with competitive products and services
which give it a strategic advantage over its
competitors in the marketplace.
Information systems that promote business
innovation, improve operational efficiency.
Strategic Advantage of IT
Strategic advantage refers to obtaining a
sustainable competitive edge over competitors.
The ability to obtain a greater than normal return
on investment.
A strategic necessity is a system that must be
installed to remain competitive and stay in
business.
Using IT for Strategic Advantage
Achieving competitive advantage
strengthens and positions a
business better within the
business environment.
Michael Porter proposed Competitive
advantage theory in 1985 that
suggests the states and businesses
should pursue policies that create
high-quality goods to sell at high
prices in the market.
Porter emphasizes productivity growth as
the focus of national strategies. Competitive
advantage rests on the notion that cheap
labour is ubiquitous (appears to be everywhere at the same
time) and natural resources are not necessary
for a good economy.
Competitive advantage occurs when
an organization acquires or develops
an attribute or combination of
attributes that allows it to outperform
its competitors.
These attributes can include access to
natural resources, such as high grade
ores or inexpensive power, or access to
highly trained and skilled personnel
human resources etc.
Information technology has become
such a prominent part of the modern
business world that it can also
contribute to competitive advantage
by outperforming competitors with
regard to internet presence.
The term competitive advantage
is the ability gained through
attributes and resources to
perform at a higher level than
others in the same industry or
market.
Threat of
New Entrants
Bargaining Power
of Suppliers
Bargaining Power
of Customers
Rivalry among
Existing Competitors
Threat of Substitute
Products

Competitive forces model by Michael Porter

Competitive Strategies
Cost leadership strategy:
Become a low cost producer of products and services
Find ways to help suppliers or customers reduce their costs
Product differentiation strategy.
Innovation strategy: Finding new way of doing business,
enter new market.
Alliance strategy: Establish alliances with customer,
suppliers, competitors, other company.
Growth strategy: expanding, diversifying, integrating.
(UITSA) helps you understand how
you can seize the vast opportunity
presented when you do IT right.
Competitive advantage is defined
as the strategic advantage one
business entity has over its rival
entities within its competitive
industry.
Strategic Roles for Information Systems
Improving business operations
Promoting business innovation
Locking in customers and suppliers
Interorganizational IS, EDI, automatic inventory replenishment
system
Creating switching costs
make customers dependent on the continued use of innovative
IS.
Raising barriers to entry
discourage competitors from entering a market
Becoming an Agile Competitor
Agility in competitive performance is the ability of a
business to prosper in rapidly changing, continually
fragmenting global markets for high-quality, high-
performance, customer-configured products and services.
An agile company can:
1. Make a profit in markets with broad product ranges and short
model lifetimes
2. Process orders in arbitrary lot sizes
3. Offer individualized products while maintaining high volumes of
production.
To have the competitive edge the
organisation has to keep very close
check on each and every activity that is
taking place in the organisation, such as:
The Functional Support Role:
The business processes and operations
support function is the most basic. It
involves collecting, recording, storing,
and basic processing of data.
Information systems support business
processes and operations by:
Recording and storing Sales data,
Store/Purchase data, Finance data, HR/Payroll
data and other accounting data

Processing these data and other relevant
records into P&Lstatements, B/S statement ,
Ledgers (all types), Management reports and
other required reports/ financial information
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Recording and storing inventory data,
work in process data, equipment repair
and maintenance data, supply chain
data, and other production/operations
records
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Processing these operations
records into production schedules,
production controllers, inventory
systems, and production
monitoring systems
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Recording and storing personnel data,
salary data, employment histories, and
other human resources records processing
these human resources records into
employee expense reports, and
performance based reports
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Recording and storing market data,
customer profiles, customer purchase
histories, marketing research data,
advertising data, and other marketing
records
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Processing these marketing records into
advertising elasticity reports, marketing plans,
and sales activity reports recording and storing
business intelligence data, competitor analysis
data, industry data, corporate objectives, and
other strategic management records
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Processing these strategic
management records into
industry trends reports, market
share reports, mission
statements, and portfolio models
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Use of all the above to implement,
control, and monitor plans, strategies,
tactics, new products, new business
models or new business ventures
To use Information Technology
competitively, the organization
must embed IT within its structure,
culture, and business strategy.
Data Vs Information
Data
raw facts
no context
just numbers and text
Information
data with context
processed data
value-added to data
summarized
organized
analyzed
Data Vs Information
Data: 51007
Information:
5/10/07 The date of your final exam.
10,000 The average starting salary of an
executive.
110001 Pin code of New Delhi.

Data Vs Information
Data
6.34
6.45
6.39
6.62
6.57
6.64
6.71
6.82
7.12
7.06

SIRIUS SATELLITE RADIO INC.
$5.80
$6.00
$6.20
$6.40
$6.60
$6.80
$7.00
$7.20
1 2 3 4 5 6 7 8 9 10
Last 10 Days
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Information
Data Vs Information
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Data Information Knowledge
Data
Information
Summarizing the data
Averaging the data
Selecting part of the data
Graphing the data
Adding context
Adding value
Data Vs Information
Data Information Knowledge
Information
Knowledge
How is the info tied to outcomes?
Are there any patterns in the info?
What info is relevant to the problem?
How does this info effect the system?
What is the best way to use the info?
How can we add more value to the info?
Data Vs Information
Information Systems
Generic Goal:
Transform Data into Information

At the Core of an Information System is a
Database (raw data).

Information Systems (TPS and PCS)
Data doesnt just appear,
Capturing Data is really the first step
These systems help capture data but
they also have other purposes (goals):
1. Transaction Processing Systems (TPS)
2. Process Control Systems (PCS)
Capturing Data
What are some examples of real TPSs?

What kind of data is being captured?

How is this data transformed into
Information?
Data Processing
Recall that a basic system is composed of
5 components
Input, Output, Processing, Feedback, Control
Typically processing helps transform data
into information.
Input Output
Processing
Raw Data
Information
Processing
Summarizing
Computing Averages
Graphing
Creating Charts
Visualizing Data

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Management
Information
System
and
Management Support
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MIS and Management Support
Let us recapitulate that the crux of
MIS is To provide the right
information to the right person in
the right fashion at the right time.
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Right information will help in
Good Decision-Making and
problem-solving. It may also help
in developing the skills for taking
right decision that ultimately
benefit the organization.
Thus the organization can
have Effective Information
and Decision Support
Systems.
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Decision Support System (DSS):
A highly flexible and interactive IT system
designed to support decision making,
particularly when the problem is not
structured.
It is an information system that utilizes
decision models, a database, and a decision
maker's own insights in an ad hoc,
interactive analytical modeling process to
reach a specific decision by decision
maker.
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Decision Support System
A decision support system (DSS) is a
computer program application that
analyzes business data and presents it so
that users can make business decisions
easily.
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It is an "informational
application" (to distinguish it from
an "operational application" that
collects the data in the course of
normal business operation).

Typical information that a
decision support application
might gather and present
would be:
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Comparative sales figures between different
periods

Projected revenue figures based on new product
sales assumptions

The consequences of different decision
alternatives, given past experience
A DSS may present information graphically for
better presentation .
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A properly designed DSS is an interactive
software-based system intended to help
decision makers compile useful information
from :
- Raw data
- Documents
- Personal Knowledge , and/or
- Business Models to identify and solve
problems and make decisions.
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Typical information that a decision support
application might gather and present would
be:
- Accessing all of your current information
assets, including legacy and relational data
sources, data warehouses, and data marts
- Comparative sales figures between different
periods
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- Projected revenue figures based on
new product sales assumptions
- The consequences of different
decision alternatives, given past
experience in a context that is
described
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Types of DSS
The DSS is basically has three
phases :
- Intelligence
- Design
- Choice
All the phases are equally important in
developing the most suitable DSS.
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In DSS there are two types
of decisions:
- Programmable
- Non-Programmable
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Programmable decisions are those
which are rule based i.e. the rules
are preset or pre defined.
Therefore DSS can be built around
the rule in case of programmable
decision situation.

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In case of non-programmable
decisions the rules are not
fixed or predetermined and are
generally adhoc.
The decision making is also
not fixed.
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Some of the common DSSs are:
1. Status Inquiry System
2. Data Analysis Systems
3. Information Analysis System
4. Accounting System
5. Model Based System
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1. Status Inquiry System:
1. These Decisions are generally based on
operations and are generally based on one
or two aspects of the situation.
It does not call for any elaborate
computations, analysis, choice etc. for
decision making.
The decisions are generally automatic
based on Certain Parameters.
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2. Data Analysis Systems:
These decision systems are based on
comparative analysis and use of a formula
or an algorithms.
The Cash flow analysis, the inventory
analysis etc. are the examples of the
analysis system. Simple Data Processing
tools and business rules are required to
develop this system.
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3.Information Analysis System:
In this system the data is analyzed and
information / reports are generated .The
decision makers use these reports for
assessment of the situation for decision
making.
The sales analysis , the accountings
receivable systems, the market research
analysis etc. are the examples of this
system.
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4. Accounting System:
These systems are not necessarily for
decision-making but they are
desirable to keep track of the major
aspects of the business or a function.
The contents of these systems is
more data processing leading to
formal reporting , with exceptions if
necessary.
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5. Model Based System:
These systems are simulation models or
optimisation models for decision making.
These decisions generally , are one time
and infrequent and provide general
guidelines for operation or management.

Examples Product Mix decision, Material
Mix decision etc.
Introduction
TO

Database Management System
What is DBMS?
Need for information management
A very large, integrated collection of data.
Models real-world enterprise.
Entities (e.g., students, courses)
Relationships (e.g., creating relation between 2 or more tables)
A Database Management System (DBMS) is
a software package designed to store and
manage databases.
Why Use a DBMS?
Data independence and efficient
access.
Data integrity and security.
Uniform data administration.
Concurrent access, recovery from
crashes.
Replication control
Reduced application development time.
Why Study Databases??
Shift from computation to information
at the low end: access to physical world
at the high end: scientific applications
Datasets increasing in diversity and volume.
Digital libraries, interactive video, Human Genome
project, e-commerce, sensor networks
... need for DBMS/data services exploding
DBMS encompasses several areas of Computer Security
OS, languages, theory, AI, multimedia, logic
?
Data Models
A data model is a collection of concepts for
describing data.
A schema is a description of a particular
collection of data, using the a given data
model.
The relational model of data is the most
widely used model today.
Main concept: relation, basically a table with rows
and columns.
Every relation has a schema, which describes the
columns, or fields.
Levels of Abstraction
Many views, single
conceptual (logical)
schema and physical
schema.
Views describe how users
see the data.
Conceptual schema defines
logical structure
Physical schema describes
the files and indexes used.
Schemas are defined using DDL; data is modified/queried using DML.
Physical Schema
Conceptual Schema
View 1 View 2 View 3
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Course Developed By: K.K.Nigam
Example: University Database
Conceptual schema:
Students(sid: string, name: string, login: string,
age: integer, gpa:real)
Courses(cid: string, cname:string, credits:integer)
Enrolled(sid:string, cid:string, grade:string)
Physical schema:
Relations stored as unordered files.
Index on first column of Students.
External Schema (View):
Course_info(cid:string, enrollment:integer)
Database is a vital component of
Information System.
But before we discuss DBMS, let
us try and understand What is
Entity and attributes.
Entity and Attributes
An entity is something that
has a distinct, separate
existence, though it need not
be a material existence.
An entity may be defined as a
thing which is recognized as
being capable of an independent
existence and which can be
uniquely identified.
Data which is a raw fact is an
entity by itself. In a record
where number of fields are
defined (which contains data)
must have relation.
So these entities are inter-
related that means for a
specific type of data
appropriate attributes need to
be defined.
So what is an Attribute?
In computing, an attribute is a
specification that defines a
property of an object, element, or
file.
An attribute of an object
usually consists of a name and
a value; of an element, a type
or class name; of a file, a
name and extension.
Entities and relationships can both
have attributes. Examples: an
employee entity might have a
Employee_Id , Employee Name, Date
of birth etc.
Relationship
A relation is the policy of how
one entity relates to another
entity.
Example "Each invoice is
submitted by just one vendor.
Entity Relationship Model
A relationship captures how
two or more entities are
related to one another.
In software engineering, an
Entity-Relationship Model
(ERM) is an abstract and
conceptual representation of
data.
Entity-relationship modeling is a
database modeling method, used to
produce a type of conceptual schema
or semantic data model of a system,
often a relational database, and its
requirements in a top-down fashion.
Entity Relationship Diagram
Diagrams created using this
process are called entity-
relationship diagrams, or ER
diagrams or ERDs for short.
Records and Files
Data Record
In the structure of a database, the part
consisting of several uniquely named
components called data fields. Several
data records make up a data file, and
several data files make up a database.

Data Abstraction
Abstraction is the process of
recognizing and focusing on important
characteristics of a situation or object
and leaving/filtering out the un-wanted
characteristics of that situation or
object.

What is a
DataBase
Management
System?
Definition:
A collection of Data that has
been systematically organized
for easy access and analysis.
Databases typically are
computerized.


An organized collection of records
having a standardized format and
content.
For example, a Telephone Directory
is a database of Telephones with
names and Addresses.

A collection of electronic
records having a
standardized format and
using specific software for
accessing the data/record.
Some More Definitions:


A database is a collection of
information organized in such a
way that a computer program can
quickly select desired pieces of
data.
Before the era of the RDBMS there
were a variety of different species of
data file structures. Each were
specific to the application program
code which implicitly defined it.


The organization's intelligence/
logic of the Output used to
reside in the program code used
to manipulate the data
files/structures.
Thus in the mid / late 1960's
the Database Management
System (DBMS) came into
existence.

The first DBMS species were thus very
much vendor specific. IBM as usual led
the field, but there were a growing
number of competitors and clones whose
database solutions offered varying entry
points into the bandwagon of
computerized record keeping systems.

Why do we need

Database?

If there is no Database :
1. Data will be scattered
2. Data is not cohesive may be having different formats
3. Data is duplicated
4. Data Integrity is not possible
5. Data has big risk

To put them together a Database is needed
which will have:
- Tables
-Records
- Fields
- Database

Data Types commonly used:
- Numeric
- Alphanumeric
- Date
- Logical
- Memo

Numeric This data type specifies that the field can contain
only numbers.The numbers could be:
- Whole Number e.g. 2,55,999 etc.
- Real number e.g. 23.75,49.55 etc.


Alphanumeric- A combination of alphabets, numbers
and special characters like hyphen etc. may be
stored in this field. The data could be of following
types:
- Numbers - 0 to 9
- Alphabets A to Z, a to z
- Special Characters - !@#$%* etc.
Date In this field only date can be stored. The date may
have different formats. Some databases
provide Time also along with the date format.A
data type that can handle date and time may have
following :
Date Day
- Month
- Year
Time Hour
- Minute
- Second

Logical This field can contain only True/false or Yes/No i.e.
The field can contain only logical value.This data type
is also known as Boolean.
Memo This field can contain large amount of data e.g. 100/
200/500 words. It can have alphanumeric data, but this
can be used only for comment purposes.No manipulation
on this field is possible.

Specifying the Field Size:
Along with the Data type for a field, we also
need to specify the field size. Specifying the
size means that the maximum data of a
particular data type that can be stored in the
field.

Size
Indicator
Description Actual Size
(in Bytes)
Byte
Can Store only positive numbers in the
range of 0 to 255
1
Integer
Can handle whole numbers in the range of
-32,768 to 32,767
2
Long
Can handle whole numbers in the wide range of
-2,147,483,648 to 2,147,483,647. This data type
cannot handle real numbers.
4
Double
Can handle real numbers in the range of:
-1.79769313486232E308 to 1.79769312486232E308

Similarly ,some common alphanumeric data types are:
Data Type Description Actual Size(in Bytes)
Char Can store a single
character
1 Byte
String Can be used to store
Alphanumeric data of
varying length
There is no pre-determined
size.The size is determined
by the number of characters
stored.Generally it is from
1023 bytes to 2 million
bytes.

What is a Table?
A table consists of :
-Rows
- Columns
- Data Elements

Tables are used for Data Manipulation such as :
-Adding records
- Querying
- Modifying Records
- Deleting Records

Data Manipulation:
Creating a table involves the following:
- Specifying field names for different fields
- Specifying data types for the different fields
- Specifying field sizes for the different fields
S_No Item-Code Ord_no Ord_Date Qty

Adding Records to a table:
When the table is created, it does not contain any data.
On adding data, the table will look like:
S_No Item-Code Ord_no Ord_Date Qty
111 RKSK-T 001/05 08/08/05 100

After entering the data in the table,
if required the data can be:
- Added
- Modified
- Deleted

So we have seen the use of Data being
stored. Let us take A typical example of
a College , where we need to
store/Maintain data /details of:
Teachers
Students
Subjects
Examination

All these will be independent data files/tables having
details like:
Teacher:
- Staff No.
- Name
- Address
- Qualifications
- Salary
Student:
-Roll No.
- Name
- Address
- Attendance
- Year

Subject:
- Subject No.
- Subject Name
- Year at Which the Subject is taught
- Teacher who teaches the subject
Examination:
- Exam No.
- Subject for Which the Exam was conducted
- Teacher responsible for the exam
- Student (appearing for exam)
- marks Obtained

Thus we can see there is no relation
between the tables;
Therefore if we want to refer to another
table we cannot as we do not find any
link between the tables.


If we want to refer another table, which
is often required, a relation need to be
developed so that tables can be referred
and data can be picked up.
Thus we need to have database where
we can have relations between the
tables. Such databases are known as
RDBMS (Relational Database
Management System)

Thus following need to be kept in mind:
1. The data to be stored in a single database
since it pertains to a single subject.
2. The distinction between the various groups
should be maintained since different types
of details are stored for each group.
3. We must have atleast one common field
through which relation between tables can
be established.

Thus in the College Database discussed earlier, we can
Establish following relationship:
-Relationship between Roll No. from the Student table
and Roll No. from the Exam table
- Relationship between Staff No. from the Teacher table
and Staff No.from the Exam table
- Relationship between Subject No. from the Student
table and Subject no.from the Exam table
- Relationship between Staff No. from the Teacher table
and Staff no. from the Subject table

Thus you can establish relations using fields in each table.

COMPONENTS OF DBMS:
DATA DEFINITION LANGUAGE:
oDefines Data Elements in Database
DATA MANIPULATION LANGUAGE:
oManipulates Data for Applications
oSQL
DATA DICTIONARY:
oFormal Definitions of all Variables in Database;
Controls Variety of Database Contents

ADVANTAGES OF RDBMS:
- Reduces Complexity
- Reduces Data Redundancy
- Central Control of Data
- Reduces Program/ Data Dependence
- Reduces Development/maintenance Costs
- Enhances System Flexibility
- Increases Access/Availability of Information


DATA WAREHOUSING
AND
DATA MINING
Data warehousing - Introduction
In computing, a data warehouse (DW) is
a database used for reporting and
analysis. The data stored in the data
warehouse is uploaded from the operational
systems.
4/11/2014
150
151
Which are our
lowest/highest margin
customers ?
Who are my customers
and what products
are they buying?
Which customers
are most likely to go
to the competition ?
What impact will
new products/services
have on revenue
and margins?
What product prom-
-otions have the biggest
impact on revenue?
What is the most
effective distribution
channel?
A producer wants to know.
11 April 2014 Course Developed by :K.K.Nigam
152
Data, Data everywhere yet ...
I cant find the data I need
data is scattered over the network
many versions, subtle differences

= I cant get the data I need
E need an expert to get the data
= I cant understand the data I found
E available data poorly documented

= I cant use the data I found
E results are unexpected
E data needs to be transformed from one
form to other
153
What is a Data Warehouse?
A single, complete and
consistent store of data
obtained from a variety of
different sources made
available to end users
what they can understand
and use in a business
context.
[Barry Devlin]
154
What are the users saying...
Data should be integrated across the enterprise
Summary data has a real value to the
organization
Historical data holds the key to understanding
data over time
What-if capabilities are required
155
What is Data Warehousing?
A process of transforming data
into information and making it
available to users in a timely
enough manner to make a
difference

[Forrester Research, April 1996]
Data
Information
156
Evolution
60s: Batch reports
hard to find and analyze information
inflexible and expensive, reprogram every new request
70s: Terminal-based DSS and EIS (executive information systems)
still inflexible, not integrated with desktop tools
80s: Desktop data access and analysis tools
query tools, spreadsheets, GUIs
easier to use, but only access operational databases
90s: Data warehousing with integrated OLAP engines and tools
157
Warehouses are Very Large Databases
35%
30%
25%
20%
15%
10%
5%
0%
5GB
5-9GB
10-19GB 50-99GB 250-499GB
20-49GB 100-249GB 500GB-1TB
Source: META Group, Inc.
R
e
s
p
o
n
d
e
n
t
s

158
Very Large Data Bases
Terabytes -- 10^12 bytes:

Petabytes -- 10^15 bytes:

Exabytes -- 10^18 bytes:

Zettabytes -- 10^21 bytes:

Zottabytes -- 10^24 bytes:

Walmart -- 24 Terabytes

Geographic Information Systems

National Medical Records

Weather images

Intelligence Agency Videos
159
Data Warehousing -- It is a process
Technique for assembling and managing data
from various sources for the purpose of
answering business questions. Thus making
decisions that were not previous possible
A decision support database maintained
separately from the organizations operational
database
160
Data Warehouse
A data warehouse is a
subject-oriented
integrated
time-varying
non-volatile
collection of data that is used primarily in organizational
decision making.
-- Bill Inmon, Building the Data Warehouse 1996
161
Explorers, Farmers and Tourists
Explorers: Seek out the unknown and
previously unsuspected rewards hiding in
the detailed data
Farmers: Harvest information
from known access paths
Tourists: Browse information
harvested by farmers
162
Data Warehouse Architecture
Data Warehouse
Engine
Optimized Loader
Extraction
Cleansing
Analyze
Query
Metadata Repository
Relational
Databases
Legacy
Data
Purchased
Data
ERP
Systems
163
Data Warehouse for Decision Support
& OLAP
Putting Information technology to help the knowledge
worker make faster and better decisions
Which of my customers are most likely to go to the competition?
What product promotions have the biggest impact on revenue?
How did the share price of software companies correlate with
profits over last 10 years?
164
Decision Support
Used to manage and control business
Data is historical or point-in-time
Optimized for inquiry rather than update
Use of the system is loosely defined and can be ad-hoc
Used by managers and end-users to understand the
business and make judgements
165
Data Mining works with Warehouse Data
Data Warehousing provides the Enterprise
variety of details

Data Mining provides the Enterprise
with intelligence

166
We want to know ...
Given a database of 100,000 names, which persons are the least
likely to default on their credit cards?
Which types of transactions are likely to be fraudulent given the
demographics and transactional history of a particular customer?
If I raise the price of my product by Rs. 2, what is the effect on my
ROI?
If I offer only 2,500 airline miles as an incentive to purchase rather
than 5,000, how many lost responses will result?
If I emphasize ease-of-use of the product as opposed to its
technical capabilities, what will be the net effect on my revenues?
Which of my customers are likely to be the most loyal?
Data Mining helps extract such information
167
Application Areas
Industry Application
Finance Credit Card Analysis
Insurance Claims, Fraud Analysis
Telecommunication Call record analysis
Transport Logistics management
Consumer goods promotion analysis
Data Service providers Value added data
Utilities Power usage analysis
168
Data Mining in Use
The Government uses Data Mining to track fraud
A Supermarket becomes an information broker
Basketball teams use it to track game strategy
Cross Selling
Warranty Claims Routing
Holding on to Good Customers
Weeding out Bad Customers
169
What makes data mining possible?
Advances in the following areas are making data
mining deployable:
data warehousing
better and more data (i.e., operational, behavioral,
and demographic)
the emergence of easily deployed data mining tools
and
the advent of new data mining techniques.
-- Gartner Group
170
Why Separate Data Warehouse?
Performance
Operational database designed & tuned for known
transactions & workloads.
Complex OLAP queries would degrade performance for
operational transactions.
Special data organization, access & implementation
methods needed for multidimensional views & queries.
=Function
EMissing data: Decision support requires historical data, which
op dbs do not typically maintain.
EData consolidation: Decision support requires consolidation
(aggregation, summarization) of data from many
heterogeneous sources: op dbs, external sources.
EData quality: Different sources typically use inconsistent data
representations, codes, and formats which have to be
reconciled.
172
What are Operational Systems?
They are OLTP systems
Run mission critical applications
Need to work with stringent performance
requirements for routine tasks
Used to run a business!

173
RDBMS used for OLTP
Database Systems have been used traditionally
for OLTP
clerical data processing tasks
detailed, up to date data
structured repetitive tasks
read/update a few records
isolation, recovery and integrity are critical
174
Operational Systems
Run the business in real time
Based on up-to-the-second data
Optimized to handle large numbers of simple
read/write transactions
Optimized for fast response to predefined
transactions
Used by people who deal with customers,
products -- clerks, salespeople etc.
They are increasingly used by customers
175
Examples of Operational Data
Data Industry Usage Technology Volumes
Customer
File
All Track
Customer
Details
Legacy application, flat
files, main frames
Small-medium
Account
Balance
Finance Control
account
activities
Legacy applications,
hierarchical databases,
mainframe
Large
Point-of-
Sale data
Retail Generate
bills, manage
stock
ERP, Client/Server,
relational databases
Very Large
Call
Record
Telecomm-
unications
Billing Legacy application,
hierarchical database,
mainframe
Very Large
Production
Record
Manufact-
uring
Control
Production
ERP,
relational databases,
AS/400
Medium
So, whats different?
177
Application-Orientation vs. Subject-Orientation
Application-Orientation
Operational
Database
Loans
Credit
Card
Trust
Savings
Subject-Orientation
Data
Warehouse
Customer
Vendor
Product
Activity
178
OLTP vs. Data Warehouse
OLTP systems are tuned for known transactions and
workloads while workload is not known a priori in a data
warehouse
Special data organization, access methods and
implementation methods are needed to support data
warehouse queries (typically multidimensional queries)
e.g., average amount spent on phone calls between 9AM-5PM in
Pune during the month of December

179
OLTP vs Data Warehouse
OLTP
Application Oriented
Used to run business
Detailed data
Current up to date
Isolated Data
Repetitive access
Clerical User
Warehouse (DSS)
Subject Oriented
Used to analyze business
Summarized and refined
Snapshot data
Integrated Data
Ad-hoc access
Knowledge User (Manager)
180
OLTP
Performance Sensitive
Few Records accessed at a
time (tens)

Read/Update Access

No data redundancy
Database Size 100MB -
100 GB
Data Warehouse
Performance relaxed
Large volumes accessed at
a time(millions)
Mostly Read (Batch
Update)
Redundancy present
Database Size 100
GB - few terabytes
181
OLTP
Transaction
throughput is the
performance metric
Thousands of users
Managed in entirety

Data Warehouse
Query throughput is
the performance
metric
Hundreds of users
Managed by subsets
182
To summarize ...
OLTP Systems are used to run a
business

The Data Warehouse helps to
optimize the business
Computer
Networks
Network
Computer network
A combination of computers connected through
transmission media.
LAN (Local Area Network)
MAN (Metropolitan Area Network)
WAN (Wide Area Network)

Internetwork (e.g. Internet)
Networks can be connected using connecting device.

Computer Networks
Model and Protocol
Model
the specification set by a standards organization as
a guideline for designing networks.
Protocol
a set of rules that controls the interaction of
different devices in a network/internetwork.
Computer Networks
OSI MODEL
The OSI (Open Systems Interconnection)
model is a theoretical model that shows
how two different systems
can communicate with each other.
The OSI model
The OSI model
OSI Model
is a framework of 7 layers
that gives network designers an idea of
the functionality of each separate but
related layer.
The OSI model
control information
is added to the data in the form of headers
or trailers.
the header or trailer
is dropped in each layer.
Flow of data in the OSI
model
Functions of the Layers
1. Physical
transmit a bit stream over a physical medium.
2. Data-Link
Organizes bits into logical units called frames.
Node-to-node delivery
3. Network
Source-to-destination delivery of a packet.
4. Transport
Source-to-destination delivery of the entire message.
5. Session
Establishes, maintains, and synchronizes
the dialog between communicating systems.
6. Presentation
Deals with the fact that different systems use
different coding methods.
7. Application
Enables the user to access the network.
CATEGORIES
OF
NETWORKS
Categories of networks
LAN (Local Area Network)
Allow resource sharing between computers.
Computers
Peripheral devices
Transmission medium (e.g. cable)
3 types of topology
Bus topology
Star topology
Ring topology
LANs
Hub
E a device that facilitates connection
E LAN acts logically like a bus.
Star
the dominant topology today.
MAN
MAN (Metropolitan Area Network)
Uses services provided by a network service provider.
(Tel. Company)
Individual users computers
Organizations LANs

Many Tel. Company provide a popular MAN service called
SMDS (Switched Multimegabit Data Services)
Prior to SMDS's arrival in 1995,
the only way to connect LANs was through
a dedicated private line.
WAN
WAN (Wide Area Network)

The connection of individual computers or LANs over a
large area (country, world).

User using a telephone line to connect to an ISP
(Internet Service Provider) is using a WAN.
Negotiates fee
ISP
Tel. company
CONNECTING
DEVICES
Connecting devices
Repeater (L1)
Regenerates the signal.
Extends the physical length of a network.
Repeaters operate at the first layer of
the OSI model.
Bridge/Switch
Bridge
A traffic controller
Divide a long bus into smaller segments
so that each segment is independent trafficwise.
Regenerate data

Switch
A sophisticated bridge with multiple interfaces.
A station that needs to send a frame sends it directly to
the switch.

Bridge (L1-L2)
Bridges operate at the first two
layers of the OSI model.
Switch
Router
Connect LANs, MANs, and WANs.
Routes a packet based on the logical address (network
layer) of the packet.
Connect two independent networks: LAN-WAN, LAN-
MAN, WAN-WAN
V.S.
Bridge
filters a frame based on the physical address (data-link layer) of
the frame.
Connect two segments of a LAN or two LANs belonging to the
same organization.
Routers (L1-L3) in an internet
Routers operate at the first three
layers of the OSI model.
Gateway (L1-L7)
A protocol converter.
Understands the protocols used by each
connected network and is able to translate
from one to another.

Connecting devices and the OSI model
frame
packet
IP address
Mac address
internetworking
networking
Business
Information
Systems

An information system(IS) is typically considered to be a set of
interrelated elements or components that collect(input),
manipulate(processes), and disseminate (output) data and
information and provide a feedback mechanism to meet an
objective.
Open System
Close System
Information Systems
Types of Information Systems
1. Informal Information System
2. Formal Information System
Information Systems
An Information System is an organized combination of people, hardware, software,
communication networks and the data resources that collects, transforms and
disseminates information in a organization.

Information Systems
INFORMATION
TECHNOLOGY
Hardware
Software
Databases
Networks
Other related
components
are used to build
INFORMATION
SYSTEMS
Payroll
System
Inventory
System
Marketing
System
Customer
Service
System
IS Vs IT
Information Systems
Expanding Roles of IS
1. Data Processing: 1950s-1960s
2. Management Reporting: 1960s-1970s
3. Decision support: 1970s-1980s
4. Strategic and End User Support: 1980s-1990s
5. Global Internetworking: 1990s-2000s

Information Systems
Classification of IS
Information Systems
Operations Support
System
Management
Support System
Transaction
processing
systems
Process
control
systems
Office
automation
systems
Management
information
systems
Decision
support
systems
Executive
information
systems
1. Operations support systems process data
generated by business operations
Major categories are:
i) Transaction processing systems
ii) Process control systems
iii) Office automation systems
Information Systems
Information Systems
2. Management Support Systems provide information
and support needed for effective decision making by
managers
Major categories are
i) Management Information System
ii) Decision Support Systems
iii) Executive Information System
1. Operations Support System
i) Transaction processing systems

Process business exchanges
Maintain records about the exchanges
Handle routine, yet critical, tasks
Perform simple calculations

ii) Process control systems monitor and control industrial processes.

iii) Office automation systems automate office procedures and enhance
office communications and productivity.
Information Systems
2. Management support systems provide information and
support needed for effective decision making by
managers
Major categories are:

i) Management information systems
+ Routine information for routine decisions
+ Operational efficiency
+ Use transaction data as main input
+ Databases integrate MIS in different functional areas

Information Systems
ii) Decision Support System
Interactive support for non-routine decisions or
problems
End-users are more involved in creating a DSS than
an MIS

iii) Executive information systems
provide critical information tailored to the information
needs of executives
Information Systems
Other categories
a) Expert systems
b) End user computing systems
c) Business information systems
d) Strategic information systems

Information Systems
Information Systems
a) Expert Systems are knowledge-based
systems that provides expert advice and
act as expert consultants to the users
b) End user computing systems support
the direct, hands on use of computers by
end users for operational and managerial
applications
Information Systems
c) Business information systems
support the operational and
managerial applications of the basic
business functions of a firm
d) Strategic information systems provide
a firm which strategic products,
services, and capabilities for
competitive advantage
Information Systems
Development
Challenges of IS
1. Workforce downsizing
2. Information overload
3. Employee mistrust
4. Difficult to built
5. Security breaches
Opportunities of IS

1. Enhanced global competitiveness
2. Capture market opportunities
3. Support corporate strategy
4. Enhance worker productivity
5. Improve quality of goods and services
Information
Quality
Attributes
Information Quality Attributes
Good information is Good business.
But what constitutes good, or
quality, information?
Generally good information is
equated with accurate information.
Good information, however,
should also be
- timely,
- reliable, and
- complete.
Today, information quality (IQ) is
understood to be a multidimensional
concept that encompasses critical
relationships among multiple
attributes, such as timeliness,
accuracy, relevancy, and others.
Together, these attributes contribute
to the validity of the information.
Quality information is the
cornerstone of sound agency
decision making .
Such information enables
organisations to perform their
jobs efficiently and effectively.
Issues /Concerns with Poor Information
quality:
Poor information quality are quite common.
Business challenges such as incomplete
records, delays, failure to update record
information, data-entry mistakes, or improper
releases of information.
The routine nature of day-to-day
business processes underscores
the potential for inadvertent
generation of inferior IQ.
As data is increasingly shared and
becomes more readily and rapidly
accessible, control over IQ
becomes a bigger challenge.
Poor information quality may
be harmful to the
organisation, the individual,
and the community.
Today, IQ is well accepted as a
multidimensional concept by subject-
matter experts in academia, industry,
and government who have
developed models of the necessary
attributes for IQ.
Accessibility The extent to which data is available or easily and
quickly retrievable.
Appropriate
Amount of Data The extent to which the volume of data is appropriate
for the task at hand.
Believability The extent to which data is regarded as true and
credible.
Completeness The extent to which data is not missing and is of
sufficient breadth and depth for the task at hand.
MITs (Massachusetts Institute of Technology)
outlines Information Quality Dimensions as
under:
Concise
Representation The extent to which data is compactly represented.

Consistent
Representation The extent to which data is presented in the same
format.
Ease of
Manipulation The extent to which data is easy to manipulate and apply
to different tasks.
Free of Error The extent to which data is correct and reliable.

Interpretability The extent to which data is in appropriate languages,
symbols, and units and the definitions are clear.

Objectivity The extent to which data is unbiased, unprejudiced,
and impartial.

Relevancy The extent to which data is applicable and helpful for
the task at hand.

Reputation The extent to which data is highly regarded in terms
of its source or content.
Security The extent to which access to data is restricted
appropriately to maintain its security.

Timeliness The extent to which information is available in time
to perform the task at hand.

Understandability The extent to which data is easily
comprehended.
Value-Added The extent to which data is beneficial and provides
advantages from its use.
Business Model
and
IS Model
Business Model
A business model describes
the rationale of how an
Organization creates, delivers, and
captures value (economic, social,
or other forms of value).
Business Model
The process of business
model construction is part
of business strategy.
Business Model
The term business model is
used for a broad range of
informal and formal descriptions
to represent core aspects of a
business.
Business Model
It includes purpose, offerings,
strategies, infrastructure,
organizational structures, trading
practices, and operational
processes and policies.
Business Model
Whenever a business is established, it
either explicitly or implicitly employs a
particular business model that
describes the architecture of the value
creation, delivery, and capture
mechanisms employed by the business
enterprise.
Business Model
The essence of a business
model is that it defines the
manner by which the business
enterprise delivers value to
customers.
Business Model
Thus it entices customers
to pay for value, and
converts those payments
to profit.
Business Model
It thus reflects managements
hypothesis about what customers
want, how they want it, and how an
enterprise can organize to best
meet those needs, get paid for
doing so, and make a profit.
Business Model
Business models are used to
describe and classify businesses
(especially in an entrepreneurial
setting).
Business Model
They are also used by managers
inside companies to explore
possibilities for future development.
Also, well known business models
operate as recipes for creative
managers.
Business & Information
System Model
In line with Business Model , the
organisation is supposed to
develop an Information Systems
Model, that will take care of
the organisations information
needs.
Business System model is a
method for analyzing, defining and
designing an information
architecture of organizations.
System Model
It is a very complex and time
consuming method that deals
with data, processes, strategies, aims
and organizational departments which
are interconnected.
System Model
Business System Planning-BSP
brings new approach to design
an information architecture and its
goals are to:

System Model
System Model
understand the issues and opportunities with the
current applications and technical architecture
develop a future state and migration path for the
technology that supports the enterprise
provide business executives with a direction and
decision making framework for IT capital
expenditures
provide information system (IS) with
a blueprint for development
Requirement Analysis
263
Requirements Analysis
Software engineering task bridging the gap between
system requirements engineering and software design.
Provides software designer with a model of:
system information
function
behavior
Model can be translated to data, architectural, and
component-level designs.
Expect to do a little bit of design during analysis and a
little bit of analysis during design.
264
Analysis Objectives
Identify customers needs.
Evaluate system for feasibility.
Perform economic and technical analysis.
Allocate functions to system elements.
Establish schedule and constraints.
Create system definitions.
265
Software Requirements Analysis
Phases
Problem recognition
Evaluation and synthesis
focus is on what not how
Modeling
Specification
Review
266
Management Questions
How much effort put towards analysis?
Who does the analysis?
Why is it so difficult?
Bottom line - who pays for it?
267
Feasibility Study
Economic feasibility
cost/benefit analysis
Technical feasibility
hardware/software/people, etc.
Legal feasibility
Alternatives
there is always more than one way to do it
268
System Specification
Introduction.
Functional data description.
Subsystem description.
System modeling and simulation results.
Products.
Appendices.
269
Requirements
Requirement
features of system or system function used to
fulfill system purpose.
Focus on customers needs and problem,
not on solutions:
Requirements definition document
(written for customer).
Requirements specification document
(written for programmer; technical staff).
270
Types of Requirements - 1
Functional requirements:
input/output
processing.
error handling.
Non-functional requirements:
Physical environment (equipment locations, multiple
sites, etc.).
Interfaces (data medium etc.).
User & human factors (who are the users, their skill
level etc.).
271
Types of Requirements - 2
Non-functional requirements (continued):
Performance (how well is system functioning).
Documentation.
Data (qualitative stuff).
Resources (finding, physical space).
Security (backup, firewall).
Quality assurance (max. down time, MTBF, etc.).
SDLC -
(System Development Life
Cycle)
11 April 2014 273
Developing IS
System Development Life Cycle (SDLC) -
encompasses complete Information System. The
activities it covers are Conceptualize, Design, and
implement a project such as:
- Analysis
- Design
- Building
- Implementation
- Operation and
- Maintenance.
11 April 2014 274
Developing IS
In other words System Development Life
Cycle (SDLC) is the overall process of
developing information systems through
a multi-step process from investigation of
initial requirements through analysis,
design, implementation and maintenance.
Developing IS
There are many different models
and methodologies, but each
generally consists of a series of
defined steps or stages.
11 April 2014 276
Developing IS
To manage this, a number of System
Development Life Cycle (SDLC) models
have been created like:
- Waterfall
- Fountain
- Spiral
- Build and fix
- Rapid prototyping
- Incremental and
- Synchronize and stabilize.
11 April 2014 277
Developing IS
The oldest of these, and the best
known, is the Waterfall:
A sequence of stages in which the
output of each stage becomes the input
for the next.
These stages can be characterized and
divided up in different ways, including
the following:
SDLC Examples - Waterfall
279
SDLC Examples - Agile
280
Use Case Example
11 April 2014 281
But Waterfall Model did not work
Larry Runge, SDLC expert says that SDLC
"works very well when we are automating the
activities of clerks and accountants. It doesn't work
nearly as well, if at all, when building systems for
knowledge workers -- people at help desks, experts
trying to solve problems.
Developing IS
11 April 2014 282
Fountain Model :-
The fountain model recognizes that although
some activities can't start before others --
such as you need a design before you can
start coding -- there's a considerable overlap
of activities throughout the development
cycle.
Developing IS
11 April 2014 283
Spiral Model:-
The spiral model emphasizes the
need to go back and reiterate
earlier stages a number of times
as the project progresses.
Developing IS
11 April 2014 284
Developing IS
It's actually a series of short waterfall
cycles, each producing an early
prototype representing a part of the
entire project. This approach helps
demonstrate a proof of concept early
in the cycle, and it more accurately
reflects the disorders, if any.
11 April 2014 285
Build and Fix Method:-
Build and fix is the crudest of the
methods. Write some code, then keep
modifying it until the customer is
happy. Without planning, this is very
open-ended and can be risky.
Developing IS
11 April 2014 286

Rapid Prototyping - In the rapid
prototyping (sometimes called rapid
application development) model, initial
emphasis is on creating a prototype that
looks and acts like the desired product
in order to test its usefulness.
Developing IS
11 April 2014 287
Developing IS
The prototype is an essential part of
the requirements determination
phase, and may be created using
tools different from those used for
the final product. Once the prototype
is approved, it is discarded and the
"real" software is written.
Enterprise Systems
and
Decision Support System
Enterprise systems (ES) are large-
scale application software packages that
support business processes, information
flows, reporting, and data analytics in
complex organizations.
In short, ES are Packaged Enterprise
Application Software (PEAS) systems.
Enterprise Systems
Types of enterprise systems include:
- Enterprise Resource Planning (ERP)
- Enterprise Planning Systems, and
- Customer Relationship Management
(CRM) software.
Enterprise Systems
Although Data warehousing or Business
Intelligence systems are enterprise-wide
packaged application software often sold
by ES vendors.
Enterprise Systems
Enterprise Information Systems
Objectives
Understand limitations of Legacy
systems
Describe enterprise systems &
Enterprise resources planning (ERP)
systems
Explain the value chain concept
Show how an enterprise system supports
the organizations value chain
Illustrate value of systems integration
Enumerate the pros and cons of
implementing enterprise systems
Enterprise
Systems
293
Information Systems Silos
Purchasing Fin. & Acct. Inventory
Mkt. & Sales Manf. H/R
Departments had their
own systems. Very
little system-to-system
communication across
departments

What is wrong with
systems arranged in
this manner?
294
Information System Silos
Problems:
Lack of coordination
Lack of standardisation
Costs are high
Poor decision making
Duplication, delays
Poor control

295
ERP Brings Integration
Purchasing
Fin. & Acct.
Inventory
Mkt. & Sales
Manf.
H/R
Shared
data
Shared
System & Data
296
ERP = Software packages
297
Enterprise systems - ES
How the Enterprise systems facilitate the
purchasing function:
Provide electronic order form (P-Rqn), budget info,
templates, legal notices, etc;
Apply business rules -determine if purchase does
not exceed budget;
Routing the order for approval;
Assist buyer with selection of appropriate vendor;
Connect to ES of business partners;
Providing information for decision making.
298
Enterprise Resource Planning
(ERP) systems
ERP systems are software packages that
can be used for the core systems
necessary to support enterprise systems
299
ERP Systems Vendors
300
Basic SAP
Modules
INCLUDING
CENTRALIZED
DATABASE
Empty boxes
represent third-
party add-on
modules
Most ERP are
based on
Client/server
model NOT
ring, bus or
peer2peer
topologies
301
Third-Party Modules
Customer Relationship Management (CRM)
builds and maintains customer related data
Customer Self-Service (CSS)allows
customers to complete tasks without assistance
Sales Force Automation (SFA)automates
sales tasks such as order processing and
tracking
302
Third-Party Modules, Contd.
Supply Chain Management (SCM)plans
and executes demand planning, inventory
acquisition, manufacturing, distributing and
selling
Product Lifecycle Management (PLM)
manages product data from design
through disposal of product
303
Enterprise Systems & Value Chain
Enterprise systems facilitate value chain
management
The value chain is the system of activities that
transform inputs into outputs valued by the
customer
The goal of an organization is to add the
greatest value with the lowest costs thereby
increasing competitive advantage
304
Value
Chain and
System
305
How is value created?
By working at low cost
Leveraging resources e.g. IT
Enhancing differentiation e.g. through
quality, workmanship, etc
Responding promptly to customer
requirements
306
The Value of Systems Integration
How an ES can assist a firm in optimizing its
value system:
Coordination of value activities (through sharing
data across business processes).
Enterprise system ensures available to promise
(ATP) services
Permit optimal planning and decision making (e.g.,
by provide world-wide visibility of inventory
balances and customer and vendor data, orders
from customers can be sourced in a way that
balances purchasing costs with shipping costs).
307
Major ERP Modules
Sales and Distribution
Based on SAP (best selling ERP)
Materials Management
Financial Accounting
Controlling and Profitability Analysis
Human Resources

308
Major ERP Modules
Sales and Distribution
Records customer orders
Shipping
Billing
Connections to
Materials management module
Financial accounting module
Controlling module
Based on SAP (best selling ERP)
309
Major ERP Modules, Contd.
Materials Management
Acquisition and management of goods
from vendors
Purchase order preparation
Receiving
Recording invoice
Interacts with
Sales and distribution module
Financial accounting module
Controlling module
310
Financial Accounting
Plays a central role in an ERP system and incorporates data
from other modules into general ledger accounts and financial
statements
Business events from other modules, such as SD and MM, are
incorporated by the FI module into the general ledger accounts
and included in the external account statements, the balance
sheet, profit and loss statement, and statement of cash flows.
The FI module also includes accounts receivable and accounts
payable functions to record and manage that data directly and to
complete events begun in the SD and MM modules.
311
Controlling and Profitability Analysis
Handles internal accounting including:
Cost center accounting
Profitability analysis for sales
Activity-based accounting
Budgeting
Human Resources
Recruiting, management and administration of personnel
Payroll processing
Training, reporting, benefits
312
Enterprise systems & goals of
information system
How ES achieve the goals of information
system:
Ensure that relevant & understandable data is
collected
By providing one central database reliability,
validity and accuracy are assured/enhanced
Enforcing standards & business rules ensures
consistency and completeness
Sharing of services ensures efficiency &
consistency
Data Modelling
Data modeling in software
engineering is the process of creating
a data model for an information
system by applying formal data
modeling techniques
Data Modelling
Data modeling is a process used to
define and analyze data
requirements needed to support
the business processes within the
scope of corresponding information
systems in organizations
Data Modelling
Data Modelling
There are three different types of
data models produced while
progressing from requirements to
the actual database to be used for
the information system.
Data Modelling
The data requirements are initially
recorded as a conceptual data
model which is essentially a set of
technology independent specifications
about the data and is used to discuss initial
requirements with the business
stakeholders.
Data Modelling
The conceptual model is then
translated into a logical data model,
which documents structures of the
data that can be implemented in
databases.
Data Modelling
Implementation of one
conceptual data model may
require multiple logical data
models.
Data Modelling
The last step in data modelling is
transforming the logical data model
to a physical data model that
organizes the data into tables, and
accounts for access, performance
and storage details.
Data Modelling
Data modelling defines not just
data elements, but their
structures and relationships
between them.
Data Modelling
Data modelling techniques and
methodologies are used to model
data in a standard, consistent,
predictable manner in order to
manage it as a resource.
323
A notation for describing data or information
Description consists of 3 parts:
1) Structure of the data
-Arrays and structures or objects
2) Operations on the data
-Queries (Operations that retrieve
information)
-Modifications (Operations that change the
database)
3) Constraints on the data
-Limitations
Data Modelling
The use of data modelling standards is
strongly recommended for all projects
requiring a standard means of defining
and analyzing data within an
organization, e.g., using data
modelling:
Data Modelling
To manage data as a resource;
For the integration of information
systems;
For designing databases/data
warehouses (aka data repositories)
Data Modelling
Data Modelling
Data models are progressive;
there is no such thing as the
final data model for a business
or application.
Data Modelling
Instead a data model should
be considered a living
document that will change in
response to a changing
business.
Data Modelling
The data models should
ideally be stored in a
repository so that they can
be retrieved, expanded,
and edited over time.
Data Modelling
Whitten , a Data Modelling
expert determined two types
of data modelling:
Data Modelling

Strategic Data Modelling:
This is part of the creation of an
information systems strategy, which
defines an overall vision and architecture
for information systems is defined.
Data Modelling
Data Modelling during
Systems Analysis:
In systems analysis logical data
models are created as part of the
development of new databases.
Data Modelling
Data modelling is also used as a
technique for detailing
business requirements for
specific databases.
Data Modelling
It is sometimes called database
modelling because a data
model is eventually
implemented in a database.
Data Flow Diagram
Data Flow Diagram
A data flow diagram (DFD) is a
graphical representation of the
"flow" of data through
an information system, modelling
its process aspects.
Data Flow Diagram
They are a preliminary step
used to create an overview
of the system which can
later be elaborated.
Data Flow Diagram
DFDs can also be used for the
visualization of data
processing i.e. Structured
Design.
Data Flow Diagram
A DFD shows what kinds of data
will be input to and output from
the system, where the data will
come from and go to, and where
the data will be stored.
Why do we use DFDs?
It is a way of taking the physical view and
converting it into a logical view.
The physical view - all documents involved
The logical view - the data they contain
Their main purpose is to communicate with
the user, the analysts understanding of the
scope of the required system

Levelling
DFDs are expanded or decomposed
into levels.
Separating each process into sub
processes
Uncovers more and more detail

E-R Modelling
The Entity-Relationship model
The E-R model is a detailed, logical representation of the
data for an organisation or business area
It should be understandable to both the user and to the
IT technologist
The model must be as open as possible and not tied to
any technology or to any particular business
methodology
It must be flexible enough so that it can be used and
understood in practically any environment where
information is modelled

E-R Modelling
It is expressed in terms of entities in the business
environment, the relationships (or associations) among
those entities and the attributes (properties) of both the
entities and their relationships
The E-R model is usually expressed as an E-R diagram

E-R Modelling
E-R Model Constructs
Entity - person, place, object, event, concept
Entity Type - is a collection of entities that share
common properties or characteristics. Each
entity type is given a name, since this name
represents a set of items, it is always singular.
It is placed inside the box representing the entity
type .

E-R Modelling
Entity instance is a single occurrence of
an entity type. An entity type is described
just once (using metadata) in a database,
while many instances of that entity type
may be represented by data stored in the
database.
e.g. there is one EMPLOYEE entity type in most
organisations, but there may be hundreds of instances
of this entity stored in the database
E-R Modelling
Sample E-R Diagram
E-R Modelling
Database Design Process
Requirement collection and analysis
DB requirements and functional requirements
Conceptual DB design using a high-level model
Easier to understand and communicate with others
Logical DB design (data model mapping)
Conceptual schema is transformed from a high-level data model
into implementation data model
Physical DB design
Internal data structures and file organizations for DB are
specified
E-R Modelling
Overview of Database Design
Conceptual design: (ER Model is used at this stage.)
What are the entities and relationships in the enterprise?
What information about these entities and relationships should
we store in the database?
What are the integrity constraints or business rules that hold?
A database `schema in the ER Model can be represented
pictorially (ER diagrams).
An ER diagram can be mapped into a relational schema.
E-R Modelling
349
Challenges/ Problems
faced in Software/ERP
Implementation
350
Problems faced in ERP Implementation
ERP implementation brings about a kind of
revolution in the organization.
This change is definitely for the better , but
along with improvements in working it poses
problems as well as challenges for the
organization. Some of the common
problems faced are:
351
Status- By status it is meant the organisation
must introspect and evaluate its
readiness for such a high end Software.
In case it is found that the users are still
not upto that level the decision to go for
the ERP must be reviewed.
352
Selection Selection of right ERP is not easy. The
organization may not have the necessary
skill and of course resources to justify a
particular ERP. In such an eventuality it
is recommended that the organization
must involve a consultant or some such
person who has fairly good grasp
of the ERP and the processes involved.
353
Cost Cost always plays one of the most important role
in finalisation of ERP.
While finalising the cost , it is not only the cost of
the Software but other associated costs like cost
of upgrading/replacing the Hardware, the
cost of implementation of ERP must also
be taken into consideration. Thus when the total
cost is calculated it turns out to be almost three
times . So the decision on cost must be taken
after considering this aspect.
354
User involvement/awareness:
To have an smooth implementation or lesser
problems in implementation, it is recommended
that User involvement at the earliest possible
stage must be done. This helps both in over
coming the problems of resistance to change but
also gives users a feeling of belongingness.
355
Support:
The support to users must be as prompt as
required, particularly in the initial stages when the
problems of all types are faced and if the support
does not come through promptly ,the user loses
its confidence , resulting into delay many other
problems.
356
Why Implementations Fail
1. People Dont want the systems to succeed
2. People are comfortable and dont see the need for
the new system.
3. People have unrealistic expectations of the new
system.
4. People dont understand the basic concepts of the
system.
5. The basic data is inaccurate.
6. The system has technical difficulties.
357
What is ERP Success?
Success is multidimensional and relative to both time and
objectives.
What is success today may not be success in two years.
It gives competitive advantage today may not do so when
competitors catch up and this large ERP system simply
becomes a cost of doing business.
Success is often judged relative to the organizations
unique goals for the system, more so with tangible
benefits.
Security Ethical
and
Societal challenges of IT
359
The use of IT presents major
security challenges, poses
serious ethical questions, and
affects society in significant
ways.
Security Ethical and Societal
Challenges of IT
Challenges of IT
IT raises ethical issues in the
areas of..
Crime
Privacy
Individuality
Employment
Health
Working conditions
361
But, IT has had beneficial results as
well.
So as managers, it is our
responsibility to minimize the
detrimental effects and optimize the
beneficial effects.

Challenges of IT
362
Business Ethics
Basic categories of ethical issues
Employee privacy
Security of company records
Workplace safety

Challenges of IT
363
Theories of corporate social
responsibility
Stockholder theory
Managers are agents of the stockholders.
Their only ethical responsibility is to
increase profit without violating the law or
engaging in fraud

Challenges of IT
364
responsibility
Social Contract Theory
Companies have ethical responsibilities to
all members of society, which allow
corporations to exist based on a social
contract

Challenges of IT
365
responsibility
First condition companies must
enhance economic satisfaction of
consumers and employees

Challenges of IT
Challenges of IT
- Second condition avoid fraudulent
practices, show respect for
employees as human beings, and
avoid practices that systematically
worsen the position of any group in
society
367
responsibility
Stakeholder theory
Managers have an ethical responsibility to
manage a firm for the benefit of all its
stakeholders.
Stockholders
Employees
Customers
Suppliers
Local community

Challenges of IT
368
responsibility
Sometimes stakeholders are considered to
include
Competitors
Government agencies and special interest
groups
Future generations

Challenges of IT
369
Technology Ethics
Four Principles
Proportionality
Good must outweigh any harm or risk
Must be no alternative that achieves the same or
comparable benefits with less harm or risk
Informed consent
Those affected should understand and accept the risks
Justice
Benefits and burdens should be distributed fairly
Challenges of IT
370
Technology Ethics
Minimized Risk
Even if judged acceptable by the other
three guidelines, the technology must
be implemented so as to avoid all
unnecessary risk

Challenges of IT
371
Hacking
The obsessive use of computers, or the
unauthorized access and use of networked
computer systems
Cyber Theft
Involves unauthorized network entry and
the fraudulent alteration of computer
databases
Challenges of IT
372
Unauthorized use at work
Also called time and resource theft
May range from doing private consulting or
personal finances, to playing video games,
to unauthorized use of the Internet on
company networks

Challenges of IT
373
Software Piracy
Unauthorized copying of software
Software is intellectual property protected
by copyright law and user licensing
agreements

Challenges of IT
374
Piracy of intellectual property
Other forms of intellectual property
covered by copyright laws
Music
Videos
Images
Articles
Books
Other written works

Challenges of IT
375
Computer viruses and worms
Virus
A program that cannot work without being
inserted into another program
Worm
A distinct program that can run unaided

Challenges of IT
376
IT makes it technically and economically
feasible to collect, store, integrate,
interchange, and retrieve data and
information quickly and easily.
Benefit increases efficiency and effectiveness
But, may also have a negative effect on individuals
right to privacy

Challenges of IT
377
Examples of important privacy
issues
Accessing private e-mail and computer
records & sharing information about
individuals gained from their visits to
websites and newsgroups

Challenges of IT
378
Examples of important privacy issues
(continued)
Using customer information obtained from
many sources to market additional business
services
Collecting personal information to build
individual customer profiles

Challenges of IT
379
Privacy on the Internet
Users of the Internet are highly visible and
open to violations of privacy
Unsecured with no real rules
Cookies capture information about you every
time you visit a site
That information may be sold to third parties

Challenges of IT
380
Privacy on the Internet (continued)
Protect your privacy by
Encrypting your messages
Post to newsgroups through anonymous emailers
Ask your ISP not to sell your information to mailing
list providers and other marketers
Decline to reveal personal data and interests online

Challenges of IT
381
Computer matching
Computer profiling and matching
personal data to that profile
Mistakes can be a major problem

Challenges of IT
382
Privacy laws
Attempt to enforce the privacy of computer-
based files and communications
Electronic Communications Privacy Act
Computer Fraud and Abuse Act

Challenges of IT
Information System
for
Business Effectiveness
Business Success Factors

The success of business depends
on many factors e.g.:
- Business Leadership
- Culture of the organisation
- Effective communication

The list would undoubtedly vary
in order of importance from one
executive to another, one
company to another and between
different industries.
Business Success Factors

Three Necessary Perspectives

Business Environment
Specific Industry

Enterprise Environment
The Company Itself

IT Environment
Used for a competitive advantage
Business
Success
Simultaneous Revolutions
The
Business
New
Competitors
New Political Agendas
New Technologies
New Employees
and New Values
Increasing
Customer Expectation
New Rules
of Competition
Industry Structure
Changes
New Regulatory
Environment
Regulation
Market Technology
Employees/
Work
Organization
Business Processes
Solutions to Business Requirements
Business Drivers
Three Roles of Information Systems
Efficiency: Doing things better.

Effectiveness: Doing better things within
the organization.

Competitive Advantage: Doing better
and new things for customers.
Systematic Approach to IS
Vision
Strategy
Tactics
Business Plan
Competitive Options
Roles, Roles, and Relationships
Redefine/Define
Telecommunications as the Delivery Vehicle
Success Factor Profile
Three Necessary Perspectives
Business Environment

Enterprise Environment

IT Environment

Business
Success
Why 3 perspectives?
Business Today Moves in a
Nonlinear Way
There is no continuity in the flow of competition.
It is very difficult to predict which products will
succeed.
It is very difficult to predict which companies will
succeed.
Competitive advantage is often changing.
Technology and markets change so frequently and
radically that yesterdays assets can become todays
dead weight.
IS Roles (Objective)
1. Efficiency--doing things better.
2. Effectiveness--broadening the scope
of individual tasks, jobs or processes.
3. Competitive Advantage--doing better
or new things for the customer.
Are each of these roles
measurable?
Competitiveness is often the pivotal
issue in the current business
environment.
Global competitiveness has often
become an integral part of this issue.
(an offense/defense decision)
Key to Business Success
How does a business compete?
What benefits does a business
gain if it competes successfully to
the point of being a market
leader?
Competitiveness
I S & Business Effectiveness
Businesses cannot be
successful unless the way
it is being handled is
effective enough.
The organisation must know/learn
and use all such methodologies that
ultimately become useful so that the
organisation makes profit, grows
and achieve its business objectives.
In todays world, where every business
has to face variety of problems or so
to say all types of problems, one
needs to identify the ways and means
to become /remain effective in
conducting its business activities.
One such tool which has
proved itself in more than
one ways is the proper and
effective use of Information
Systems/Technology.
It is for this reason that IS
or IT today are widely
being used/deployed in
almost all types of
businesses.
- Speed
- Accuracy
- Automatic (based on Program)
- Diligence
- Reliability
- Versatility ( Multiple jobs from same M/C)
- Storage Capacity and Productivity
- Power to remember
- No Feelings( like human beings)
Let us see, How IS brings Effectiveness in
Business :
Speed
Speed is the hallmark of information
technology. The speed at which the huge
amount of data can be processed is
phenomenal and that helps in quick decision
making.
Accuracy
Accuracy is predominant. If the information
being generated is not accurate , the very
purpose of computerisation gets defeated.
What information is being generated must
always be accurate.
Automatic (based on Program)
Once a program is finalised, one can use it
over and over again.
This means the Program will continue to work
automatically till there is any interruption.
This automatic execution of various
instructions enable both the speed and the
accuracy of the data processing.
Diligence
Diligence means that the processing
will continue to take place ,
irrespective of the volume of data. The
systems does not feel tired or
complaints for any thing.
Reliability
Reliability is the key to success for any
type of Computer working.
If the output is not reliable i.e. there is a
doubt , the user can not rely on the
system with the result the systems will
not be acceptable .
This may turn out to be a total failure of
the system.
Versatility ( Multiple jobs from same M/C)
The system is versatile as more than one
job can be carried out at the same time.
This not only enables the user to do
more than one job at a time but his
individual productivity may also go up.
Storage Capacity and Productivity
Storage capacity is another very important
factor. The more capacity the system has ,
more data can be stored on line.
This will enable the user to keep on
storing/retrieving the desired data at will, which
again helps in improving his productivity.
Power to Remember
The system remembers whatever is
stored/transferred in the memory.
It may either be Primary or secondary
memory.
This means that memory plays a very vital
role in data processing as once the data is
loaded or saved in the memory, it will not go
away till it is deliberately removed.
No Feelings( like human beings)
The system does not have any
emotions or feelings. It does not
need any break or get tired as such
it will continue to work till it is
required.
All the above mentioned
characteristics help organisations
improve their overall productivity
and effectiveness.

Thus , Information System is very
important for the organisation.
412
Security Management
Security is the degree of
protection against
danger, damage, loss,
and crime.
Security Management
Security Management
Security as a form of
protection are structures and
processes that provide or
improve security as a
condition.
Security Management
Information security
management is the process by which
the value of each of an organisation's
information assets is assessed and, if
appropriate, protected on an ongoing
basis.
Security Management
The information an organisation holds
will be stored, used and transmitted
using various media, some of which
will be tangible paper, for example
and some intangible such as the
ideas in employees' minds.
Security Management
Preserving the value of
information is mainly a question
of protecting the media in which
it is contained.
Security Management
Building an information security
management system is
achieved through the systematic
assessment of the systems,
technologies and media used for
information assets.
Security Management
The appraisal of the costs of
security breaches, and the
development and deployment
of countermeasures to
threats.
420
Goal
Minimize errors, fraud, crime and
losses in the e-business systems
that interconnect businesses with
their customers, suppliers, and
other stakeholders

Tools of Security Management
421 11 April 2014 Course Developed by :K.K.Nigam
422
Encryption
Passwords, messages, files, and other data is
transmitted in scrambled form and unscrambled
for authorized users
Involves using special mathematical algorithms to
transform digital data in scrambled code
Most widely used method uses a pair of public
and private keys unique to each individual

423
Firewalls
Serves as a gatekeeper system that
protects a companys intranets and
other computer networks from intrusion
Provides a filter and safe transfer point
Screens all network traffic for proper
passwords or other security codes

424
Denial of Service
These assaults depend on three layers
of networked computer systems
Victims website
Victims ISP
Defensive measures and security
precautions must be taken at all three
levels

425
E-mail Monitoring
Spot checks just arent good enough
anymore. The tide is turning toward
systematic monitoring of corporate e-
mail traffic using content-monitoring
software that scans for troublesome
words that might compromise corporate
security.

426
Virus Defenses
Protection may accomplished through
Centralized distribution and updating of
antivirus software
Outsourcing the virus protection
responsibility to ISPs or to
telecommunications or security
management companies

427
Security codes
Multilevel password system
Log onto the computer
system
Gain access into the system
Access individual files

428
Backup Files
Duplicate files of data or programs
File retention measures
Sometimes several generations of
files are kept for control purposes

429
Security Monitors
Programs that monitor the use of
computer systems and networks
and protect them from unauthorized
use, fraud, and destruction.

430
Biometric Security
Measure physical traits that make
each individual unique
Voice
Fingerprints
Hand geometry
Signature dynamics
Keystroke analysis
Retina scanning
Face recognition and Genetic pattern
analysis

431
Computer Failure Controls
Preventive maintenance of hardware
and management of software updates
Backup computer system
Carefully scheduled hardware or
software changes
Highly trained data center personnel

432
Disaster Recovery
Disaster recovery plan
Which employees will participate
and their duties
What hardware, software, and
facilities will be used
Priority of applications that will be
processed

433
Information System Controls
Methods and devices that attempt to
ensure the accuracy, validity, and
propriety of information system
activities
Designed to monitor and maintain the
quality and security of input,
processing, and storage activities

434
Auditing Business Systems
Review and evaluate whether proper
and adequate security measures and
management policies have been
developed and implemented
Testing the integrity of an
applications audit trail

Possible Security Threats:
Confidentiality - Information should be available
only to those who rightfully
have access to it.
Integrity Information should be modified only
by those who are authorized to do so.
Availability Information should be accessible to
those who need it when they need it.
IS Security
Threat from Intruders:
- Intruders also referred to Hackers, Attackers or
Crackers may not care about the identity of the users.

- Intruders may be able to watch all your activities
on the computer , or cause damage to your computer
by reformatting your hard Disk or changing the data.

- Intruders are always on the look out for new
vulnerabilities informally called holes to exploit it.
IS Security
Intruders want what youve stored there.
They look for credit card numbers, bank
account information, and anything else they
can find. By stealing that information,
intruders can use your money to buy
themselves goods and services.
IS Security
Home computers are hot favorite for
Intruders?
Home computers are typically not very secure
and are easy to break into. When combined
with high-speed Internet connections that are
always turned on, intruders can quickly find
and then attack home computers.
IS Security
Threat from Virus:
Virus is an unauthorized piece of Computer
Code attached to a Computer Program or
portions of a Computer System that secretly
copies itself from one computer to another by
shared discs (Floppy / Compact) and over
Internet. It can destroy data/information stored
on the Computer. It may damage the
Computer to make inoperable.
IS Security
Another category of Viruses known as
Worms. These worms are programmed
in a way that it can replicate itself by
sending copies to other computers listed
in the e-mail Address book. Common
types of Virus are:
IS Security
Boot Virus This virus places the code in
the in the start-up disk sector to
automatically execute at the time of
booting. Therefore when an infected
machine boots, the virus loads and runs.
IS Security
File Virus This virus gets
attached to program files (exe
files). The virus becomes active
the moment that program is
executed.
IS Security
Trojan Horse This virus
breaks the security. It is
disguised as something
like a screen saver or game.
IS Security
Worm - It launches an application
that destroys information on your
Hard Disk Drive. It also sends a
copy of the virus to everyone in
the computers e-mail address.
IS Security
Denial of Service:
This type of attack causes the
Computer to crash or to become
so busy that you cannot
use your computer that means
the control will not come to
user. Denial of service could be :
IS Security
- Unprotected Windows Shares -
Intruders can exploit unprotected windows
using automated tools.

- Packet Sniffing A Packet sniffer is a
program that captures data from information
packets as they travel over the network. The
data may include user names,passwords
and other information.
IS Security
Disk Failure - Hard Disk
Failure are a common cause
of data loss on PC.
Regular backups are the only
effective remedy.
IS Security
Spoofing faking an e-mail
address or web page to trick
users into passing along critical
information like passwords,
credit cards numbers etc.
IS Security
War Dialing Programs that
automatically dial thousands of
telephones numbers in search of
information of the users.
IS Security
Logic Bomb - An instruction
in a Computer Program that
triggers a malicious act.
IS Security
Buffer Overflow A technique for crashing or
gaining control of a computer by sending too
much data to the buffer in a Computers
memory.

Password Crackers Software that can
guess/crack passwords.
IS Security
Power failure Power problems such as
Surges, Blackouts and brown-outs can
cause physical damage to a Computer,
inducing a hard disk crash or otherwise
harming the electronic components of
the Computer.

UPS , Surge Suppressor etc. may be used to
safeguard the Computer from such problems.
IS Security
IS Security
Physical Theft Physical theft of a
computer ,results in the loss of
confidentiality and availability of the
entire data.
Though this possibility is rare , but it
does happen , as such regular back ups
should be taken and kept at a secure
place.
Some Important terms:
IS Security
Access Control: A physical, procedural, and/or
electronic mechanism that ensures only those
who are authorized to view, update, and/or
delete data can access that data.
Authentication: A systematic method for
establishing proof of identity.
IS Security
Authorization:
The process of giving someone
permission to do or have something. System
Administrators/owners and data custodians
define for their systems which users are
allowed access to those systems and what
privileges are assigned. A system could be
an operating system, database, or
application.
IS Security
Availability: The assurance that a
computer system is accessible by
authorized users whenever needed
or as predefined.
IS Security
Confidentiality: An attribute of
information. Confidential information is
sensitive or private information, or
information whose unauthorized
disclosure could be harmful or
prejudicial.
IS Security
Data Custodians: Individuals who
have been officially designated as
accountable for specific data that is
transmitted, used, and stored on a
system or systems within a department/
organization.
IS Security
Encryption:
The process of turning
readable text into unreadable
cipher text.
IS Security
Decryption:
The process of turning
unreadable cipher text into
readable text.
IS Security
Forensics (Computer): The
discipline of dissecting computer
storage media, log analysis, and
general systems to find evidence
of computer crime or other
violations.
Incident Response Capability:
The ability to respond appropriately
and completely to any incidents,
situational compromises, or threats
from any source.
IS Security
IS Security
Integrity: Data or a system remains intact, unaltered,
and reliable.
Intrusion Detection:
A security management system that gathers
and analyzes information from various areas
within a computer or a network to
identify possible security breaches, which
include both intrusions (attacks from outside the
organization) and misuse (attacks from within
the organization).
IS Security
Perimeter Security: The ability to protect the
outer limits of a network, or a physical area,
or both.
Principle of Least Privilege:
Access privileges for any user should be
limited to only what is necessary to
complete their assigned duties
or functions, and nothing more.
IS Security
Privacy Policy: Specific to the organization ,
the Electronic Privacy Policy on Personally
Identifiable Information.
Privacy Statement: Sometimes referred
to as a privacy policy, a privacy
statement is posted on an organization's
Web site to notify visitors of the types of
information being collected and what
will be done with the information.
IS Security
Risk Management: A comprehensive methodology
that strives to balance risks against benefits in a pre-
defined environment.
Security: An attribute of information systems
that includes specific policy-based mechanisms
and assurances for protecting the confidentiality
and integrity of information, the availability and
functionality of critical services, and the privacy
of individuals.
IS Security
Protecting the Computer and Network from Threats:
Use following guidelines to minimize Security threat:
1. Use Virus Protection Software
2. Keep Your System Patched
3. Use Care When Reading Email with Attachments
4. Use a Firewall
5. Turn off your Computer or disconnect from the
network when not in use
6. Make regular backups of critical data
7. Always have a virus free bootable Floppy for booting
the PC,in case the PC is to be checked/cleaned for
Viruses
8. Use Strong Passwords
Anti-virus programs try to make necessary protection of
your computer files/data.
These programs look at the contents of each file, searching
for specific patterns that match a profile called a virus
signature of something known to be harmful.
For each file that matches a signature, the anti-virus program
typically provides several options on how to respond, such
as removing the offending patterns or destroying the file.
Use Virus Protection Software
IS Security
IS Security
Keep Your System Patched:
Most vendors provide patches that are
supposed to fix bugs in their products.
Frequently these patches do what theyre
supposed to do. However, sometimes a
patch fixes one problem but causes another.
IS Security
Use Care When Reading Email with
Attachments:
These unsolicited items are sent to unsuspecting
recipients. They may contain a return address, a
provocative attachment /envelope, or something else
that encourages its receiver to open it. This
technique is called social engineering.
Because we are trusting and curious, social
engineering is often effective.
IS Security
Here are steps you can use to help you decide
what to do with every email message with an
attachment that you receive. You should only
read a message that passes all of these tests.
- The Know test: Is the email from someone that
you know?
- The Received test: Have you received email
from this sender before?
- The Expect test: Were you expecting email with
an attachment from this sender?
IS Security
- The Sense test: Does email from the sender
with the contents as described in the Subject
line and the name of the attachment(s) make
sense?

- The Virus test: Does this email contain a
virus? To determine this, you need to install
and use an antivirus program.
IS Security
You should apply these five tests KRESV
to every piece of email with an attachment
that you receive.
If any test fails, toss that email. If they all
pass, then you still need to exercise care and
watch for unexpected results as you read it.
IS Security
Install and Use a Firewall Program:
On a computer, the firewall acts much like a Security
Guard, when it looks at network traffic destined for or
received from another computer.
The firewall determines if that traffic should continue
on to its destination or be stopped. The firewall
guard is important because it keeps the unwanted
out and permits only appropriate traffic to enter and
leave the computer.
Firewalls can also recognize and record
when a computer-to-computer connection
ends. If the connection was temporary, the
firewall rules can change to deny future
similar connections until the systems user
authorizes them.
Finally, outgoing connections can also be
filtered according to content.
IS Security
IS Security
Here is a set of steps to use to check/
control the incoming program/mail :
The Program test: Whats the program that
wants to make a connection to the Internet?
Although many programs may need to make the
same type of connection to the same Internet
destination, you need to know the name of each.
IS Security
Avoid general rules that allow all programs to
make a connection. This often results in
unwanted and unchecked behavior.
The Location test: Whats the Internet location
of the computer system to which your
computer wants to connect?
IS Security
Locations consist of an address and a port
number. Sometimes a program is allowed
to connect to any Internet location, such as
a web browser connecting to any web
server.
Again, you want to limit programs so that
they only connect to specific locations
where possible.
IS Security
The Allowed test: Is this connection allowed or
denied? Your firewall rules will contain some of each.
The Temporary test: Is this connection temporary or
permanent?
For example, if youre going to connect to this specific
location more than five times each time you use the
computer, you probably want to make the connection
permanent. This means that you ought to add a rule to
your firewall rules. If you arent going to make this
connection often, you should define it as temporary.
IS Security
With each connection, apply
the PLAT tests to get the
information you need to build
a firewall rule.
IS Security
Turn off your Computer or disconnect
from the network when not in use This
protects from any intruder to get in as
the port will not be accessible when the
Computer is not connected to the
network.
IS Security
Make regular backups of critical data:
Back up must be taken/maintained on regular basis.
This will enable you to restore your files from the
Backup media in case of any such eventuality or even
there is a breakdown, where you may have to format
your hard Disk.
Course Developed by By KKN
IS Security
Always have a virus free bootable Floppy for
booting the PC, in case the PC is to be
checked/cleaned for Viruses:
Whenever there is attack of Virus on your computer, you
must boot your computer to check for the virus and clean it
up. The virus affected floppy or bootable media will not
check for the virus if it slipped into your system.
IS Security
Use Strong Passwords:
The point is that you need to follow the practice
of using a unique password with every account
You have.
Below is a set of steps that you can use to help
You create passwords for your accounts:
IS Security
- The Strong test: Is the password as strong
(meaning length and content) as the rules allow?
- The Unique test: Is the password unique and
unrelated to any of your other passwords?
- The Practical test: Can you remember it without
having to write it down?
- The Recent test: Have you changed it recently?
Information System Metrics
In software development, a metric
is the measurement of a particular
characteristic of a program's
performance or efficiency.
Similarly in network routing, a
metric is a measure used in
calculating the next host to
route a packet to.
A metric is sometimes used directly
and sometimes as an element in
an algorithm.
In
Programming, benchmark includes
metrics.
Metric pertains to anything
based on the meter as a unit
of measurement.
A business metric is any type of
measurement used to gauge some
quantifiable component of a
company's performance, such as
return on investment (ROI), employee
and customer churn rates,
revenues, and so on.
Business metrics are part of the broad
area of business intelligence, which
comprises a wide variety of applications
and technologies for gathering, storing,
analyzing, and providing access to data
to help enterprise users make better
business decisions.
Similarly , the Metrics for IS relates
to ROI on Information System.
The satisfaction level of employees,
staff etc.
The rate at which the performance
/productivity increases is also
considered as a measure of
Metric.
Managing Global IT
In todays scenario where
organisations are going global
Managing IT is becoming a challenge.
Managing Global IT
There are various options being
adopted by organisations to be
successful.
Managing Global IT
But whatever methodology or
strategy they adopt in going global
Challenge of managing IT setup
has always been a challenge
because of diversified approaches
the companies have to adopt.
Managing Global IT
The complications mainly would
be due to heterogeneous
IT Setup. Both in terms on
Hardware and Software.
Managing Global IT
Managing Global IT
It is therefore very important and
critical for the person responsible
for IT to take appropriate steps to
handle the IT setup of the
organisation.
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