Itm - Lecture 5

INFORMATICS Information Technology Management

Lecture 5

9th January 2008 ITM Lecture 5 Advanced Diploma (Thames College)

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Information o at o Tec Technology o ogy Management a age e t

Unit U it 10 10: Electronic Commerce

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What W at iss Electronic ect o c Commerce? Co e ce? z

Electronic Commerce ((E-commerce)) or Electronic Business (E-business) means shopping on the part of the Internet called the World Wide Web (the Web). z For decades, banks have been using Electronic Funds Transfers (EFT, also called Wire Transfer), which are electronic l t i transmissions t i i off accountt exchange h information i f ti over private communications networks. z Businesses also have been engaging in a form of electronic commerce, known as Electronic Data Interchange (EDI), for y manyy years. z Electronic commerce is defined as the use of electronic data transmission to implement or enhance anyy business process. ITM Lecture 5 Advanced Diploma (Thames College)

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E-commerce co e ce Business us ess Model ode z

Business to Customer (B2C) Sale of goods to the public. z E.g. Amazon.com z

z

Customer to Customer (C2C) ( ) Sale of goods from one consumer to another z E.g. Eg E E-bay bay z

z

Business to Business (B2B) Sale of goods from one business to another z E.g. BigBoxX z

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Advantages g of Electronic Commerce z z z z z z z z z z z

Access to a gglobal market at 24x7 Instantaneous feedback Paperless p transactions Real time updates to information Removal of the middleman function No geographic boundaries Large g potential p market Fast turnaround time Access to a wide range of suppliers Online customer support Reduced costs of distribution and processing ITM Lecture 5 Advanced Diploma (Thames College)

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Disadvantages g of Electronic Commerce z z z

z

z z

Stem from the newness and rapidly developing pace of the underlying d l i technologies. t h l i The costs and benefits have been hard to quantify. Had trouble recruiting and retaining employees with the technological, design, and business process skills needed to create an effective electronic commerce presence. Difficulty of integrating existing databases and transactionprocessing software designed for traditional commerce into the software that enables electronic commerce. commerce Face cultural and legal impediments to electronic commerce. The legal environment in which electronic commerce is conducted is full of unclear and conflicting laws. ITM Lecture 5 Advanced Diploma (Thames College)

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Risks for the Growingg Use of Internet z Misuse Mi

off P Personall Information I f i z Virus attack on computer systems z Online criminal activities z Hacking

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Revenue eve ue Streams St ea s in E-commerce co e ce z Direct Di

sales l z Software downloads z Software rentals z Advertising z Backup/Storage /

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E-Commerce Co e ce Market a et Sectors Secto s z Online O li

b banking ki z Online trading z Entertainment z Media z Online training Distribution s bu o oof B2B Marketplaces e p ces in Operation or Announced by Sector (As of August 2000) ITM Lecture 5 Advanced Diploma (Thames College)

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International Electronic Commerce z

The predominant language on the Web is English, English once the language barrier is overcome, the technology exists for any business to conduct electronic commerce with any other b i business or consumers, anywhere h in i the h world. ld z The political structures of the world have not kept up with Internet technology: currency conversions conversions, tariffs tariffs, import and export restrictions, local business customs, tax and laws of each country in which a trading partner resides can each make i international i l electronic l i commerce difficult. diffi l z The main technological development that has allowed electronic commerce to grow beyond its beginnings in bank EFT and B2B-EDI is the emergence of the Internet and the Web. ITM Lecture 5 Advanced Diploma (Thames College)

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Economic Forces in E-Commerce z

Reduce Transaction Costs z

z

Businesses and individuals can use electronic commerce to reduce transaction costs by improving information flows and increasing coordination of actions to reduce uncertainty. y

Reduce Cost of Searching for Information z

By reducing the cost of searching for information about potential buyers and sellers and increasing the number of potential market participants, participants electronic commerce can change the attractiveness of vertical integration for manyy firms. ITM Lecture 5 Advanced Diploma (Thames College)

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Network Organizations Netwo O ga at o s z z z z

z z

Many companies and strategic business units operate in an economic structure that exists between markets and hierarchies. Firms coordinate their strategies, resources, and skill sets by f forming i a long-term, l t stable t bl relationship l ti hi based b d on a shared h d purpose. Network organizations are particularly well-suited to technology industries that are information intensive. Electronic commerce can make such networks, which rely extensively on information sharing, much easier to construct and maintain. maintain These network forms of organizing commerce will become predominant in the near future. One interesting role for electronic commerce is in the improvement of existing markets and the creation of completely new markets. ITM Lecture 5 Advanced Diploma (Thames College)

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Example of E-Commerce El tr ni D Electronic Data t Interchange Int r h n (EDI) Electronic data interchange occurs when one business transmits computer-readable data in a standard format to another business. z Business realized that they were spending a good deal of time and money entering these data into their computers, computers printing paper forms, and then reentering the data on the other side of the transaction. z By creating a set of standard formats for transmitting that information electronically, y, businesses were able to reduce errors, avoid printing and mailing costs, and eliminate the need to reenter the data. z

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Steps p in Makingg Moneyy in EC – ((1)) SStep 1: 1 z Write a business proposal z Answer the following 11 questions

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Steps p in Makingg Moneyy in EC – ((2)) z 你的業務是什麼?

(主要收入來源) z 你的業務是滿足什麼需要或解決什麼 問題? z 你的競爭對手有哪些? 詳細情況如何? z 你的客戶是哪些? z 你的商業模型是什麼?

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Steps p in Makingg Moneyy in EC – ((3)) z 你的業務目前發展狀況

主要構想的階段 z 業務開發階段 z 已有產品或服務 z 已有收入 z 已經有了可觀的收入，并且尋求業務的擴張 z

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Steps p in Makingg Moneyy in EC – ((4)) z 你希望融資的金額 z 你的目標評估價值是多少? z 誰是你目前的投資者? z 你的總部設在何處? z 主要管理人員簡介

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Steps p in Makingg Moneyy in EC – ((5)) SStep 2: 2 Submit S b i the h proposall contact @sbcvc.com

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Steps p in Makingg Moneyy in EC – ((6)) S 3: Step 3 Auditing A di i andd processing i Step 4: 3-4 weeks time to complete If accepted, d a legal document d will be b issued d and the money injected ITM Lecture 5 Advanced Diploma (Thames College)

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Information o at o Tec Technology o ogy Management a age e t

Unit U it 11 11: Issues in E-Commerce E Commerce

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Electronic ect o c Payment Pay e t System Syste z z

z

Implementation of electronic payment systems is in its infancy and still evolving. Electronic payments are far cheaper than using the dead-tree method of mailing out paper invoices and then later processing received payments. Electronic billing and payment systems is a win win-win win situation: z

It is convenient for customers and it saves companies a lot of money. ITM Lecture 5 Advanced Diploma (Thames College)

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Electronic Payment y Systems y -Payment y Method z

There are currently three basic ways to pay for your purchases: z z z

Cash Cheque Credit card

z

Electronic cash distribution and payment can be handled by wallets smart cards wallets, cards, or through proprietary proprietary, limited-use scrip (Scrip is a digital cash minted by a small number of thirdparty organizations). z Electronic checks are encrypted representations that resemble electronic cash. z Over O er 80% of Internet purchases p rchases are paid for with ith credit (or debit) cards. ITM Lecture 5 Advanced Diploma (Thames College)

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Electronic ect o c Cash Cas Credit card card-issuing issuing banks make money money, by charging merchants a processing fee ranging from 1-3% of the value of the transaction. z Small purchases are not profitable for merchants who accept only credit cards for payment. payment z Compaq and IBM are among several companies that think electronic cash schemes are in their infancy, infancy and these companies envision a rosy future for such methods. z Electronic cash is attractive in the sale of goods and services of Micropayments (Internet payments for items costingg US$1 cos US$ or o less ess are a e called ca ed Micropayments) c opay e s) z

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Concerns Co ce s on o Electronic ect o c Cash Cas All electronic payment schemes have some issues that must be satisfactorily resolved to allay consumers'fears and give them confidence in the methodology. z Concerns about electronic payment methods include Privacy and Security, Independence, Portability, Di i ibili and Divisibility d Convenience. C i z These issues are particularly important when considering electronic cash payment pa ment systems. s stems z Privacy and security questions are probably the most important issues that have to bee addressed with any consumer. z

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Characteristics C a acte st cs of o Electronic ect o c Cash Cas z

Electronic cash should have two important characteristics in common with real currency. It must be possible to spend electronic cash only one, just as real currency is. z Security procedures should be in place to guarantee that the entire electronic cash transaction occurs between two parties such that the recipient knows that the electronic currencyy beingg received is not counterfeit or being used in two different transactions. z

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An Effective ect ve Web Presence P ese ce z The Th

only nl contact nt t that th t customers t m r and nd other th r stakeholders have with a firm on the Web might be through its presence there. z Creating an effective Web presence can be critical even for the smallest and newest firm operating on the Web, and the tasks are: Identifying Web Presence Goals z Achieving Web Presence Goals z

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Identifying de t y g Web Presence P ese ce Goals Goa s When a business creates a physical space in which to conduct its activities, its managers focus on very specific objectives. z They must find a location that will be convenient for customers to find, find with sufficient floor space and features to allow the selling activity to occur, and they must balance the need for room to store inventoryy and provide p employee p y working space with the costs of obtaining that space. z The p presence of a p physical y business location results from satisfying these other objectives and is rarely a main goal of designing g g the space. p z

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Achieving c ev g Web Presence P ese ce Goals Goa s z

An effective site is one that creates an attractive presence that meets the objectives of the business or other organization. z These objectives include: z z z z z

Attracting visitors to the Web site Making the site interesting enough that visitors stay and explore Convincing visitors to follow the site's links to obtain information Creating an impression consistent with the organization's desired image Reinforcing positive images that the visitor might already have about the organization ITM Lecture 5 Advanced Diploma (Thames College)

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Important po ta t of o Web Presence P ese ce z

On the Web, Web businesses and other organizations have the luxury of intentionally creating a space that creates a distinctive presence. z A Web site can perform many image-creation and imageenhancing tasks very effectively - it can serve as a sales brochure a product showroom, brochure, showroom a financial report, report an employment ad, or a customer contact point. z Each entity that establishes a Web presence should decide which tasks the Web site must accomplish and which tasks are the most important to include. z Different firms, firms even those in the same industry, industry might establish different Web presence goals. ITM Lecture 5 Advanced Diploma (Thames College)

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Web Presence for Not-for-profit Or niz ti n Organizations Use their Web sites as a central resource for integrated communications with their varied and often geographically disperse constituencies. z Integrate information dissemination with fund-raising while providing a two two-way way contact channel with persons engaged in the organization's work. z This combination of information dissemination with a two twoway contact channel is a key element in any successful electronic commerce Web site. z Use the Web to stay in touch with existing stakeholders and identify de y new ew opportunities oppo es for o serving se v g them. e . z

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Issues ssues in Setting Sett g up a Website Webs te z Use U

off E E-commerce r software ft r z Development evelop ent o of the website webs te z Digital cash: Payment z Delivery z CRM facility f ili

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Strategies for Purchasing, Logistic and nd SSupport pp rt A Activities ti iti z

Businesses use electronic commerce to improve their primary activity of purchasing and all of the support activities creating presence and sellingg to new customers on the Web. a Web p z An emerging characteristic of purchasing, logistics and support activities is that they need to be flexible. z Economic organizations are evolving from the hierarchical structures they have used since the Industrial Revolution to new, more flexible fl ibl networkk structures. z These network structures are made possible by the reductions i transaction in t ti costs t causedd by b the th emergence off the th Internet I t t and the Web. ITM Lecture 5 Advanced Diploma (Thames College)

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Purchasing Pu c as g Activities ct v t es Purchasing activities include identifying vendors, vendors evaluating vendors, selecting specific products, placing order, and resolving any issues that arise after receiving the ordered goods or services. z These issues might include late deliveries, deliveries incorrect quantities shipped, incorrect items shipped, and defective items. z The term Procurement generally includes all purchasing activities,, plus p the monitoringg of all elements of purchase p transactions. It also includes the job of managing and developing p g relationships p with key suppliers. pp z

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Purchasing Pu c as g Activities ct v t es Strategies St ateg es z

z

A number of manufacturers that deal in general industrial merchandise and standard machine tools that h are used d iin a variety i off iindustries d i h have created d Web sites through which businesses can purchase items to fulfill f lf ll recurring needs. d Manyy of the products p that companies p buyy on a recurring basis are commodities; that is, standard items that b buyers y usuallyy select usingg price p as their main criterion. ITM Lecture 5 Advanced Diploma (Thames College)

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Purchasing Pu c as g Activities ct v t es Strategies St ateg es z z

z z

These products are often called Maintenance, Maintenance Repair and Operating (MRO) supplies. By using a Web site to process orders, the vendors in this market can save the cost of printing and shipping catalogs, and the cost of handling telephone orders. Office equipment and supplies are also items that are usedd by b a wide id variety i off b businesses. i Well-designed Web sites devoted to helping b i business purchasing h i ddepartments b buy these h routine i items are easily as possible. ITM Lecture 5 Advanced Diploma (Thames College)

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What W at iss Logistics og st cs Activities? ct v t es? z

z

z

Logistics activities include managing the inbound movements of materials and supplies and the outbound movements of finished goods and services. services The activities of Receiving, Warehousing, Inventory C Control, l V Vehicle hi l SScheduling h d li and dC Control,l and d Fi Finished ih d Goods Distribution are all logistics activities. The classic objective of logistics is providing the right goods in the right quantities in the right place at the right time. ITM Lecture 5 Advanced Diploma (Thames College)

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Logistics og st cs Activities ct v t es Strategies St ateg es z z z

z

Businesses have been increasing their use of information technology to achieve this objective. Information system y delivers real-time shipment p information to Web browsers on its customers' computers. Firms that run their own tracking operations have also b begun iimplementing l i tracking ki systems that h use satellite lli global positioning technology to monitor vehicle movements. The Web and the Internet are providing an increasing number of opportunities pp to better manage g these activities as they lower transaction costs and provide constant connectivity between firms engaged in logistics management management. ITM Lecture 5 Advanced Diploma (Thames College)

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Supportt Activities Suppo ct v t es z Support S t

activities ti iti include i l d the th generall g like categories z Finance

and Administration z Human H R Resources z Technology gy Development p

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Finance F a ce and a d Administration d st at o Finance and Administration includes activities such as making payments, processing payments received i d from f customers, planning l i capital i l expenditures, and the budgeting and planning that ensure sufficient funds will be available to meet the organization's g obligations g as theyy come due. z The operation of the computing infrastructure of the organization is also an administration activity activity. z

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Human Hu a Resource esou ce Activities ct v t es z Human H

R Resource activities ti iti include i l d hiring, hi i g and evaluatingg employees; p y training, benefits administration, and complying with government record-keeping record keeping regulations.

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Developing eve op g Technology Tec o ogy Developing Technology can include a wide variety of activities, depending on the nature of the business or organization. z Itt can ca include c ude the t e networking etwo g of o research esea c scientists into virtual collaboration work-groups, posting of research results, results publishing research papers online, and providing connections to outside id sources off research h andd development d l services. z

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Support pp Activities - Trainingg Strategies g z

z

z

z

The training function can be handled by the human resources department, or decentralized and administered by individual departments. In addition to saving the costs of running classroom sessions in multiple locations, many companies found that the training was producing sales increases in specific product lines. lines The company also began tracking the courses that a salesperson or reseller's salesperson p had taken and began g assigning g g sales leads for specific products to the salespersons that had taken the course for that product. T keep To k salespersons l updated d d after f they h have h taken k a course, they h send course graduates an e-mail notification whenever new information about a pproduct becomes available. ITM Lecture 5 Advanced Diploma (Thames College)

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Business Plan for Implementing E C mm r E-Commerce z Setting S tti

Objectives Obj ti z Benefit Objectives z Cost Objectives z Comparing Benefits to Costs

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Settingg Objectives Sett Object ves z

Objectives for e-commerce initiatives should include expected benefits and expected costs. It can inspire businesses to undertake activities: z z z z z z z z z

z

Building brands Enhancing existing marketing programs Selling products and services S lli advertising Selling d ii Improving after-sales service and support Purchasingg pproducts and services Managing supply chains Operating auctions C ti virtual Creating i t l communities iti andd Web W b portals t l

Although the success of each of these activities is measurable to some degree, many companies have undertaken these activities on the Web without setting specific, measurable goals. ITM Lecture 5 Advanced Diploma (Thames College)

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Cost and a d Benefit e e t Evaluation va uat o z

z

z z

z

In the earlyy days y of e-commerce ((the mid-1990s), ), companies p that had good ideas could launch a business activity on the Web and not face competition. A e-commerce is As i now beginning b i i to mature, more companies i are taking a closer look at the benefits and costs of their electronic commerce projects. p j A good business plan will set specific objectives for benefits to be achieved and costs to be incurred. A company will create a pilot Web site to test an electronic commerce idea, and then release a production version of the site when it works well well. These companies must specify clear goals for the pilot test so that theyy know when the site is readyy to scale up. p ITM Lecture 5 Advanced Diploma (Thames College)

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Benefit e e t Objectives Object ves z

z z

z

Some companies p build Web sites to build their brands or enhance existing marketing programs in order to increased brand awareness, as measured by market research surveys and opinion polls. C Companies i that h want to sell ll goods d or services i on their h i sites i can measure sales volume in units or dollars. A good marketing staff or outside consulting firm can help a company sort out the causes and effects of marketing and sales programs and may be needed to help set and evaluate these kinds of goals for electronic commerce initiatives. Companies that want to use their Web sites to improve customer service or after after-sales sales support might set goals of increasing customer satisfaction or reducing the cost of providing the customer service or support. ITM Lecture 5 Advanced Diploma (Thames College)

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Measurement easu e e t of o Benefit e e t z z z

z

z

The benefits of other electronic commerce initiatives can be assessed by using a variety of measurements. Supply chain managers can measure supply cost reductions, quality improvements, or faster deliveries of ordered goods. Auction sites can set goals for the number of auctions, the number of bidders and sellers sellers, the dollar volume of items sold, sold the number of items sold, or the number of registered participants. Virtual communities and Web portals measure the number of visitors and try to measure the quality of their visitors' experiences. experiences Some sites use online surveys to gather these data; most settle pp provided p byy measuringg the length g of time for approximations each visitor remains on theITM site and how often visitors return. Lecture 5 Advanced Diploma (Thames College)

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Cost Object Objectives ves z

Managers g found that the cost of information technology gy projects can be equally difficult to estimate and control. z Since Web development uses relatively new hardware and software ft technologies, t h l i managers have h little littl experience i on which they can draw to make estimates. z E E-Commerce Commerce initiatives tend to have a shorter timeframe than many other information technology projects, the rapid changes in Web technology can destroy a manager's best-laid plans very quickly. i kl z In addition to hardware and software costs, the project budget must include the costs of hiring, training, and paying the personnel who will design the Web site, write or customize the software, create the content, and operate and maintain the site. it ITM Lecture 5 Advanced Diploma (Thames College)

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Comparing Co pa g Benefits e e ts to Costs z z

z

z z

Most companies p have pprocedures that call for an evaluation of any major expenditure of funds. These major investments in equipment, personnel, and other h assets are called ll d capital i l projects j or capital i l investments. The techniques that companies use to evaluate proposed capital projects range from very simple calculations to complex p computer p simulation models. No matter how complex the technique, it always reduces to a comparison of benefits and costs. If the benefits exceed the cost of a project by a comfortable margin, the company invests in the project. ITM Lecture 5 Advanced Diploma (Thames College)

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Cost-Benefit Evaluation of EC mm r Str Commerce Strategy t El Elements m nt A keyy part p of creatingg a business plan p for e-commerce initiatives is the process of identifying potential benefits, identifying y g the costs required q to generate g those benefits, and evaluating whether the benefits exceed the costs. z Companies p should evaluate each element of their ecommerce strategies using this cost-benefit approach. z

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E-Commerce: Go or Stop? p z

z

z

Capital project evaluation (such as the payback method or the net present value method) provide a quantitative expression p of what a comfortable benefit-to-cost margin is for a specific company. Managers g often use the term Return on Investment (ROI) calculation to describe any capital investment evaluation technique. The value of early position in a new market is so great that many companies are willing to invest very large amounts of money with no near-term prospects of profit. ITM Lecture 5 Advanced Diploma (Thames College)

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Information o at o Tec Technology o ogy Management a age e t

Unit U it 12 12: Data Files and Databases

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Data ata F Files es & Databases atabases z Before

databases were introduced, introduced all data was stored in files. z Files are still used today, but are much less common. z A file stores only 1 type of record. z Databases can store different types of records. ITM Lecture 5 Advanced Diploma (Thames College)

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Data ata F Files es z

z

Manual office systems used files to structure the information and computer systems to group common data together in files. files The way in which data files for computerized systems are structured follows a set pattern. pattern z z z z

The file is divided into records. E h rrecord Each rd iis di divided id d iinto t fi fields. ld The field is a particular data item which relates to a record. record Each record in a file would have the same set of fields. ITM Lecture 5 Advanced Diploma (Thames College)

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Storingg Data Sto ata in Files F es z Traditional

Method

Keep paper documents in 2-ring binder or file. z Each file contains information about a particular subject z E.g. students data, there could be many g forms. Each form may include name, registration student number, address, etc... z

z Earlier

file

application system each had their own ITM Lecture 5 Advanced Diploma (Thames College)

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Filee Organization F O ga at o z Data

files must be organized logically into

files andd b be accessible ibl and d updated d d as needed. d d z There are three major methods of file organization z Sequential S i l

O Organization i i z Direct Organization z Indexed-sequential Organization ITM Lecture 5 Advanced Diploma (Thames College)

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Sequential Seque t a File F e Organization O ga at o z z

This is the simplest form of file organization. organization Records are stored in sequential order by a particular record key. key z

z

z

For example, if the file contains employee data, then the p y Number. data field chosen to be the record is the Employee

Sequential Files can be stored on both magnetic tape and magnetic disks. Data which is stored sequentially q y can onlyy be accessed sequentially is called Sequential Access Method (SAM) file. ITM Lecture 5 Advanced Diploma (Thames College)

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Direct ect File F e Organization O ga at o z

z

z

z

In a direct file,, the data management g systems y is able to determine the exact location on the disk (address) where the data record is stored. This method of access is called direct access and the file is called Direct Access Method (DAM) file which is only found in disks. The data management system determine the address on the disk to store and retrieve a particular data record by using a program specially i ll createdd for f this hi purpose. The input will be the record key field, and the output f from this hi program is i the h address. dd ITM Lecture 5 Advanced Diploma (Thames College)

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Indexed-Sequential q File Organization g z z z z

z

z

Data records are stored sequentially by record key. A few data records are stored on any one track. t k An index is created by the data management g system. y When a particular record is to be accessed, the index is looked up to find the track where the record can be found. Then the records in this track are readd sequentially i ll until il the h particular record desired is found. It is found only on disks.

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Redundancy edu da cy in Data ata Files F es z z

In the traditional data files, files the same data may be stored in several functional files. This situation duplicates data unnecessarily, unnecessarily creating what is referred to as Redundancy.

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Databases atabases zA

Database is a data store for accepting, accepting storing and providing on demand data for multiple lti l independent i d d t users. z It is essentially y a means of organizing g g data in related file structure to allow quick, user p d access and d manipulation p of the ddata. specified z They are controlled by systems software called Database Management Systems S stems (DBMS). ITM Lecture 5 Advanced Diploma (Thames College)

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DBMSS z

z z

The Database Management System (DBMS) is the software that manage (builds and maintains) the database. database This includes Adding, Deleting and Changing records in the database. The DBMS will also control access to the data. z

A financier user, for example, may not be able to view personnel data,, even though p g both finance and personnel p data are kept in the same database. ITM Lecture 5 Advanced Diploma (Thames College)

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DBMSS z

The DBMS makes it easier for programmers to develop application systems.

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Functions Fu ct o s of o a DBMSS z What

are the functions performed by a DBMS? z Record d

C Creation and d Updates d z Record Selection by y Search Criteria z Minimize Data Redundancy z Security

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Record eco d Creation C eat o and a d Updates z The

database is maintained by the user creating, deleting or amending records. z The Th D Database b M Management SSystem will ill also l allow the user to process selected groups of records, the whole file or individual records. z This is accomplished by selecting the required option from a menu displayed on the video screen or by keying in the relevant command from the keyboard. ITM Lecture 5 Advanced Diploma (Thames College)

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Record Selection by Search Criteria z z z

z z

Involve the extraction of information from the selected records according to specified search criteria. A database has searching facilities ranging from limited searches on keywords to full text searching. This facility provides the means of extracting from a large volume l off data d useful f l facts f which hi h could ld not possibly ibl b be found by physical search methods in sufficient time to make a decision decision. A query language is used to specify the search criteria. This language facilitates enquiries using English-style word to define commands, so greatly assisting users to find the information theyy are seeking. g ITM Lecture 5 Advanced Diploma (Thames College)

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Minimizee Data ata Redundancy edu da cy z If

a data element or record (e (e.g. g an employee address) appears twice in an organization's i ti ' records, d this thi is i called ll d Data D t Redundancy, since logically, it should not be necessary to hold the data twice, hence py is redundant. one copy z In a database, data redundancy should be eliminated, li i t d or att least, l t minimized i i i d andd this thi is the task of the DBMS. ITM Lecture 5 Advanced Diploma (Thames College)

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Securityy z The

Database Management System is also responsible for providing security for the d t b database, ensuring i against i t unauthorized th i d access and data corruption. z For

example, if many end-users are given access to common data,, there must be a wayy of controlling that access to ensure that no w users are able b to change g the data two simultaneously. ITM Lecture 5 Advanced Diploma (Thames College)

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Data ata Dictionary ct o a y z z z z z

A data dictionaryy contains details of the data in a database. JJust like an English-language g g g dictionary, y, each data item is recorded together with its definition and explanation. The dictionaryy assists in the design g of a database since the meaning of various types of data are easily located. It can be used to reduce the level of redundancyy to a necessary minimum. It is easier to identifyy synonyms y y (data ( groups g p havingg more than one name). ITM Lecture 5 Advanced Diploma (Thames College)

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Example a pe

Advantages dva tages of o Databases atabases z Reduces

data duplication which occurs using conventional file structure. z Avoids duplicating input data to update p functionalityy independent p files multiple holding the same date. z Offers Off r useful f l query r and d rreport p rt generation r ti languages. z Provides fast and flexible access to information information. ITM Lecture 5 Advanced Diploma (Thames College)

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Disadvantages sadva tages of o Database atabase z Data

structures in a database are complex and therefore takes a longer time to design andd iimplement. l t z Costs more than conventional file systems. y z Requires high caliber, experienced and specialized p i liz d p personnel. r l

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Creating C eat g a Database atabase Environment v o e t z z z z

z

Departments p have all alongg maintained their own data and have been jealous of it. Inter-departmental p rivalryy leads to reluctance to divulge g data, let alone make it available in a central database. There must be a change g of attitude in terms of who actually owns data. Appointing pp g a Chief Information Officer is one wayy to give direction and focus, as the CIO will be responsible for the overall use of data and information in the company. A data administration function must be established and the CIO must plan the current and future data needs. ITM Lecture 5 Advanced Diploma (Thames College)

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Physical P ys ca and a d Logical og ca Records eco ds z The

form in which data which is actually stored is not the same as the form presented t d to t the th application li ti program. z The data structure that is actually y on the computer media (e.g. disk, tape ) is called a Physical Structure. Structure z The structure that the application program uses is a Logical Structure. ITM Lecture 5 Advanced Diploma (Thames College)

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Data ata F Files es and a d Databases atabases z

z

z z

Database Management Systems (DBMS) do not replace the traditional method of storing data in data files. The data is still stored in sequential, direct or indexed sequential file structure even though a database management system is used to provide greater flexibility in accessing data. There are a variety of methods that could be used by a DBMS to logically structure the data. Two methods that will be discussed are z z

Multi-lists Inverted Files ITM Lecture 5 Advanced Diploma (Thames College)

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Multilist u t st zA

list links common items in a database. database z A list is like a chain and each link in that chain is a record with the desired attribute. z By starting at the first record, record the DBMS can retrieve, one by one, the records in the chain h i which hi h share h r th the ddesired ir d attribute. ttrib t

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Multilist u t st zA

list links common items in a database. database z A list is like a chain and each link in that chain is a record with the desired attribute. z By starting at the first record, record the DBMS can retrieve, one by one, the records in the chain h i which hi h share h r th the ddesired ir d attribute. ttrib t

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Inverted ve ted Files F es z

z

z

In an inverted file,, the addresses of each record with a desired attribute are stored in an index. In a fully inverted file, there will be one index f each for h type off data d item. I a partially In i ll inverted i d file, only some of the attributes are indexed. indexed ITM Lecture 5 Advanced Diploma (Thames College)

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Information o at o Tec Technology o ogy Management a age e t

Unit U it 13 13: Computer Configurations

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Computer Co pute Configurations Co gu at o s A computer processing center will be set up in a company to control and manage the computer servers. servers z In a company with multiple sites, there are diff r t possible different p ibl hardware h rd r setups, t p ddepending p di on the number of computer servers and their l ti location. z The computer systems could be Centralized or Decentralized. z

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Centralized Ce t a ed Environment v o e t Facilities, systems & Facilities resources installed in a central location z Other business units gain access through thr h telecommunications networks t k z User interface through dumb terminals or PCs with terminal simulation software z

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Benefits for Centralized Environment z z z z z z z z z

Provides Access to Large Systems Sharing of Resources E i r tto M Easier Manage Monitor Lower Cost Faster Deliveryy of Output p Elimination of Redundancy Increased Security Greater Responsiveness ITM Lecture 5 Advanced Diploma (Thames College)

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Decentralized ece t a ed Processing P ocess g z

z

W the availabilityy of cheaper With p computers p ((e.g. g minicomputers), it becomes possible for each department or branch of a company to have its own computer system. Each site can then carry out their processing independently.

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Distributed st buted Processing P ocess g z

z z z z z z

Distributed p processingg involves havingg computers p systems y at each site, but these systems work together to achieve the same business objectives. There h could ld be b sharing h i off corporate databases d b as well ll as local processing. Distributed processing has increased in popularity. popularity It is seen as a viable alternative to centralized processing and decentralized processing. Both local and shared data processing are possible. Each site may need to process data unique to its own location. At the same time, transactions can span across sites. ITM Lecture 5 Advanced Diploma (Thames College)

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Reasons for Implementing Di trib t d Systems Distributed S t m z Improved

Response Time z Reduced Costs z Improve Accuracy z Reduced Mainframe Costs z Smoother Growth z Increased I d Reliability R li bili z Resource Sharing g z Increased User Satisfaction ITM Lecture 5 Advanced Diploma (Thames College)

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Developing p g a Telecommunications System y z

z

z

z

In anyy large g organization, g , communications and information sharing depends on a good telecommunications system and facilities. The computer network depends on the telecommunications infrastructure for the transmission of data. In developing a telecommunications plan for your company, it is important to start with the requirements of your company rather than just looking at the d i bl ffeatures. desirable A telecommunications system must advance the b i business objectives bj i off the h organization. i i ITM Lecture 5 Advanced Diploma (Thames College)

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Developing p g a Telecommunications System y z Reduced

travel time which can be more productively used for work. z Flexible work schedule which can motivate staff. z Conducive work environment which r d reduces stress. tr z Reduced overheads. z Greater workplace efficiency. ITM Lecture 5 Advanced Diploma (Thames College)

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Effectively v y Work W as Telecommuters z Video

conferencing z Teleconferencing z E-mail z Net meetings/Online chat facilities z Groupware p z Blackberry for instant access anytime, anywhere ITM Lecture 5 Advanced Diploma (Thames College)

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Factor to Consider in Developing a T l mm ni ti ns System Telecommunications S st m z There

are several factors that should be consider when developing a telecommunications plan and in choosing telecommunications equipment. Distance - If the communications are mainly local and internal to the organization, then there i little is li l needd to consider id long-distance l di telecommunications features. z Type of Service - The type of service to be supported must also be considered. z

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G oba at o Globalization z

z

Globalization refers to the worldwide phenomenon of technological, economic, political and cultural exchanges, g , brought g about byy modern communication, transportation and legal political choice to infrastructure as well as the p consciously open cross-border links in international trade and finance. The term Global Culture is used to describe how g are becomingg more intertwined with human beings each other around the world economically, politically, p y and culturally. y ITM Lecture 5 Advanced Diploma (Thames College)

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Global G oba Syste Systemss Infrastructure ast uctu e z z

z z

z

The basic requirements q for data communications and a global information system is in place. There are several factors that must be considered to ensure a successful global data communications capability. These include factors like establishing standards and human resource policies. Imagine the scenario of each site having its own computers, software and procedures for developing systems and processing data. There would be tremendous problems trying to make these sites communicateITMeffectively. Lecture 5 Advanced Diploma (Thames College)

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Information o at o Tec Technology o ogy Management a age e t

Unit 14: I f Information i Systems S – Types and Presentations

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What is a Computer-based Inf rm ti n SSystem? Information t m? z This

is one that uses technology to perform some or all of its intended tasks which hi h iinclude l d th the h handling dli off iinputs t such h as business problems, processing the problems and producing as output, reports and recommendations. z The typical components of such a system are hardware, h d software, ft a database, d t b network, procedures and people. ITM Lecture 5 Advanced Diploma (Thames College)

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Classification of Information Systems y z z z z z z z z

There are various ways y of classifying y g information systems. One common approach pp is to classifyy accordingg to its main functions. Transaction Processingg Systems y (TPS) ( ) Information Reporting Systems (IRS) Decision Support Systems (DSS) Expert Systems (ES) E Executive ti Information Inf rm ti n SSystems t m (EIS) Office Automation (OA) ITM Lecture 5 Advanced Diploma (Thames College)

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Types yp of Information Systems y

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Transaction Processingg Systems y (TPS) ( ) Automated clerical and operational functions z Track data at the most elementary level z

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Information Reporting p g System y (IRS) ( ) z

Provide routine summary and exception reports, reports often drawing on transaction level data.

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Decision ec s o Support Suppo t System Syste (DSS) ( SS) Supports management decisions that are semisemi structured or cannot be specified in advance z Interactive and user user-friendly friendly z

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Expert pe t System Syste (ES) ( S) z z z z

z

Captures human expert knowledge to solve problems Gives the computer the ability to make suggestions and act like an expert Captures the use of the wisdom of experts and specialists Years of experience and specific skills are not completely lost when a human expert dies, dies retires or leaves the company To solve complex problems and support difficult decisions ITM Lecture 5 Advanced Diploma (Thames College)

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Executive Information System y (EIS) ( ) z z z z

Utilizes heavyy graphics g p displays, p y , draws together g data from numerous internal and external sources Determine how certain data was produced p For senior managers Drill down capabilities

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Office O ce Automation uto at o (OA) (O ) z

z

Office Automation ((OA)) refers to a wide varietyy of computer-based technologies that make office workers more productive at their jobs. This improvement in productivity can be achieved through increases in effectiveness or efficiency.

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Management g Information Systems y Another common term used loosely is Management Information Systems (MIS). z We will consider it to be any information system that supports the timely use, management and pr processing i off ddata t orr iinformation f r ti p pertaining rt i i tto an organization's operations by authorized people l iin th the organization's i ti ' environment. i t z In this definition, the relevant parts of any TPS, IRS, DSS, ES, EIS and OA can be considered components of an organization's MIS. z

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Transaction Processingg Systems y (TPS) ( ) z It

is a system that supports the processing of a firm's business transactions. z These systems are designed to keep an g runningg smoothingg byy organization automating the processing of the huge amounts of paperwork that must be handled daily.

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Example a peo of TPS z

There are several examples of TPS. Order Entry z Inventory z Distribution z Sales S l Invoicing I i i z Accounts Receivable z Purchasing z Receiving z Accounts Payable z Payroll y z

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Example a peo of TPS - O Order de Entry ty z This

is the TPS which processes customer orders. z Orders may arrive by a variety of means : p , fax etc. mail,, phone, z In cases of repeat orders, a trigger within th system the t m will ill be b the th source. r

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Example a peo of TPS - Inventory ve to y z An

inventory system monitors the quantity of each product available for sale and helps ensure that th t the th proper amountt off stock t k is i maintained. z All movement of goods in and out of the store or warehouse will be recorded. recorded

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Example a peo of TPS - Distribution st but o z This

involves ensuring the best mode of transport is selected to deliver goods to the customer t on time. ti z Customs clearance,, insurance and freight g forwarding are the areas of concern here.

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Example a peo of TPS - Sa Sales es Invoicing vo c g z The

main role of the sales invoicing system is to receive delivery information from the Di t ib ti System Distribution S t andd to t prepare invoices to be sent to the customer. z Discounts are applied where appropriate. In some systems, systems monthly statement of accounts are also prepared.

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Example p of TPS - Accounts Receivable As the name implies, implies this TPS records the amount owed by customers and the payments made. made z The data comes from the sales invoicing system. z In companies with cash sales, there is little or no receivables. z A large amount of money may be tied in A/R y often receive close and the results of this system attention. z

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Example a peo of TPS - Pu Purchasing c as g z Many

companies have central department to handle procurement of its goods and services. i z The advantages g are to gain g maximum volume discounts, obtain the lowest price or best deal from various vendors and to achieve standardization where necessary.

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Example a peo of TPS - Receiving ece v g z The

role of the receiving system is to record the receipt, inspection, acceptance or rejection j ti off goods. d z The inspection p serves to identifyy damaged g or incomplete goods which must be rejected. rejected

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Example p of TPS - Accounts Payable y z This

system records the invoices received from vendors, determines the optimum ti to time t pay andd prepares andd prints i t cheques. z Cash forecasting is another important task of the A/P system. system

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Example a peo of TPS - Pay Payroll o z This

system calculates the salary to be paid to employees, taking into account any relevant l t deductions d d ti (e.g. ( pension i fund f d ) or additions (e.g. allowances). z The payroll system must produce income tax reports and should also keep track of pension fund or union fees which have to b credited be dit d to t another th organization. i ti ITM Lecture 5 Advanced Diploma (Thames College)

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Information o at o Reporting epo t g Systems Syste s An Information Reporting p g Systems y (IRS) ( ) is an information system that provides predefined types of information to management for relatively structured types off decisions. d ii z Many of the traditional hard copy reports are now also available in screen form form. z Printouts like invoices or remittance advice are not traditionally considered "reports" reports and are more closely associated with the Transaction Processing System (TPS) that produced them. z Information Reporting Systems are used for both management planning and management control functions. z

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Methods of Information Presentation z

Co Common o methods e ods of o presentation p ese o used in information o o sys systems e s are via the PC screen or printed page. z Information can also be p presented vocally, y either byy face to face communication, telephone or pre-recorded message, z The aim of an information system, beyond presenting the required information at the required time, must be to present it in such as way that it may be readily absorbed. z A number b off ffactors contribute ib to this: hi z Visual Presentation z Use of Graphics z Format and layout ITM Lecture 5 Advanced Diploma (Thames College)

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Visual V sua P Presentation ese tat o z About

70% of all the information that we absorb is acquired visually rather than th through h the th other th senses. z This already y the primary p y method used in information systems as both screen and paper printouts show information visually visually.

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Use o of G Graphics ap cs z Although

text forms the bulk of the contents of information being provided, alternatives lt ti should h ld be b sought. ht Graphics G hi is i a useful supplement. z Examples are pie charts, line charts, etc.

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Format Fo at and a d Layout ayout Use of different fonts and different font sizes, sizes underlining and so on help to highlight important points and make the presented information easier to absorb. z Even E th the way sentences t andd paragraphs p r r ph are r positioned is important in making the page or screen look l k more appealing. li z Imagine how boring a textbook looks if all you see are lot of words arranged close together on each page. z

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Questions & Discussion

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