Content Unit 1 Computer System Introduction to Computer Technology.................................................... 1 Computer System ................................................................................... 2 Characteristics of Computer .................................................................... 4 A Brief History and Generation of Computer .......................................... 6 Computer Architecture ........................................................................... 7 External Physical Structure ............................................................... 7 Building Block Diagram of Personnel Computer .................................... 8 Input Unit .......................................................................................... 8 Central Processing Unit (Process) ...................................................... 8 Auxiliary Storage ............................................................................... 9 Data and Control Flow ...................................................................... 10 Output Unit ....................................................................................... 10 Computer System Accessories/Devices ................................................... 10 Input Accessories /Devices................................................................. 10 Voice Reorganization Device ............................................................. 13 Processing and Storage Devices ........................................................ 14 Types of Memory..................................................................................... 15 Internal Processor Memory ................................................................ 15 Primary Memory ............................................................................... 16 Secondary Memory/External Memory ............................................... 19 Output Accessories/Devices ............................................................... 22 Types of Computer .................................................................................. 27 On The Basis of Work ........................................................................ 28 Differences between Analog and Digital Devices .................................... 30 Compare between Digital, Analog and Hybrid Computer ................. 30 On the Basis of Size........................................................................... 31 On the Basis of Brand........................................................................ 34 On the Basis of Model ....................................................................... 35 Points to Consider When Buying a New Computer ................................ 35 Computer Software.................................................................................. 36 System Software ................................................................................ 37 Utility Software.................................................................................. 38 Application Software .............................................................................. 40 Word Processor .................................................................................. 40 Spread Sheet ..................................................................................... 41 Presentation Tool............................................................................... 42
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Content
Unit 1 Computer System Introduction to Computer Technology.................................................... 1
Computer System ................................................................................... 2
Characteristics of Computer .................................................................... 4
A Brief History and Generation of Computer .......................................... 6
Computer Architecture ........................................................................... 7
External Physical Structure ............................................................... 7
Building Block Diagram of Personnel Computer .................................... 8
Input Unit .......................................................................................... 8
Central Processing Unit (Process) ...................................................... 8
Auxiliary Storage ............................................................................... 9
Data and Control Flow ...................................................................... 10
Output Unit ....................................................................................... 10
Computer System Accessories/Devices ................................................... 10
Input Accessories /Devices ................................................................. 10
Voice Reorganization Device ............................................................. 13
Processing and Storage Devices ........................................................ 14
Types of Memory..................................................................................... 15
Internal Processor Memory ................................................................ 15
Primary Memory ............................................................................... 16
Secondary Memory/External Memory ............................................... 19
Output Accessories/Devices ............................................................... 22
Types of Computer .................................................................................. 27
On The Basis of Work ........................................................................ 28
Differences between Analog and Digital Devices .................................... 30
Compare between Digital, Analog and Hybrid Computer ................. 30
On the Basis of Size ........................................................................... 31
On the Basis of Brand........................................................................ 34
On the Basis of Model ....................................................................... 35
Points to Consider When Buying a New Computer ................................ 35
Computer Software.................................................................................. 36
System Software ................................................................................ 37
Utility Software .................................................................................. 38
Application Software .............................................................................. 40
Word Processor .................................................................................. 40
Spread Sheet ..................................................................................... 41
Presentation Tool............................................................................... 42
Software Suites ........................................................................................ 43
Office Suite ........................................................................................ 43
Internet Suite ..................................................................................... 44
Graphics Suite ................................................................................... 44
Components’ of Top Software Suite ................................................... 44
Personal Application Software ................................................................ 45
Custom Made/Special Purpose Software................................................. 46
Introduction to Program and Programming Language ............................ 46
Machine Language and Assembly Language ........................................... 47
Machine Language ............................................................................ 47
Assembly Language ........................................................................... 48
High Level Language ......................................................................... 48
Fourth Generation Language ................................................................... 49
Characteristics of a Good Language ........................................................ 50
Assemblers, Compilers and Interpreters ................................................. 51
Software Licensing .................................................................................. 52
Software Licenses and Copyright Law ............................................... 52
Shareware ......................................................................................... 53
Trial Software vs. Shareware ............................................................. 53
Freeware vs. Trial Software ............................................................... 54
Where Can You Get Trial Software, Shareware, and Freeware? ........ 54
Software Upgrade .................................................................................... 54
The Difference between a Software Upgrade and a Software Update 55
Open Source Code ............................................................................. 56
Why is open source code useful? ....................................................... 56
Is open source useful for us? ............................................................. 59
Enterprise Application Software ............................................................. 60
Types ............................................................................................. 60
Computer Aided Design Software ...................................................... 62
Uses ............................................................................................. 63
IT Infrastructure Management Opportunities, Challenges and Solutions .................................................................................... 63
Chapter Review ...................................................................................... 68
Workshop ................................................................................................ 69
Case Studies ........................................................................................... 70
References .............................................................................................. 71
Unit 2 Foundation of Information System
Introduction ............................................................................................ 73
Data ................................................................................................... 74
Data Life Cycle ........................................................................................ 75
Data Origination ............................................................................... 75
Processing and Immediate Use ......................................................... 75
Ready Access Storage ........................................................................ 75
Data Destruction ............................................................................... 75
Data Processing ....................................................................................... 76
Types of Data Processing ......................................................................... 77
Online Processing .............................................................................. 78
Batch Processing ............................................................................... 79
Real Time Processing ........................................................................ 79
Combined Online and Batch Processing ........................................... 80
Centralized Data Processing System ................................................. 81
Decentralized Data Processing System .............................................. 81
Information .............................................................................................. 82
Flow of Information ........................................................................... 82
Information Generator....................................................................... 82
Organization Needs Information ............................................................. 83
Managers at Different Levels of Organization Needs Different Information .......................................................................... 84
Evaluating Information ........................................................................... 85
Determinants of Value of Information ............................................... 86
Value and Cost of Information .......................................................... 86
The Differences between Data, Information, Knowledge and Wisdom .. 88
Data ............................................................................................. 88
Information ....................................................................................... 88
Knowledge ......................................................................................... 89
Wisdom ............................................................................................. 89
Difference between Data and Information......................................... 90
Information System Literacy ................................................................... 90
Information Classification ....................................................................... 91
Classification on the Basis of Sources of Information ........................ 92
Classification on the basis of Characteristics .................................... 94
Information Characteristics ............................................................... 94
Role of Information Technology in Business .......................................... 95
Information Technology and the Manager ........................................ 97
Information Technology and Business Processes ............................... 97
Information System ................................................................................. 98
Importance of Information System .................................................... 99
Fundamental Resources of Information System ..................................... 99
Positive and Negative Impacts of Information Systems ..................... 101
Contemporary Approach to Information System .................................... 101
Business Processes and Information System .......................................... 102
Strategic Role of Information System ...................................................... 103
Cost Leadership Strategy ................................................................... 104
Differentiation Strategy ..................................................................... 104
Innovation Strategy ........................................................................... 104
Growth Strategies .............................................................................. 105
Alliance Strategies ............................................................................. 105
Types of Information System .................................................................. 105
Operational System Information System ................................................ 106
Transaction Processing System (TPS) ................................................ 107
Role of TPS in Organization .............................................................. 109
OLTPS (Online Transaction Processing System)................................ 109
Benefits of TPS ................................................................................... 110
Examples of TPS ................................................................................ 111
Characteristics of a Good Transaction Processing System ................. 112
Function of Transaction Processing System (TPS) ............................. 113
Knowledge Work System and Office Automation System .................. 114
Office Automation Systems (OAS) ..................................................... 114
Tactical or Management Information System (MIS) ............................... 115
How does Management use Information? ............................................... 117
The Management Process .................................................................. 117
Strategic Information System (Intelligent support systems) ................... 118
Information System and Organization .................................................... 120
Personal and Group Information System ................................................ 121
Personal Information System ............................................................ 121
Group Information System ................................................................ 121
Business Perspective on Information System ......................................... 122
Organization ..................................................................................... 122
Management ..................................................................................... 123
Technology ........................................................................................ 123
Two Way Relationship between Information System and Organization 123
The Two-Way Relationship ................................................................ 123
Affect of Organization to Information System .................................... 124
Affect of Information System to Organization .................................... 125
Information Technology and Its Importance .......................................... 126
Business and Technology Trends ........................................................... 127
Management Information System ........................................................... 130
Definition and History ....................................................................... 131
Historical Development ..................................................................... 132
Objectives of MIS ............................................................................... 133
Characteristics of MIS ....................................................................... 134
Impact of MIS .................................................................................... 135
Role of MIS on Business Organization .................................................... 136
Operational and Functional Support Role ........................................ 136
Decision Support Role ....................................................................... 137
The Strategic Support Role ................................................................ 137
The Performance Monitoring Role ..................................................... 138
Properties of Management Information System ...................................... 138
Documents & Reports by Management Information System................... 139
Conceptual Framework of Management Information System................. 139
Architectural Framework of Management Information System ............. 141
People Resources ............................................................................... 142
Hardware Resources ......................................................................... 143
Software Resources ............................................................................ 143
Data Resources .................................................................................. 144
Network Resources ............................................................................ 144
Limitations of MIS ................................................................................... 144
Decision Making and MIS ....................................................................... 145
MIS: A Tool for Management Process ..................................................... 146
Success and Failure of MIS ..................................................................... 147
Factors contributing to success of MIS ............................................... 147
Factors Contributing to Failures ........................................................ 148
Resistance to the MIS .............................................................................. 148
Potential Risk and Information System Security .................................... 149
Approaches of MIS Development ........................................................... 149
Top Down Approach .......................................................................... 149
Bottom-up Approach ......................................................................... 151
Integrative Approach ......................................................................... 152
Implementation of MIS ........................................................................... 153
Implementation Plan ......................................................................... 153
Organizing the MIS Department ....................................................... 153
Selection and Procurement of Hardware ........................................... 154
Procurement of Software ................................................................... 155
Creating the Database ....................................................................... 155
Training of Users ............................................................................... 155
Creating Physical Infrastructure ........................................................ 156
Transition to the New System ............................................................ 156
MIS Development Methodologies ........................................................... 156
Prototyping ........................................................................................ 156
System Development Life Cycle .............................................................. 160
Systems Planning .............................................................................. 161
Systems Analysis ............................................................................... 161
Systems Design and Development ..................................................... 162
Stages of Design ................................................................................ 163
Logical and Physical Design .............................................................. 164
System Development ......................................................................... 164
Systems Implementation and Testing ................................................ 165
Systems Operation, Review and Support ........................................... 166
The Waterfall Model ............................................................................... 166
Spiral Model ............................................................................................ 168
Computer-Aided Systems Engineering Tool ........................................... 170
Documentation ........................................................................................ 171
Types of Documentation .................................................................... 171
Role of Systems Analyst .......................................................................... 172
Overview of Feasibility ........................................................................... 173
Business Processes Reengineering .......................................................... 175
The Role of Information Technology in BPR .......................................... 176
Chapter Review ...................................................................................... 177
Workshop ................................................................................................ 180
Case Studies ........................................................................................... 181
References .............................................................................................. 183
Unit 3 Telecommunication and Network
The Concept of Network ......................................................................... 185
Networking the Enterprises ..................................................................... 186
A Telecommunications Network Model ................................................. 187
What is Communications? ................................................................ 189
How is Communications Used? ......................................................... 189
Data Communication............................................................................... 190
Computer Networking ............................................................................. 190
Devices Required for Connecting Computer Networking ................... 191
Types of Telecommunication Networks ................................................. 194
On the Basis of Architecture .............................................................. 194
On the Basis of Geographical Location of Computer ......................... 196
Network Topology ................................................................................... 200
Star Topology .................................................................................... 200
Bus Topology ..................................................................................... 201
Mesh Topology .................................................................................. 202
Ring Topology .................................................................................... 202
Hybrid Topologies.............................................................................. 204
Communications Software ...................................................................... 204
Telecommunication Media ..................................................................... 205
Physical Transmission Media ............................................................ 205
Wireless Transmission Media ............................................................ 207
Key Considerations for Transmission Media .......................................... 209
Data Transmission Mode ......................................................................... 210
Simplex ............................................................................................. 210
Duplex ............................................................................................. 210
Analog and Digital Signal ........................................................................ 211
Data Communication Measurement ........................................................ 212
Protocol ................................................................................................... 212
Threat to Computer Networking ............................................................. 213
Environmental Threats ...................................................................... 214
Logical Threats .................................................................................. 214
Procedural Failure ............................................................................ 215
Network Security Techniques ................................................................. 215
Access Control Techniques ................................................................ 216
Password ........................................................................................... 216
Dial Back ........................................................................................... 216
Biometric Techniques ........................................................................ 217
Encryption Techniques ...................................................................... 217
Business Applications of Telecommunication ........................................ 217
Trends of Telecommunications .............................................................. 218
Industry Trends ................................................................................. 219
Technology Trends ............................................................................ 219
Business Application Trends ............................................................. 220
The Business Value of Telecommunications Networks .......................... 220
Business Use of the Internet .............................................................. 221
The Business Value of the Internet .................................................... 222
The Role of Intranets ......................................................................... 223
The Business Value of Intranets ........................................................ 224
The Role of Extranets ......................................................................... 225
Chapter Review ...................................................................................... 226
Workshop ................................................................................................ 228
Case Study .............................................................................................. 229
References .............................................................................................. 231
Unit 4 Data Resource Management and DSS Introduction ............................................................................................ 233
Fundamental Data Concept .............................................................. 233
Data Hierarchy .................................................................................. 236
Objectives of a Database ................................................................... 237
MIS and Database Management System ................................................. 237
Components of DBMS ............................................................................. 238
Data Dictionary System (DDS) .......................................................... 238
Database Management Language (DBML) ........................................ 238
Database Structure Models...................................................................... 240
Hierarchical Model ........................................................................... 240
Network Model .................................................................................. 241
Relational Model ............................................................................... 242
Relationships within a Data Model ......................................................... 242
E-R Diagram ...................................................................................... 243
Symbols ............................................................................................. 243
Database Administrator (DBA) ................................................................ 245
Relational Database Management System (RDBMS) ............................... 246
Database Development ............................................................................ 246
Planning ............................................................................................ 246
Analysis ............................................................................................. 247
Design ............................................................................................. 247
Implementation ................................................................................. 248
Normalization .......................................................................................... 248
Security in the Database Environment .................................................... 249
Points to Provide Security .................................................................. 249
Types of Databases .................................................................................. 250
Operational Database ....................................................................... 250
Distributed Databases ....................................................................... 251
External Databases............................................................................ 252
Hypermedia Databases ..................................................................... 252
Client Server Database ...................................................................... 253
Object Oriented Database ................................................................. 253
Multimedia Databases ...................................................................... 253
Data Warehouse....................................................................................... 254
Data Warehouse Architecture............................................................ 254
Data Mining ............................................................................................. 255
Overview ........................................................................................... 255
How Data Mining Works ................................................................... 257
Architecture for Data Mining ............................................................. 257
Profitable Applications ...................................................................... 257
Difference between Data warehouse and Data Mining ..................... 258
Decision Support System ........................................................................ 259
Decision Support in Business ............................................................ 259
Information, Decisions, and Management ........................................ 259
Decision Structure ............................................................................. 260
Decision Support Trends ................................................................... 261
Concept of Decision-Making ................................................................... 264
Decision-Making Process ................................................................... 264
Herbert Simon Model of Decision Making ......................................... 266
Decision Support Systems (DSS) ............................................................ 268
Introduction....................................................................................... 268
Components of DSS ........................................................................... 269
DSS Characteristics ........................................................................... 270
Functions of DSS ............................................................................... 270
Why use a DSS? ................................................................................ 272
Group DSS......................................................................................... 272
DSS Systems Development Life Cycle .................................................... 273
Systems Planning .............................................................................. 274
Systems Analysis ............................................................................... 275
Systems Design and Development ..................................................... 276
Stages of Design ................................................................................ 276
Logical and Physical Design .............................................................. 278
System Development ......................................................................... 278
Systems Implementation and Testing ................................................ 278
Systems Operation, Review and Support ........................................... 279
Types of DSS: Development Perspective ............................................ 279
OLAP (Online Analytical Processing) ..................................................... 281
OLTP(Online Transaction Processing) and OLAP ............................. 282
Knowledge Management Systems ........................................................... 283
Expert Systems ........................................................................................ 283
Components of an Expert System ...................................................... 284
Chapter Review ...................................................................................... 286
Workshop ................................................................................................ 289
Case Study .............................................................................................. 290
References .............................................................................................. 291
Unit 5 Business Applications E-Business System ................................................................................... 293
E-Business Components .................................................................... 295
E-Commerce ............................................................................................ 297
Causes for Development of Ecommerce ............................................. 299
Evolution of Commerce ..................................................................... 300
Benefits of E-Commerce .................................................................... 301
Limitation of Ecommerce .................................................................. 302
Essential e-Commerce Processes ............................................................. 303
Access Control and Security .............................................................. 304
Profiling and Personalizing ............................................................... 304
Search Management ......................................................................... 305
Content and Catalog Management .................................................... 305
Workflow Management...................................................................... 305
Collaboration and Trading ................................................................ 306
E-Commerce Success Factors .................................................................. 306
Elements of E-Commerce Applications ................................................... 309
Information Delivery Servers ............................................................. 310
Information Delivery/Transport and Ecommerce Application ........... 311
Consumer Access Devices ................................................................. 311
The Network Infrastructure for Ecommerce ....................................... 311
Types of E-Business Model ..................................................................... 311
Business–to–Consumer (B2C) Model ...................................................... 312
Introduction....................................................................................... 312
Meaning of B2C ................................................................................. 313
Typical B2C Enabled by Internet ....................................................... 314
B2C Models ....................................................................................... 314
Electronic Auction ............................................................................. 314
Advantages of Internet Auctions ........................................................ 314
Disadvantages of Internet Auctions ................................................... 315
Online Stores ..................................................................................... 315
Benefits for the Customers ................................................................. 315
Online Services ................................................................................. 316
Business–to–Business (B2B) Model ......................................................... 316
Introduction....................................................................................... 316
Definition of B2B Commerce ............................................................. 317
Types of B2B Markets ........................................................................ 317
Consumer–to–consumer (C2C) Model .................................................... 319
Consumer to Business (C2B) ................................................................... 320
E–Governance .......................................................................................... 321
An e–governance Model .................................................................... 323
E-Business and E-Commerce ................................................................... 323
Legal and Ethical Issues in Electronic Commerce .................................. 324
Electronic Payment Processes ................................................................. 325
What is Electronic Payment? ............................................................. 326
Current Status of E-Payment ............................................................. 326
ePayment Channels .......................................................................... 327
ePayment Instruments ....................................................................... 327
Components of Online Payment System ................................................. 327
ePayment Risks ................................................................................. 328
ePayment Transaction Cycle ............................................................. 328
Enterprise Systems .................................................................................. 330
Concept ............................................................................................. 330
Enterprise Software ................................................................................. 331
Business Value of Enterprise Systems .................................................... 332
Enterprise Resource Planning ................................................................. 333
Benefits and Challenges of ERP ......................................................... 335
The Costs of ERP ................................................................................ 335
Causes of ERP Failures ...................................................................... 337
Trends in ERP .................................................................................... 337
Lifecycle ............................................................................................ 339
Cost Estimation ................................................................................. 340
Benefits Realization ........................................................................... 341
Supply Chain Management Systems....................................................... 343
The Supply Chain ............................................................................. 343
The Components of Supply Chains ................................................... 344
Information Systems and SCM ............................................................... 346
SCM Software .................................................................................... 347
Global Supply Chains and the Internet ................................................... 348
Demand-Driven Supply Chains: From Push to Pull Manufacturing and Efficient Customer Response ......................................... 350
Trends in SCM................................................................................... 351
The Role of SCM ................................................................................ 352
Benefits and Challenges of SCM ........................................................ 354
Business Value of SCM Systems ........................................................ 355
Customer Relationship Management Systems ........................................ 358
Customer Relationship Management ................................................ 358
The Three Phases of CRM .................................................................. 359
Benefits and Challenges of CRM ....................................................... 360
CRM Failures .................................................................................... 360
Trends in CRM .................................................................................. 361
Business Value of CRM Systems ........................................................ 362
Enterprise Applications of CRM ......................................................... 362
Cross-Functional Enterprise Applications .............................................. 364
Enterprise Collaboration Systems ........................................................... 367
Tools for Enterprise Collaboration ..................................................... 367
Chapter Review ...................................................................................... 369
Workshop ................................................................................................ 370
Case Study .............................................................................................. 371
References .............................................................................................. 372
Unit 6 Functional Applications of Hospitality Information System
Introduction ............................................................................................ 373
Hospitality Management ......................................................................... 374
Technology and Hospitality Management .............................................. 374
Global Distribution Systems (GDS) ......................................................... 376
Globalization and Hospitality Industry ............................................. 376
Global Distribution Systems (GDS) .................................................... 377
Property Management System (PMS) ...................................................... 379
Use of PMS in Hotels ......................................................................... 380
Most of the PMS software has the following module .......................... 381
Computer Reservations System (CRS) .................................................... 382
Benefits of the Central Reservations System ...................................... 383
Point-of-Sale Systems (POS) ................................................................... 385
Point of Sale in the Restaurant Industry ............................................ 386
The Benefits of Point-of-Sale (POS) System ............................................ 386
POS Capabilities ............................................................................... 387
Chapter Review ...................................................................................... 387
Workshop ................................................................................................ 388
Case Study .............................................................................................. 389
References .............................................................................................. 392
Unit 7 Case Studies Case 1 ................................................................................................... 393
eCourier, Cablecom, and Bryan Cave: Delivering Value through Business Intelligence ............................................................ 393
Case Study Questions and Solutions ................................................. 396
Case 2 ................................................................................................... 397
The New York Times and Boston Scientific: Two Different Ways of Innovating with Information Technology ............................. 397
Case Study Questions& Solutions ...................................................... 400
Case 3 ................................................................................................... 401
Sew What? Inc.: The Role of Information Technology in Small Business Success.................................................................. 401
Case Study Questions ........................................................................ 404
Case 4 ................................................................................................... 405
JetBlue and the Veterans Administration: The Critical Importance of IT Processes...................................................................... 405
Case Study Questions & Solutions ..................................................... 406
Case 5 ................................................................................................... 408
Competing with Information Technology .......................................... 408
Case Study Questions & Solutions ..................................................... 410
Case 6 ................................................................................................... 412
For Companies both Big and Small: Running a Business on Smartphones ........................................................................ 412
Case Study Questions & Solution ...................................................... 414
Case 7 ................................................................................................... 416
Wachovia and Others: Trading Securities at the Speed of Light ........ 416
Value in Milliseconds ........................................................................ 418
Case Study Questions and solutions ................................................. 419
Case 8 ................................................................................................... 420
IT Leaders: Reinventing IT as a Strategic Business Partner ............... 420
Case Study Questions and Solution .................................................. 423
Case 9 ................................................................................................... 424
Visa Cracks Down on Credit Fraud ................................................... 424
Questions .......................................................................................... 425
Case 10 ................................................................................................... 425
Human Resources Management on the Web ..................................... 425
Questions .......................................................................................... 426
Model Questions ............................................................................. 427
Board Questions .............................................................................. 432
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