Business intelligence


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Business intelligence

  1. 1. Business Intelligence And Computer Applications In Management Dr. Anuraag Awasthi / 9810068709
  3. 3. Ground Rules - Participation - Questions and suggestions, any time - Full Attendance
  4. 4. Class Schedule Section A B C Tue Wed 11 - 1 9 - 11 11 - 1 2-4 Thu 3-5 9 - 11
  5. 5. Unit : I An introduction to computers, Computers in Business, Indian Computer Environment, Elements of Computer System, Generations of Computers, Introduction to the role of information in the functioning of modern organizations, Information systems literacy, Contemporary approaches to Information Systems, The digital firm, Challenges of Information Systems.
  6. 6. Business Intelligence and Computer Applications in Management • • • • What is Business? How do we run a business? What is Business Intelligence? What is the relevance of Computer applications?
  7. 7. What is Business? The term "business" has at least three usages, depending on the scope : - the singular usage to mean a particular organization - the generalized usage to refer to a particular market sector, "the music business" and compound forms such as agribusiness - the broadest meaning, which encompasses all activity by the community of suppliers of goods and services.
  8. 8. What is Business? A business (also known as enterprise or firm) is an organization involved in the manufacturing, trade of goods, services, or all of these to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to provide service to its customers. Businesses may also be not-forprofit or state-owned.
  9. 9. Forms of Business Sole proprietorship: A sole proprietorship is a business owned by one person for-profit. The owner may operate the business alone or may employ others. The owner of the business has unlimited liability for the debts incurred by the business. Partnership: A partnership is a business owned by two or more people. In most forms of partnerships, each partner has unlimited liability for the debts incurred by the business.
  10. 10. Forms of Business Corporation: A corporation is a limited liability business that has a separate legal personality from its members. Corporations can be either government-owned or privately owned, and corporations can organize either for-profit or not-for-profit. A privately owned, for-profit corporation is owned by shareholders who elect a board of directors to direct the corporation and hire its managerial staff.
  11. 11. Forms of Business Cooperative: Often referred to as a "co-op", a cooperative is a limited liability business that can organize for-profit or not-for-profit. A cooperative differs from a for-profit corporation in that it has members, as opposed to shareholders, who share decision-making authority. Cooperatives are typically classified as either consumer cooperatives or worker cooperatives.
  12. 12. Forms of Business Franchise: Where the rights to market a range of products or services are purchased from a parent company who become a supplier to the franchise. Giving the franchisee access to the back up of an often well known company.
  13. 13. Forms of Business "Direct Selling or Network Marketing": A legal multi level business system offering the benefits of a franchise often at a fraction of the cost. Allowing the independent business owner the opportunity to create a residual income stream by introducing other people to the parent company, this provides a passive income after a while and residual income. This business model is ethical and currently growing fast around the world.
  14. 14. Business Intelligence and Computer Applications in Management • • • • What is Business? How do we run a business? What is Business Intelligence? What is the relevance of Computer applications?
  15. 15. How do we run a Business? A business is run to maximize the profits. Which means maximum output for minimum input. Profits = Sales price – Cost Price To become profitable and maximize profits, the Sales price should increase, and Cost price should decrease. Cost Price includes cost of raw materials, building, salaries, machines, sales cost etc.
  16. 16. How do we run a Business? Profits = Sales price – Cost Price It is not possible to control ‘Sales Price’… the only thing in our hand is ‘Cost Price’. A business is driven and controlled by numbers. Some of these are : - Sales - Revenue - Profits - Productivity
  17. 17. How do we run a Business? What are the functions in a typical organiztaion? Suggest some numbers that are used to drive a business?
  18. 18. Business Intelligence and Computer Applications in Management • • • • What is Business? How do we run a business? What is Business Intelligence? What is the relevance of Computer applications?
  19. 19. Business Intelligence (BI) "BI“ is an umbrella term to describe a set of concepts and methods to improve business decisionmaking by using fact-based support systems.
  20. 20. Business Intelligence (BI) BI refers to application and technology, which is used to gather, provide access to, and analyze data and information about the company operations.
  21. 21. What is Business Intelligence? “Business Intelligence (BI) applications are decision support tools that enable real-time, interactive access, analysis and manipulation of mission-critical corporate information.”
  22. 22. What is a Computer?
  23. 23. Introduction To Computers • Definition: • Its an electronic Device that is used for information Processing. • Computer.. Latin word.. compute • Calculation Machine • A computer system includes a computer, peripheral devices, and software
  24. 24. Introduction To Computers
  25. 25. Introduction To Computers Computer • Performs computations and makes logical decisions • Millions / billions times faster than human beings Computer programs • Sets of instructions through which computer processes data Hardware • Physical devices of computer system Software • Programs that run on computers
  26. 26. • Definition: • • • • • Introduction To Computer Software Operating system Problem solving Techniques Computer Prog ramming languages Computer Threats
  27. 27. Introduction To Computers • Accepts input, processes data, stores data, and produces output • Input refers to whatever is sent to a Computer system • Data refers to the symbols that represent facts, objects, and ideas • Processing is the way that a computer manipulates data • A computer processes data in a device called the central processing unit (CPU)
  28. 28. Introduction To Computers • Memory is an area of a computer that holds data that is waiting to be processed, stored, or output • Storage is the area where data can be left on a permanent basis • Computer output is the result produced by the computer • An output device displays, prints or transmits the results of processing
  29. 29. Introduction To Computers • Characteristics of Computers • • • • • Huge Data Storage High Processing Speed Accuracy Reliability Versatility
  30. 30. Generations of Computers
  31. 31. Generations of Computers • • • • • First Generation - Vacuum Tubes (1946-59) Second Generation - Transistors (1957-64) Third Generation – Integrated Circuits (1965-70) Fourth Generation – Microprocessors (1970-90) Fifth Generation (1990 till date)
  32. 32. Generations of Computers Generation 1 : ENIAC The ENIAC (Electronic Numerical Integrator and Computer) was unveiled in 1946: the first all-electronic, general-purpose digital computer
  33. 33. Generations of Computers Generation 2: IBM7094
  34. 34. Generations of Computers Generation 3: Integrated Circuits Seymour Cray created the Cray Research Corporation Cray-1: $8.8 million, 160 million instructions per seconds and 8 Mbytes of memory
  35. 35. Generations of Computers Generation 4: VLSI Microprocessors Improvements to IC technology made it possible to integrate more and more transistors in a single chip. •SSI (Small Scale Integration): 10-100 •MSI (Medium Scale Integration): 100-1,000 •LSI (Large Scale Integration): 1,000-10,000 •VLSI (Very Large Scale Integration): >10,000
  36. 36. Generations of Computers Generation 5? •The term “Generation 5” is used sometimes to refer to all more or less “sci fi” future developments Voice recognition Artificial intelligence Bio computing Cloud Computing Nano technology Learning Natural languages
  37. 37. Use of Computers Make groups Group-wise, identify possible computer applications for a large scale organization, and possibility of using internet in : ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ Government Bank Factory Agriculture Educational Institution Retail Shop Pharma Company Insurance Company
  38. 38. Indian Computer Environment        Business Organizations Industrial Organizations Educational Organizations Government Organizations Medical Organizations Entertainment Organizations Scientific Research
  39. 39. Computing In Business Payroll Accounting Office Automation Stock Control Insurance Stock Broking Accounting Banking
  40. 40. Payroll Calculations Record-Keeping  Wage-Calculations  Monthly Budgetary Calculations 
  41. 41. Office Automation        Evolution of E-Offices Record Maintenance Daily Transactions Electronic Filing Report Preparation Desktop Publishing Printing
  42. 42. Insurance Online Information Data Base Management Interest Calculations Bonuses
  43. 43. Stock broking Database Management Quick Retrieval of Records Online up to date information
  44. 44. Accounting Budget Preparation Budget Calculation Cost-Benefit Analysis National Income Accounting Tax - Calculations
  45. 45. Banking ATM Online-Banking Electronic Payments
  46. 46. •Offers ATMS throughout India •Largest bank network in India •Online –Banking •E-Payments
  48. 48. AUTOMATIC TELLER MACHINE •Quick retrieval and deposition of cash 24 hrs a day •Electronic Funds transfer •User-friendly Interface •Efficient and Accurate Banking
  49. 49. E-Government Electronic Data Interchange Budgets Network between District, State and Central Government National Informatics Center Electronic Voting
  50. 50. Next Generation Services Certifying Authority for Digital Signatures Risk Management based Clearances Dematerialization of challans E- payments E-Registration for excise and service tax E-filing of returns and refunds
  51. 51. Excise Divisions Importer/ Exporter/CHA Customs Stations Service Tax Assesses Excise Assesses Central Servers/Mainframe WCO/ Other Customs Agencies Partner Agencies Ministry of Finance (e.g., DGFT) Directorates
  52. 52. Contemporary Approaches to Information Systems
  53. 53. Contemporary Approaches to Information Systems Technical Approach The technical approach uses mathematical models to test the capabilities of information systems. These disciplines include: • Computer Science - concerned with methods of computability, computation, and data storage and access. • Management Science - emphasized the development of models for decision making, and management practices.
  54. 54. Contemporary Approaches to Information Systems Operations Research - focuses on mathematical techniques for optimizing selected parameters of organizations.(inventory control, transaction costs).
  55. 55. Contemporary Approaches to Information Systems Behavioral Approach Deals with behavioral issues that arise in the development, and long term maintenance of the information system. • Different disciplines, such as psychologists, sociologists, Economists, study information systems, and the impacts they have in the organizational environment. Behavioral changes can occur within the organization during, and after information system development. The key to this approach is to find the solution to the behavior, which is not a technical issue.
  56. 56. Challenges of Information Systems
  57. 57. Challenges of Information Systems The Strategic Business Challenge: ◦ How can business use information technology to design organizations that are competitive and effective The Globalization Challenge: ◦ How can firms understand the business and system requirements of a global economic environment? The Information Architecture Challenge: ◦ How can organizations develop an information architecture that supports their business goals
  58. 58. Challenges of Information Systems The information systems investment challenge: ◦ How can organizations determine the business value of information systems The Responsibility and control challenge: ◦ How can organization design systems that people can control and understand? ◦ How can organization ensure that their information systems are used in an ethically and socially responsible manner?
  59. 59. Digital Firm
  60. 60. Digital Firm A digital firm is one in which nearly all of the organization's significant business relationships with customers, suppliers, and employees are digitally enabled and mediate. Core business processes are accomplished through digital networks spanning the entire organization or linking multiple organizations. 
  61. 61. Digital Firm Digital firms involve both time sihfting and space shifting. Time shifting refers to business being conducted continuously, 24x7, rather than in narrow "work day" time bands of 9 a.m. to 5 p.m. Space shifting means that work takes place in a global workshop, as well as within national boundaries.
  62. 62. Assignment Make groups of 5 students Identify an organization Identify all possible data that are used by management to make decisions Possible departments are Human Resource, Sales & Marketing, Stores, Production, IT, Administration, Finance, Support
  63. 63. Questions?