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“Fundamentals of Business Analytics”
RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
Chapter 1
Business View of IT
Applications
Learning Objectives and Learning Outcomes
Learning Objectives Learning Outcomes
Business View of IT Applications
1. Business functions in a company –
(A Management Perspective)
2. Key purpose for using IT –
(Transaction Automation, Office
Productivity, Business Innovation and
Decision support)
3. IT Application in the Internet era – The
Connected World
4. Need for industry-specific applications
5. Information Users and their Needs
(a) To be able to identify the
core business processes
(b) To appreciate the need for
industry-specific
applications
“Fundamentals of Business Analytics”
RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
Session Plan
Lecture time : 45 to 60 minutes
Q/A : 15 minutes
“Fundamentals of Business Analytics”
RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
Agenda
• A typical enterprise
• Core Business Functions
• Malcolm Baldrige Criteria for Performance Excellence Framework
• Types of IT applications
• Characteristics of Internet-ready IT applications
• Technology centric applications – from 1965 to 2000 and future
• Typical enterprise application architecture
• Few information users and their requirements
“Fundamentals of Business Analytics”
RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
A Typical Enterprise
“Fundamentals of Business Analytics”
RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
Given below is the list of a few common core business functions:
• Sales and Marketing
• Product/Service Delivery
• Quality
• Product Development
• Accounting
• Technology
• Human Resource Management
• Supplier Management
• Legal and Compliance
• Corporate Planning
• Procurement (Purchases)
Core Business Functions
“Fundamentals of Business Analytics”
RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
Business functions design core business processes that are practiced within the
function or cut across several business and support functions.
Few of the common core business processes are as follows:
Resource Management:
Acquire to Retire (Fixed Assets) This end-to-end scenario includes processes
such as Asset Requisition, Asset
Acquisition, Asset Utilization Enhancement,
Asset Depreciation, and Asset Retirement.
Hire to Retire
An end-to-end process adopted by the HR
unit/function of enterprises. It includes
processes such as Recruitment, Hire,
Compensation management, Performance
management, Training, Promotion, Transfer,
and Retire.
Core Business Functions
“Fundamentals of Business Analytics”
RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
Business Process Management:
Process Explanation
Idea to Offering This entails research  concept, concept 
commit, design  prototype, validate  ramp-up,
monitor  improve, improve  end of life cycle
Issue to Resolution The basic steps here are:
detection of an issue  identification of the
problem  development of solution 
return/replace  closed loop feedback
Core Business Functions
“Fundamentals of Business Analytics”
RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
Can we represent all businesses in some common model?
The answer is YES!
“Fundamentals of Business Analytics”
RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
Malcolm Baldrige Performance Excellence Framework
1. Leadership
Organizational Profile:
Environment, Relationships and Challenges
4. Measurement, Analysis, and Knowledge Management
5. Workforce Focus
6. Process Management
7. Results
3. Customer and Market Focus
2. Strategic Planning
“Fundamentals of Business Analytics”
RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
Do It Exercise
Surf the net to read about the case study on
Texas Nameplate Company (TNC)
(Two time winner of the Malcolm Baldrige National Quality Award)
“Fundamentals of Business Analytics”
RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
Answer a Quick Question
Why is “Measurement, Analysis, and Knowledge Management”
so important for any enterprise?
“Fundamentals of Business Analytics”
RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
Types of IT Applications
• Department IT applications
– Payroll processing applications
• Online Transaction Processing Systems
– Train/Air reservation application
• Business Process/Model Innovation
– Amazon book store
– The ability to transfer money across the globe to any bank account from home
is a new innovation
• Decision Support Systems
– Example: A system that supports a user’s decision of buying a vehicle by
providing a range of options to choose from based on the users specified input
of budget, mileage, speed, etc.
“Fundamentals of Business Analytics”
RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
Answer a Few Quick Questions
• Cite a few examples of Department IT applications
• Cite a few examples of OLTP applications
• Cite a few examples of Business Process/Model Innovation
• Cite a couple of examples of Decision Support Systems
“Fundamentals of Business Analytics”
RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
Answer a Quick Question
According to your understanding, what are the chief characteristics of
Internet-ready IT applications
“Fundamentals of Business Analytics”
RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
Characteristics of Internet-ready IT Applications
• Support large number of users of different interests and abilities
• Provides display on multiple devices and formats
• Deployed on large secure servers through license management software
• Support single sign-on and support special authentication & authorization
requirements
• Ability to run on any operating system
• Ability to use/connect to any RDBMS for data storage
• Could be implemented in multiple programming languages or combinations
as well
• Leverages enterprise storage capabilities and back-up systems
• Supports extensive connectivity to different types of networks and Internet
services
• And many more...
“Fundamentals of Business Analytics”
RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
Technology Centric Applications – From 1965 to 2000 to Future
“Fundamentals of Business Analytics”
RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
Typical Enterprise Application Architecture
Almost all IT applications will invariably have application-specific user interface,
business logic associated with the areas of business operation and a data store that holds
master and transaction data of the applications.
Few Information Users and their Requirements
• Role-based users who have access to certain category of IT application,
certain level of classified information, access to specific systems & even
specific operations they are allowed to perform.
• Administrative users who configure IT environment, manage users, access
control, anti-virus, perform anti-theft checks, install updates/upgrades and
back-up enterprise data and restore in the event of data corruption.
• Knowledge workers/analytical users who discover new patterns in
enterprise data to help businesses make innovative moves in the market
place for competitive advantage.
• Multi-device access users who sometimes work in office, move in the
field, use different devices ranging from desk top system to hand held
smartphone to connect to enterprise IT applications.
“Fundamentals of Business Analytics”
RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
Ask a few participants of the learning program to summarize the lecture.
Summary please…
“Fundamentals of Business Analytics”
RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.

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  • 1. “Fundamentals of Business Analytics” RN Prasad and Seema Acharya Copyright  2011 Wiley India Pvt. Ltd. All rights reserved. Chapter 1 Business View of IT Applications
  • 2. Learning Objectives and Learning Outcomes Learning Objectives Learning Outcomes Business View of IT Applications 1. Business functions in a company – (A Management Perspective) 2. Key purpose for using IT – (Transaction Automation, Office Productivity, Business Innovation and Decision support) 3. IT Application in the Internet era – The Connected World 4. Need for industry-specific applications 5. Information Users and their Needs (a) To be able to identify the core business processes (b) To appreciate the need for industry-specific applications “Fundamentals of Business Analytics” RN Prasad and Seema Acharya Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
  • 3. Session Plan Lecture time : 45 to 60 minutes Q/A : 15 minutes “Fundamentals of Business Analytics” RN Prasad and Seema Acharya Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
  • 4. Agenda • A typical enterprise • Core Business Functions • Malcolm Baldrige Criteria for Performance Excellence Framework • Types of IT applications • Characteristics of Internet-ready IT applications • Technology centric applications – from 1965 to 2000 and future • Typical enterprise application architecture • Few information users and their requirements “Fundamentals of Business Analytics” RN Prasad and Seema Acharya Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
  • 5. A Typical Enterprise “Fundamentals of Business Analytics” RN Prasad and Seema Acharya Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
  • 6. Given below is the list of a few common core business functions: • Sales and Marketing • Product/Service Delivery • Quality • Product Development • Accounting • Technology • Human Resource Management • Supplier Management • Legal and Compliance • Corporate Planning • Procurement (Purchases) Core Business Functions “Fundamentals of Business Analytics” RN Prasad and Seema Acharya Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
  • 7. Business functions design core business processes that are practiced within the function or cut across several business and support functions. Few of the common core business processes are as follows: Resource Management: Acquire to Retire (Fixed Assets) This end-to-end scenario includes processes such as Asset Requisition, Asset Acquisition, Asset Utilization Enhancement, Asset Depreciation, and Asset Retirement. Hire to Retire An end-to-end process adopted by the HR unit/function of enterprises. It includes processes such as Recruitment, Hire, Compensation management, Performance management, Training, Promotion, Transfer, and Retire. Core Business Functions “Fundamentals of Business Analytics” RN Prasad and Seema Acharya Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
  • 8. Business Process Management: Process Explanation Idea to Offering This entails research  concept, concept  commit, design  prototype, validate  ramp-up, monitor  improve, improve  end of life cycle Issue to Resolution The basic steps here are: detection of an issue  identification of the problem  development of solution  return/replace  closed loop feedback Core Business Functions “Fundamentals of Business Analytics” RN Prasad and Seema Acharya Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
  • 9. Can we represent all businesses in some common model? The answer is YES! “Fundamentals of Business Analytics” RN Prasad and Seema Acharya Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
  • 10. Malcolm Baldrige Performance Excellence Framework 1. Leadership Organizational Profile: Environment, Relationships and Challenges 4. Measurement, Analysis, and Knowledge Management 5. Workforce Focus 6. Process Management 7. Results 3. Customer and Market Focus 2. Strategic Planning “Fundamentals of Business Analytics” RN Prasad and Seema Acharya Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
  • 11. Do It Exercise Surf the net to read about the case study on Texas Nameplate Company (TNC) (Two time winner of the Malcolm Baldrige National Quality Award) “Fundamentals of Business Analytics” RN Prasad and Seema Acharya Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
  • 12. Answer a Quick Question Why is “Measurement, Analysis, and Knowledge Management” so important for any enterprise? “Fundamentals of Business Analytics” RN Prasad and Seema Acharya Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
  • 13. Types of IT Applications • Department IT applications – Payroll processing applications • Online Transaction Processing Systems – Train/Air reservation application • Business Process/Model Innovation – Amazon book store – The ability to transfer money across the globe to any bank account from home is a new innovation • Decision Support Systems – Example: A system that supports a user’s decision of buying a vehicle by providing a range of options to choose from based on the users specified input of budget, mileage, speed, etc. “Fundamentals of Business Analytics” RN Prasad and Seema Acharya Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
  • 14. Answer a Few Quick Questions • Cite a few examples of Department IT applications • Cite a few examples of OLTP applications • Cite a few examples of Business Process/Model Innovation • Cite a couple of examples of Decision Support Systems “Fundamentals of Business Analytics” RN Prasad and Seema Acharya Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
  • 15. Answer a Quick Question According to your understanding, what are the chief characteristics of Internet-ready IT applications “Fundamentals of Business Analytics” RN Prasad and Seema Acharya Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
  • 16. Characteristics of Internet-ready IT Applications • Support large number of users of different interests and abilities • Provides display on multiple devices and formats • Deployed on large secure servers through license management software • Support single sign-on and support special authentication & authorization requirements • Ability to run on any operating system • Ability to use/connect to any RDBMS for data storage • Could be implemented in multiple programming languages or combinations as well • Leverages enterprise storage capabilities and back-up systems • Supports extensive connectivity to different types of networks and Internet services • And many more... “Fundamentals of Business Analytics” RN Prasad and Seema Acharya Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
  • 17. Technology Centric Applications – From 1965 to 2000 to Future “Fundamentals of Business Analytics” RN Prasad and Seema Acharya Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
  • 18. Typical Enterprise Application Architecture Almost all IT applications will invariably have application-specific user interface, business logic associated with the areas of business operation and a data store that holds master and transaction data of the applications.
  • 19. Few Information Users and their Requirements • Role-based users who have access to certain category of IT application, certain level of classified information, access to specific systems & even specific operations they are allowed to perform. • Administrative users who configure IT environment, manage users, access control, anti-virus, perform anti-theft checks, install updates/upgrades and back-up enterprise data and restore in the event of data corruption. • Knowledge workers/analytical users who discover new patterns in enterprise data to help businesses make innovative moves in the market place for competitive advantage. • Multi-device access users who sometimes work in office, move in the field, use different devices ranging from desk top system to hand held smartphone to connect to enterprise IT applications. “Fundamentals of Business Analytics” RN Prasad and Seema Acharya Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
  • 20. Ask a few participants of the learning program to summarize the lecture. Summary please… “Fundamentals of Business Analytics” RN Prasad and Seema Acharya Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.