This document provides an introduction to business intelligence and computer applications in management. It begins with defining what a business is - an organization involved in manufacturing, trade, or services. It then discusses different forms of business like sole proprietorships, partnerships, corporations, cooperatives, franchises, and direct selling. Next, it explains how businesses are run by maximizing profits through increasing sales and decreasing costs. Business intelligence is then introduced as using data and analytics to improve business decision making. The relevance of computer applications is that they allow businesses to gather and analyze large amounts of data. The document continues by covering topics like the history of computers, uses of computers in different industries and organizations, challenges of information systems, and the concept of a

1. Dr. Anuraag Awasthi
anuraag_awasthi@hotmail.com / 9810068709
Business Intelligence And
Computer Applications In
Management

2. INTRODUCTIONS

3. Ground Rules
- Participation
- Questions and suggestions, any time
- Full Attendance

4. Section Tue Wed Thu
A 11 - 1 11 - 1
B 9 - 11 3 - 5
C 2 - 4 9 - 11
Class Schedule

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. 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. 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. 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-for-
profit or state-owned.

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Business Intelligence (BI)
"BI“ is an umbrella
term
to describe
a set of concepts
and methods
to
improve
business decision-
making
by
using fact-based
support systems.

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. 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. What is a Computer?

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. Introduction To Computers

25. 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
Introduction To Computers

26. • Definition:
• Introduction To Computer Software
• Operating system
• Problem solving Techniques
• Computer Prog ramming languages
• Computer Threats

27. • 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)
Introduction To Computers

28. • 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
Introduction To Computers

29. • Characteristics of Computers
• Huge Data Storage
• High Processing Speed
• Accuracy
• Reliability
• Versatility
Introduction To Computers

30. Generations of Computers

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. Generation 1 : ENIAC
The ENIAC (Electronic Numerical Integrator and Computer) was unveiled
in 1946: the first all-electronic, general-purpose digital computer
Generations of Computers

33. Generation 2: IBM7094
Generations of Computers

34. 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
Generations of Computers

35. Generation 4: VLSI 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
Microprocessors
Generations of Computers

36. 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
Generations of Computers

38. 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

39. Indian Computer Environment
 Business Organizations
 Industrial Organizations
 Educational Organizations
 Government Organizations
 Medical Organizations
 Entertainment Organizations
 Scientific Research

40. Computing In Business
 Payroll Accounting
 Office Automation
 Stock Control
 Insurance
 Stock Broking
 Accounting
 Banking

41. Payroll Calculations
 Record-Keeping
 Wage-Calculations
 Monthly Budgetary
Calculations

42. Office Automation
 Evolution of E-Offices
 Record Maintenance
 Daily Transactions
 Electronic Filing
 Report Preparation
 Desktop Publishing
 Printing

43. Insurance
 Online Information
 Data Base Management
 Interest Calculations
 Bonuses

44. Stock broking
Database Management
Quick Retrieval of Records
Online up to date information

45. Accounting
Budget Preparation
Budget Calculation
Cost-Benefit Analysis
National Income Accounting
Tax - Calculations

46. Banking
ATM
Online-Banking
Electronic Payments

47. •Offers ATMS throughout India
•Largest bank network in India
•Online –Banking
•E-Payments

48. AUTOMATIC TELLER
MACHINE

49. AUTOMATIC TELLER
MACHINE
•Quick retrieval and deposition of
cash 24 hrs a day
•Electronic Funds transfer
•User-friendly Interface
•Efficient and Accurate Banking

50. E-Government
Electronic Data Interchange
Budgets
Network between District,
State and Central Government
National Informatics Center
Electronic Voting

51. 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

52. Importer/
Exporter/CHA
Customs
Stations
Excise Divisions
Excise Assesses
Service Tax
Assesses
Directorates
WCO/
Other Customs
Agencies
Central Servers/Mainframe
Partner
Agencies
(e.g., DGFT)
Ministry of Finance

53. Contemporary Approaches
to Information Systems

54. 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.

55. Contemporary Approaches to
Information Systems
Operations Research - focuses on mathematical
techniques for optimizing selected parameters of
organizations.(inventory control, transaction costs).

56. 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.

57. Challenges of Information
Systems

58. 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

59. 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?

60. Digital Firm

61. 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.

62. 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.

63. 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

64. Questions?