This document provides an overview of management information systems (MIS) and their role in organizational efficiency and effectiveness. It discusses the processes of data transformation into meaningful information, the characteristics of valuable information, different types of information systems (e.g., transaction processing systems, decision support systems), and competitive strategies that leverage information technology for gaining an advantage. Additionally, it explores concepts such as strategic information systems, reengineering business processes, and the importance of customer relationship management.

1. ManageMent InforMatIon
SySteM
ManageMent InforMatIon
SySteM

2. What IS ManageMentWhat IS ManageMent
• Management
• the process of coordinating work activities
so that they are completed efficiently and
effectively with and through other people
• Process - represents ongoing functions or
primary activities engaged in by managers
• Coordinating - distinguishes a managerial
position from a non-managerial one

3. What IS ManageMentWhat IS ManageMent
• Management (cont.)
• Efficiency - getting the most output from the least
amount of inputs
• “doing things right” (not wasting resources)
• concerned with means
• Examples: cutting inventory levels
• Decreasing the amount of time to manufacture
products
• Effectiveness - completing activities so that
organizational goals are attained
• “doing the right things”
• concerned with ends

4. effIcIency and effectIveneSS In
ManageMent
effIcIency and effectIveneSS In
ManageMent
Management Strives For:
Low resource waste (high efficiency)
High goal attainment (high effectiveness)
Resource
Usage
Efficiency (Means)
Goal
Attainment
Effectiveness (Ends)
Low Waste High Attainment

5. Key reSourceS of MIS
InforMatIon
Key reSourceS of MIS
InforMatIon
• Data
Are raw facts that describe a particular phenomenon
e.g Current Temperature, Price of property, Age of a person etc.
A message which source wants to communicate to the receiver
e.g Text, Voice, Image, movies, Music etc
• Information: Data that is organized, meaningful, and
useful
• data with context
• processed data
• value-added to data
• summarized
• organized

6. data and InforMatIondata and InforMatIon

7. changIng data Into InforMatIon
• data
– Raw facts stored in databases
– Need additional processing to become useful
• InforMatIon
– Required by decision maker
– Data processed and presented in a meaningful form
– Transformation (any process that changes data into information).
Program
instructions

8. data collected WIthIn an
organISatIon
data collected WIthIn an
organISatIon
Data collected Where from? Used for?
Order details, customer
details complaints
customers
Financial data bank
Cost of goods, new
products
suppliers
Sales data Sales Dept

9. data collected WIthIn an
organISatIon
data collected WIthIn an
organISatIon
Data collected Where from? Used for?
Order details, customer
details complaints
customers Supplying goods, creating
invoices and statements
Improved performance
Financial data bank Planning strategic decisions
Cost of goods, new
products
suppliers Selling to customers
Sales data Sales Dept Monitor sales against
forecasts, re-order of stock

10. characterIStIcS of valuable
InforMatIon
1. Accuracy.
2. Verifiable.
3. Timeliness.
4. Organized.
5. Meaningful.
6. Cost effective.

11. 1.accuracy
• The information a user receives
has been processed correctly
• Correct information
• Free from errors
• Inaccurate information can lead to
incorrect decisions

12. 2. verIfIable
User can confirm and verify
the information.
Identify source of information

13. Having information when users
need it.
Right information must be produced
to users at right time.
3.tIMely InforMatIon

14. 4. organIzed
 Information is arranged to
suit the needs and
requirements of the users.

15. 5. MeanIngful
 Relevant to the user who
receives or uses it.
 Unnecessary information must
be eliminated.

16. 6.coSt-effectIve
 The cost to produce the information
should be less than the actual cost
of the information.

17. What IS a SySteM?What IS a SySteM?
• A system is…
• A set of interrelated components
• With a clearly defined boundary
• Working together
• To achieve a common set of objectives
• By accepting inputs and producing
outputs
• In an organized transformation process

18. baSIc functIonS of a
SySteM
baSIc functIonS of a
SySteM
• Input:
• Capturing and assembling elements that enter the system to be
processed
• Processing:
• Transformation process that converts input into output
• Output:
• Transferring transformed elements to their ultimate destination

19. It and IS
• What is Information Technology?
Any form of technology used by people to handle
information.
• What are Information Systems?
“A collection of hardware, software, data, people, and
procedures that are designed to generate
information that support day-to-day activities of
users in an organization”

20. • The branch of Engineering that deals with the use of
Computers and Telecommunications to retrieve, store
and transmit information
• Any computer based tool that people use to work with
information & support the information & information
processing needs of an organization
InforMatIon technology (It)

21. defInItIon of InforMatIon
SySteMS
“A collection of hardware, software, data,
people, and procedures that are
designed to generate information that
support day-to-day activities of users in
an organization”

22. coMponentS of InforMatIon
SySteMS
• Data
• Software
• Hardware
• People
• Procedures

23. InforMatIon SySteM
actIvItIeS
InforMatIon SySteM
actIvItIeS
• Input of data resources
• Data entry activities
• Processing of data into information
• Calculations, comparisons, sorting, and so on
• Output of information products
• Messages, reports, forms, graphic images
• Storage of data resources
• Data elements and databases
• Control of system performance
• Monitoring and evaluating feedback

24. typeS of InforMatIon SySteMStypeS of InforMatIon SySteMS
•operatIonS Support SySteMS:
• TPS( Sales, Inventory, and accounting systems)
• PCS( Monitor and control industrial processes ( Petroleum refining,
power generation and steel production systems.
• Enterprise collaboration systems, such as e-mail, chat and
videoconferencing systems.
•ManageMent Support SySteMS:
• MIS( Provide information as reports and displays)
• DSS(such as products pricing, profitability forecasting, and risk
analysis.
• EIS( Provides critical information from MIS, DSS such as system
for easy access to analysis of business performance, action of
competitors, and strategic planning

25. typeS of operatIonS Support
SySteMS
typeS of operatIonS Support
SySteMS
• Transaction Processing Systems
• Record and process business transactions
• Examples: sales processing, inventory systems,
accounting systems
• Process Control Systems
• Monitor and control physical processes
• Example: using sensors to monitor chemical processes
in a petroleum refinery
• Enterprise Collaboration Systems
• Enhance team and workgroup communication
• Examples: email, video conferencing

26. tranSactIon proceSSIng SySteMStranSactIon proceSSIng SySteMS
• TPS is the important examples of Operations
support systems that record and process data
resulting from business transactions.
• Computerized systems that perform and record the
daily routine transactions necessary to conduct the
business; they serve the organization’s operational
level
• Examples
• Accounting information systems
• TCS, DHL, all have systems that are TPS

27. tWo WayS to proceSS
tranSactIonS
tWo WayS to proceSS
tranSactIonS
• Batch Processing:
• Accumulate transactions over time and process
periodically
• Example: a bank processes all checks received in a
batch at night
• Online Processing:
• Process transactions immediately
• Example: a bank processes an ATM withdrawal
immediately

28. exaMple of tpSexaMple of tpS
1. An inventory control system keeps a file of records about
the stock of goods that a business has on hand (the
inventory) which is one aspect of the state of the business.
2. When items are shipped or received, the state of the
business is affected, and the inventory control system
makes changes about the inventory in the stored records.

29. • 4. It also prints a report giving the quantity on
hand for each item in inventory, which is a
characteristic of the state of the business.
• Finally, when inventory is low, the system
produces output that causes more inventory to
be ordered, which is another type of business
transaction.
exaMple of tpSexaMple of tpS

30. typeS of tpS SySteMS

31. tranSactIon proceSSIng
SySteM functIonS
tranSactIon proceSSIng
SySteM functIonS
Input function
• Capture input data
• Enter input data
• Validate input data
Processing function:
• perform computation
• make decision
Output function:
• produce screen output
• print output
Storage function:
• stored data
• Access data
• Update data

32. • Transaction processing systems perform input, output,
storage, and processing functions.
• Input functions include capturing data on a source
document, entering the input data into the system, and
checking input data for errors, a process called data
validation
• Output functions include producing screen or paper
reports, such as detail reports, summary reports, and
exception reports.
tranSactIon proceSSIng SySteMtranSactIon proceSSIng SySteM

33. • Storage functions include storing data in files and
databases, accessing stored data, sorting stored
data, and updating stored data.
• Processing functions involve the manipulation of
data, including computation and decision making
tranSactIon proceSSIng SySteMtranSactIon proceSSIng SySteM

34. tranSactIon proceSSIng SySteMStranSactIon proceSSIng SySteMS

35. ManageMent InforMatIon
SySteMS
ManageMent InforMatIon
SySteMS
• MIS provides information in the form of reports and
displays to managers and many business
professionals. Such as sales analysis, production
performance.
• Provides information to business professionals in a
variety of easy-to-use formats.
• Examples
– Systems that provide managers with reports and online
real-time access to company performance and historical
records.

36. ManageMent InforMatIon SySteM
(MIS)

37. decISIon Support
SySteMS
decISIon Support
SySteMS
 Decision Support Systems are concerned with providing
useful information to support the decision process.
 A Production Manager may use a DSS to decides how much
product to manufacture based on the expected sales
associated with a future promotion and the location and
availability of the raw materials necessary to manufacture the
product.
• Examples
– May take data from both internal sources (TPS, MIS) but
also from external sources (Stock prices or product prices
of competitors)
– Shipping companies use voyage-estimating systems that
take various shipping information into account and give

38. Voyage-estimating Decision Support
System
Voyage-estimating Decision Support
System
• Needs voyage-estimating system to calculate
• financial details
• Ship/time costs (fuel, labour, capital)
• Freight rates for various types of cargo
• Port expenses
• technical details
• Ship cargo capacity
• Speed
• Port distances
• Fuel and water consumption
• Cargo loading patterns

39. decISIon Support
SySteMS
decISIon Support
SySteMS

40. decISIon Support SySteM
(dSS)

41. executIve InforMatIon SySteMSexecutIve InforMatIon SySteMS
• Information Systems at the organizations strategic
level designed to address unstructured decision
making through advanced graphics and
communications.
• Examples:
– Incorporate data about external events such as tax
laws or competitors, but also draw summarized
information from internal MIS and DSS.
– Filter, compress and track critical data,
emphasizing the reduction of time and effort
required to obtain information useful to

42. executIve Support SySteM (eSS)

43. What is a human resources information system (HRIS)?
 Manages human resources functions
 Employee relationship management (ERM) system
facilitates communication with employees

44. Human Resource Systems

45. 2-47
• To view information systems as more than a set of
technologies that support efficient business
operations, work group and enterprise collaboration.
Or effective business decision making.
• IT can change the way businesses compete
• A strategic information system is any information
system that uses IT to help an organization…
• Gain a competitive advantage
• Reduce a competitive disadvantage
• Or meet other strategic enterprise objectives
Strategic ITStrategic IT

46. The major role of information systems applications
in business is to provided effective support a
company’s strategies for gaining competitive
advantage.
This strategic role of information systems involves
using information technology to develop
products, services, and capabilities that give a
company major advantages over the competitive
forces it faces in the global marketplace.
2-48
Strategic ITStrategic IT

47. • This is accomplished through a strategic
information architecture ---the collection of
strategic information systems that support the
competitive position and strategies of a business
enterprise. So a strategic information system can
be any kind of information system that uses
information technology to help an organization
gain a competitive advantage, reduce a
competitive disadvanrage.
2-49
Strategic ITStrategic IT

48. 2-50
• To succeed, a business must develop strategies to
counter these forces…
• Rivalry of competitors within its industry
• New entrants into an industry and its markets
• Substitute products that may capture market share
• Bargaining power of customers
• Bargaining power of suppliers
Competitive ForcesCompetitive Forces

49. 2-51
Competitive Forces and StrategiesCompetitive Forces and Strategies

50. • Competition is a positive characteristic in business,
and competitors share a natural and often healthy,
rivalry.
• This rivalry encourage and sometimes require a
constant effort to gain competitive advantage in the
marketplace.
• Against the threat of new entrants also expands
significant organizational resources.
• The threat of substitutes is another competitive force
confronting a business. The effect of this force is
seen almost daily in a wide variety of industries.
2-52
Competitive Forces and StrategiesCompetitive Forces and Strategies

51. • It is often at its strongest during periods of rising
costs or inflation. When airline prices get too
high, peoples substitute care travel on their
vacations. Exp.
• If the customers’ bargaining power gets to
strong, they can drive prices to unmanageably
low level or simply refuse to buy the products or
service.
• If a key suppliers’ bargaining power gets to
strong, it can force the price of goods and
services to unmanageably high levels. 2-53
Competitive Forces and StrategiesCompetitive Forces and Strategies

52. 2-54
• Cost Leadership
• Become low-cost producers
• Help suppliers or customers reduce costs
• Increase cost to competitors
• Differentiation Strategy
• Differentiate a firm’s products from its
competitors’
• Focus on a particular segment or niche of market.
• PIMSAT, focus on IT programs, and IU focus on
Business studies
Five Competitive StrategiesFive Competitive Strategies

53. 2-55
• Innovation Strategy
• Unique products, services, or markets
• Radical changes to business processes
• Example: Amazon’s online, full-service customer
systems
• Growth Strategy
• Expand company’s capacity to produce
• Expand into global markets
• Diversify into new products or services
• Example: Wal-Mart’s merchandise ordering via global
satellite tracking
Competitive Strategies (continued)Competitive Strategies (continued)

54. 2-56
• Alliance Strategy
• Establish linkages and alliances with customers,
suppliers, competitors, consultants, and other
companies
• Includes mergers, acquisitions, joint ventures,
virtual companies
• Example: Wal-Mart uses automatic inventory
replenishment by supplier.
• As a consultants,
Competitive Strategies (continued)Competitive Strategies (continued)

55. 2-57
• These strategies are not mutually exclusive
• Organizations use one, some, or all
• A given activity could fall into one or more
categories of competitive strategy
• Not everything innovative serves to differentiate
one organization from another
• Likewise, not everything that differentiates
organizations is necessarily innovative
Using Competitive StrategiesUsing Competitive Strategies

56. 2-58
Ways to Implement Basic StrategiesWays to Implement Basic Strategies

57. 2-59
• Lock in Customers and Suppliers
• Deter them from switching to competitors
• Build in Switching Costs
• Make customers and suppliers dependent on the
use of innovative IS
• Erect Barriers to Entry
• Discourage or delay other companies from
entering the market
• Increase the technology or investment needed to
enter
Other Competitive StrategiesOther Competitive Strategies

58. 2-60
• Build Strategic IT Capabilities
• Take advantage of strategic opportunities when
they arise
• Improve efficiency of business practices
• Leverage Investment in IT
• Develop products and service that would not be
possible without a strong IT capability
Other Competitive StrategiesOther Competitive Strategies

59. 2-61
• What is the business value in being customer-
focused?
• Keep customers loyal
• Anticipate their future needs
• Respond to customer concerns
• Provide top-quality customer service
• Focus on customer value
• Quality, not price, has become the primary
determinant of value
• Consistently
Customer-Focused BusinessCustomer-Focused Business

60. 2-62
• Companies that consistently offer the best value
from the customer’s perspective…
• Track individual preferences
• Keep up with market trends
• Supply products, services, and information
anytime, anywhere
• Tailor customer services to the individual
• Use Customer Relationship Management (CRM)
systems to focus on the customer
Providing Customer ValueProviding Customer Value

61. 2-63
Building Customer Value via the InternetBuilding Customer Value via the Internet

62. 2-64
• View the firm as a chain of basic activities that
add value to its products and services
• Primary processes directly relate to
manufacturing or delivering products
• Support processes help support the day-to-day
running of the firm and indirectly contribute to
products or services
• Use the value chain to highlight where
competitive strategies will add the most value
The Value Chain and Strategic ISThe Value Chain and Strategic IS

63. 2-65
Using IS in the Value ChainUsing IS in the Value Chain

64. 2-66
• A company that emphasizes strategic business
use of IT would use it to gain a competitive
differentiation
• Products
• Services
• Capabilities
Strategic Uses of ITStrategic Uses of IT

65. 2-67
• Called BRP or simply Reengineering
• Fundamental rethinking and radical redesign of
business processes
• Seeks to achieve improvements in cost, quality,
speed, and service
• Potential payback is high, but so is risk of
disruption and failure
• Organizational redesign approaches are an
important enabler of reengineering
• Includes use of IT, process teams, case managers
Reengineering Business ProcessesReengineering Business Processes

66. 2-68
BPR Versus Business ImprovementBPR Versus Business Improvement

67. 2-69
• IT plays a major role in reengineering most
business processes
• Can substantially increase process efficiencies
• Improves communication
• Facilitates collaboration
The Role of Information TechnologyThe Role of Information Technology

68. 2-70
• Many processes are reengineered with…
• Enterprise resource planning software
• Web-enabled electronic business and commerce
systems
A Cross-Functional ProcessA Cross-Functional Process

69. 2-71
• IT that supports this process…
• CRM systems using intranets and the Internet
• Supplier-managed inventory systems using the
Internet and extranets
• Cross-functional ERP software to integrate
manufacturing, distribution, finance, and human
resource processes
• Customer-accessible e-commerce websites for
order entry, status checking, payment, and service
• Customer, product, and order status databases
accessed via intranets and extranets
Reengineering Order ManagementReengineering Order Management

70. 2-72
• Agility is the ability to prosper
• In rapidly changing, continually fragmenting
global markets
• By selling high-quality, high-performance,
customer-configured products and services
• By using Internet technologies
• An agile company profits in spite of
• Broad product ranges
• Short model lifetimes
• Individualized products
• Arbitrary lot sizes
Becoming an Agile CompanyBecoming an Agile Company

71. 2-73
• An agile company…
• Presents products as solutions to customers’
problems
• Cooperates with customers, suppliers and
competitors
• Brings products to market as quickly and cost-
effectively as possible
• Organizes to thrive on change and uncertainty
• Leverages the impact of its people and the
knowledge they possess
Strategies for AgilityStrategies for Agility

72. 2-74
How IT Helps a Company be AgileHow IT Helps a Company be Agile

73. 2-75
• A virtual company uses IT to link…
• People
• Organizations
• Assets
• Ideas
• Inter-enterprise information systems link…
• Customers
• Suppliers
• Subcontractors
• Competitors
Creating a Virtual CompanyCreating a Virtual Company

74. 2-76
A Virtual CompanyA Virtual Company

75. 2-77
• Basic business strategies
• Share information and risk with alliance partners
• Link complimentary core competencies
• Reduce concept-to-cash time through sharing
• Increase facilities and market coverage
• Gain access to new markets and share market or
customer loyalty
• Migrate from selling products to selling solutions
Virtual Company StrategiesVirtual Company Strategies

76. 2-78
• A knowledge-creating company or learning
organization…
• Consistently creates new business knowledge
• Disseminates it throughout the company
• Builds it into its products and services
Building a Knowledge-Creating CompanyBuilding a Knowledge-Creating Company

77. 2-79
• Explicit Knowledge
• Data, documents, and things written down or
stored in computers
• Tacit Knowledge
• The “how-to” knowledge in workers’ minds
• Represents some of the most important
information within an organization
• A knowledge-creating company makes such tacit
knowledge available to others
Two Kinds of KnowledgeTwo Kinds of Knowledge

78. 2-80
• Successful knowledge management
• Creates techniques, technologies, systems,
and rewards for getting employees to share
what they know
• Makes better use of accumulated workplace and
enterprise knowledge
Knowledge ManagementKnowledge Management

79. 2-81
Knowledge Management TechniquesKnowledge Management Techniques

80. 2-82
• Knowledge management systems
• A major strategic use of IT
• Manages organizational learning and know-how
• Helps knowledge workers create, organize, and
make available important knowledge
• Makes this knowledge available wherever and
whenever it is needed
• Knowledge includes
• Processes, procedures, patents, reference works,
formulas, best practices, forecasts, and fixes
Knowledge Management Systems (KMS)Knowledge Management Systems (KMS)

81. Produces and stores results
 Electronic device operating under the control of
instructions stored in its own memory
Processes data into informationinformation
Data that is organized,
meaningful, and useful
Accepts datadata
Raw facts, figures, and
symbols

82. What IS hardWareWhat IS hardWare
• Hardware is the general term that
is used to describe physical
artifacts of technology.

83. What IS an Input devIce?
 Hardware used
to enter data
and instructions

84. Input devIceSInput devIceS

85. Input devIceSInput devIceS

86. What IS an output devIce?
 Hardware that
conveys
information
to one or more
people

87. What IS Storage?
Storage mediaStorage media
Physical material on which data, instructions,
and information are stored
Storage mediaStorage media
Physical material on which data, instructions,
and information are stored
Storage deviceStorage device
Records and retrieves items to and from
a storage medium
Storage deviceStorage device
Records and retrieves items to and from
a storage medium
 Holds data, instructions, and information
for future use

88. coMputer for IndIvIdual uSerScoMputer for IndIvIdual uSerS
• Desktop computers
• The most common type of computer
• Sits on the desk or floor
• Performs a variety of tasks
• Workstations
• Specialized computers
• Optimized for science or graphics
• More powerful than a desktop

89. Mainframe Very powerful,
expensive computer that supports
thousands of connected users
[Also called an Enterprise Server]
Supercomputer The fastest, most
powerful, most expensive
computer. Used for applications
requiring complex mathematical
calculations
Server Controls access to network
resources and provides centralized
storage

90. What is a notebook computer?
 Portable, small enough
to fit on your lap
 Also called a laptop
computer
 Generally more
expensive than desktop
computers with equal
capabilities

91. What is a Tablet PC?
 Especially useful for taking
notes
 Resembles a letter-sized slate
 Allows you to write on the
screen using a digital pen

92. Consists of a series
of instructions that
tells the computer
what to do and
how to do it
Consists of a series
of instructions that
tells the computer
what to do and
how to do it
What IS SoftWare?
Also called a
program
Also called a
program

93. coMputer SoftWarecoMputer SoftWare
• Definition:
• Key to productive use of computers.
• A computer program that tells the computer how to
perform particular tasks.
• Information that the computer uses to get the job done.
• Types of Software
• Software can be categorized into two types:
• System Software
• Application Software.

94. What IS SySteM SoftWare?
Operating System (OS)Operating System (OS)
is a set of programs
that coordinates all
activities among
computer hardware
devices
Operating System (OS)Operating System (OS)
is a set of programs
that coordinates all
activities among
computer hardware
devices
Utility ProgramsUtility Programs allow the user to
perform maintenance-type tasks
usually related to managing a
computer, its devices or its programs
Utility ProgramsUtility Programs allow the user to
perform maintenance-type tasks
usually related to managing a
computer, its devices or its programs
 Programs that control or maintain the operations of
the computer and its devices

95. What IS applIcatIon SoftWare?
Presentation
Graphics
Spreadsheet
Database
Word
Processing
 Programs designed to make
users more productive
 Create/Produce useful data

96. Word proceSSIngWord proceSSIng
• Word Processing software is used to create and print documents. A
key advantage of word processing software is that users easily can
make changes in documents.

97. electronIc SpreadSheetSelectronIc SpreadSheetS
• Electronic spreadsheet software allows the user to add, subtract, and
perform user-defined calculations on rows and columns of numbers. These
numbers can be changed and the spreadsheet quickly recalculates the new
results.

98. databaSe SoftWaredatabaSe SoftWaredatabaSe SoftWaredatabaSe SoftWare
• Allows the user to enter, retrieve, and update data in an organized and efficient
manner, with flexible inquiry and reporting capabilities.

99. coMputer SoftWarecoMputer SoftWare
What is a programmer? Someone who develops
application or system
software
 Programmer writes
the instructions to
direct the computer to
process data into
information

100. What IS a graphIcal uSer Interface
(guI)? Allows you to interact with the software using
graphics and visual images such as icons
 Controls how you enter data and instructions and
how the screen displays information

101. 3-103
bIt and bytebIt and byte
• Bit
• Short for binary digit
• Smallest element of data
• Either zero or one
• Byte
• Group of eight bits, which operate as a single
unit
• Represents one character or number

102. 3-104
repreSentIng characterS In byteSrepreSentIng characterS In byteS

103. 3-105
uSIng bInary code to calculateuSIng bInary code to calculate

104. 3-106
Storage capacIty MeaSureMentStorage capacIty MeaSureMent
• Kilobyte (KB): one thousand bytes
• Megabyte (MB): one million bytes
• Gigabyte (GB): one billions bytes
• Terabyte (TB): one trillion bytes
• Petabyte (PB): one quadrillion bytes

105. coMMon nuMber
SySteMS
coMMon nuMber
SySteMS
System Base Symbols
Used by
humans?
Used in
computers?
Decimal 10 0, 1, … 9 Yes No
Binary 2 0, 1 No Yes
Octal 8 0, 1, … 7 No No
Hexa-
decimal
16 0, 1, … 9,
A, B, … F
No No
107

106. Quantities/Counting (1 of 3)Quantities/Counting (1 of 3)
Decimal Binary Octal
Hexa-
decimal
0 0 0 0
1 1 1 1
2 10 2 2
3 11 3 3
4 100 4 4
5 101 5 5
6 110 6 6
7 111 7 7
108

107. Quantities/Counting (2 of 3)Quantities/Counting (2 of 3)
Decimal Binary Octal
Hexa-
decimal
8 1000 10 8
9 1001 11 9
10 1010 12 A
11 1011 13 B
12 1100 14 C
13 1101 15 D
14 1110 16 E
15 1111 17 F
109

108. Quantities/Counting (3
of 3)
Quantities/Counting (3
of 3)
Decimal Binary Octal
Hexa-
decimal
16 10000 20 10
17 10001 21 11
18 10010 22 12
19 10011 23 13
20 10100 24 14
21 10101 25 15
22 10110 26 16
23 10111 27 17 Etc.
110

109. Quick
Example
Quick
Example
2510 = 110012 = 318 = 1916
Base
111

110. Decimal to Decimal (just
for fun)
Decimal to Decimal (just
for fun)
Hexadecimal
Decimal Octal
Binary
112

111. 12510 => 5 x 100
= 5
2 x 101
= 20
1 x 102
= 100
125
Base
Weight
113
Decimal to Decimal (just for fun)
Weight “0”

112. Binary to
Decimal
Binary to
Decimal
Hexadecimal
Decimal Octal
Binary
114

113. Binary to
Decimal
Binary to
Decimal
• Technique
• Multiply each bit by 2n
, where n is the “weight”
of the bit
• The weight is the position of the bit, starting from
0 on the right
• Add the results
115

114. Examp
le
Examp
le
1010112 => 1 x 20
= 1
1 x 21
= 2
0 x 22
= 0
1 x 23
= 8
0 x 24
= 0
1 x 25
= 32
4310
Bit “0”
116

115. Octal to
Decimal
Octal to
Decimal
Hexadecimal
Decimal Octal
Binary
117

116. Octal to
Decimal
Octal to
Decimal
• Technique
• Multiply each bit by 8n
, where n is the “weight”
of the bit
• The weight is the position of the bit, starting from
0 on the right
• Add the results
118

117. Examp
le
Examp
le
7248 => 4 x 80
= 4
2 x 81
= 16
7 x 82
= 448
46810
119

118. Hexadecimal to
Decimal
Hexadecimal to
Decimal
Hexadecimal
Decimal Octal
Binary
120

119. Hexadecimal to
Decimal
Hexadecimal to
Decimal
• Technique
• Multiply each bit by 16n
, where n is the “weight”
of the bit
• The weight is the position of the bit, starting from
0 on the right
• Add the results
121

120. Examp
le
Examp
le
ABC16 => C x 160
= 12 x 1 = 12
B x 161
= 11 x 16 = 176
A x 162
= 10 x 256 = 2560
274810
122

121. Decimal to
Binary
Decimal to
Binary
Hexadecimal
Decimal Octal
Binary
123

122. Decimal to
Binary
Decimal to
Binary
• Technique
• Divide by two, keep track of the remainder
• First remainder is bit 0 (LSB, least-significant bit)
• Second remainder is bit 1
• Etc.
124

123. Examp
le
Examp
le
12510 = ?2
2 125
62 12
31 02
15 12
7 12
3 12
1 12
0 1
12510 = 11111012
125

124. Decimal to
Octal
Decimal to
Octal
Hexadecimal
Decimal Octal
Binary
126

125. Decimal to
Octal
Decimal to
Octal
• Technique
• Divide by 8
• Keep track of the remainder
127

126. Examp
le
Examp
le
123410 = ?8
8 1234
154 28
19 28
2 38
0 2
123410 = 23228
128

127. Decimal to
Hexadecimal
Decimal to
Hexadecimal
Hexadecimal
Decimal Octal
Binary
129

128. Decimal to
Hexadecimal
Decimal to
Hexadecimal
• Technique
• Divide by 16
• Keep track of the remainder
130

129. Examp
le
Examp
le
123410 = ?16
123410 = 4D216
16 1234
77 216
4 13 = D16
0 4
131

130. Octal to
Binary
Octal to
Binary
Hexadecimal
Decimal Octal
Binary
132

131. Octal to
Binary
Octal to
Binary
• Technique
• Convert each octal digit to a 3-bit equivalent
binary representation
133

132. Examp
le
Examp
le
7058 = ?2
7 0 5
111 000 101
7058 = 1110001012
134

133. Hexadecimal to
Binary
Hexadecimal to
Binary
Hexadecimal
Decimal Octal
Binary
135

134. Hexadecimal to
Binary
Hexadecimal to
Binary
• Technique
• Convert each hexadecimal digit to a 4-bit
equivalent binary representation
136

135. Examp
le
Examp
le
10AF16 = ?2
1 0 A F
0001 0000 1010 1111
10AF16 = 00010000101011112
137

136. Binary to
Octal
Binary to
Octal
Hexadecimal
Decimal Octal
Binary
138

137. Binary to
Octal
Binary to
Octal
• Technique
• Group bits in threes, starting on right
• Convert to octal digits
139

138. Examp
le
Examp
le
10110101112 = ?8
1 011 010 111
1 3 2 7
10110101112 = 13278
140

139. Binary to
Hexadecimal
Binary to
Hexadecimal
Hexadecimal
Decimal Octal
Binary
141

140. Binary to
Hexadecimal
Binary to
Hexadecimal
• Technique
• Group bits in fours, starting on right
• Convert to hexadecimal digits
142

141. Examp
le
Examp
le
10101110112 = ?16
10 1011 1011
2 B B
10101110112 = 2BB16
143

142. Octal to
Hexadecimal
Octal to
Hexadecimal
Hexadecimal
Decimal Octal
Binary
144

143. Octal to
Hexadecimal
Octal to
Hexadecimal
• Technique
• Use binary as an intermediary
145

144. Examp
le
Examp
le
10768 = ?16
1 0 7 6
001 000 111 110
2 3 E
10768 = 23E16
146

145. Hexadecimal to
Octal
Hexadecimal to
Octal
Hexadecimal
Decimal Octal
Binary
147

146. Hexadecimal to
Octal
Hexadecimal to
Octal
• Technique
• Use binary as an intermediary
148

147. Examp
le
Examp
le
1F0C16 = ?8
1 F 0 C
0001 1111 0000 1100
1 7 4 1 4
1F0C16 = 174148
149

148. Exercise –
Convert ...
Exercise –
Convert ...
Don’t use a calculator!
Decimal Binary Octal
Hexa-
decimal
33
1110101
703
1AF
150

149. Exercise –
Convert …
Exercise –
Convert …
Decimal Binary Octal
Hexa-
decimal
33 100001 41 21
117 1110101 165 75
451 111000011 703 1C3
431 110101111 657 1AF
Answer
151

150. WEB BROWSERSWEB BROWSERS

151. WORD PROCESSING & DESKTOP
PUBLISHING
WORD PROCESSING & DESKTOP
PUBLISHING

152. ELECTRONIC SPREADSHEETS &
PRESENTATION GRAPHICS
ELECTRONIC SPREADSHEETS &
PRESENTATION GRAPHICS
Electronic Spreadsheets
 Worksheet of rows and columns
 Used for calculations and charts
 E.g., Lotus 1-2-3, Microsoft Excel, Corel
QuattroPro, BO XI
Presentation Graphics
 Convert numeric data into graphics displays
 Prepare multimedia presentations including
graphics, photos, animation, and video clips
 E.g., Microsoft PowerPoint, Lotus Freelance,
Corel Presentations

153. ELECTRONIC SPREADSHEETS & PRESENTATION
GRAPHICS
ELECTRONIC SPREADSHEETS & PRESENTATION
GRAPHICS

154. PERSONAL INFORMATION MANAGER &
GROUPWARE
PERSONAL INFORMATION MANAGER &
GROUPWARE
Personal Information Manager (PIM)
 Software for end user productivity and collaboration
 Store information about clients, schedules, manage
appointments, manage tasks
 E.g., Lotus Organizer, Microsoft Outlook
Groupware
 Software that helps workgroups collaborate on group
assignments
 E-mail, discussion groups, databases,
videoconferencing
 E.g., Lotus Notes, Novell GroupWise, Microsoft
Exchange

155. PERSONAL INFORMATION MANAGER &
GROUPWARE
PERSONAL INFORMATION MANAGER &
GROUPWARE

156. SOFTWARE ALTERNATIVESSOFTWARE ALTERNATIVES
• Outsourcing development and maintenance of software
• Application service providers (ASPs)
• Companies that own, operate and maintain
application software and computer system
resources
• Use the application for a fee over the Internet
• Pay-as-you-go

157. SOFTWARE ALTERNATIVESSOFTWARE ALTERNATIVES

158. SOFTWARE LICENSINGSOFTWARE LICENSING
• All software (COTS, ASP) is licensed
• You don’t buy software: you buy a license to use
the software under the terms of the licensing
agreement
• Licensed to protect the vendor’s property rights

159. SYSTEM SOFWARESYSTEM SOFWARE
Software that manages and supports a computer
system
System management programs
 Programs that manage hardware, software,
network, and data resources
 E.g., operating systems, network management
programs, database management systems,
systems utilities
Systems development programs
 Programs that help users develop information
system programs

160. SYSTEM MANAGEMENT
PROGRAMS
SYSTEM MANAGEMENT
PROGRAMS

161. OPERATING SYSTEMOPERATING SYSTEM
• Integrated system of programs that
• Manages the operations of the CPU
• Controls the input/output and storage resources
and activities of the computer system
• Provides support services as computer executes
applications programs

162. OS BASIC FUNCTIONSOS BASIC FUNCTIONS

163. USER INTERFACEUSER INTERFACE
• Part of the operating system that allows you to
communicate with it
• Three main types:
• Command-driven
• Menu-driven
• Graphical user interfaces (GUI)

164. USER INTERFACEUSER INTERFACE

165. RESOURCE MANAGEMENTRESOURCE MANAGEMENT
• Part of operating system that manages the
hardware and networking resources of a
computer system
• Includes CPU, memory, secondary storage
device, telecommunications, and input/output
peripherals

166. FILE MANAAGEMENTFILE MANAAGEMENT
• Part of the operating system that controls the
creation, deletion, and access of files of data and
programs

167. FILE MANAGEMENTFILE MANAGEMENT

168. TASK MANAGEMENTTASK MANAGEMENT
• Part of the operating system that manages the
accomplishment of computing tasks of the end
users
• Multitasking
• Task management approach that allows for
several tasks to be performed in a seemingly
simultaneous fashion
• Also called multiprogramming or time-sharing

169. TASK MANAGEMENTTASK MANAGEMENT

170. POPULAR OSPOPULAR OS
• Windows
• GUI, multitasking, networking, multimedia
• Microsoft’s operating system
• Different versions manage servers
• Unix
• Multitasking, multiuser, network-managing
• Portable – can run on mainframes, midrange and PCs
• Linux
• Low-cost, powerful reliable Unix-like operating system
• Open-source
• MAC OS X
• Apple operating system for the iMac
• GUI, multitasking, multimedia

171. OTHER SYSTEM SOFTWAREOTHER SYSTEM SOFTWARE
Utilities
 Miscellaneous housekeeping functions
 Example, Norton utilities includes data backup,
virus protection, data compression, etc.
Performance monitors
 Programs that monitor and adjust computer
system to keep them running efficiently
Security monitors
 Programs that monitor and control use of
computer systems to prevent unauthorized use of
resources

172. WEB LANGUAGESWEB LANGUAGES
• HTML
• A page description language that creates hypertext documents for the
Web
• XML
• Describes the contents of Web pages by applying identifying tags or
contextual labels to the data in Web documents
• Java
• Object-oriented programming language that is simple, secure and
platform independent
• Java applets can be executed on any computer

173. WEB LANGUAGESWEB LANGUAGES

174. Data ResouRce
ManageMent
Data ResouRce
ManageMent

175. Foundation Data ConceptsFoundation Data Concepts
Data Organization Structure is logically organized into:-Data Organization Structure is logically organized into:-
 Character
 Field
 Record
 File
 Database
Like writing can be organized into letters, word, paragraph &
sentences

176. CHARACTERCHARACTER
• Consists of a single alphabets, numeric or other
symbol.
• It is a byte used to represent a particular
character.

177. fieldfield
• Consists of a grouping of related characters.
• E.g., person names represent the name field. i.e.,
last name, first name, state, city, telephone #

178. RECORDRECORD
• Fields when grouped together make a record.
• An allocation of attributes to describe any entity.
• E.g.,
• Person payroll records
• Employee claims record
• Student academic records

179. FILEFILE
• Group of related records is a data file or table.
• A single table may be referred to as a flat file.
• E.g.,
• Employee file
• Student file
• Inventory file
• Payroll file etc

180. DATABASEDATABASE
• An integrated collection of logically related data
elements.
• It contains all the records

181. Foundation Data ConceptsFoundation Data Concepts
Employee
Record 1
Employee
Record 2
Employee
Record 3
Employee
Record 4
Name
Field
SS No.
Field
Salary
Field
Name
Field
SS No.
Field
Salary
Field
Name
Field
SS No.
Field
Salary
Field
Name
Field
SS No.
Field
Salary
Field
Jones T.A. 275-32-3874 20,000 Klugman J.L. 349-88-7913 28,000 Alverez, J.S. 542-40-3718 100,000 Porter, M.L. 617-87-7915 50,000
Human Resource
Database
Payroll File Benefit File
Data Organization StructureData Organization Structure

182. Foundation Data ConceptsFoundation Data Concepts
Electric Utility Database
Entities:
Customers, Meters, Bills,
Payments, Meter Readings
Relationships:
Bills Sent to Customers
Customers Make Payments
Customers Use Meters
Billing
Meter
Reading
Payment
Processing
Service
Start/Stop
Example: An Electric Utility DatabaseExample: An Electric Utility Database

183. DATABASE STRUCTURESDATABASE STRUCTURES
• DBMS packages are designed to use specific
data structures to provide end users with quick;
easy access to information stored in the
databases.

184. DATABASE STRUCTURESDATABASE STRUCTURES
 Five Major Database StructuresFive Major Database Structures
•Hierarchical Structure
•Network Structure
•Relational Model
•Object-Oriented
•Multidimensional Structure

185. HIERARCHICAL STRUCTUREHIERARCHICAL STRUCTURE
• One-to-many relationship
• Relationship b/w records from a hierarchy
structure all of them are dependent.
• Root element

186. NETWORK STRUCTURENETWORK STRUCTURE
• Allow many-to-many relationships among
records.
• E.g., employee records can be related to more
than one project record & vice versa.

187. RELATIONAL STRUCTURERELATIONAL STRUCTURE
• It is used by most microcomputers DBMS
packages as well as by both midrange &
mainframes systems.
• In this, all data elements within the
database are viewed as being stored in the
form of simple two dimensional tables
sometimes referred to as relations .
Department Table Employee Table
Deptno Dname Dloc Dmgr Empno Ename Etitle Esalary Deptno
Emp 1
Emp 2
Emp 3
Emp 4
Emp 5
Emp 6
Dept A
Dept B
Dept C
Dept A
Dept B
Dept A
Dept B
Dept C
Dept B

189. MULTIDIMENSIONAL STRUCTUREMULTIDIMENSIONAL STRUCTURE

190. Object-oriented structureObject-oriented structure
Attributes
•Customer
•Balance
•Interest
Operations
•Deposit (Amount)
•Withdraw (Amount)
•Get Owner
Attributes
•Credit Line
•Monthly Statements
Operations
•Calculate Interest
•Print Monthly Statement
Attributes
•Number of Withdrawals
•Quarterly Statement
Operations
•Calculate Interest Paid
•Print Quarterly Statement
Bank Account Object
Checking Account Object Savings Account Object
Inheritance Inheritance
Web basedWeb based
applicationsapplications
Describing theDescribing the
attributes of anattributes of an
entity, plus theentity, plus the
operations that canoperations that can
be performs upon thebe performs upon the
datadata
SupportsSupports
inheritanceinheritance

191. Object-oriented structureObject-oriented structure

192. Database DevelopmentDatabase Development
Database management packages like Microsoft Access or Lotus
Approach allow end users to easily develop the database they
need.

193. Database DevelopmentDatabase Development
• Database Administrators (DBAs)
• Data Definition Language (DDL)
• Oracle 10g or IBM DB2
• Data Dictionary or Metadata Repository
• Database management catalog or directory that contain
metadata.
• Relies on specialized database software component to
manage a database.
• Metadata
• Data on data

194. Data MiningData Mining
• Identify New Product Bundles
• Find Root Causes to Quality or Manufacturing
Problems
• Prevent Customer Attrition
• Cross-Sell to Existing Customers
• Profile Customers with More Accuracy

195. Types of DatabasesTypes of Databases
• Operational Databases
• Distributed Databases
• External Databases
• Hypermedia Databases

196. Distributed Database ModelDistributed Database Model
Client PC
Distributed
Databases
on Intranets
and Other
Networks
End User
Databases
Data
Warehouse
Data
Marts
Operational
Databases
of the
Organization
Network
Server
External
Databases
on the
Internet and
Online
Services

197. Operational DatabasesOperational Databases
Types of DatabasesTypes of Databases

198. Web-Based Information SystemWeb-Based Information System
Web
Browser
The Internet
Intranets
Extranets Web
Server
Software
HTML
XML
Web Pages
Image Files
Video Files
Audio Files
Network
Server
Client PCs
Hypermedia
Database
Types of DatabasesTypes of Databases

199. Data WarehousesData Warehouses
Applications Data Marts
Finance
Marketing
Sales
Accounting
Management
Reporting
ERP
Purchasing
CRM
Inveentory
Control
Shipping
Logistics

200. 5-202
Data Warehouse ComponentsData Warehouse Components

201. 5-203
Applications and Data MartsApplications and Data Marts

202. 5-204
Database Management SystemDatabase Management System
• In mainframe and server computer systems, a
software package that is used to…
• Create new databases and database applications
• Maintain the quality of the data in an
organization’s databases
• Use the databases of an organization to provide
the information needed by end users

203. 5-205
Common DBMS Software ComponentsCommon DBMS Software Components
• Database definition
• Language and graphical tools to define entities,
relationships, integrity constraints, and
authorization rights
• Nonprocedural access
• Language and graphical tools to access data
without complicated coding
• Application development
• Graphical tools to develop menus, data entry
forms, and reports

204. 5-206
Common DBMS Software ComponentsCommon DBMS Software Components
• Procedural language interface
• Language that combines nonprocedural access
with full capabilities of a programming language
• Transaction processing
• Control mechanism prevents interference from
simultaneous users and recovers lost data after
a failure
• Database tuning
• Tools to monitor, improve database performance

205. 5-207
Database Management SystemDatabase Management System
• Database Development
• Defining and organizing the content,
relationships, and structure of the data needed
to build a database
• Database Application Development
• Using DBMS to create prototypes of queries,
forms, reports, Web pages
• Database Maintenance
• Using transaction processing systems and other
tools to add, delete, update, and correct data

206. 5-208
DBMS Major FunctionsDBMS Major Functions

207. 5-209
Database InterrogationDatabase Interrogation
• End users use a DBMS query feature or report
generator
• Response is video display or printed report
• No programming is required
• Query language
• Immediate response to ad hoc data requests
• Report generator
• Quickly specify a format for information you
want to present as a report

208. 5-210
Database InterrogationDatabase Interrogation
• SQL Queries
• Structured, international standard query language
found in many DBMS packages
• Query form is SELECT…FROM…WHERE…

209. 5-211
Database InterrogationDatabase Interrogation
• Boolean Logic
• Developed by George Boole in the mid-1800s
• Used to refine searches to specific information
• Has three logical operators: AND, OR, NOT
• Example
• Cats OR felines AND NOT dogs OR Broadway

210. 5-212
Database InterrogationDatabase Interrogation
• Graphical and Natural Queries
• It is difficult to correctly phrase SQL and other
database language search queries
• Most DBMS packages offer easier-to-use,
point-and-click methods
• Translates queries into SQL commands
• Natural language query statements are similar
to conversational English

211. 5-213
Graphical Query WizardGraphical Query Wizard

212. 5-214
Database MaintenanceDatabase Maintenance
• Accomplished by transaction processing systems
and other applications, with the support of the
DBMS
• Done to reflect new business transactions and
other events
• Updating and correcting data, such as customer
addresses

213. 5-215
Application DevelopmentApplication Development
• Use DBMS software development tools to
develop custom application programs
• Not necessary to develop detailed data-handling
procedures using conventional programming
languages
• Can include data manipulation language (DML)
statements that call on the DBMS to perform
necessary data handling

214. Telecommunications
and Networks
Telecommunications
and Networks

215. 6-217
Types of Communications NetworksTypes of Communications Networks
• Primary types of communications networks
• Wide Area
• Local Area
• Virtual Private
• Client/Server
• Peer-to-peer

216. 6-218
Wide Area Network (WAN)Wide Area Network (WAN)
• Telecommunication network that covers a large
geographic area

217. 6-219
Local Area Network (LAN)Local Area Network (LAN)
• Connects computers within a limited physical
area, such as an office, classroom, or building

218. 6-220
Virtual Private Networks (VPN)Virtual Private Networks (VPN)
• Used to establish secure intranets and extranets
• The Internet is the main backbone network
• Relies on network firewalls, encryption, and
other security features to build a “pipe” through
the Internet
• Creates a private network without the high
cost of a separate proprietary connection

219. 6-221
Virtual Private NetworkVirtual Private Network

220. 6-222
Client/Server NetworksClient/Server Networks
• Clients
• End user personal computers or networked
computers
• Servers
• Used to manage the networks
• Processing
• Shared between the clients and servers
• Sometimes called a two-tier architecture
• Larger computer systems are being replaced
with multiple client/server networks

221. 6-223
Client/Server NetworkClient/Server Network

222. 6-224
Network ComputingNetwork Computing
• Networks are the central computing resource
of the organization
• Thin clients provide a browser-based user
interface for processing applets
• Thin clients include
• Network computers
• Net PCs
• Other low-cost network devices or
information appliances

223. 6-225
Network ComputingNetwork Computing
• Application and database servers provide
• The operating system
• Application software
• Applets
• Databases
• Database management software
• Sometimes called a three-tier client/server
model because it consists of
• Thin clients
• Application servers
• Database servers

224. 6-226
Network ComputingNetwork Computing

225. 6-227
Peer-to-Peer NetworksPeer-to-Peer Networks
• Central Server Architecture
• P2P file-sharing software connects all PCs
to a central server
• When a PC requests a file, the server searches
all active peers on the network
• The server sends the requesting PC a list of
links to all active peers who have the file
• Clicking a link connects the two PCs and
automatically transfers the file to the
requesting PC

226. 6-228
Peer-to-Peer NetworksPeer-to-Peer Networks
• Pure Peer-to-Peer Architecture
• No central directory or server
• File-sharing software connects one PC to
another online user
• When you request a file, the software searches
every online user and sends you a list of active
file names
• Clicking a link automatically transfers the file
from that user’s hard drive to yours

227. 6-229
Central Server Peer-to-Peer NetworksCentral Server Peer-to-Peer Networks
• Advantages
• Can better protect the integrity and security
of the content and users of the network
• Disadvantages
• Directory server can be slowed or overwhelmed
by too many users or technical problems

228. 6-230
Peer-to-Peer Network DiagramsPeer-to-Peer Network Diagrams

229. 6-231
Digital and Analog SignalsDigital and Analog Signals
• Analog or digital refers to the method used to
convert information into an electrical signal
• Analog: an electrical current is generated that
is proportional to the quantity being observed
• Digital: the quantity being observed is expressed
as a number
• Analog: if the temperature is 83 degrees, a measuring
device would generate 8.3 volts
• Digital: a measurement of 83 degrees would be
displayed as the number 83

230. 6-232
Telecommunications MediaTelecommunications Media
• Twisted-Pair Wire
• Ordinary telephone wire
• Copper wire is twisted
into pairs

231. 6-233
Telecommunications MediaTelecommunications Media
• Coaxial Cable
• Sturdy copper or
aluminum wire wrapped
with spacers to insulate
and protect it

232. 6-234
Telecommunications MediaTelecommunications Media
• Fiber-Optic Cable
• One or more hair-thin
filaments of glass
fiber wrapped in a
protective jacket

233. 6-235
The Problem of “The Last Mile”The Problem of “The Last Mile”
• Network providers use fiber optic cable as a
communications backbone
• Houses connected to the backbone are wired
with twisted pair
• Users don’t benefit from the faster, better
technology

234. 6-236
Wireless TechnologiesWireless Technologies
• Terrestrial Microwave
• Earthbound microwave systems transmit
high-speed radio signals
• Follows a line-of-sight path between relay
systems spaced about 30 miles apart
• Communications Satellites
• Serve as relay stations
• Use microwave radio signals
• Earth stations beam signals to the satellites
• Not suitable for interactive, real-time processing

235. 6-237
Wireless TechnologiesWireless Technologies
• Cellular and PCS Telephone and Pager Systems
• Geographic areas are divided into cells
• Each cell has a low-power transmitter or radio
relay antenna
• Computers and other communications processors
coordinate and control the transmissions to and
from mobile users

236. 6-238
Wireless TechnologiesWireless Technologies
• Wireless LANS
• Uses wireless radio-wave technology to
connect PCs within an office or a building
• Can be high-frequency, similar to digital
cellular, or low frequency (spread spectrum)
• Bluetooth
• Short-range wireless technology
• Connects PCs to devices, such as a printer
• Fairly low cost to implement

237. 6-239
Wireless TechnologiesWireless Technologies
• Other Wireless Systems
• Cellular phones
• Mobile radio
• PDAs
• Telecommunications networks now play vital
and pervasive roles in
• Web-enabled e-business processes
• Electronic commerce
• Enterprise collaboration
• Other applications that support business
operations, management, and strategic objectives

238. 6-240
The Wireless WebThe Wireless Web
• Wireless Internet access is growing as Web-
enabled information appliances proliferate
• Smart telephones, pagers, PDAs
• All are very thin clients in wireless networks

239. 6-241
Telecommunications ProcessorsTelecommunications Processors
• Modems
• The most common type of communications
processor
• Converts a digital signal to an analog frequency
that can be transmitted over phone lines, then
back into a digital signal
• Modulation and demodulation

240. 6-242
Comparing TechnologiesComparing Technologies

241. 6-243
Inter-Network ProcessorsInter-Network Processors
• Switch… makes connections between
telecommunications circuits in a network
• Router… intelligent communications processor
that interconnects networks based on different
protocols
• Hub… a port-switching communications
processor
• Gateway… connects networks with different
communications architectures

242. 6-244
Communications ProcessorsCommunications Processors

243. 6-245
Communications ProcessorsCommunications Processors
• Multiplexer… allows a single communications
channel to carry simultaneous data transmissions
from many terminals
• In time division multiplexing (TDM), the
multiplexer divides the time each terminal can
use the high-speed into short time slots
• Multiplexers increase the number of
transmissions possible
• Does not increase the number of physical data
channels

244. 6-246
Telecommunications SoftwareTelecommunications Software
• May reside in PCs, servers, mainframes, and
communications processors
• Vital part of all telecommunications networks
• Used to manage network performance
• WANs often use telecommunications monitors
or teleprocessing monitors
• Other networks use operating system software
• Middleware helps diverse networks
communicate with each other

245. 6-247
Network Management FunctionsNetwork Management Functions
• Traffic Management
• Manage network resources and traffic to
avoid congestion and optimize service levels
• Security
• Provide authentication, encryption, firewall,
auditing, and enforcement
• Network Monitoring
• Troubleshoot and watch over the network,
alerting administrators of potential problems

246. 6-248
Network Management FunctionsNetwork Management Functions
• Capacity Planning
• Survey network resources, traffic patterns, and
users’ needs
• Determine the best way to accommodate the
needs of the network as it grows and changes

247. 6-249
Network TopologiesNetwork Topologies
• Topology
• The structure of a network
• Star Network
• Ties end user computers to a central computer
• Ring Network
• Ties local computer processors together in a ring
on a relatively equal basis
• Bus Network
• Local processors share the same communications
channel

248. 6-250
Network TopologiesNetwork Topologies
• Mesh Network
• Uses direct communications lines to connect
some or all of the computers in the ring to
each other
• Switch
• A message-switching computer that handles
data communication between autonomous
local computers

249. 6-251
Network TopologiesNetwork Topologies

250. 6-252
Network Architectures and ProtocolsNetwork Architectures and Protocols
• Protocol
• A standard set of rules and procedures for the
control of communications in a network
• Handshaking
• The process of exchanging predetermined
signals and characters
• Establishes a telecommunications session
between terminals and computers

251. 6-253
Network Architectures and ProtocolsNetwork Architectures and Protocols
• Network Architecture
• Master plan of standard protocols, hardware,
software, and interfaces between end users
and computer systems
• Goal is to promote an open, simple, flexible,
and efficient telecommunications environment

252. 6-254
OSI and TCP/IP ModelsOSI and TCP/IP Models
• Open Systems Interconnection (OSI) Model
• A seven-layer model that serves as a standard
model for network architectures
• Model for how messages should be transmitted
between two points in a network
• Each layer adds functions
• Transmission Control Protocol/Internet Protocol
(TCP/IP)
• A five-layer telecommunications protocol used by
the Internet

253. 6-255
OSI and TCP/IP ModelsOSI and TCP/IP Models

254. 6-256
Voice Over IPVoice Over IP
• Internet Telephony
• Using an Internet connection to pass voice
data using IP instead of a telephone network
• Often referred to as voice over IP or VoIP
• Works like a regular phone, but skips long-
distance charges
• Runs over standard network infrastructure
• Requires a well-configured network to work
smoothly

255. 6-257
BandwidthBandwidth
• Bandwidth
• The frequency range of a telecommunications
channel that determines the maximum
transmission rate
• Speed and capacity typically measured in bits
per second (bps)
• Sometimes call baud rate
• Transmission Rates
• Narrow-band = low speed
• Broadband = high speed

256. 6-258
Transmission SpeedsTransmission Speeds

257. 6-259
Switching AlternativesSwitching Alternatives
• Circuit Switching
• Switch opens a circuit to establish a link
between a sender and a receiver
• It remains open until the communication
session is completed
• Packet Switching
• Breaks messages into groups called packets
• Transmits packets separately

258. 6-260
Network InteroperabilityNetwork Interoperability
• Ensures that anyone anywhere on one network
can communicate with anyone anywhere on
another network
• From a telecommunications perspective, no
need to speak a common language
• Telecommunications would be possible without
• Complete accessibility
• Transparency
• Seamless interoperability across all networks

259. ElEctronic BusinEss systEmsElEctronic BusinEss systEms

260. 7-262
Enterprise Business SystemsEnterprise Business Systems
• E-business means using the Internet, other
networks, and IT to support
• Electronic commerce
• Enterprise communications and collaboration
• Web-enabled business processes
• E-commerce is the buying, selling, and
marketing of products, services, and information
over the Internet and other networks

261. 7-263
Cross-Functional SystemsCross-Functional Systems
• Cross the boundaries of traditional business
functions
• Used to reengineer and improve vital business
processes all across the enterprise

262. 7-264
Enterprise Application ArchitectureEnterprise Application Architecture

263. 7-265
Enterprise Application ArchitectureEnterprise Application Architecture
• Provides a conceptual framework
• Helps visualize the basic components, processes,
and interfaces of major e-business applications
• Focuses on accomplishing fundamental
business processes in concert with
• Customers
• Suppliers
• Partners
• Employees

264. 7-266
Enterprise Application ArchitectureEnterprise Application Architecture
• Enterprise Resource Planning (ERP)
• Concentrates on the efficiency of internal
production, distribution, and financial processes
• Customer Relationship Management (CRM)
• Focuses on acquiring and retaining profitable
customers via marketing, sales, and services
• Partner Relationship Management (PRM)
• Aims at acquiring and retaining partners who
can enhance the selling and distribution of
products and services

265. 7-267
Enterprise Application ArchitectureEnterprise Application Architecture
• Supply Chain Management (SCM)
• Focuses on developing the most efficient and
effective sourcing and procurement processes
• Knowledge Management (KM)
• Focuses on facilitating internal group
collaboration and decision support

266. 7-268
Enterprise Application IntegrationEnterprise Application Integration
• EAI software connects cross-functional systems
• Serves as middleware to provide
• Data conversion
• Communication between systems
• Access to system interfaces

267. 7-269
Transaction Processing SystemsTransaction Processing Systems
• Cross-functional information systems that
process data resulting from the occurrence of
business transactions
• Transactions include sales, purchases, deposits,
withdrawals, refunds, and payments
• Online transaction processing (OLTP) is a real-
time system that captures transactions
immediately

268. 7-270
Transaction Processing SystemsTransaction Processing Systems

269. 7-271
The Transaction Processing CycleThe Transaction Processing Cycle

270. 7-272
Enterprise Collaboration Systems (ECS)Enterprise Collaboration Systems (ECS)
• EC systems are cross-functional information
systems that enhance team and workgroup
• Communication
• Coordination
• Collaboration
• Systems may include
• Networked PC workstations
• Servers
• Databases
• Groupware and application packages

271. 7-273
ECS ToolsECS Tools

272. 7-274
Functional Business SystemsFunctional Business Systems
• A variety of types of information systems
that support the business functions of
• Accounting
• Finance
• Marketing
• Operations management
• Human resource management

273. 7-275
IT in BusinessIT in Business

274. 7-276
Marketing SystemsMarketing Systems
• Marketing systems are concerned with
• Planning, promotion, and sale of existing
products in existing markets
• Development of new products and new markets
• Better attracting and serving present and
potential customers

275. 7-277
Marketing Information SystemsMarketing Information Systems

276. 7-278
Interactive MarketingInteractive Marketing
• Interactive Marketing
• A customer-focused marketing process
• Uses the Internet, intranets, and extranets
• Establishes two-way transactions between a
business and its customers or potential customers
• Goal
• Profitably use networks to attract and keep
customers
• Get customers to help create, purchase, and
improve products and services

277. 7-279
Targeted MarketingTargeted Marketing
• An advertising and promotion management
concept with five targeting components

278. 7-280
Targeted Marketing ComponentsTargeted Marketing Components
• Community: customized ads to appeal to specific
virtual communities
• Content: ads placed on a variety of selected
websites, aimed at a specific audience
• Context: ads placed on web pages that are
relevant to a product or service
• Demographic/Psychographic: web marketing
aimed at specific types or classes of people
• Online behavior: promotions tailored to each
visit to a site by an individual

279. 7-281
Sales Force AutomationSales Force Automation
• Outfit sales force with notebook computers,
web browsers, and sales contact software
• Connect them to marketing websites and the
company intranet
• Goals
• Increase personal productivity
• Speed up capture and analysis of sales data
• Gain strategic advantage

280. 7-282
Manufacturing Information SystemsManufacturing Information Systems
• Supports the production/operations functions
• Includes all activities concerned with planning
and control of the processes producing goods
or services

281. 7-283
Computer-Integrated ManufacturingComputer-Integrated Manufacturing

282. 7-284
CIM ObjectivesCIM Objectives
• Simplify production processes, product designs,
and factory organization
• Automate production processes and the
business functions that support them
• Integrate all production and support
processes using
• Networks
• Cross-functional business software
• Other information technologies

283. 7-285
CIM SystemsCIM Systems
• Computer-aided manufacturing (CAM)
• Automate the production process
• Manufacturing execution systems (MES)
• Performance monitoring information systems
for factory floor operations
• Process control
• Control ongoing physical processes
• Machine control
• Controls the actions of machines

284. 7-286
Human Resource Management (HRM)Human Resource Management (HRM)
• Information systems designed to support
• Planning to meet personnel needs
• Development of employees to their full potential
• Control of all personnel policies and programs

285. 7-287
HRM SystemsHRM Systems

286. 7-288
HRM and the InternetHRM and the Internet
• Recruiting employees using the corporate
website and commercial recruiting services
• Posting messages in selected Internet
newsgroups
• Communicating with job applicants via e-mail

287. 7-289
HRM and Corporate IntranetsHRM and Corporate Intranets
• Corporate intranet uses
• Process common HRM transactions
• Allow around-the-clock HRM services
• Disseminate information faster than through
previous company channels
• Collect information from employees online
• Allow HRM tasks to be performed with little
HRM department intervention
• Training

288. 7-290
Employee Self-ServiceEmployee Self-Service
• Intranet applications can allow employees to
• View benefits
• Enter travel and expense reports
• Verify employment and salary information
• Access and update personal information
• Enter time-sensitive data

289. 7-291
Accounting Information SystemsAccounting Information Systems
• The oldest and most widely used information
system in business
• Records and reports business transactions and
economic events
• Produces financial statements
• Forecasts future conditions

290. 7-292
Accounting Information SystemsAccounting Information Systems
• Typically consists of
• Order processing
• Inventory control
• Accounts receivable
• Accounts payable
• Payroll
• General ledger systems

291. 7-293
Accounting Information SystemsAccounting Information Systems

292. 7-294
Financial Management SystemsFinancial Management Systems
• Supports business managers and professionals
making decisions concerning
• The financing of a business
• The allocation and control of financial
resources within a business

293. 7-295
Financial Management System ExampleFinancial Management System Example

294. EntErprisE BusinEss systEmsEntErprisE BusinEss systEms

295. 8-297
What is CRM?What is CRM?
• Managing the full range of the customer
relationship involves
• Providing customer-facing employees with a
single, complete view of every customer at
every touch point and across all channels
• Providing the customer with a single, complete
view of the company and its extended channels
• CRM uses IT to create a cross-functional
enterprise system that integrates and automates
many of the customer-serving processes

296. 8-298
Application Clusters in CRMApplication Clusters in CRM

297. 8-299
Contact and Account ManagementContact and Account Management
• CRM helps sales, marketing, and service
professionals capture and track relevant
data about
• Every past and planned contact with prospects
and customers
• Other business and life cycle events of customers
• Data are captured through customer touchpoints
• Telephone, fax, e-mail
• Websites, retail stores, kiosks
• Personal contact

298. 8-300
SalesSales
• A CRM system provides sales reps with the
tools and data resources they need to
• Support and manage their sales activities
• Optimize cross- and up-selling
• CRM also provides the means to check on a
customer’s account status and history before
scheduling a sales call

299. 8-301
Marketing and FulfillmentMarketing and Fulfillment
• CRM systems help with direct marketing
campaigns by automatic such tasks as
• Qualifying leads for targeted marketing
• Scheduling and tracking mailings
• Capturing and managing responses
• Analyzing the business value of the campaign
• Fulfilling responses and requests

300. 8-302
Customer Service and SupportCustomer Service and Support
• A CRM system gives service reps real-time
access to the same database used by sales
and marketing
• Requests for service are created, assigned,
and managed
• Call center software routes calls to agents
• Help desk software provides service data
and suggestions for solving problems
• Web-based self-service enables customers
to access personalized support information

301. 8-303
Retention and Loyalty ProgramsRetention and Loyalty Programs
• It costs 6 times more to sell to a new customer
• An unhappy customer will tell 8-10 others
• Boosting customer retention by 5 percent can
boost profits by 85 percent
• The odds of selling to an existing customer are
50 percent; a new one 15 percent
• About 70 percent of customers will do business
with the company again if a problem is quickly
taken care of

302. 8-304
Retention and Loyalty ProgramsRetention and Loyalty Programs
• Enhancing and optimizing customer retention
and loyalty is a primary objective of CRM
• Identify, reward, and market to the most loyal
and profitable customers
• Evaluate targeted marketing and relationship
programs

303. 8-305
The Three Phases of CRMThe Three Phases of CRM

304. 8-306
Benefits of CRMBenefits of CRM
• Benefits of CRM
• Identify and target the best customers
• Real-time customization and personalization
of products and services
• Track when and how a customer contacts
the company
• Provide a consistent customer experience
• Provide superior service and support across
all customer contact points

305. 8-307
CRM FailuresCRM Failures
• Business benefits of CRM are not guaranteed
• 50 percent of CRM projects did not produce
promised results
• 20 percent damaged customer relationships
• Reasons for failure
• Lack of understanding and preparation
• Not solving business process problems first
• No participation on part of business stakeholders
involved

306. 8-308
Trends in CRMTrends in CRM
• Operational CRM
• Supports customer interaction with greater
convenience through a variety of channels
• Synchronizes customer interactions consistently
across all channels
• Makes the company easier to do business with

307. 8-309
Trends in CRMTrends in CRM
• Analytical CRM
• Extracts in-depth customer history, preferences,
and profitability from databases
• Allows prediction of customer value
and behavior
• Allows forecast of demand
• Helps tailor information and offers to
customer needs

308. 8-310
Trends in CRMTrends in CRM
• Collaborative CRM
• Easy collaboration with customers,
suppliers, and partners
• Improves efficiency and integration
throughout supply chain
• Greater responsiveness to customer needs
through outside sourcing of products
and services

309. 8-311
Trends in CRMTrends in CRM
• Portal-based CRM
• Provides users with tools and information
that fit their needs
• Empowers employees to respond to
customer demands more quickly
• Helps reps become truly customer-faced
• Provides instant access to all internal and
external customer information

310. 8-312
ERP: The Business BackboneERP: The Business Backbone
• ERP is a cross-functional enterprise backbone
that integrates and automates processes within
• Manufacturing
• Logistics
• Distribution
• Accounting
• Finance
• Human resources

311. 8-313
What is ERP?What is ERP?
• Enterprise resource planning is a cross-functional
enterprise system
• An integrated suite of software modules
• Supports basic internal business processes
• Facilitates business, supplier, and customer
information flows

312. 8-314
ERP Application ComponentsERP Application Components

313. 8-315
ERP Process and Information FlowsERP Process and Information Flows

314. 8-316
Benefits and Challenges of ERPBenefits and Challenges of ERP
• ERP Business Benefits
• Quality and efficiency
• Decreased costs
• Decision support
• Enterprise agility
• ERP Costs
• Risks and costs are considerable
• Hardware and software are a small part
of total costs
• Failure can cripple or kill a business

315. 8-317
Costs of Implementing a New ERPCosts of Implementing a New ERP

316. 8-318
Causes of ERP FailuresCauses of ERP Failures
• Most common causes of ERP failure
• Under-estimating the complexity of planning,
development, training
• Failure to involve affected employees in
planning and development
• Trying to do too much too fast
• Insufficient training
• Insufficient data conversion and testing
• Over-reliance on ERP vendor or consultants

317. 8-319
Trends in ERPTrends in ERP

318. 8-320
Supply Chain Management (SCM)Supply Chain Management (SCM)
• Fundamentally, supply chain management
helps a company
• Get the right products
• To the right place
• At the right time
• In the proper quantity
• At an acceptable cost

319. 8-321
Goals of SCMGoals of SCM
• The goal of SCM is to efficiently
• Forecast demand
• Control inventory
• Enhance relationships with customers, suppliers,
distributors, and others
• Receive feedback on the status of every link in
the supply chain

320. 8-322
What is a Supply Chain?What is a Supply Chain?
• The interrelationships
• With suppliers, customers, distributors, and
other businesses
• Needed to design, build, and sell a product
• Each supply chain process should add value to
the products or services a company produces
• Frequently called a value chain

321. 8-323
Supply Chain Life CycleSupply Chain Life Cycle

322. 8-324
Electronic Data InterchangeElectronic Data Interchange
• EDI
• One of the earliest uses of information technology
for supply chain management
• The electronic exchange of business transaction
documents between supply chain trading partners
• The almost complete automation of an e-
commerce supply chain process
• Many transactions occur over the Internet, using
secure virtual private networks

323. 8-325
Typical EDI ActivitiesTypical EDI Activities

324. 8-326
Roles and Activities of SCM in BusinessRoles and Activities of SCM in Business

325. 8-327
Planning & Execution Functions of SCMPlanning & Execution Functions of SCM
• Planning
• Supply chain design
• Collaborative demand and supply planning
• Execution
• Materials management
• Collaborative manufacturing
• Collaborative fulfillment
• Supply chain event management
• Supply chain performance management

326. 8-328
Benefits and Challenges of SCMBenefits and Challenges of SCM
• Key Benefits
• Faster, more accurate order processing
• Reductions in inventory levels
• Quicker times to market
• Lower transaction and materials costs
• Strategic relationships with supplier

327. 8-329
Goals and Objectives of SCMGoals and Objectives of SCM

328. 8-330
Benefits and Challenges of SCMBenefits and Challenges of SCM
• Key Challenges
• Lack of demand planning knowledge, tools,
and guidelines
• Inaccurate data provided by other information
systems
• Lack of collaboration among marketing,
production, and inventory management
• SCM tools are immature, incomplete, and
hard to implement

329. 8-331
Trends in SCMTrends in SCM

330. ElEctronic commErcE SyStEmSElEctronic commErcE SyStEmS

331. 9-333
The Scope of e-CommerceThe Scope of e-Commerce

332. 9-334
E-Commerce TechnologiesE-Commerce Technologies

333. 9-335
Categories of e-CommerceCategories of e-Commerce
• Business-to-Consumer
• Virtual storefronts, multimedia catalogs,
interactive order processing, electronic payment,
online customer support
• Business-to-Business
• Electronic business marketplaces, direct links
between businesses, auctions and exchanges
• Consumer-to-Consumer
• Online auctions, posting to newspaper sites,
personal websites, e-commerce portals

334. 9-336
Essential e-Commerce ArchitectureEssential e-Commerce Architecture

335. 9-337
Access Control and SecurityAccess Control and Security
• E-commerce processes must establish mutual
trust and secure access between parties
• User names and passwords
• Encryption key
• Digital certificates and signatures
• Restricted access areas
• Other people’s accounts
• Restricted company data
• Webmaster administration areas

336. 9-338
Profiling and PersonalizingProfiling and Personalizing
• Profiling gathers data on you and your website
behavior and choices
• User registration
• Cookie files and tracking software
• User feedback
• Profiling is used for
• Personalized (one-to-one) marketing
• Authenticating identity
• Customer relationship management
• Marketing planning
• Website management

337. 9-339
Search ManagementSearch Management
• Search processes help customers find the specific
product or service they want
• E-commerce software packages often include
a website search engine
• A customized search engine may be acquired
from companies like Google or Requisite
Technology
• Searches are often on content or by parameters

338. 9-340
Content and Catalog ManagementContent and Catalog Management
• Content Management Software
• Helps develop, generate, deliver, update, and
archive text and multimedia information at
e-commerce websites
• Catalog Management Software
• Helps generate and manage catalog content
• Catalog and content management software works
with profiling tools to personalize content
• Includes product configuration and
mass customization

339. 9-341
Workflow ManagementWorkflow Management
• E-business and e-commerce workflow manage-
ment depends on a workflow software engine
• Contains software model of business processes
• Workflow models express predefined
• Sets of business rules
• Roles of stakeholders
• Authorization requirements
• Routing alternative
• Databases used
• Task sequences

340. 9-342
Example of Workflow ManagementExample of Workflow Management

341. 9-343
Event NotificationEvent Notification
• Most e-commerce applications are event driven
• Responds to such things as customer’s first
website visit and payments
• Monitors all e-commerce processes
• Records all relevant events, including problem
situations
• Notifies all involved stakeholders
• Works in conjunction with user-profiling software

342. 9-344
Collaboration and TradingCollaboration and Trading
• Processes that support vital collaboration
arrangements and trading services
• Needed by customers, suppliers, and other
stakeholders
• Online communities of interest
• E-mail, chat, discussion groups
• Enhances customer service
• Builds loyalty

343. 9-345
Electronic Payment ProcessesElectronic Payment Processes
• Complex processes
• Near-anonymous and electronic nature
of transactions
• Many security issues
• Wide variety of debit and credit alternatives
• Financial institutions may be part of the process

344. 9-346
Electronic Payment ProcessesElectronic Payment Processes
• Web Payment Processes
• Shopping cart process
• Credit card payment process
• Debit and other more complex processes
• Electronic Funds Transfer (EFT)
• Major payment system in banking, retail
• Variety of information technologies capture
and process money and credit card transfers
• Most point-of-sale terminals in retail stores
are networked to bank EFT systems

345. 9-347
Electronic Payment ExampleElectronic Payment Example

346. 9-348
Securing Electronic PaymentsSecuring Electronic Payments
• Network sniffers easily recognize credit card
formats
• Encrypt data between customer and merchant
• Encrypt data between customer and financial
institution
• Take sensitive information off-line

347. 9-349
E-Commerce Application TrendsE-Commerce Application Trends

348. 9-350
E-Commerce Success FactorsE-Commerce Success Factors
• Some of the success factors in e-commerce
• Selection and value
• Performance and service
• Look and feel
• Advertising and incentives
• Personal attention (one-to-one marketing)
• Community relationships
• Security and reliability

349. 9-351
Differences in MarketingDifferences in Marketing

350. 9-352
Web Store RequirementsWeb Store Requirements

351. 9-353
Developing a Web StoreDeveloping a Web Store
• Build a website
• Choose or set up web hosting
• Use simple design tools and templates
• Include a shopping cart and payment support
• Market the website
• Include Web page and e-mail advertising
and promotions
• Exchange advertising with other Web stores
• Register with search engines and directories
• Sign up for affiliate programs

352. 9-354
Serving Your CustomersServing Your Customers
• Convert visitors into loyal customers
• Develop one-to-one relationship with customers
• Create incentives to encourage registration
• Use Web cookies to identify visitors
• Use tracking services to record and analyze
website behavior and customer preferences
• Create an attractive, friendly, efficient store
• Offer fast order processing and payment
• Notify when orders are processed and shipped
• Provide links to related websites

353. 9-355
Managing a Web StoreManaging a Web Store
• Manage both the business and the website
• Record and analyze traffic, inventory, sales
• Use CRM features to help retain customers
• Link sales, inventory data to accounting systems
• Operate 24 hours a day, seven day a week
• Protect transactions and customer records
• Use security monitors and firewalls
• Use redundant systems and power sources
• Employ passwords and encryption
• Offer 24-hour tech support

354. 9-356
B2B E-CommerceB2B E-Commerce
• B2B is the wholesale and supply side of
the commercial process
• Businesses buy, sell, or trade with other
businesses
• Relies on multiple electronic information
technologies
• Catalog systems
• Trading systems
• Data interchange
• Electronic funds transfers

355. 9-357
E-Commerce MarketplacesE-Commerce Marketplaces
• One to Many
• Sell-side marketplaces
• One supplier dictates product offerings and prices
• Many to One
• Buy-side marketplaces
• Many suppliers bid for the business of a buyer
• Some to Many
• Distribution marketplaces
• Unites suppliers who combine their product
catalogs to attract a larger audience

356. 9-358
E-Commerce MarketplacesE-Commerce Marketplaces
• Many to Some
• Procurement marketplaces
• Unites major buyers who combine purchasing
catalogs
• Attracts more competition and thus lower prices
• Many to Many
• Auction marketplaces
• Dynamically optimizes prices

357. 9-359
E-Commerce PortalsE-Commerce Portals
• B2B e-commerce portals offer multiple
marketplaces
• Catalogs
• Exchanges
• Auctions
• Often developed and hosted by third-party
market-maker companies
• Infomediaries serve as intermediaries in
e-business and e-commerce transactions

358. 9-360
B2B E-Commerce Web PortalB2B E-Commerce Web Portal

359. 9-361
Clicks and BricksClicks and Bricks
• Success will go to those who can integrate
Internet initiatives with traditional operations
• Merging operations has trade-offs

360. 9-362
E-Commerce IntegrationE-Commerce Integration
• The business case for merging e-commerce
with traditional business operations
• Move strategic capabilities in traditional
operations to the e-commerce business
• Integrate e-commerce into the traditional
business
• Sharing of established brands
• Sharing of key business information
• Joint buying power and distribution efficiencies

361. 9-363
Other Clicks and Bricks StrategiesOther Clicks and Bricks Strategies
• Partial e-commerce integration
• Joint ventures and strategic partnerships
• Complete separation
• Spin-off of an independent e-commerce company
• Barnes and Noble’s experience
• Spun off independent e-commerce company
• Gained venture capital, entrepreneurial culture,
and flexibility
• Attracted quality management
• Accelerated decision making
• Failed to gain market share

362. 9-364
E-Commerce Channel ChoicesE-Commerce Channel Choices
• An e-commerce channel is the marketing or sales
channel created by a company for its
e-commerce activities
• There is no universal strategy or e-commerce
channel choice
• Both e-commerce integration and separation
have major business benefits and shortcoming
• Most businesses are implementing some
measure of clicks and bricks integration

363. 9-365
E-Commerce Strategy ChecklistE-Commerce Strategy Checklist
• Questions to ask and answer
• What audiences are we attempting to reach?
• What action do we want those audiences to take?
• Who owns the e-commerce channel within the
organization?
• Is the e-commerce channel planned alongside
other channels?
• Is there a process for generating, approving,
releasing, and withdrawing content?
• Will our brand translate to the new channel?
• How will we market the channel itself?

364. DEciSion Support SyStEmSDEciSion Support SyStEmS

365. 10-367
Levels of Managerial Decision MakingLevels of Managerial Decision Making

366. 10-368
Decision StructureDecision Structure
• Structured (operational)
• The procedures to follow when decision
is needed can be specified in advance
• Unstructured (strategic)
• It is not possible to specify in advance
most of the decision procedures to follow
• Semi-structured (tactical)
• Decision procedures can be pre-specified,
but not enough to lead to the correct decision

367. 10-369
Decision Support SystemsDecision Support Systems
Management Information
Systems
Decision Support
Systems
Decision
support
provided
Provide information about
the performance of the
organization
Provide information and
techniques to analyze
specific problems
Information
form and
frequency
Periodic, exception,
demand, and push reports
and responses
Interactive inquiries and
responses
Information
format
Prespecified, fixed format Ad hoc, flexible, and
adaptable format
Information
processing
methodology
Information produced by
extraction and manipulation
of business data
Information produced by
analytical modeling of
business data

368. 10-370
Decision Support TrendsDecision Support Trends
• The emerging class of applications focuses on
• Personalized decision support
• Modeling
• Information retrieval
• Data warehousing
• What-if scenarios
• Reporting

369. 10-371
Business Intelligence ApplicationsBusiness Intelligence Applications

370. 10-372
Decision Support SystemsDecision Support Systems
• Decision support systems use the following to support
the making of semi-structured business decisions
• Analytical models
• Specialized databases
• A decision-maker’s own insights and judgments
• An interactive, computer-based modeling process
• DSS systems are designed to be ad hoc,
quick-response systems that are initiated and
controlled by decision makers

371. 10-373
DSS ComponentsDSS Components

372. 10-374
DSS Model BaseDSS Model Base
• Model Base
• A software component that consists of
models used in computational and analytical
routines that mathematically express relations
among variables
• Spreadsheet Examples
• Linear programming
• Multiple regression forecasting
• Capital budgeting present value

373. 10-375
Applications of Statistics and ModelingApplications of Statistics and Modeling
• Supply Chain: simulate and optimize supply
chain flows, reduce inventory, reduce stock-outs
• Pricing: identify the price that maximizes
yield or profit
• Product and Service Quality: detect quality
problems early in order to minimize them
• Research and Development: improve quality,
efficacy, and safety of products and services

374. 10-376
Management Information SystemsManagement Information Systems
• The original type of information system
that supported managerial decision making
• Produces information products that support
many day-to-day decision-making needs
• Produces reports, display, and responses
• Satisfies needs of operational and tactical
decision makers who face structured decisions

375. 10-377
Management Reporting AlternativesManagement Reporting Alternatives
• Periodic Scheduled Reports
• Prespecified format on a regular basis
• Exception Reports
• Reports about exceptional conditions
• May be produced regularly or when an
exception occurs
• Demand Reports and Responses
• Information is available on demand
• Push Reporting
• Information is pushed to a networked computer

376. 10-378
Example of Push ReportingExample of Push Reporting

377. 10-379
Online Analytical ProcessingOnline Analytical Processing
• OLAP
• Enables managers and analysts to examine
and manipulate large amounts of detailed and
consolidated data from many perspectives
• Done interactively, in real time, with rapid
response to queries

378. 10-380
Online Analytical OperationsOnline Analytical Operations
• Consolidation
• Aggregation of data
• Example: data about sales offices rolled up
to the district level
• Drill-Down
• Display underlying detail data
• Example: sales figures by individual product
• Slicing and Dicing
• Viewing database from different viewpoints
• Often performed along a time axis

379. 10-381
OLAP ConfigurationOLAP Configuration

380. 10-382
Geographic Information SystemsGeographic Information Systems
• GIS
• DSS uses geographic databases to construct
and display maps and other graphic displays
• Supports decisions affecting the geographic
distribution of people and other resources
• Often used with Global Positioning Systems
(GPS) devices

381. 10-383
Data Visualization SystemsData Visualization Systems
• DVS
• Represents complex data using interactive,
three-dimensional graphical forms
(charts, graphs, maps)
• Helps users interactively sort, subdivide,
combine, and organize data while it is in its
graphical form

382. 10-384
DVS ExampleDVS Example

383. 10-385
Using Decision Support SystemsUsing Decision Support Systems
• Using a decision support system involves
an interactive analytical modeling process
• Decision makers are not demanding
pre-specified information
• They are exploring possible alternatives
• What-If Analysis
• Observing how changes to selected variables
affect other variables

384. 10-386
Using Decision Support SystemsUsing Decision Support Systems
• Sensitivity Analysis
• Observing how repeated changes to a single
variable affect other variables
• Goal-seeking Analysis
• Making repeated changes to selected variables
until a chosen variable reaches a target value
• Optimization Analysis
• Finding an optimum value for selected variables,
given certain constraints

385. 10-387
Data MiningData Mining
• Provides decision support through knowledge
discovery
• Analyzes vast stores of historical business data
• Looks for patterns, trends, and correlations
• Goal is to improve business performance
• Types of analysis
• Regression
• Decision tree
• Neural network
• Cluster detection
• Market basket analysis

386. 10-388
Analysis of Customer DemographicsAnalysis of Customer Demographics

387. 10-389
Market Basket AnalysisMarket Basket Analysis
• One of the most common uses for data mining
• Determines what products customers purchase
together with other products
• Results affect how companies
• Market products
• Place merchandise in the store
• Lay out catalogs and order forms
• Determine what new products to offer
• Customize solicitation phone calls

388. 10-390
Executive Information SystemsExecutive Information Systems
• EIS
• Combines many features of MIS and DSS
• Provide top executives with immediate and
easy access to information
• Identify factors that are critical to accomplishing
strategic objectives (critical success factors)
• So popular that it has been expanded to managers,
analysis, and other knowledge workers

389. 10-391
Features of an EISFeatures of an EIS
• Information presented in forms tailored to the
preferences of the executives using the system
• Customizable graphical user interfaces
• Exception reports
• Trend analysis
• Drill down capability

390. 10-392
Enterprise Information PortalsEnterprise Information Portals
• An EIP is a Web-based interface and integration
of MIS, DSS, EIS, and other technologies
• Available to all intranet users and select
extranet users
• Provides access to a variety of internal and
external business applications and services
• Typically tailored or personalized to the user
or groups of users
• Often has a digital dashboard
• Also called enterprise knowledge portals

391. 10-393
Dashboard ExampleDashboard Example

392. 10-394
Enterprise Information Portal ComponentsEnterprise Information Portal Components

393. 10-395
Enterprise Knowledge PortalEnterprise Knowledge Portal

394. 10-396
Artificial Intelligence (AI)Artificial Intelligence (AI)
• AI is a field of science and technology based on
• Computer science
• Biology
• Psychology
• Linguistics
• Mathematics
• Engineering
• The goal is to develop computers than can
simulate the ability to think
• And see, hear, walk, talk, and feel as well

395. 10-397
Attributes of Intelligent BehaviorAttributes of Intelligent Behavior
• Some of the attributes of intelligent behavior
• Think and reason
• Use reason to solve problems
• Learn or understand from experience
• Acquire and apply knowledge
• Exhibit creativity and imagination
• Deal with complex or perplexing situations

396. 10-398
Attributes of Intelligent BehaviorAttributes of Intelligent Behavior
• Attributes of intelligent behavior (continued)
• Respond quickly and successfully to new
situations
• Recognize the relative importance of
elements in a situation
• Handle ambiguous, incomplete, or
erroneous information

397. 10-399
Domains of Artificial IntelligenceDomains of Artificial Intelligence

398. 10-400
Cognitive ScienceCognitive Science
• Applications in the cognitive science of AI
• Expert systems
• Knowledge-based systems
• Adaptive learning systems
• Fuzzy logic systems
• Neural networks
• Genetic algorithm software
• Intelligent agents
• Focuses on how the human brain works
and how humans think and learn

399. 10-401
RoboticsRobotics
• AI, engineering, and physiology are the basic
disciplines of robotics
• Produces robot machines with computer
intelligence and humanlike physical capabilities
• This area include applications designed to
give robots the powers of
• Sight or visual perception
• Touch
• Dexterity
• Locomotion
• Navigation

400. 10-402
Natural InterfacesNatural Interfaces
• Major thrusts in the area of AI and the
development of natural interfaces
• Natural languages
• Speech recognition
• Virtual reality
• Involves research and development in
• Linguistics
• Psychology
• Computer science
• Other disciplines

401. 10-403
Latest Commercial Applications of AILatest Commercial Applications of AI
• Decision Support
• Helps capture the why as well as the what of
engineered design and decision making
• Information Retrieval
• Distills tidal waves of information into simple
presentations
• Natural language technology
• Database mining

402. 10-404
Latest Commercial Applications of AILatest Commercial Applications of AI
• Virtual Reality
• X-ray-like vision enabled by enhanced-reality
visualization helps surgeons
• Automated animation and haptic interfaces
allow users to interact with virtual objects
• Robotics
• Machine-vision inspections systems
• Cutting-edge robotics systems
• From micro robots and hands and legs, to cognitive
and trainable modular vision systems

403. 10-405
Expert SystemsExpert Systems
• An Expert System (ES)
• A knowledge-based information system
• Contain knowledge about a specific, complex
application area
• Acts as an expert consultant to end users

404. 10-406
Components of an Expert SystemComponents of an Expert System
• Knowledge Base
• Facts about a specific subject area
• Heuristics that express the reasoning procedures
of an expert (rules of thumb)
• Software Resources
• An inference engine processes the knowledge
and recommends a course of action
• User interface programs communicate with
the end user
• Explanation programs explain the reasoning
process to the end user

405. 10-407
Components of an Expert SystemComponents of an Expert System

406. 10-408
Methods of Knowledge RepresentationMethods of Knowledge Representation
• Case-Based
• Knowledge organized in the form of cases
• Cases are examples of past performance,
occurrences, and experiences
• Frame-Based
• Knowledge organized in a hierarchy or
network of frames
• A frame is a collection of knowledge about
an entity, consisting of a complex package
of data values describing its attributes

407. 10-409
Methods of Knowledge RepresentationMethods of Knowledge Representation
• Object-Based
• Knowledge represented as a network of objects
• An object is a data element that includes both
data and the methods or processes that act on
those data
• Rule-Based
• Knowledge represented in the form of rules
and statements of fact
• Rules are statements that typically take the
form of a premise and a conclusion (If, Then)

408. 10-410
Expert System Application CategoriesExpert System Application Categories
• Decision Management
• Loan portfolio analysis
• Employee performance evaluation
• Insurance underwriting
• Diagnostic/Troubleshooting
• Equipment calibration
• Help desk operations
• Medical diagnosis
• Software debugging

409. 10-411
Expert System Application CategoriesExpert System Application Categories
• Design/Configuration
• Computer option installation
• Manufacturability studies
• Communications networks
• Selection/Classification
• Material selection
• Delinquent account identification
• Information classification
• Suspect identification
• Process Monitoring/Control

410. 10-412
Expert System Application CategoriesExpert System Application Categories
• Process Monitoring/Control
• Machine control (including robotics)
• Inventory control
• Production monitoring
• Chemical testing

411. 10-413
Benefits of Expert SystemsBenefits of Expert Systems
• Captures the expertise of an expert or group of
experts in a computer-based information system
• Faster and more consistent than an expert
• Can contain knowledge of multiple experts
• Does not get tired or distracted
• Cannot be overworked or stressed
• Helps preserve and reproduce the knowledge
of human experts

412. 10-414
Limitations of Expert SystemsLimitations of Expert Systems
• The major limitations of expert systems
• Limited focus
• Inability to learn
• Maintenance problems
• Development cost
• Can only solve specific types of problems
in a limited domain of knowledge

413. 10-415
Developing Expert SystemsDeveloping Expert Systems
• Suitability Criteria for Expert Systems
• Domain: the domain or subject area of
the problem is small and well-defined
• Expertise: a body of knowledge, techniques,
and intuition is needed that only a few people
possess
• Complexity: solving the problem is a complex
task that requires logical inference processing

414. 10-416
Developing Expert SystemsDeveloping Expert Systems
• Suitability Criteria for Expert Systems
• Structure: the solution process must be able
to cope with ill-structured, uncertain, missing,
and conflicting data and a changing problem
situation
• Availability: an expert exists who is articulate,
cooperative, and supported by the management
and end users involved in the development
process

415. 10-417
Development ToolDevelopment Tool
• Expert System Shell
• The easiest way to develop an expert system
• A software package consisting of an expert
system without its knowledge base
• Has an inference engine and user interface
programs

416. 10-418
Knowledge EngineeringKnowledge Engineering
• A knowledge engineer
• Works with experts to capture the knowledge
(facts and rules of thumb) they possess
• Builds the knowledge base, and if necessary,
the rest of the expert system
• Performs a role similar to that of systems
analysts in conventional information systems
development

417. 10-419
Neural NetworksNeural Networks
• Computing systems modeled after the brain’s
mesh-like network of interconnected processing
elements (neurons)
• Interconnected processors operate in parallel
and interact with each other
• Allows the network to learn from the data it
processes

418. 10-420
Fuzzy LogicFuzzy Logic
• Fuzzy logic
• Resembles human reasoning
• Allows for approximate values and
inferences and incomplete or ambiguous data
• Uses terms such as “very high” instead of
precise measures
• Used more often in Japan than in the U.S.
• Used in fuzzy process controllers used in
subway trains, elevators, and cars

419. 10-421
Example of Fuzzy Logic Rules and QueryExample of Fuzzy Logic Rules and Query

420. 10-422
Genetic AlgorithmsGenetic Algorithms
• Genetic algorithm software
• Uses Darwinian, randomizing, and other
mathematical functions
• Simulates an evolutionary process, yielding
increasingly better solutions to a problem
• Being uses to model a variety of scientific,
technical, and business processes
• Especially useful for situations in which
thousands of solutions are possible

421. 10-423
Virtual Reality (VR)Virtual Reality (VR)
• Virtual reality is a computer-simulated reality
• Fast-growing area of artificial intelligence
• Originated from efforts to build natural, realistic,
multi-sensory human-computer interfaces
• Relies on multi-sensory input/output devices
• Creates a three-dimensional world through
sight, sound, and touch
• Also called telepresence

422. 10-424
Typical VR ApplicationsTypical VR Applications
• Current applications of virtual reality
• Computer-aided design
• Medical diagnostics and treatment
• Scientific experimentation
• Flight simulation
• Product demonstrations
• Employee training
• Entertainment

423. 10-425
Intelligent AgentsIntelligent Agents
• A software surrogate for an end user or a
process that fulfills a stated need or activity
• Uses built-in and learned knowledge base
to make decisions and accomplish tasks in
a way that fulfills the intentions of a user
• Also call software robots or bots

424. 10-426
User Interface AgentsUser Interface Agents
• Interface Tutors – observe user computer
operations, correct user mistakes, provide
hints/advice on efficient software use
• Presentation Agents – show information in a
variety of forms/media based on user preferences
• Network Navigation Agents – discover paths
to information, provide ways to view it based
on user preferences
• Role-Playing – play what-if games and other
roles to help users understand information and
make better decisions

425. 10-427
Information Management AgentsInformation Management Agents
• Search Agents – help users find files and
databases, search for information, and suggest
and find new types of information products,
media, resources
• Information Brokers – provide commercial
services to discover and develop information
resources that fit business or personal needs
• Information Filters – Receive, find, filter,
discard, save, forward, and notify users about
products received or desired, including e-mail,
voice mail, and other information media