Digital convergence and the changing business environment

Four powerful worldwide changes had altered the business environment. The first change is emergence
and strengthening of the global economy. The second change is transformation of industrial economies
and societies information knowledge and information based services economies. The third is the
transformation of the business enterprise. The fourth is the emergence of the digital firm.
1. Emergence of the Global Economy
- The success of firms today and in future depends on their ability to operate globally.
- Today information system provides the communication and analytic power that firms need for
conducting trade and managing business on a global scale.
- Globalization and IT also brings new threats to domestic business firm because of global
communication and management system, customers now can shop in a world-wide market place,
obtaining price and quality information reliably 24hrs a day. To become competitive participants in
international markets, firms need powerful information and communication systems.
2. Transformation of Industrial Economies
- The US, Japan, Germany and other major industrial power are transformed from industrial economies
to knowledge and information based service economies, whereas manufacturing has been moving to low-
wage countries.
- Knowledge and information work new accounts for large percentage of people in developed countries.

Knowledge and information are becoming the foundation for mainly new services and products.
Knowledge and information intense products such as computer games require a great deal of knowledge
to produce.
- In a Knowledge and information based economy, IT and systems take an great importance knowledge
based products and services of great economic value such as credit cards, overnight package delivery and
world-wide reservation system are based on new information technology.

3. Transformation of Business Enterprise

-The traditional business firm was and still is a hierarchical, centralized, structured arrangement of
specialist that typically relied on a fixed set of standard operating procedures to deliver a product or
services. The new style of business firm is a flattened(less hierarchical), decentralized, flexible
arrangements of generalist ho rely on nearly instant information to deliver specific markets or customers.
-The traditional management globe relied and still relies on formal plants, or rigid division of labor and
formal rules. The new manager relies on information commitments and networks to establish goals rather
than formal planning, a flexible arrangement of teams and individuals working in task forces, and a
customer orientation to achieve co-ordination among employees. The new manager appeals to the
knowledge, learning and decision making of individual employees to ensure proper operation of the firm.
Information technology makes this type of management possible.
4. The Emerging Digital Firm

-Intensive use of IT in business firms since mid-1990s’, covered with equally significant organizational
re-designed, has created the conditions for a new phenomenon in industrial society- called the fully
digital firm. The digital firm can be defined along several dimensions. A digital firm is one where nearly
all of the organization’s significant business relationships with customers, suppliers and employees are
digitally enabled and mediated. Core business processes are accomplished through digital network
spanning entire organization or linking multiple organizations. Business processes refers to the unique
manner in which work is organized, coordinated and focused to produce a valuable product or services.
Developing a new product, generating and fulfilling an order or hiring an employee are examples of
business processes and the way organizations accomplish their business processes can be a source of
competitive strength.
In a digital firm any piece of information required to support key business decisions is available at
anytime and anywhere in the firm. Digital firms sense and respond to their environment far more rapidly
than traditional firms. Digital firms offer extraordinary opportunities for more global organization and
management. For managers of digital firms, IT is not simply a useful hand but rather it is the core of
business and a primary management tool.
There are four major system that help define the digital firm:-
i. Supply Chain Management System
ii. Customer Relationship Management system
iii. Enterprise System
iv. Knowledge Management System

These four systems represent the areas where corporations are digitally integrating their information
flows and making major information system investment.
A few firms such as Cisco Systems or Dell Computer Corporation are close to becoming fully digital
firms using the internet to drive every aspect of their business.
i. Supply Chain Management System

Information system that automate the relationship between a supplier and customer and its supplies in
order to optimize the planning, sourcing, manufacturing and delivery of products and services.
ii. Customer Relationship Management system

Information systems for creating a coherent integrated view of all of the relationships a firm maintains
with its customers.
iii. Enterprise System

Integrated enterprises-wide information systems that coordinate key internal processes of the firms,
integrated data from manufacturing and distribution finance, sales, and human resource.
iv. Knowledge Management System

System that supports the creation, capture, storage of knowledge in the firm and use by the firm
expertise.
An information system contains information about an organization and its surrounding environment.
Three basic activities – input, processing, and output produce the information organization needs.
Feedback is output returned to appropriate people or activities in the organization to evaluate and refine
the input environment factors such as customers, suppliers, competitors, stock holders and regulatory
agencies interact with the organization and its information.

Fig: Function of an Information System

An information system contents information about an organization and its surrounding environment.
Three basic activities – input, processing, and output produce the information organization needs.
Feedback is output returned to appropriate people or activities in the organization to evaluate and
refine the input environment factors such as customers, suppliers, competitors, stock holders and
regulatory agencies interact with the organization and its information.

A business Perspective on Information System

Using Information System effectively requires an understanding of the organization, management and
IT shaping the systems. All information systems can be described as organizational and management
solutions to challenges posed by the environment that will help create value for the firm.

Contemporary Approach to Information System:

1. Technical Approach
- It emphasis mathematically based models to study Information System, as well as the physical
technology and formal capabilities of these systems.
- The disciplines that contribute to technical approach are computer science, management science and
operation research.
- Computer science is concerned with establishing theories of computability, methods of computation and
methods of efficient data storage and access.

2. Behavioral Approach
- It is concern with behavioral issues that arise in the development and long term maintenance of
information system.
- Issues such as strategic business integration design, implementation, utilization and management cannot
be explored usefully with the models used in technical approach.
- Other behavioral contribute system with an eye toward how group and organizations shape the
development of the system and also how systems affect individuals groups and organizations.
- Psychologist study information system with an interest in how human decision makers perceive and use
formal information.

Behavioral approach does not ignore technology. Indeed information system technology is often the
stimulus for a behavioral problem or issues.
- Focus of behavioral approach is generally not on technical solutions. Instead, it concentrates on
attitudes, management and organizational policy and behavioral.
The Challenges of Information System
1. The Strategic Business Challenge
2. The Globalization Challenge
3. The Information Architecture and Infrastructure Challenge
4. The Information System Investment Challenge
5. The Responsibility and Control Challenge

Fig: IT Infrastructure and IS Architecture

Organizations and Information System:

(Fig Relationship between an organization & IT)

Information systems and organizations influence one another. Information systems must be aligned with
the organization to provide information that important groups within the organization need. At the same
time the organization must be aware of and be open influences of information systems in order to benefit
from new technologies.
The interaction between IT and organizations is very complex and is influence by a great many mediating
factors including organizations structure, standard operating procedure, politics, culture, surrounding
environment and management decisions.
What is an Organization?????

(Fig: technical Microeconomic definition of organization. )

An organization is a stable, formal, social structure that takes resources from the environment and
processes them to produce outputs. This technical definition focuses on three elements of an
organization. Capital and labor are primary production factors provided by the environment. The
organization (the firm) transforms these inputs into products and services in a production function. An
organization is more stable then an informal group in terms of longevity and routines. Organizations are
formal legal entities with internal rules and procedures that must abide by laws. Organizations are also
social structures because they are a collection of social elements.
 Structure
•Hierarchy
•Division of Labor
•Rules, procedures
•Business processes
Process
Environmental Resource Environmental output
•Rights/obligations
•Privilege/responsibilities
•Values
•Norms
•People

(Fig: The behavioral view of organization )

A more realistic behavioral definition of an organization is that is a collection of rights, privilege,

obligations and responsibilities that are delicately balanced over a period of time through conflict
resolution. In this behavioral view of firm, people who work in organizations develop ways of working;
they gain attachments to existing relationship; and they make arrangements and subordinates and
superior about how work will be done, how much work will be done and under what condition.

Common features of organization

• Clear division of labor
• Hierarchy
• Explicit rules and procedures
• Impartial judgments
• Technical qualification for position
• Maximum organization efficiency
In addition to Weber’s common feature all organizations develop SOP, organizational politics and
organizational culture.
Unique Features of Organizations
Organizational Type
Environments
Goals
Power
Constituencies
Function
Leadership
Tasks
Technology
Business Processes

Organizational Type
1. Entrepreneurial type ->small start-up business
2. Machine bureaucracy -> middle size manufacturing firms
3. Divisionalized bureaucracy -> combination of multiple machine bureaucracies
4. Professional bureaucracy -> intellectual firms (eg: schools, college, etc)
5. Adhocracy -> consulting firms

Organizations have different shapes or structure for many other reasons. They differ in their ultimate
goals and the types of power used to achieve them some organizations have utilitarian goals (business),
others have normative goods (universities, religious groups). Organizations also serve different groups
or have different constituencies, some primarily benefiting their members, others benefiting clients,
stock holders or the public. The nature of leadership differs greatly from one to another organization.
Some organizations may more democratic than other. Another way organization differs is by task they
perform and the technology they use. Some organization perform primarily routine task that could be
reduced to formal use that require little judgment.

How information system impact organizations and business firm

• Economic Impact

(Fig 1: The transaction cost theory of the Impact of IT on organization)

(Fig 2: The agency cost theory of the impact of IT on Organization)


Behavioral Impact
Information technology may encourage task force network organization in which groups of professional
come together face to face electronically for short period of time to accomplish a specific task; once the
task is compiled the individuals joint other task forces. More firms may operate as virtual organizations
where work no longer is tied to geographical location. Virtual organization use networks to link people,
assets, and ideas.
Another behavioral approach views information systems as the outcome of political competition between
organizational groups for influence over the organizations policies, procedures, and resources.
Information systems potentially change an organizations structure, culture, politics, and work.

The role of manager’s in organizations

Classical Model
- Classical Function of Managers:-

(According to Henri Fayol and others in 1920’s)

Planning, organizing, coordinating, deciding, controlling
- These are just formal managerial function and are unsatisfactory as a description of what managers
actually do when they plan, decide things and control work.
- Behavioral model state that the actual behavior of managers appears to be less systematic, more
informal, less reflective, more reactive, less well-organized and much more frivolous (assuming, silly)
than the classical model.
- According to behavioral model there are mainly three roles played by managers
1. Interpersonal Roles
2. Informational Roles
3. Decisional Roles

Managers and Decision Making

Types of Decision
• Structured
• Semi Structured
• Unstructured

Concept of Data & Information

Data – Data is a set of characters or symbols like numeric,
alphabetic or alphanumeric, audio, video, images or any
combination of these. Raw facts & figure are known as data.
Information –Processed data is known as information. System –
System is set of components which interact with each other to
accomplish a specific goal. 1 Human body and its subsystem could
be nervous system, digestive system and cardiac system etc 2
Computer system and it has various subsystem like ALU, CU, Memory, Input unit and
Output unit etc.
Characteristics of system
Every system has a purpose.
Every system is made up of components like input process output, feedback and control etc.
System is made up of subsystem, whose goals are referred to as sub goals.
Goal of a system is more important than subsystem goal.
Systems whether open or closed have an element of control associated with them.

Types of System
There is several way of classifying systems that emphasizes the differences. Classification of system
is as follows- Open & Closed Systems –An open system interfaces and interacts with other system.
An open system needs to receive feedback to change and continue to exist in its environment.
Example – A marketing system is an open system. A closed system does not exchange the
information with its environment. It does not have any connection to the other system. Example –
Research & development of organization, ICU dept. of hospital, etc. Physical & Abstract System –
Physical system are tangible entities that may be static or dynamic in operations. For example the
physical parts of the computer center are the computers, desk, chair, etc. that facilitate operation of
the computer. Abstract systems are conceptual and non physical entities. They may be formulas of
relationship among set of variables or models, software / program. Deterministic & Probabilistic
System – A deterministic system works with certainty in predictable manner. The interaction
among its subsystem is known in advance. One state of the system determines the next state of the
system. Example – A computer system which works on the principal GIGO. A probabilistic system
operates with uncertainty as certain degree of error is always attached with prediction of what the
system will do. Example – A student admission system in a college is probable in nature. Systems
approach is an organized way of dealing with a problem.
Information system
Information system are a set of people, procedure and resources that collects , transforms and
disseminates information in an organization There are six building block of information system, is
the input, output, technology, models, database and control.
Types of Information System- there are two types of information system.
1. Operation Information system – it process the data generated by and used in business operation.
It is of two types:-
Transaction processing system
Office Automation system

2 . Management information System – MIS provide information to support management decision

making.
Decision Support System
Executive information System
Business organization as a system An organization is an open, adaptive system in a business
environment. A business consist of following system component – 1 Input 2 Processing 3 Outputs 4
Feedback 5 Control 6 Environment
Information Needs
There are different levels of the organization and the information requirement is different for the
different layers.
At the organizational level, information requirements define an overall structure for the
information system and specific applications and database.
Application level requirements include social or behavioral- covering work organization objectives,
individual roles and responsibility assumptions, and organizational policies and technical, which
are based on the information needed for the job to be performed.
 At the user level, database requirement can be classified as perceived by the user or as required for
physical design of the database.

Data: - Raw facts and figures are known as data. Information: - Processed data is known as
information.
DATA process INFORMATION

Data Processing – it is basically concern with converting raw data in to well order information.
Need for data processing – it reduce the paper work for increasing volume of data.

Collection Conversion Manipulation Storage Communication

Originating Coding Sorting Storing Reproduction

Measuring Classifying Calculating Retrieving
Comparing Verifying Summarizing
Recording Transforming Comparing

Collection – Data originates in the form of events transactions or some observations. This data is
then recorded in some usable form.
2. Conversion – once the data is collected, it is converted from its source document to a form that is
more suitable for processing.
3. Manipulation – Once data is collected and converted it is ready for manipulation functions
which convert data into information. Manipulation consists of following activities –
a. Sorting
b. Calculating ]
c. Summarizing
d. Comparing
4. Managing the output result – Once data has been captured and manipulated following activities
may be carried out
a. Storing
b. Retrieving
5. Communication – It is a process of sharing information.
Data processing cycle & Function –
a. Originating
b. Input
c. Manipulation- it consist of sorting, classification, calculating, scanning etc.
d. Output – output is concern with reporting, retrieval, storage etc.
Component of data processing
a. Data Input
b. Data Processing
c. Maintaining Files & Record
d. Data Procedure & Instruction
e. Output
Classification by Characteristic
Based on Anthony's classification of Management, information used in business for decision-
making is generally categorized into three types −
 Strategic Information − Strategic information is concerned with long term policy
decisions that defines the objectives of a business and checks how well these objectives
are met. For example, acquiring a new plant, a new product, diversification of business
etc, comes under strategic information.
 Tactical Information − Tactical information is concerned with the information needed for
exercising control over business resources, like budgeting, quality control, service level,
inventory level, productivity level etc.
 Operational Information − Operational information is concerned with plant/business
level information and is used to ensure proper conduction of specific operational tasks as
planned/intended. Various operator specific, machine specific and shift specific jobs for
quality control checks comes under this category.

 Classification by Application
 In terms of applications, information can be categorized as −

 Planning Information − These are the information needed for establishing standard
norms and specifications in an organization. This information is used in strategic, tactical,
and operation planning of any activity. Examples of such information are time standards,
design standards.

 Control Information − This information is needed for establishing control over all
business activities through feedback mechanism. This

Data Processing System

The activity of data processing can be viewed as a "system". According to James O'brien a system
can be defined as "a group of interrelated components that seeks the attainment of a common goal
by accepting inputs and producing outputs in an organized process". For example, a production
system accepts raw material as input and produces finished goods as output. Similarly, a data
processing system can be viewed as a system that uses data as input and processes this data to
produce information as output.
Types of data processing:- Data processing applications very considerable and although different
data processing applications are not quite the same yet it is still possible to identify a number of
distinct, types of data processing systems. Data processing system may be categorized under three
main types: 1. Systems where processing is done periodically 2. Real-time systems 3. Database
systems These three types of systems are further divided into sub-categories.
Systems where processing is done periodically/ Batch Processing:-
The main feature of such system is that they handle large amount of data. The data, which these
systems handle, is of the same type. As the volume of data is of an identical type. The data may be
processes in batches in one time. It should be noted that the stored in the form of files. This helps to
standardize the data. This is the reason these systems are also referred to as „file processing
systems. e.g. payroll system.
Real-time systems
In real time processing the computer keeps pace with some external process. Small
quantities of data are processed in one operation. The delay in processing the data, which
vary from a fraction of a second to a couple of minutes, is acceptable to the user of the
system. Three types of real time system may be identified, through the distinction between them is
not very apparent.
The three types are
Process control
Information storage and retrieval
Transaction processing

Database systems Database systems use one store of information to support all data processing.
The database is independent of any individual Manual data processing system – Data processor is
Human being, input received through hearing & seeing sense and output record in files. There are
many kinds of data processing systems. A manual data processing system is one that utilizes tools
like pens, and filing cabinets.
A system which does not use any computer devices, all data would be kept in other ways,
mainly paper. As a few examples: Before accounts, payroll and spreadsheet applications,
people would have worked out this kind of information on paper. People would have
handwritten letters or used typewriters. Instead of word processors, Graphs and diagrams would
have been drawn by hand instead of using computer software to do them.
Advantages of manual data processing system:-
No training cost
No set up cost
Less indirect cost(electricity bill)
Disadvantages of manual data processing system:-
Inconsistency in data entry, room for errors, miskeying information.
Large ongoing staff training cost.
System is dependent on good individuals.
Reduction in sharing information and customer services.
Time consuming and costly to produce reports.
Lack of security.
Duplication of data entry.

Electronic data processing system – It is computerized system which process data automatically. A
mechanical data processing system uses devices such as typewriters, calculating machines and
book-keeping machines. Finally, electronic data processing uses computers to automatically process
data. Advantages of computer data processing system:-
Faster and efficient
Automatic generation of documents
Timely
Provides Reports

Disadvantages of computer data processing system:-

 Power failure, computer viruses and hacking are inherent problem.

 security
Steps required for converting manual information system into Computerized System – The
following steps are involved:-
a. System Description:-

After preliminary investigation and definition of the problem, the system description is generally
prepared. It is essentially a statement of the major inputs, outputs, processing operations and files
needed. Its purpose is to show the logical flow of information and the logical operations necessary
to carry out the particular design alternative chosen. It is in two forms:-
Narrative:- It is general English depiction of the operation of the system. It should describe inputs,
outputs, files and operations
Pictorial:- It provides a visual overview of the entire operation
Types of Information system
1. TPS (Transaction Processing System): TPS are the basic business systems that serve the operational
level of the organization. A TPS is a computerized system that performs and records the daily routine
transactions necessary to conduct business. Examples are sales order entry, hotel reservation system,
payroll, employee record keeping, etc.

Managers need TPS to monitor the status of internal operations and firm’s relations with external
environment. TPS are also measure producers of information for the other type of system.
Examples of transaction processing systems:

Point of Sale Systems – records daily sales

Payroll systems – processing employees salary, loans management, etc.
Stock Control systems – keeping track of inventory levels
Airline booking systems – flights booking management
2. KWS (Knowledge Work System) and Office Systems: KWS and office systems serve the
information needs at the knowledge level of organization. Knowledge work system aid knowledge
workers whereas office systems primarily aid data workers. Knowledge workers are people who hold
formal university degrees and who are often members of

recognized profession such as engineers, doctors, lawyers, scientists, etc. Their jobs consist primarily of
creating new information and knowledge. Data workers typically have less formal advanced educational
degrees and tend to process rather than create information. They consist primarily of secretaries, book-
keepers, filing clerks or managers whose jobs are principally to use and manipulate information.

3. MIS
It is the Information system at the management level of an organization that serve the functions of
planning, controlling and decision making by providing routine summary and exception reports.
MIS serve the management level of organization as stated above with online access to the organization’s
current performance and historical records. Typically they are oriented almost exclusively to internal, not
environmental or external events. MIS depend on TPS for their data. It summarize and report on the
company’s basic operations. MIS usually serve managers interest in weekly, monthly and yearly results
not day to day activities.
Examples of management information systems include;

Sales management systems – they get input from the point of sale system
Budgeting systems – gives an overview of how much money is spent within the organization for the
short and long terms.
Human resource management system – overall welfare of the employees, staff turnover, etc.
Tactical managers are responsible for the semi-structured decision. MIS systems provide the information
needed to make the structured decision and based on the experience of the tactical managers, they make
judgement calls i.e. predict how much of goods or inventory should be ordered for the second quarter
based on the sales of the first quarter.
4. DSS (Decision Support System)

It is the information system at the organizations management level that combines data and sophisticated
analytical models or data analysis tools to support semi-structured and unstructured decision making.
DSS use internal information from TPS and MIS; they often bring in information from external sources
such as current stock prices or product prices of competitors. DSS have more analytical power then other
systems. It is an interactive system in which user can change assumptions, ask new questions and include
new data.
5. ESS (Executive Support System)

It is the information system at the organizations strategic level designed to address unstructured decision
making through advanced graphic and communication. ESS is designed to incorporate data about
external events such as new tan laws and competitors. They filter, compares and track critical data,
emphasizing the reduction of time and effort required to obtain information useful to executive. ESS
employs the most advanced graphic software and can deliver graphs and data from many sources
immediately to a senior executive’s office or to a board room.
According to functions or behavior IS can be divided into following types:-
Sales and Marketing System
Manufacturing and Production Systems
Finance and Accounting Systems
Human Resources Systems

Group Decision Support System (GDSS)

A group decision support system (GDSS) is an interactive computer based system that facilitates a
number of decision-makers (working together in a group) in finding solutions to problems that are
unstructured in nature. They are designed in such a way that they take input from multiple users
interacting simultaneously with the systems to arrive at a decision as a group.

The tools and techniques provided by group decision support system improve the quality and
effectiveness of the group meetings. Groupware and web-based tools for electronic meetings and
videoconferencing also support some of the group decision making process, but their main
function is to make communication possible between the decision makers. In a group decision
support system (GDSS) electronic meeting, each participant is provided with a computer. The
computers are connected to each other, to the facilitator’s computer and to the file server. A
projection screen is available at the front of the room. The facilitator and the participants can both
project digital text and images onto this screen.

A group decision support system (GDSS) meeting comprises different phases, such as idea
generation, discussion, voting, vote counting and so on. The facilitator manages and controls the
execution of these phases.
Components of Group Decision Support System (GDSS)
A Group decision support system (GDSS) is composed of 3 main components, namely hardware,
software tools, and people.

Hardware: It includes electronic hardware like computer, equipment used for networking,
electronic display boards and audio visual equipment. It also includes the conference facility,
including the physical setup – the room, the tables and the chairs – laid out in such a manner that
they can support group discussion and teamwork.
Software Tools: It includes various tools and techniques, such as electronic questionnaires,
electronic brainstorming tools, idea organizers, tools for setting priority, policy formation tool, etc.
The use of these software tools in a group meeting helps the group decision makers to plan,
organize ideas, gather information, establish priorities, take decisions and to document the meeting
proceedings. As a result, meetings become more productive.
People: It compromises the members participating in the meeting, a trained facilitator who helps
with the proceedings of the meeting, and an expert staff to support the hardware and software. The
GDSS components together provide a favorable environment for carrying out group meetings.
Features:-
Ease of Use: It consists of an interactive interface that makes working with GDSS simple and easy.

Better Decision Making: It provides the conference room setting and various software tools that facilitate
users at different locations to make decisions as a group resulting in better decisions.

Emphasis on Semi-structured and Unstructured Decisions: It provides important information that assists
middle and higher level management in making semi-structured and unstructured decisions.

Specific and General Support: The facilitator controls the different phases of the group decision support
system meeting (idea generation, discussion, voting and vote counting etc.) what is displayed on the central
screen and the type of ranking and voting that takes place, etc. In addition, the facilitator also provides
general support to the group and helps them to use the system.

Supports all Phases of the Decision Making: It can support all the four phases of decision making, viz
intelligence, design, choice and implementation.

Supports Positive Group Behavior: In a group meeting, as participants can share their ideas more openly
without the fear of being criticized, they display more positive group behavior towards the subject matter of
the meeting.

Expert System(EIS):-

An expert system is a computer program that is designed to emulate and mimic human intelligence,
skills or behavior.

It is mainly developed using artificial intelligence concepts, tools and technologies, and possesses
expert knowledge in a particular field, topic or skill. An expert system is typically designed to
provide capabilities similar to those of a human expert when performing a task. Moreover, it can be
used to drive vehicles, provide financial forecasts or do things that human experts do.

An expert system usually has two core components:

Knowledge base -- This component consists of data, facts and rules for a certain topic, industry or
skill, usually equivalent to that of a human expert.
Interference engine -- This component uses the facts and rules in the knowledge base to find and
learn new knowledge or patterns.

OAS(Office Automation System):

An OAS is a computer-based information system that collects, processes, stores and transmits
electronic messages, documents and other forms of communication among individuals, work
groups and organizations’. Basically OASs are a combination of different types technologies such as
word processors, spreadsheets, electronic mail, and so on. The aim of a OAS is to help employees
who need to process information efficiently, improve productivity.
There are 3 types of OASs:

1.Document Management System (DMS)

A DMS replaces or is used in addition to a paper filling system. An electronic system makes filing
data far more efficient and easier to manage, not to mention its cost effectiveness. Furthermore, for
companies with offices in different locations, a paper filing system is impractical. Files can be
shared far more easily between office through a centralised electronic database.

2. Message Handling Systems (MHS)

A MHS is a system that delivers mail electronically. It is made up of 4 functional components;

Mail User Agent (e.g Outlook)

Message Transfer Agent (e.g Microsoft Exchange)
Message Store (e.g POP)
The Internet’s SMTP (e.g Microsoft Mail)
3.Teleconferencing Systems

Teleconferencing can be described as electronic communications by two or more persons or groups

that are in separate offices or geographic locations. The system operates through phone line or
satellite. Teleconferencing can be very beneficial for companies as it saves time and money as
employees don’t have to travel long distances to attend a meeting.

The main advantages and disadvantages of OAS include:

Advantages

 Tasks accomplished faster

 Less storage space needed
 Multiple people can be contacted simultaneously
Disadvantages

 Older staff may have difficulties working the system

 If something is misfiled it is a lot harder to find
 Cost of setting up and maintaining system
Classification of information by Characteristic
Based on Anthony's classification of Management, information used in business
for decision-making is generally categorized into three types −
 Strategic Information − Strategic information is concerned with long term policy decisions that
defines the objectives of a business and checks how well these objectives are met. For example,
acquiring a new plant, a new product, diversification of business etc, comes under strategic
information.

 Tactical Information − Tactical information is concerned with the information needed for
exercising control over business resources, like budgeting, quality control, service level, inventory
level, productivity level etc.

 Operational Information − Operational information is concerned with plant/business level

information and is used to ensure proper conduction of specific operational tasks as
planned/intended. Various operator specific, machine specific and shift specific jobs for quality
control checks comes under this category.
 Organizations can be divided into strategic, management, knowledge and operational levels and
into five major functional areas- sales and marketing, manufacturing, finance, accounting, and
human resource. Information system serves each of these levels and functions.

UNIT -2
Systems Analysis
It is a process of collecting and interpreting facts, identifying the problems,
and decomposition of a system into its components.
System analysis is conducted for the purpose of studying a system or its parts
in order to identify its objectives. It is a problem solving technique that
improves the system and ensures that all the components of the system work
efficiently to accomplish their purpose.
Systems analysis plays a central role in the development of the MIS. Since the MIS is a
conglomerate of the various systems, a systematic approach in its development helps in
achieving the objective of the MIS. Each system within the MIS plays a role which contributes
to the accomplishment of the MIS objective.

The tools of the systems analysis and the methods of development enforce a discipline on the
designer to follow the steps strictly as stipulated. The possibility of a mistake or an
Inadvertence is almost ruled out. The success of MIS lies in meeting the information needs of
the various personnel in the organization across all levels of the management. The systems
analysis with its structural analysis and design approach ensures an appropriate coverage of the
sub-systems. The data entities and attributes are considered completely keeping in view the
needs of the system in question and their interface with other systems.

The systems analysis begin with the output design which itself ensures that the information
needs are considered and displayed in the appropriate report or screen format. The subsequent
design steps (viz., input process, procedure designs are taken to fulfil these) needs.
Systems analysis is basically a detailed study of all important business aspects under consideration
and thus the study becomes a basis for the proposed system. The proposed system may be a new
system or some modification in the existing system. Systems analysis is a logical process for
understanding the system. The emphasis is on investigation to know how the system is currently
working, to identify requirement of users from the system and to determine what best can be done to
solve the problem.

6.3 Systems Design

Logical design of an information system developed during system analysis phase defines functions
and features of the system and relationship among its components. Logical design includes output
that must be produced by the system; input needed by the system, and processes that must be
performed by the system without regard to how tasks will be accomplished physically. During
system designing phase, logical design is translated into physical design with respect to user
requirements, data flow of existing system, I/O specification of the existing system
Systems Development
During systems development phase, analyst mainly focuses on constructing a workable system
which will fulfill the requirements as per the specifications laid down in system analysis and design
phase. System analyst monitors the operation of development of system to ensure higher levels of
satisfaction and performance. Database and tables are created for storing data using database
management software packages (DBMS), programs are written for data entry with data validation
checks to ensure accurate and reliable input into databases, report generation, creating GUIs,
procedures, module, menus, etc. using computer programming languages or 4GL software packages.
Plans are worked out to test performance of overall system.

Systems Implementation
Once the development of information system is successfully completed, it is ready for
implementation. In the implementation phase, newly developed system is installed at the user�s
site. In other words it is the process of replacing the existing system with a new system. During this
process, transition from old system to new system should be smooth and acceptable to users to avoid
any unpleasant situation or chaos which may lead to rejection of the system. The new system may be
a replacement of a manual system or a major modification in the existing computer based
information system. Therefore, SA should carefully plan and design methods for changeover from
old system to new system.

Systems Maintenance
Job of system analyst does not finish after implementation of the system at user�s site rather his real
acid test starts after implementation of software as most of his time will be spent on maintaining the
system and meeting the users� requirement. As the organizations are in dynamic and competitive
world, evaluation and maintenance is a continuous process. Corrective actions are taken based on the
users� feedback to evaluate the system. During maintenance phase, system analyst mainly focus on
incorporating the changes occurring due to factors like external environmental, internal policy, users
preferences, software and hardware platforms etc. to make system more efficient and effective. It
should be ensured that all related components and modules of the system must be corrected
whenever faults are detected and fixed. Process of monitoring, evaluating, and modifying of existing
system to make the required or desirable improvements is terms as system maintenance. Different
types of maintenance undertaken by SA are Corrective maintenance, Adaptive maintenance,
Enhancement maintenance, Preventive maintenance

Requirement Analysis
Requirement analysis is a way of translating users ideas and requirement about the problem into
formal documents which laid down foundation of system design and development. This is the most
difficult and error prone activity because of communication gap between users and developer.
Generally user does not understand software thus, not able to explain their requirement and SA does
not understand users problem/ application. A properly conducted requirement analysis has following
benefits:
 It will satisfy the business requirement which would be acceptable to users.
 It bridges the communication gap between user and system analyst.
 It reduces development cost by overcoming errors and misunderstanding at an early stage.
 It serves as benchmarks to measure overall acceptability of the developed system.

Requirement analysis is basically to learn and collect information about system under consideration.
Various methods for collecting information about organization in order to study the existing system
and to identify system requirements are:
 Interviewing
 Documents
 Questionnaires
 Observation

6.8 Feasibility Study

Feasibility study tries to ascertain whether the system is viable or not for the organization. System
request is passed through a series of tests like what is the problem to be solved? Is the problem even
worth solving? Whether it is worthwhile to proceed further or not? The series of tests is called a
feasibility study or analysis which determines likelihood that the proposed system will be useful to
the organization or not. Feasibility analysis is an important part for every system under consideration
for development. Objective of feasibility analysis is to assess various alternative systems and to
propose most suitable system for development. Depending on the system request, feasibility study
may be quite simple that can be done in few hours only or it may be complex and extensive fact
finding which may take number of days or months. For example, if the milk procurement section
wants that reports to be produced in different order from the existing system, analyst can decide
quickly whether request is feasible. On the other hand, a proposal from milk market section, for
developing a new market research system to predict sales trends require more efforts. Feasibility of a
proposed system can be assessed in terms of operational, technical, and economical feasibility.
6.8.1 Operational feasibility
An operational feasibility of system means that the proposed system has been accepted by the users
and will be used effectively after it has been developed and implemented. Operational feasibility of a
system ensures that the system will work after its implementation. Human resource of the
organization has to be competent and enthusiastic to accept the change which is likely to take place
by implementing the proposed system. In other words, management, employees, customers, users
etc. must be willing and able to support the new proposed system. If users have difficulty with a new
system then it may be rejected and will not produce expected benefits. Therefore motivation and
involvement of users is must from beginning in development of the proposed system. Operational
feasibility depends on several vital issues and analyst must answer following questions:
I. Is their sufficient support from management and users?
II. Are the current methods acceptable to user or they need change?
III. Will proposed system not result in loss of control in any area?
IV. Will the new system result in reduction of employees?
V. If yes, what will happen to the affected employees?
Analyst must get positive answers to these questions to make system operationally feasible.
Generally a system developed with active involvement of users and as per rules, regulations,
organization culture, union agreements, etc. would be operational feasible.
6.8.2 Technical feasibility
A technical feasibility means that the organization has resources and capability to procure the
required technology and equipment (hardware, software etc) to develop, install and operate the
proposed system within specified time period. Besides this, the proposed system should be capable
of meeting all requirements of people working in the organization. System should be flexible and
expendable to sustain for longer period. To satisfy management and users, system must ensure
security, reliability, accuracy and accessibility of data in most technical way. While assessing the
technical feasibility, analyst must consider following questions:
I. Does necessary technology exist for developing and implementing the proposed system
and can it be acquired?
II. Does organization have requisite technical expertise? If not, can it be acquired?
III. Are the proposed devices and media capable to hold the volume of data required?
IV. Will the proposed system be compatible with the coming up technology?
V. Will the existing resources like hardware, software and employees be used?
6.8.3 Economical and financial feasibility
Economic feasibility means that the projected benefits of proposed system should outweigh the
estimated cost. Proposed system will involve cost on deriving system requirement specifications,
hardware, software, installation, maintenance, site preparation, training and consumable cost. Costs
can be one time investment or recurring in nature. Projected benefits should justify investment in the
system since finance is the main constraints for any system to be accepted or rejected. Management
must be satisfied with benefits to be derived by implementing the proposed system. While assessing
the economical feasibility, analyst must consider following questions and should get positive
answers to these questions to make the system economical feasible:
I. Whether total cost is within the allocated budget? Does the additional cost make overall
business competitive and consequently resulting in maximizing profit?
II. Do the benefits in form of reduced cost per unit in the long run, improve customer services
and whether improved resource utilization justifies the investment?

Analyst must perform cost and benefit analysis of the proposed system and alternate solutions before
making any recommendations to the management.
6.9 Data and Process Modeling Techniques
These techniques are used by systems analyst during system analysis to depict how various processes
of a system transform data into useful information in graphical form. Output of process modeling
activity is a logical model that supports business operations and meets requirements of managers and
users. A logical model shows what the system must do, regardless of how it will be accomplished
physically. System analyst may use one or more of the following traditional and structured analysis
tools to represent system data and process graphically.
I. System flow chart
II. Data flow diagram (DFD)
III. Data dictionary
IV. Decision tree
V. Decision table
6.9.1 System flow chart
A system flowchart is a graphical/ pictorial representation of the system�s discrete physical
components such as programs, procedures, files, reports, screens, etc. It is a valuable presentation
tool to show the interaction and interlinking of major components of a system in sequential order to
achieve final meaningful results through the system. It serves as a system roadmap.
Since system flow chart emphasizes on physical implementation details about the system therefore it
is not an appropriate modeling tool at an early stage of systems analysis. However, it could be a
useful modeling tool at the end of the systems analysis activity, when the user implementation model
is being developed.
Different symbols are used to show various components in a system flow chart. For example
rectangular boxes represent operational aggregates of computer software e.g., computer programs,
job steps, runs, or other units of computer software, magnetic tape and hard disk symbols are used to
represent different kinds of physical files, on-line terminals and telecommunication links etc.

Fig. 6.1 System flow chart symbols

Data flow diagram
DFD is a graphical or pictorial representation of logical flow of data. This tool describes the
movement or flow of data within an information system from beginning up till end regardless of
whether the system is manual or automated. DFD shows only data flow not the program logic or
processing steps. It models a system by using external entities from which data flows to a process
which transforms data and creates output data flows which go to other processes or external entities
or files. Data in files may also flow to processes as inputs. Main advantage of DFD is that it provides
a logical model of the system that shows what a system does rather than how it is being done. Aim is
to clarify system requirements and identify major processes, transformations of data, data stores and
external entities to ensure developed model is accurate and easy to understand. DFD is also known
as bubble charts as it consists of a series of bubbles joined by lines.
A DFD uses four pictorial symbols to represent processes, data flows, data store, and external
entities. Several versions of DFD symbols exist but all serves the same purpose.

a. External Entity: External entity is a source or destination of data. It can be files, departments,
person, vendors, customer, other information systems etc. External entities show the system
boundaries and how a system interacts with outside world. These are also called terminators
since they are data origins (source) or final destination (sink). Name of the external entity is
written inside the symbol.
b. Process: Process is the people or procedures involved in the system that are used to transform
data. It receives input data, processes it and produces output. In DFDs a process is just like a
black box for which underling details are not shown except input, output and general function of
the process. Process name is written inside the symbol.
c. Data store: Data store is a data repository in a system. These are used to show the data stored by
a process within a system like files, registers, documents, reports, vouchers, etc. The stored data
are used or shared by other processes of the system at later stage. A data store must be connected
to a process with a data flow. Name of the data store is written inside the symbol.
d. Data flow: Data flow is a path that shows movement of data from one process and to another
process in a system from origin to destination. Data flow names appear above, below, or
alongside the line. Data flow names represent one or more data items.
6.9.2.1 Procedure for drawing a DFD
Step 1: Represent the whole system by a single process and identify its input and outputs. This is
known as context diagram or zero level DFD. A context DFD is a top level view of a system that
shows boundaries and scope of the system. To draw context level DFD put a single process symbol
in the centre which represents the entire system. Then place external entities around the central
process symbol and use data flows to connect entities to it. Data stores are not being used in context
diagram because these are internal to the system. Information about names and contents of external
entities and data flows are collected during fact gathering process.
Step 2: Context diagram shows the most general view of a system which contains only one process.
This is just like a black box. To know more details about the system next level of DFD are drawn. To
draw next level of DFD, identify major processes of the system and draw DFD considering these
major processes only and also identify inputs and outputs for each and every major process. This is
known as top level DFD or first level DFD.
Step 3: After identification of major processes in first level DFD, an analyst has to identify
processes from first level DFD which can be further expanded. Analyst then draws DFD of a
particular process identified with expansion. This is known as exploded DFD or Expanded DFD.
6.9.2.2 General rules for drawing DFD
 Processes should be uniquely named and numbered
 Data flows within the system must be named
 Context DFD must fit on the single page
 Process name in the context DFD should be the name of the system
 Do not cross the lines
 Data dictionary
 A data dictionary is a structured repository of description of data item involved in a system.
As discussed earlier, DFDs describe the logical model of a system in which details of input
and output data items is not shown. The details of data items are documented separately in
data dictionary. A data dictionary is an organized collection of precise and accurate definition
of all processes, data elements, data structures, data stores and data flows of a systems. Data
structure consists of a group of data elements and data element is simplified unit of data
which cannot be further decomposed. For example employee name may consist of three parts
as first name, middle name, surname. Thus employee name is data structure and its parts are
data elements. Data structures also known as records are meaningful combination of related
data elements that is included in a data flow or retained in a data store.
 6.9.4 Decision tree
 A decision tree is a graphical representation for describing logical conditions, actions and
rules. It describes all actions that result from various combinations of conditions as per
logical rules. The graphical representation of conditions and outcomes resembles with the
branches of a tree. The branches of a tree depends the logical alternatives. It is drawn
 horizontally with the root on left side and branches to the right. Though, it is easy to
construct, read and update a decision tree for a simple problem but as the complexity
increases it becomes tedious to draw and update.

Fig. 6.5 An example of decision tree

Decision table
Decision table describes a logical structure with all possible combination of conditions, actions and
decision rules for initiating an action on occurrence of various conditions. It shows conditions and
actions in a simplified and orderly manner in a form of matrix of rows and columns. Decision table
describes the same information as discussed in decision tree but in a tabular form. Analysts may also
use other tools like decision tree, structured English, pseudo codes to describe a logical process and
to ensure to cover all combination of logical possibility. A decision table is a better tool to represent
combinations of complex conditions while decision tree is effective to describe relatively simple
process. A decision table consists of four sections as described below and shown in table 6.2:
 Condition stub (upper left part): All conditions are written in this area.
 Action stub (lower left part): All actions are written in this area.
 Condition entry (upper right part): All possible combination of conditions are marked
either by �Y� or �N� where �Y� is for true and �N� for falseness of condition.
 Action entry (lower right part): In this part the action which will be taken as per the
combination of action specified in condition entry is shown by marking �X� in front of
action that will be taken with respect to the condition.

Table 6.2 Structure of a decision table

SYSTEM ANALYSIS AND DESIGN

 SAD, as performed by the system analysts, seeks to understand what human need to analyze data input or data flow
systematically, process information in the context of a particular business. Furthermore, system analysis and design is
 used to analyze, design and implements in the support of users and the functioning of business that can be accomplished
through the use of computerized information system.
 Installing a system without proper planning leads to great user dissatisfaction and frequently causes the system to fall into
disuse. System analysis and design lends structure to the analysis and design of information systems, a costly endeavor
that might otherwise have been done in a haphazard way. It can be thought of as a series of processes systematically
undertaken to improve a business through the use of computerized information system. SAD involves working with current
and eventual users of information system to support them in working with technologies in an organizational setting.

THE NEED FOR SYSTEM ANALYSIS

 When you are asked to computerized a system, it is necessary to analyze the system from different angles. The analysis
of the system is the basic necessity for an efficient system design. The need for analysis stems from the following point of
view:-
 System objective: it is necessary to define the system objectives. Many a times, it is observed that the systems are
historically in operation and have lost their main purpose of achievement of the objectives. The users of the system and
the personnel involved are not in a position to define the objectives. Since you are going to develop a computer based
system, it is necessary to redefine or reset the objectives as a reference point in context of current business requirement.
 System boundaries: it is necessary to establish the system boundaries which would define the scope and the coverage of
the system. This helps to short out and understand the functional boundaries in the system, and the people involved in the
system. It also helps to identify the inputs and the outputs of the various subsystems, covering the entire system.
 System importance: it is necessary to understand the importance of the system in the organization. This would help the
designer to decide the design feature of the system. It would be possible then to position the system in relation to the
other systems for deciding the design, strategy and development.
 Nature of the system: the analysis of the system will help the system designer to conclude whether the system is closed
type or an open, and a deterministic or a probabilistic. Such an understanding of the system is necessary prior to design
the process to ensure the necessary design architecture.
 Role of the system as an interface: the system, many a times, acts as an interface to the other systems. It is necessary to
understand the existing role of the system, as an interface, to safeguard the interests of the other systems. Any
modification or changes made should not affect the functioning or the objectives of the other system.
 Participation of the user: the strategic purpose of the analysis of the people to a new development. System analysis
process provides a sense of participation to the people. This helps in breaking the resistance to the new development and
it also then ensures the commitment to the new development and it also then ensures the commitment to the new system.
 Understanding of resource needs: the analysis of the system helps in defining the resource requirement in terms of
hardware and software. Hence, if any additional resources are required, this would mean an investment from the point of
view of return on such investment. If the return on such investment from the point of view of return on such an investment.
If the return on the investment is not attractive, the management may drop the project.
 Assessment of feasibility (practicability): the analysis of the system helps to establish the feasibility from different angles.
The system should satisfy the technical economic and operational feasibility. Many a time, the systems are feasible from
the technical and economic point of view, but they may be infeasible from the operational point of view. The assessment
of feasibility will have the investment and the system designer’s time. It would also save the embracement to the system
designer as he is viewed as the key figure in such project.
MIS AND SYSTEM ANALYSIS

 System analysis plays central role in the development of the MIS. Since the MIS is a corporation of the various systems, a
systematic approach in its development helps in achieving the objective of the MIS. Each system within the MIS plays a
role which contributes to the accomplishment of the MIS objective.
 The tools of the system analysis and the method of development enforce a discipline on the designer to follow the steps
strictly as stipulated. The possibility of a mistake or an inadvertence is almost ruled out. The system analysis with its
structural analysis and design approach ensures an appropriate coverage of the subsystems. The data entities and
attributes are considered completely keeping in view the needs of the systems in question and their interface with other
systems.
 The systems analysis begins with the output design which itself ensures that the information needs are considered and
displayed in the appropriate report or screen format; the subsequent design steps are taken to fulfill these needs.
 The MIS may call for an open system design. In such a case while making the systems analysis and design, the aspect of
open system design is considered and necessary modification are introduced in the designed the information system.
 The user’s application in the system development ensures the attention to the smaller details in the design. The users
actively come out with their requirements automatically ensuring that the users are met more precisely.
 The systems analysis and designs, as a tool of the MIS development, helps in streamlining the procedures of the
company to the current needs of the business and information objectives. New transactio0ns, new documents, new
procedures are brought in to make the system more efficient before it is designed.
 The SAD exercise considers testing the feasibility of the system as an important step. This step, many a times, saves the
implementation of inefficient systems. Sometimes it forces the management and analysts to look into the requirement and
its genuineness. The MIS development process largely relies on the systems analysis and design as a source of the
scientific development of the MIS.
 The development of the MIS in today advance information technology and internet, web environment is a challenge. The
nature of the system analysis has undergone a change, while the core process of the analysis and development has
remained the same.
 The system analysis is not restricted to the data-process-output. It also covers the technologies which enables the
process feasible. The subject now covers the analysis of interfacing and supports the technologies and it’s fitting into a
chosen hardware-software platforms for a core system development. The MIS largely depends on how these technologies
are bladed with the main system. The system architecture of the MIS is now different due to the high tech involvement of
the data capture, communication, and processing technologies. The trend is towards more swift data capture and making
it available in the fastest possible time leaving its usage to the user.
 The development methodology may be the predictable design of data, databases and file approach or object oriented
analysis and design approach. The MIS design is same, the difference is in the development cycle time, quality of
information efficiency of design and the case of maintenance of the system.
REQUIREMENT DETERMINATION

 It is also termed as a part of software requirement specification (SRS); it is the starting point of the system development
activity. This activity is considered as the most difficult and also the most error prone activity because of the
communication gap between the user and the developer. This may be because the user usually does not understand the
users problem and application area. The requirement determination is a means of translating the ideas given by the user,
into a formal document, and thus to bridge the communication gap.
A good SRS provides the following benefits:-

 It bridges the communication gap between the user and the developer by acting as a basis of agreement between the two
parties.
 It reduces the development cost by overcoming errors and misunderstandings early in the development.
 It becomes a basis of reference for validation of the final product and thus acts as a benchmark.
 Requirement determination consists of three activities namely requirement anticipation, requirement investigation and
requirement specification. A requirement anticipation activity includes the past experience of the analysis, when influence
the study. They may force the likelihood of certain problems or features and requirements for a new system. Thus, the
background of the analysts to know what to ask or which aspects to investigate can be useful in at the system
investigation. Requirement investigation is at the centre of system analysis. In this, the existing system is studied and
documented for further analysis. Various methods like fact-finding techniques are used for the investigation are analyzed
to determine requirement specification, which is the description of the features for a proposed system.
SYSTEM LIFE CYCLE

 System life cycle is an organizational process of developing and maintaining systems. It helps in establishing a system
project plan, because it gives overall list of processes and sub-processes required for developing a system. System
development life cycle means combination of various activities. In other words we can say that various activities put
together are referred as system development life cycle. In the System Analysis and Design terminology, the system
development life cycle also means software development life cycle. Following are the different phases of system
development life cycle:
1. Preliminary study
2. Feasibility study
3. Detailed system study
4. System analysis
5. System design
6. Coding
7. Testing
8. Implementation
9. Maintenance
PHASES OF SYSTEM DEVELOPMENT LIFE CYCLE
Let us now describe the different phases and related activities of system development life cycle.
(a) Preliminary System Study

 Preliminary system study is the first stage of system development life cycle. This is a brief investigation of the system
under consideration and gives a clear picture of what actually the physical system is? In practice, the initial system study
involves the preparation of a ‘System Proposal’ which lists the Problem Definition, Objectives of the Study, Terms of
reference for Study, Constraints, and Expected benefits of the new system, etc. in the light of the user requirements. The
system proposal is prepared by the System Analyst (who studies the system) and places it before the user management.
The management may accept the proposal and the cycle proceeds to the next stage. The management may also reject
the proposal or request some modifications in the proposal. In summary, we would say that system study phase passes
through the following steps:
problem identification and project initiationbackground analysis
inference or findings (system proposal)
 (b) Feasibility Study

 In case the system proposal is acceptable to the management, the next phase is to examine the feasibility of the system.
The feasibility study is basically the test of the proposed system in the light of its workability, meeting user’s requirements,
effective use of resources and of course, the cost effectiveness. These are categorized as technical, operational,
economic and schedule feasibility. The main goal of feasibility study is not to solve the problem but to achieve the scope.
In the process of feasibility study, the cost and benefits are estimated with greater accuracy to find the Return on
Investment (ROI). This also defines the resources needed to complete the detailed investigation. The result is a feasibility
report submitted to the management. This may be accepted or accepted with modifications or rejected. The system cycle
proceeds only if the management accepts it.
(c) Detailed System Study

 The detailed investigation of the system is carried out in accordance with the objectives of the proposed system. This
involves detailed study of various operations performed by a system and their relationships within and outside the system.
During this process, data are collected on the available files, decision points and transactions handled by the present
system. Interviews, on-site observation and questionnaire are the tools used for detailed system study. Using the following
steps it becomes easy to draw the exact boundary of the new system under consideration:
· Keeping in view the problems and new requirements
· Workout the pros and cons including new areas of the system

 All the data and the findings must be documented in the form of detailed data flow diagrams (DFDs), data dictionary,
logical data structures and miniature specification. The main points to be discussed in this stage are:
· Specification of what the new system is to accomplish based on the user requirements.
· Functional hierarchy showing the functions to be performed by the new system and their relationship with each other
· Functional network, which are similar to function hierarchy but they highlight the functions which are common to more
than one procedure.
· List of attributes of the entities – these are the data items which need to be held about each entity (record)
(d) System Analysis

 Systems analysis is a process of collecting factual data, understand the processes involved, identifying problems and
recommending feasible suggestions for improving the system functioning. This involves studying the business processes,
gathering operational data, understand the information flow, finding out bottlenecks and evolving solutions for overcoming
the weaknesses of the system so as to achieve the organizational goals. System Analysis also includes subdividing of
complex process involving the entire system, identification of data store and manual processes. The major objectives of
systems analysis are to find answers for each business process: What is being done How is it being done, who is doing it,
When is he doing it, Why is it being done and How can it be improved? It is more of a thinking process and involves the
creative skills of the System Analyst. It attempts to give birth to a new efficient system that satisfies the current needs of
the user and has scope for future growth within the organizational constraints. The result of this process is a logical
system design. Systems analysis is an iterative process that continues until a preferred and acceptable solution emerges.
(e) System Design

 Based on the user requirements and the detailed analysis of the existing system, the new system must be designed. This
is the phase of system designing. It is the most crucial phase in the developments of a system. The logical system design
arrived at as a result of systems analysis is converted into physical system design. Normally, the design proceeds in two
stages:

· Preliminary or General Design

· Structured or Detailed Design

 Preliminary or General Design: In the preliminary or general design, the features of the new system are specified. The
costs of implementing these features and the benefits to be derived are estimated. If the project is still considered to be
feasible, we move to the detailed design stage.
 Structured or Detailed Design: In the detailed design stage, computer oriented work begins in earnest. At this stage, the
design of the system becomes more structured. Structure design is a blue print of a computer system solution to a given
problem having the same components and inter-relationships among the same components as the original problem. Input,
output, databases, forms, codification schemes and processing specifications are drawn up in detail. In the design stage,
the programming language and the hardware and software platform in which the new system will run are also decided.
There are several tools and techniques used for describing the system design of the system. These tools and techniques
are:
· Flowchart
· Data flow diagram (DFD)
· Data dictionary
· Structured English
· Decision table
· Decision tree
 The system design involves:
1. Defining precisely the required system output
2. Determining the data requirement for producing the output
3. Determining the medium and format of files and databases
4. Devising processing methods and use of software to produce output
5. . Determine the methods of data capture and data input
6. Designing Input forms
7. Designing Codification Schemes
8. Detailed manual procedures
9. Documenting the Design
(f) Coding

 The system design needs to be implemented to make it a workable system. This demands the coding of design into
computer understandable language, i.e., programming language. This is also called the programming phase in which the
programmer converts the program specifications into computer instructions, which we refer to as programs. It is an
important stage where the defined procedures are transformed into control specifications by the help of a computer
language. The programs coordinate the data movements and control the entire process in a system. It is generally felt that
the programs must be modular in nature. This helps in fast development, maintenance and future changes, if required.
(g) Testing

 Before actually implementing the new system into operation, a test run of the system is done for removing the bugs, if any.
It is an important phase of a successful system. After codifying the whole programs of the system, a test plan should be
developed and run on a given set of test data. The output of the test run should match the expected results. Sometimes,
system testing is considered a part of implementation process. Using the test data following test run are carried out:
· Program test
· System test

 Program test: When the programs have been coded, compiled and brought to working conditions, they must be
individually tested with the prepared test data. Any undesirable happening must be noted and debugged (error
corrections)
 System Test: After carrying out the program test for each of the programs of the system and errors removed, then system
test is done. At this stage the test is done on actual data. The complete system is executed on the actual data. At each
stage of the execution, the results or output of the system is analyzed. During the result analysis, it may be found that the
outputs are not matching the expected output of the system. In such case, the errors in the particular programs are
identified and are fixed and further tested for the expected output.
 When it is ensured that the system is running error-free, the users are called with their own actual data so that the system
could be shown running as per their requirements.
(h) Implementation

 After having the user acceptance of the new system developed, the implementation phase begins. Implementation is the
stage of a project during which theory is turned into practice. The major steps involved in this phase are:
· Acquisition and Installation of Hardware and Software
· Conversion
· User Training
· Documentation

 The hardware and the relevant software required for running the system must be made fully operational before
implementation. The conversion is also one of the most critical and expensive activities in the system development life
cycle. The data from the old system needs to be converted to operate in the new format of the new system. The database
needs to be setup with security and recovery procedures fully defined.
 During this phase, all the programs of the system are loaded onto the user’s computer. After loading the system, training
of the user starts. Main topics of such type of training are:
· How to execute the package
· How to enter the data
· How to process the data (processing details)
· How to take out the reports

Waterfall Development Methodology

• Proceed in sequence from one phase to another
• Pros
• Identifies systems requirements long before programming begins
 • Minimizes changes to requirements as project progresses
• Cons
• Design must be specified on paper before programming begins
• Long time between system proposal and delivery of new system

Waterfall Model
The waterfall model uses a sequential design model. The next stage starts only after the
completion of the previous stage. The first stage is usually drawn on the top and the
subsequent stages below and to the left bottom. This forms a waterfall like structure, and it's
where the name came from.

The main objective of the waterfall model is

 Planning
 Time scheduling
 Budgeting and
 Implementing an entire system at once

The waterfall model is ideal when the user requirements are clearly understood and are not
expected to change radically during the development of the information system. The waterfall
model is ideal in situations where a project has a fixed-scope, fixed time frame, and fixed price.

The biggest challenge of the waterfall model is adoption to change. It is not easy to incorporate
new user requirements.
Prototyping
A prototype is a semi-functional simulation model of the actual system to be developed.
Prototyping development methodologies make use of prototypes. Prototypes allow both
developers and users to get feedback early.

Prototyping makes it easy for users to specify their requirements and developers understanding
the requirements of the users because of the prototypes. A prototyping methodology stands
with identifying the basics system requirements especially the input and output from the
system. These requirements are then used to create a simulation model that users can interact
with and provide feedback. The user feedback is used to enhance the prototype and make
other important decisions such as project costing and feasible time schedules.

The following diagram illustrate the stages of prototyping

Iterative Model - Design

Iterative process starts with a simple implementation of a subset of the
software requirements and iteratively enhances the evolving versions until the
full system is implemented. At each iteration, design modifications are made
and new functional capabilities are added. The basic idea behind this method is
to develop a system through repeated cycles (iterative) and in smaller portions
at a time (incremental).

Iterative Model - Application

Like other SDLC models, Iterative and incremental development has some
specific applications in the software industry. This model is most often used in
the following scenarios −
 Requirements of the complete system are clearly defined and understood.

 Major requirements must be defined; however, some functionalities or requested enhancements

may evolve with time.

 There is a time to the market constraint.

  A new technology is being used and is being learnt by the development team while working on the
project.

 Resources with needed skill sets are not available and are planned to be used on contract basis
for specific iterations.

 There are some high-risk features and goals which may change in the future.

The advantages of the Iterative and Incremental SDLC Model are as follows −
 Some working functionality can be developed quickly and early in the life cycle.

 Results are obtained early and periodically.

 Parallel development can be planned.

 Progress can be measured.

 Less costly to change the scope/requirements.

 Testing and debugging during smaller iteration is easy.

 Risks are identified and resolved during iteration; and each iteration

The disadvantages of the Iterative and Incremental SDLC Model are as follows
−
 More resources may be required.

 Although cost of change is lesser, but it is not very suitable for changing requirements.

 More management attention is required.

 System architecture or design issues may arise because not all requirements are gathered in the
beginning of the entire life cycle.

 Defining increments may require definition of the complete system.

 Not suitable for smaller projects.

 Management complexity is more.

 End of project may not be known which is a risk.

 Highly skilled resources are required for risk analysis.

This Spiral model is a combination of iterative development process model and

sequential linear development model i.e. the waterfall model with a very high
emphasis on risk analysis. It allows incremental releases of the product or
incremental refinement through each iteration around the spiral.
Spiral Model - Design
The spiral model has four phases. A software project repeatedly passes
through these phases in iterations called Spirals.

Identification
This phase starts with gathering the business requirements in the baseline
spiral. In the subsequent spirals as the product matures, identification of
system requirements, subsystem requirements and unit requirements are all
done in this phase.
This phase also includes understanding the system requirements by continuous
communication between the customer and the system analyst. At the end of
the spiral, the product is deployed in the identified market.

Design
The Design phase starts with the conceptual design in the baseline spiral and
involves architectural design, logical design of modules, physical product design and the final design
in the subsequent spirals.

Evaluation and Risk Analysis

Risk Analysis includes identifying, estimating and monitoring the technical
feasibility and management risks, such as schedule slippage and cost overrun.
After testing the build, at the end of first iteration, the customer evaluates the
software and provides feedback.
The following illustration is a representation of the Spiral Model, listing the
activities in each phase.
Spiral Model Application
The Spiral Model is widely used in the software industry as it is in sync with the
natural development process of any product, i.e. learning with maturity which
involves minimum risk for the customer as well as the development firms.
The following pointers explain the typical uses of a Spiral Model −
 When there is a budget constraint and risk evaluation is important.

 For medium to high-risk projects.

 Long-term project commitment because of potential changes to economic priorities as the

requirements change with time.

 Customer is not sure of their requirements which is usually the case.

 Requirements are complex and need evaluation to get clarity.

 New product line which should be released in phases to get enough customer feedback.

The advantages of the Spiral SDLC Model are as follows −

 Changing requirements can be accommodated.

 Allows extensive use of prototypes.

 Requirements can be captured more accurately.

 Users see the system early.

 Development can be divided into smaller parts and the risky parts can be developed earlier which
helps in better risk management.

The disadvantages of the Spiral SDLC Model are as follows −

 Management is more complex.

 End of the project may not be known early.

 Not suitable for small or low risk projects and could be expensive for small projects.

 Process is complex

 Spiral may go on indefinitely.

 Large number of intermediate stages requires excessive documentation.

Rapid Application Development(RAD)

• Incorporate special techniques and tools: o Joint Application Design (JAD) ƒ Users, Managers and
Analysts work together for several days ƒ System requirements are reviewed ƒ Structured meetings o
CASE tools ƒ Automate or support drawing and analysis of system models ƒ Translate of system
models into application programs ƒ CASE repository: system developers’ database for system
models, detailed descriptions and specifications, and other products of system development ƒ
Forward engineering: draw system models that are subsequently transformed into program code. ƒ
Reverse engineering: read existing program code and transform that code into a representative
system model that can be edited and refined by the systems analyst. o Fourth
generation/visualization programming languages o Code generators
Three RAD Categories
o Phased development o A series of versions developed sequentially
o Prototyping o System prototyping
o Throw-away prototyping o Design prototyping
Prototyping o Building a scaled-down working version of the system o Concurrent analysis, design
and implementation, repeated o Advantages: o Users are involved in design o Captures
requirements in concrete form o Pros o Users interact with prototype very quickly o Users can
identify needed changes and refine real requirements o Cons o Tendency to do superficial analysis o
Initial design decisions may be poor Throwaway Prototyping o Design prototype o Pros o Risks are
minimized o Important issues are understood before the real system is built o Cons o May take
longer than prototyping.
Roles and responsibilities of system:
Rapid Application Development has four essential aspects: methodology, people, management, and
tools. If any one of these ingredients is inadequate, development will not be high speed.
Development lifecycles, which weave these ingredients together as effectively as possible, are of
the utmost importance.

The structure of the RAD lifecycle is thus designed to ensure that developers build the systems that
the users really need. This lifecycle, through the following four stages, includes all of the activities
and tasks required to scope and define business requirements and design, develop, and implement
the application system that supports those requirements. Š Requirements Planning Also known as
the Concept Definition Stage, this stage defines the business functions and data subject areas that
the system will support and determines the system’s scope. Š User Design Also known as the
Functional Design Stage, this stage uses workshops to model the system’s data and processes and to
build a working prototype of critical system components. Š Construction Also known as the
Development Stage, this stage completes the construction of the physical application system, builds
the conversion system, and develops user aids and implementation work plans. Š Implementation
Also known as the Deployment Stage, this stage includes final user testing and training, data
conversion, and the implementation of the application system.

UNIT 3
Accounting and Financial Information Systems :
The financial function of the enterprise consists in taking stock of the flows of money and other
assets into and out of an organization, ensuring that its available resources are properly used and that
the organization is financially fit. The components of the accounting system include:

1. Accounts receivable records

2. Accounts payable records
3. Payroll records
4. Inventory control records
5. General ledgers

Financial information systems rely on external sources, such as on-line databases and custom
produced reports, particularly in the areas of financial forecasting and funds management. The
essential functions that financial information systems perform include:
1. Financial forecasting and planning
2. Financial control
3. Funds management
4. Internal auditing

Financial Forecasting

Financial forecasting is the process of predicting the inflows of funds into the company and the
outflows of funds from it for a long term into the future. Outflows of funds must be balanced over
the long term with the inflows. With the globalization of business, the function of financial
forecasting has become more complex, since the activities in multiple national markets have to be
consolidated, taking into consideration the vagaries of multiple national currencies. Scenario
analysis is frequently employed in order to prepare the firm for various contingencies.Financial
forecasts are based on computerized models known as cash-flow models. They range from rather
simple spreadsheet templates to sophisticated models developed for the given industry and
customized for the firm or, in the case of large corporations to specify modeling of their financial
operations. Financial forecasting serves to identify the need for funds and their sources.

Financial Control

The primary tools of financial control are budgets. A budget specifies the resources committed to a
plan for a given project or time period. Fixed budgets are independent of the level of activity of the
unit for which the budget is drawn up. Flexible budgets commit resources depending on the level of
activity. Spreadsheet programs are the main budgeting tools. Spreadsheets are the personal
productivity tools in use today in budget preparation. In the systems-theoretic view, budgets serve as
the standard against which managers can compare the actual results by using information systems.
Performance reports are used to monitor budgets of various managerial levels. A performance report
states the actual financial results achieved by the unit and compares them with the planned results.

Along with budgets and performance reports, financial control employs a number of financial ratios
indicating the performance of the business unit. A widely employed financial ratio is return on
investment (ROI). ROS shows how well a business unit uses its resources. Its value is obtained by
dividing the earnings of the business unit by its total assets.
Funds Management
Financial information systems help to manage the organization's liquid assets, such as cash or
securities, for high yields with the lowest degree of loss risk. Some firms deploy computerized
systems to manage their securities portfolios and automatically generate buy or sell orders.
Internal Auditing
The audit function provides an independent appraisal of an organization's accounting, financial, and
operational procedures and information. All large firms have internal auditors, answerable only to
the audit committee of the board of directors. The staff of the chief financial officer of the company
performs financial and operational audits. During a financial audit, an appraisal is made of the
reliability and integrity of the company's financial information and of the means used to process it.
An operational audit is an appraisal of how well management utilizes company resources and how
well corporate plans are being carried out.

Manufacturing Information Systems

Global competitive pressures of the information society have been highly pronounced in
manufacturing and have radically changed it. The new marketplace calls for manufacturing
that are:
1. Lean - highly efficient, using fewer input resources in production through better engineering
and through production processes that rely on low inventories and result in less waste.
2. Agile - fit for time-based competition. Both the new product design and order fulfilment are
drastically shortened.
3. Flexible - able to adjust the product to a customer's preferences rapidly and cost effectively.
4. Managed for quality - by measuring quality throughout the production process and following
world standards, manufacturers treat quality as a necessity and not a high-price option.

Structure of Manufacturing Information Systems

Information technology must play a vital role in the design and manufacturing processes.
Manufacturing information systems are among the most difficult both to develop and to
implement.

TPSs are embedded in the production process or in other company processes. The data
provided by the transaction processing systems are used by management support subsystems,
which are tightly integrated and interdependent.

Manufacturing information subsystems include:

1. Product design and engineering

2. Product scheduling

3. Quality control

4. Facilities planning, production costing, logistics and inventory subsystems

Product Design and Engineering

Product design and engineering are widely supported today by computer-aided design (CAD)
and computer-aided engineering (CAE) systems. CAD systems assist the designer with
automatic calculations and display of surfaces while storing the design information in
databases. The produced designs are subject to processing with CAE systems to ensure their
quality, safety, manufacturability, and cost-effectiveness. CAD/CAE systems increasingly
eliminate paperwork from the design process, while speeding up the process itself. As well, the
combined techniques of CAD/CAE and rapid prototyping cut time to market.

Product Scheduling
Production scheduling is the heart of the manufacturing information system. This complex
subsystem has to ensure that an appropriate combination of human, machinery, and material
resources will be provided at an appropriate time in order to manufacture the goods.
Production scheduling and the ancillary processes are today frequently controlled with a
manufacturing resource planning system as the main informational tool. This elaborate
software converts the sales forecast for the plants products into a detailed production plan and
further into a master schedule of production.

Computer integrated manufacturing (CIM) is a strategy through which a manufacturer takes

control of the entire manufacturing process. The process starts with CAD and CAE and
continues on the factory floor where robots and numerically controlled machinery are
installed - and thus computer-aided manufacturing (CAM) is implemented. A manufacturing
system based on this concept can turn out very small batches of a particular product as cost-
effectively as a traditional production line can turn out millions of identical products. A full-
fledged CIM is extremely difficult to implement; indeed, many firms have failed in their
attempts to do so.

Quality Control
The quality control subsystem of a manufacturing information system relies on the data
collected on the shop floor by the sensors embedded in the process control systems. Total
quality management (TQM) is a management technique for continuously improving the
performance of all members and units of a firm to ensure customer satisfaction. In particular,
the principles of TQM state that quality comes from improving the design and manufacturing
process, rather than Ainspecting out@ defective products. The foundation of quality is also
understanding and reducing variation in the overall manufacturing process.

Facilities Planning, Production Costing, Logistics and Inventory Subsystems

Among the higher-level decision making supported by manufacturing information systems are
facilities planning - locating the sites for manufacturing plants, deciding on their production
capacities, and laying out the plant floors.

Manufacturing management requires a cost control program, relying on the information

systems. Among the informational outputs of the production costing subsystem are labor and
equipment productivity reports, performance of plants as cost centers, and schedules for
equipment maintenance and replacement.

Managing the raw-materials, packaging, and the work in progress inventory is a responsibility
of the manufacturing function. In some cases, inventory management is combined with the
general logistics systems, which plan and control the arrival of purchased goods into the firm
as well as shipments to the customers.
This system provides information about the number of items available in inventory to support manufacturing and production activities.
Marketing Information Systems
Marketing activities are directed toward planning, promoting, and selling goods and services to satisfy
the needs of customers and the objectives of the organization. Marketing information systems support
decision making regarding the marketing mix. These include:

1. Product
2. Price
3. Place
4. Promotion

Above Figure illustrates the structure of the entire marketing information system. In order to
support decision making on the marketing mix, a marketing information system draws on
several sources of data and information. Sources of Data and Information for Marketing:
Boundary-Spanning and Transaction Processing Subsystems .A marketing information system
relies on external information to a far greater degree than other organizational information
systems. It includes two subsystems designed for boundary spanning - bringing into the firm
data and information about the marketplace.

The objective of marketing research is to collect data on the actual customers and the potential
customers, known as prospects. The identification of the needs of the customer is a fundamental
starting point for total quality management (TQM). Electronic commerce on the WEB makes it
easy to compile statistics on actual buyer behaviour. Marketing research software supports
statistical analysis of data. It enables the firm to correlate buyer behaviour with very detailed
geographic variables, demographic variables, and psychographic variables.

Marketing (competitive) intelligence is responsible for the gathering and interpretation of data
regarding the firm's competitors, and for the dissemination of the competitive information to
the appropriate users. Most of the competitor information comes from corporate annual
reports, media-tracking services, and from reports purchased from external providers,
including on-line database services. The Internet has become a major source of competitive
intelligence.
Marketing Mix Subsystems

The marketing mix subsystems support decision making regarding product introduction,
pricing, promotion (advertising and personal selling), and distribution. These decisions are
integrated into the sales forecast and marketing plans against which the ongoing sales results
are compared.
Marketing mix subsystems include:

1. Product subsystem
2. Place subsystem
3. Promotion subsystem
4. Price subsystem
5. Sales forecasting

Product Subsystem

The product subsystem helps to plan the introduction of new products. Continually bringing
new products to market is vital in today's competitive environment of rapid change. The
product subsystem should support balancing the degree of risk in the overall new-product
portfolio, with more aggressive competitors assuming higher degrees of risk for a potentially
higher payoff. Although decisions regarding the introduction of new products are unstructured,
information systems support this process in several ways:

1. Professional support systems assist designers in their knowledge work

2. DSSs are used to evaluate proposed new products

3. With a DSS, a marketing manager can score the desirability of a new product.

4. Electronic meeting systems help bring the expertise of people dispersed in space and time to
bear on the problem

5. Information derived from marketing intelligence and research is vital in evaluating new
product ideas.

Place Subsystem

The place subsystem assists the decision makers in making the product available to the
customer at the right place at the right time. The place subsystem helps plan the distribution
channels for the product and track their performance.

The use of information technology has dramatically increased the availability of information on
product movement in the distribution channel. Examples include:

1. Bar-coded Universal Product Code (UPC)

2. Point-of-sale (POS) scanning

3. Electronic data interchange (EDI)

4. Supports just-in-time product delivery and customized delivery

Promotion Subsystem

The promotion subsystem is often the most elaborate in the marketing information system,
since it supports both personal selling and advertising. Media selection packages assist in
selecting a mix of avenues to persuade the potential purchaser, including direct mail, television,
print media, and the electronic media such as the Internet and the WEB in particular. The
effectiveness of the selected media mix is monitored and its composition is continually adjusted.

Database marketing relies on the accumulation and use of extensive databases to segment
potential customers and reach tem with personalized promotional information.

The role of telemarketing, marketing over the telephone, has increased. Telemarketing calls are
well supported by information technology.

Sales management is thoroughly supported with information technology. Customer profitability

analysis help identify high-profit and high-growth customers and target marketing efforts in
order to retain and develop these accounts.

Sales force automation, involves equipping salespeople with portable computers tied into the
corporate information systems. This gives the salespeople instantaneous access to information
and frees them from the reporting paperwork. This increases selling time and the level of
performance. Access to corporate databases is sometimes accompanied by access to corporate
expertise, either by being able to contact the experts or by using expert systems that help
specify the product meeting customer requirements.

Price Subsystem

Pricing decisions find a degree of support from DSSs and access to databases that contain
industry prices. These highly unstructured decisions are made in pursuit of the companys
pricing objectives. General strategies range from profit maximization to forgoing a part of the
profit in order to increase a market share.

Information systems provide an opportunity to finely segment customer groups, and charge
different prices depending on the combination of products and services provided, as well as the
circumstances of the sale transaction.

Sales Forecasting

Based on the planned marketing mix and outstanding orders, sales are forecast and a full
marketing plan is developed. Sale forecasting is an area where any quantitative methods
employed must be tempered with human insight and experience. The actual sales will depend to
a large degree on the dynamics of the environment.

Qualitative techniques are generally used for environmental forecasting - an attempt to predict
the social, economic, legal, and technological environment in which the company will try to
realize its plans. Sales forecasting uses numerous techniques, which include:

1. Group decision making techniques are used to elicit broad expert opinion

2. Scenario analysis in which each scenario in this process is a plausible future environment

3. Extrapolation of trends and cycles through a time-series analysis.

Human Resource Information Systems
A human resource information system (HRIS) supports the human resources function of an
organization with information. The name of this function reflects the recognition that people
who work in a firm are frequently its most valuable resources. The complexity of human
resource management has grown immensely over recent years, primary due to the need to
conform with new laws and regulations.

A HRIS has to ensure the appropriate degree of access to a great variety of internal
stakeholders, including:

1. The employees of the Human Resources department in performance of their duties

2. All the employees of the firm wishing ti inspect their own records

3. All the employees of the firm seeking information regarding open positions or available
benefit plans

4. Employees availing themselves of the computer-assisted training and evaluation

opportunities

5. Managers throughout the firm in the process of evaluating their subordinates and making
personnel decisions

6. Corporate executives involved in tactical and strategic planning and control

Transaction Processing Subsystems and Databases of Human Resource Information Systems

At the heart of HRIS are its databases, which are in some cases integrated into a single human
resource database. The record of each employee in a sophisticated employee database may
contain 150 to 200 data items, including the personal data, educational history and skills,
occupational background, and the history of occupied positions, salary, and performance in the
firm. Richer multimedia databases are not assembled by some firms in order to facilitate fast
formation of compatible teams of people with complementary skills.

Other HRIS databases include:

1. Applicant databases

2. Position inventory

3. Skills inventory

4. Benefit databases

5. External databases

Information Subsystems for Human Resource Management

The information subsystems of HRIS reflect the flow of human resources through the firm, from
planning and recruitment to termination. A sophisticated HRIS includes the following
subsystems:

1. Human resource planning

 2. Recruiting and workforce management

3. Compensation and benefits

4. Government reporting and labour relations support

Human Resource Planning

To identify the human resources necessary to accomplish the long-term objectives of a firm, we
need to project the skills, knowledge, and experience of the future employees.

Recruiting and Workforce Management

Based on the long-term resource plan, a recruitment plan is developed. The plan lists the
currently unfilled positions and those expected to become vacant due to turnover.

The life-cycle transitions of the firm's workforce - hiring, promotion and transfer, and
termination - have to be supported with the appropriate information system components.

Compensation and Benefits

Two principal external stakeholders have an abiding interest in the human resource policies of
organizations. These are:

1. Various levels of government

2. Labor unions

12.6 Integrating Functional Systems for Superior Organizational Performance

Functional information systems rarely stand alone. This reflects the fact that the functions they
support should, as much as possible, connect with each other seamlessly in order to serve the
firms customers. Customers expect timely order delivery, often on a just-in-time schedule;
quality inspection to their own standards; flexible credit terms; post-delivery service; and often,
participation in the product design process.

Information technology provides vital support for integrating internal business processes,
cutting across functional lines, and for integrating operations with the firm's business partners,
its customers and suppliers.
DATA COMMUNCTION : Data communication is the process of using computing and communication
technologies to transfer data from one place to another and vice versa.
For example : Computer is connected to the internet via a Wi-Fi connection , which uses a wireless
medium to send and receive data from one or more remote servers.
COMPUTER NETWORK
Definition:- It is collection of autonomous computers which are connected through communication
channel, so that they can share their resources and information. On the basis size computer network is
of following type;
LAN(Local Area Network):- It is small network covering building and campus. Cover 5 to 10 Km
 PAN (Personal Area Network)
 CAN(Campus Area Network)
MAN(Metropolitan Area Network):- Cover Whole city. It range is up to 50 Km.
WAN(Wide Area Network):- Large computer network . Connect computer located in different
Geographical location that cover different cities or countries

Topology
It is physical connection of computer in the network . There are different topology which are use in
different application:
Bus topology:- All computers are connected through common communication channel.

Node Node Node

Node Node Node

Advantage:-
 Required less wires and hardware
 Easy to install.
Disadvantage:-
 Error Detection is difficult.
 Not very reliable.

Star Topology:- All computers are connect through central hub.

Advantage:- 1) Reliable
2) Error Detection is easy
Disadvantage:- 1) Required more hardware and wires;
2) Not expandable
Ring topology:- All computers are connected in ring like structure:
Advantage:- Reliable and fast
No required Server
Disadvantage: Unidirectional
Failure of any link will bring the entire network down.

Tree Topology: It is combination of bus and star topology

Advantage: 1. Extensible
2. Error detection is easy
3. If any segment is damage other Segment is not effected
4. Division Of network is easy
Disadvantage:- 1. Relies on main cable
2. Maintenance Become difficult If large
Mesh Topology:- All computers are directly Connected. Total number of link in the network is N*(n-
1)/2 ,where n is Total number of Node.

Advantage: Fast and reliable:

Error Detection is easy
Disadvantage: Costly and required More Wires and hardware
Internetworks

An internetwork can be defined as two or more computer networks (typically Local Area Networks LAN) which are connected
together, usinng Network Routers.

Each network in an Internetwork has its own Network Address, which is different from other networks inside the Internetwork. Network
Address is used to identify the networks inside an Internetwork.

Internetwork allows different users at different geographical locations of an organization to share data, resources and to communicate.
Modern businesses cannot even function without Internetwork. Internet, Intranet and Extranet are different types of internetwork.

Internet, Intranet and Extranet

Internet: Internet is a worldwide, publicly accessible computer network of interconnected computer networks (internetwork) that
transmit data using the standard Internet Protocol (IP). Internet is the world's largest Internetwork .

The terms World Wide Web (WWW) and Internet are not the same. The Internet is a collection of interconnected computer networks,
linked by copper wires, fiber-optic cables, wireless connections, etc. World Wide Web (WWW) is a collection of interconnected
documents and other resources, linked by hyperlinks and URLs. The World Wide Web is one of the services accessible via the
Internet, along with various others including email, file sharing, remote administration, video streaming, online gaming etc.

Intranet: An intranet is a private network that is contained within an enterprise. It may consist of many interlinked local area
networks and use any Wide Area Network (WAN) technologies for network connectivity. The main purpose of an intranet is to share
company information and computing resources among employees. Intranet is a private Internetwork, which is usually created and
maintained by a private organization. The content available inside Intranet are intended only for the members of that organization
(usually employees of a company).

Extranet: An extranet can be viewed as part of a company's intranet that is extended to users outside the company like suppliers,
vendors, partners, customers, or other business associates.

Extranet is required for normall day-to-day business activities. For example, Placing order to registered vendors, Billing & Invoices,
Payments, Joint Ventures, Product Brochures for Partners, Discounted price lists for partners etc.
Difference between Internet,Intranet, Extranet are as follows:
 UNIT 4
File design:-
Some of the basic terms used to describe the file hierarchy are as follows
Byte: A byte is an arbitrary set of eight bits that represent a character .It is the smallest addressable
unit in today‟s computers.
Data item (element): One or more bytes are combined into a data item to describe an attribute of an
object. Sometimes referred as a field.
Record: The data items related to an object are combined into a record. There are two types of
records
 Logical record maintains o logical relationship among all items in the record.
 Physical record is the way in which records are stored in a storage medium.

File: A collection of related records makes up a file. The size of a file is limited by the size of
memory or the storage medium. There are two characteristics denoting the way files are
organized
 Activity specifies the percentage of actual records processed in a single run.
 Volatility addresses the properties of record changes.
Attributes of file design:-
 File name
 Type
 Size
 Location
 Protection
 Time and date
 Lock flag
 Hidden flag
 System flag
 Maximum sixe
 Record length

Program design:-
Data base: The highest level in the hierarchy is the database. It is a set of interrelated files for real
time processing. A program now requests data through the data base management system(DBMS),
which determines data sharing.
Objectives of data base:
A data base is a collection of interrelated data stored with minimum redundancy to serve many
users quickly and efficiently. The general objective is to make information access easy, quick,
inexpensive and flexible for the user. In data base design several specific objectives are considered:
1. Controlled redundancy:
2. Ease of learning and use:
3. Data independence:
4. More information at low cost:
5. Accuracy and integrity:
6. Recovery from failure:
7. Privacy and security:
8. performance:
The terms that are normally used in DBMS are 1. User’s view is a profile that the user expects to
see on the report. 2. Processing refers to the changes made. 3. Data model is a framework of the
user‟s view. 4. Data file is the area where the file is stored.
To manipulate the operations on the DB, a set of programs are maintained called Data Base
management System (DBMS). The Main advantages of DB are 1. File consolidation 2. Program &
file independence 3. Access versatility
4. Data Security 5. Program development 6. Program maintenance
7. Special information In a data base environment, the DBMS is the software that provides
the interface between the data file on disk and the program that requests processing. DBMS
stores and manages data. The procedure is as follows: 1. The user requests a sales report
through the application program. The application program uses a data manipulation
language (DML) to tell the DBMS what is required. 2. The DBMS refers to the data model,
which describes the view in a language called the data definition language (DDL). The
DBMS uses DDL to determine how data must be structured to produce the user‟s view. 3.
The DBMS requests the input/output control system (IOCS) to retrieve the information from
physical storage as specified by the application program. The output is the sales report
Functions performed by the DBMS: 1. Storing, retrieving, and updating data. 2. Creating
program and data independence. Either one can be altered independently of the other. 3.
Enforcing procedures for data integrity. 4. Reducing data redundancy. Data are stored and
maintained only once. 5. Proving security facilities for defining users and enforcing
authorizations. Access is limited to authorized users by passwords or similar schemes.
Input/output design:-
OUTPUT DESIGN The term output necessarily implies to information printed or displayed by an
information system. Following are the activities that are carried out in the output design stage:
Identification of the specific outputs required to meet the information requirements. Selection of
methods required for presenting information. Designing of reports, formats or other documents
that acts as carrier of information. The most important source of information is the output, efficient,
intelligible output design should improve the system‟s relationship with the user and help in
decision making. Objectives of output design:-
Carry information about past activities, current affairs or projection of the future
Mark important events
Take an action
Confirm an action

Principles of output design:-

Too many details should be avoided
Design should be used from top to bottom approach
All pages must have heading and page number
All column must be labeled
Abbreviations should be avoided

Types of output
Report
Document
Message
OUTPUT DESIGN SPECIFICATIONS
The specifications for the output design should be considered first while designing any output. The
main points in the output design specifications are:
Paper size:
Special forms:
Multiple copies of output Turnaround documents:
Headings and date Data and details
Summaries and totals
Page title, number and date
Notes and comments
Column headings and data type A system designer may design multiple screens or special
windowing capabilities such as pop-up windows for designing screens. Such design will
enhance readability for the visual displays.
INPUT DESIGN The data base is the data that must be obtained and stored for later
retrieval for managerial decision making. The most common cause of error during the data
processing is inaccurate input. The inaccurate input is entered by data entry operators but it
can be controlled by input design.
Objectives of input design:
Avoiding errors in data
Avoiding delay
Avoiding duplication of data
Avoiding extra steps
Controlling the amount of input required
Keeping the process simple

Activities involved in input design:

Collection of data
Conversion of the input data to computer acceptable form
Checking the conversion
Transmitting the data to computer
Checking the input data
Correct the error if error occur

Similar to the output design, input design is equally important for a system designer. This is
because output from a system is regarded as the foremost determinant for defining the performance
of a system. The output of the system greatly affects the input design of the system.
Input layout
The layout of the input design must contain the following items.
Headings and date of data entry.
Data heading and value
Data type and width of the column
Initials of data entry operator

Form design
Form design is a specific component of user interface design and involves the creation of a system
used by people to interact with an object such as a microwave, cell phone, or computer. Form
design ergonomic factors, ease of use, and understandability are all combined to create the science
of user interface design. Poor form designs can cause frustration, mistakes, fatigue, and actual
physical damage such as eye strain and carpal tunnel syndrome.
Form design recommendations:-
Form Colors
Form Fonts
Form Layout
Form Buttons
Form Navigation
Requirements of form design: Form design follows analyzing forms. Since the purpose of a form is
to communicate effectively through forms design, there are several major requirements.
1. Identification and wording:
2. Maximum readability and use:
3. Physical factors:
4. Order of data items:
5. Ease of data entry:
6. Size and arrangement:
7. Use of instructions:
8. Efficiency considerations:
9. Type of report:

Classification of forms: A printed form is generally classified by what it does in the system.
There are three primary classifications
1.Action: This type of form requests the user to do something. Example: purchase orders.
2.Memory: This form is a record of historical data that remains in a file, is used for reference,
and serves as control on key details. Example: Inventory records, purchase records
3.Report: This form guides supervisors and other administrators in the activities. It provides
data on a project or a job. Example: profit and loss statements, sales analysis report
Types of forms:-
Flat form: A flat form is single copy form prepared manually or by a machine and printed
on any grade of paper. For additional copies of the original, carbon paper is inserted
between copies. It is the easiest form to design, print, and reproduces; it has a low-volume
use; and it is the least expensive. Often a pad of the flat forms is printed identical to the
original copy of a unit set.
2. Unit-set/Snap out forms: These forms have an original copy and several copies with one–
time carbon paper interleaved between them. The set is glued into a unit for easy handling.
The carbon paper is approximately 3/8 inch shorter than the copies. The copies are
perforated at the glue margin for tearing out, although the carbon is not perforated. Because
of the perforation and the shorter carbon, the forms can be easily snapped out after
completion.
3. Continuous strip/fanfold forms: These are multiple – unit forms joined together in a continuous
strip with perforations between each pair of forms. One–time carbon is inter-leaved between
copies, which are stacked in a fanfold arrangement. The fanfold is the least expensive construction
for large volume use. Computer printouts are invariably produced on them; they are virtually part of
system design.
Database design
A database is an orderly arrangement of all the records related to each other. It servers as a
data resource for the MIS of an organization. To have optimum performance, storage and
fast retrieval of data, database design is an important phase in the detailed design of a
system. For designing a database, the designer should keep the following points in mind.
 Identify all data tables and record types.
 Identify fields for each table, the key fields for each table and relations between
various tables.
 Determine the data type and width for each field of the tables.
 Normalize the data tables.
 Properly document data dictionary.
7) Procedure design
Procedures are the rules, standards or methods designed to increase the effectiveness of the
information system. The procedures detail about the tasks to be performed in using the
system. They serve as the ready recovers for the designers as well as for the users.
Sometimes they perform the task of a supervisor over operators. There are a wide variety of
procedures, which include:
Data entry procedures.

 Run time procedures.
 Error handling procedures.
 Security and back up procedures.
 Software documenting procedures.
In designing procedures, designers should:
 Understand the purpose and quality standards of each procedures
 Develop a step-by-step direction for each procedure, and
 Document all the procedures.
Dialogue Design:
The sequence of interaction between system and user. Dialogue design involves:
 Designing a dialogue sequence
 Building prototype
 Assessing Usability
Typical dialogue between user and customer information system:
 Request to view individual customer information
 Specify the customer of interest
 Select the year-to-date transaction summary display.
Designing the Dialogue sequence:
Three sections of the box are used:
Top : Contain a unique displ ay reference number used by other displays
for referencing it.
Middle : contains the name or description of the display
Bottom: Contains display reference numbers that can be accessed from
current display
Buiding prototype and access usability:
Building prototypes displays using a graphical development environment.

Information system projects are always based on time limit, cost conscious and
teamwork. Looking to these requirements system analyst has to design project
guideline in a way that reduce development time, cost and employee. For these
types of settlements system analyst can look forward to coding methods that fulfills
above-mentioned goals. A code can be brief number, title or symbol instead of
lengthier or describe coding techniques. With code, fewer details are necessary in
input, but no loss of information results. Various coding methods are adopted for
these are:
• Classification codes
• Function codes
• Sequence codes
• Significant digit
• Mnemonic codes
Classification codes: Classification codes place separate entities, such as events,
people or objects into distinct groups called classes. A code is used to distinguish
one class from another. The code is recorded on the source document by the user
or, in an online system. The user classifies the event into one of several possible
categories and records the code. For example, College management system can be
classified by students, faculty or course. In this system, to maintain library
information system can be classified using books issue or author to check book of
interest.
Function Codes: Function codes state the activities or work to be performed without
spelling out all of the details in narrative statements. User uses this type of coding
method to process the data. The particular function code may determine the
contents of the input record whether data in the code are keyed or scanned. For
example to process today’s total withdrawal amount in a bank analyst can design
function, which accepts today’s transaction with complete details of the transaction
and data. A derived function can evaluate amount using input data. Another
function can be derived to delete account information with different input values.
For deletion of account, identical account number has to pass and rest function can
be performed by function code.
Sequence codes: Sequence codes are either numbers or letters assigned in series.
For example roll no is a sequence in a class. Another example, a banking system
must be able to keep track of the order of transactions so that it is clear which
transaction to process first, which second and so on. Therefore, a sequence number
should be specified in the design to order the transactions. Sequence codes are also
used for identification purpose but are assigned in the order in which customers
enter the system.
Significant-Digit Subset codes: Suppose item number will be assigned to the
different materials and products a firm stocks or sells. One way to accomplish this is
to assign number in sequence. Starting with the first and going through to the last.
Or a prefix can be added to the “Yogidham”, Kalawad Road, Rajkot Ph : 572365,
576681 36 Atmiya Infotech identification numbers to further describe the type of
item: steel has an S-prefix, plastic a P and so on. The codes can be divided into
subset or sub codes, characters that are part of the identification number and that
have special meaning. The sub codes give the user additional information about the
item.
Coupling:
It is degree of functional interdependence or interaction between the two modules
of software. Coupling of two different modules are common matter in object-
oriented design approach. Low coupled modules are called best software design.
Variety of coupling methods are here explained…
• Data Coupling: In general two modules are coupled via a parameter that can be of
any primitive data type like integer, float or character.
• Stamp Coupling: Two modules communicate via composite data item like
structure or say private data type.
• Control Coupling: One module give direction to another module to be executed is
called control coupling.
• Common Coupling: If two module share common data then it is called common
coupling.
• Content Coupling: If two module share common data code then it is called content
coupling.
 Cohesion:
• It is a measure of functional strength of a module. This means as no of function
increases design of software gets better.
• Coincidental Cohesion: performs tasks that are related to each other very loosely.
• Logical Cohesion: If all elements of module perform similar operations like error
handling, printing, data input and output is called logical cohesive module.
• Temporal Cohesion: Module contains tasks that are related by the fact that all
tasks must be executed in the same time span. That means data start up, shutting
down and initialize procedure are similar operation.
• Procedural Cohesion: A set of function of module are part of a procedure is called
procedural cohesive module.
• Communicational Cohesion: All function of module refer to or update same data
structure is called communicational Cohesive module.
• Sequential Cohesion: One function refer another in same module is called
sequential cohesive module. There are varieties of cohesive module as mentioned
above and are tightly bound with a good software design.
UNIT-5
Internet
Internet is defined as an Information super Highway, to access information
over the web. However, It can be defined in many ways as follows:
 Internet is a world-wide global system of interconnected computer networks.

 Internet uses the standard Internet Protocol (TCP/IP).

 Every computer in internet is identified by a unique IP address.

 IP Address is a unique set of numbers (such as 110.22.33.114) which identifies a computer

location.

 A special computer DNS (Domain Name Server) is used to give name to the IP Address so that
user can locate a computer by a name.

 For example, a DNS server will resolve a name http://www.tutorialspoint.com to a particular

IP address to uniquely identify the computer on which this website is hosted.

 Internet is accessible to every user all over the world.

web browser
It is a program on your computer that allows you to access websites on the internet.
The web is written in a computer language called HTML (HyperText Markup Language). Browsers translate
this so that we can read it easily.
There are many browsers available. If you're using a Windows PC, your machine probably came with the
browser Internet Explorer. If you are using an Apple Mac, you'll have been supplied with Safari. No matter
which browser you're using, you'll find that they all do more or less the same job.
Here are the most popular browsers:

 Internet Explorer (Microsoft)

 
 Safari (Apple)
 
 Firefox (Mozilla)
 
 Chrome (Google)
 
 Browsers' benefits and key features

 They're free to download.

 You can have more than one on your computer.
 They all work in a similar way.
 They allow users to explore websites anywhere on the internet.

 Internet Explorer (Microsoft)

 
 Safari (Apple)
 
 Firefox (Mozilla)
 
 Chrome (Google)


 Browsers' benefits and key features

 They're free to download.

 You can have more than one on your computer.
 They all work in a similar way.
 They allow users to explore websites anywhere on the internet.

FTP (File Transfer Protocol)

File Transfer Protocol is a standard network protocol used to exchange and manipulate files
over a TCP/IP-based network, such as the Internet. FTP is built on client-server
architecture and utilizes separate control and data connections between the client and
server applications. FTP is used with user-based password authentication or with
anonymous user access. Applications were originally interactive command-line tools with
standardized command syntax, but graphical user interfaces have been developed for all
desktop operating systems in use today. The Trivial File Transfer Protocol (TFTP) is a
similar, but simplified, not interoperable, and unauthenticated version of FTP.
Numerous FTP servers all over the world allow users anywhere on the Internet to log in and
down-load files placed on them. The main competitor for FTP is HTTP (Hyper Text
Transfer Protocol) and the day is not very far when sites would run HTTP servers instead of
the FTP servers. It is so because HTTP servers can do whatever FTP server can do and do it
more efficiently.
As the Web gains popularity, downloading software is becoming even easier. You can use
your Web browser and click on links to files; behind the scenes, FTP is often still
downloading the files.
One problem with downloading files over the Internet is that some files are so large that it
can take a tremendous amount of time to download them. As a way to speed up file
transfers and save space on the FTP server, files are commonly compressed. Many different
methods are used to compress files. After the files have been downloaded, you will need to
run the decompression software such as PK UNZIP to decompress the files to use them.
Once you have the compressed file such as data. zip, you will need to unzip or decompress it
to get to the setup file and install the program. You can use the WinZip file to uncompress
this file.
Features of FTP
The basic features of FTP are:

1. Data representation
• FTP handles three types of data representations-ASCII (7 bit), EBCDIC (8-bit) and 8-
binary data.
• The ASCII file is the default format for transferring text files
• Each character is encoded using 7-bit ASCII. The sender transforms the file from its own
representation into ASCII characters and the receiver transforms the ASCII character to its
own representation.
• The image file is the default format for transferring binary files. The file is sent as
continuous streams of bits without any interpretation or encoding.

2. File organization and Data structures

• FTP supports both unstructured and structured file.
• An unstructured file contains string of bytes and is enl-marked by EOF (End of file). The
data structure that corresponds to such a file is called file structure.
• A structured file contains a list of records and each record is delimited by EDR (End of
Record). The data structure of such file is called record structure i.e. file is divided into
records.

3. Transmission modes
• FTP can transfer a file by using one of the following three modes:

Stream mode

• It is the default mode.

• File is transmitted as continuous stream of bytes to TCP.
• TCP is responsible for chopping data into segments of appropriate size.
• If data is simply a stream of bytes (file structure), no end-of-file is needed. EOF in this
case is the closing of the data connection by the sender.
• If data is divided into records (record structure), each record has a I-byte EOR (End-of-
Record) character and the end of the file has a I-byte EOF (End-of-file) character.
Block mode
• Data is delivered from FTP to TCP in blocks.
• Each block is preceded by 3 bytes header.
• The first byte is called the block descriptor.
• The second and third byte defines the size of the block in bytes.
Compressed mode
• Data is usually compressed if the file to be transmitted is very big.
• The compression method normally used in Run-length encoding.
• In a text file, usually spaces (blanks) are removed.
• In a binary file, null characters are compressed.

4. Error control
• Since TCP is used for data transfer no additional error recovery mechanism is required.

5. Access control
• File access protection is done using login procedure with login name and password.
TELNET : TELNET (TELecommunication NETwork) is a network protocol used on the Internet or local area
network (LAN) connections. It was developed in 1969. It is a network protocol used on the Internet or
local area networks to provide a bidirectional interactive communications facility. Typically,
telnet provides access to a command-line interface on a remote host via a virtual terminal
connection which consists of an 8-bit byte oriented data connection over the Transmission
Control Protocol (TCP). User data is interspersed in-band with TELNET control information.
The user's computer, which initiates the connection, is referred to as the local computer.
The computer being connected to, which accepts the connection, is rderred to as the
remote computer. The remote compmer can be physically located in the next room, the
next town or in another country.
The network terminal protocol (TELNET) allows a user to log in on any other computer on
the network. We can start a remote session by specifying a computer to connect to. From
that time until we finish the session, anything we type is sent to the other computer.
The Telnet program runs on the computer and connects your PC to a server on the
network. We can then enter commands through the Telnet program and they will be
executed as if we were entering them directly on the server console. This enables we to
control the server and communicate with other servers on the network. To start a Telnet
session, we must log in to a server by entering a valid username and password. Telnet is a
common way to remotely control Web servers.
The term telnet also refers to software which implements the client part of the protocol.
TELNET clients have been available on most Unix systems for many years and are
available virtually for all platforms. Most network equipment and OSs with a TCP/IP stack
support some kind of TELNET service server for their remote configuration including ones
based on Windows NT.
HTTP
HyperText Transfer Protocol (HTTP) is an application-layer protocol used primarily on the World Wide Web.
HTTP uses a client-server model where the web browser is the client and communicates with the webserver
that hosts the website. The browser uses HTTP, which is carried over TCP/IP to communicate to the server
and retrieve Web content for the user.
The Hypertext Transfer Protocol (HTTP) is an application-level protocol for distributed, collaborative,
hypermedia information systems. This is the foundation for data communication for the World Wide
Web (i.e. internet) since 1990. HTTP is a generic and stateless protocol which can be used for other
purposes as well using extensions of its request methods, error codes, and headers.
HTTP is a widely used protocol and has been rapidly adopted over the Internet because of its simplicity. It is a
stateless and connectionless protocol.
A basic HTTP request involves the following steps:

1. A connection to the HTTP server is opened.

2. A request is sent to the server.
3. Some processing is done by the server.
4. A response from the server is sent back.
5. The connection is closed.

There are two versions of HTTP, version HTTP/1.0 and the latest version HTTP/1.1. The change made in the
revision was mainly in the connection for each request and response transaction. In its former version, a
separate connection was needed. In the later version, the connection can be reused multiple times.

Basic Features
There are three basic features that make HTTP a simple but powerful protocol:
 HTTP is connectionless: The HTTP client, i.e., a browser initiates an HTTP request and after a
request is made, the client waits for the response. The server processes the request and sends a
response back after which client disconnect the connection. So client and server knows about
each other during current request and response only. Further requests are made on new
connection like client and server are new to each other.

 HTTP is media independent: It means, any type of data can be sent by HTTP as long as both
the client and the server know how to handle the data content. It is required for the client as well
as the server to specify the content type using appropriate MIME-type.

 HTTP is stateless: As mentioned above, HTTP is connectionless and it is a direct result of HTTP
being a stateless protocol. The server and client are aware of each other only during a
current request. Afterwards, both of them forget about each other. Due to this nature of the
protocol, neither the client nor the browser can retain information between different
requests across the web pages.

The HTTP protocol is a request/response protocol based on the client/server

based architecture where web browsers, robots and search engines, etc. act
like HTTP clients, and the Web server acts as a server.

Client
The HTTP client sends a request to the server in the form of a request method,
URI, and protocol version, followed by a MIME-like message containing request
modifiers, client information, and possible body content over a TCP/IP
connection.

Server
The HTTP server responds with a status line, including the message's protocol
version and a success or error code, followed by a MIME-like message
containing server information, entity meta information, and possible entity-
body content
Internet Explorer (IE): is a World Wide Web browser that comes bundled with the
Microsoft Windows operating system (OS). The browser was deprecated in Windows
10 in favor of Microsoft's new Edge Browser. It remains a part of the operating system
even though it is no longer the default browser.
Microsoft based the original version of Internet Explorer on technology licensed from
Spyglass, developer of the pioneering Mosaic browser, and released it for Windows 95
in August 1995. Version 2, released that November, added support for secure sockets
layer (SSL) encryption and cookies, and Version 3 followed in August 1996
with Java and cascading style sheets (CSS) -- all important technologies that are still in
use today.

Internet Explorer features and security settings

The Internet Explorer interface includes an address bar, menu bar, favorites bar and status bar.
Each can be enabled or disabled individually via the View menu. In addition, Internet Explorer's
View menu includes options to change the encoding, view the page source, adjust the text size
and adjust the page zoom. Other View menu options include Go To, Stop and Refresh. The
items that appear on Internet Explorer's View menu (and its other menus) vary depending on
the browser version.

Internet Explorer's File menu provides options that are similar to those of most other Windows
applications, such as Save, Save As and Properties. The File menu can also open a new
window, tab or session. Some versions of Internet Explorer even include a File menu option to
edit the page code using Notepad.

Internet Explorer's Edit menu is fairly mundane, with options such as Cut, Copy, Paste and Find
on Page.

While exploring the Internet, you’ve probably encountered the

terms downloading and uploading. Downloading means receiving data or a file from the Internet
on your computer. Uploading means sending data or a file from your computer to somewhere on the
Internet.
These terms describe activities you may have already learned how to do. If you've ever opened an
example document in one of our tutorials, you've downloaded that file. If you’ve ever shared a photo
you took on Facebook or another social media site, you've uploaded that photo.

Downloading
Usually, when you download a file you will start the download by clicking a link to that file. Many
of our tutorials contain links to files, like this:

Download our practice document.

If you click the link, your browser should prompt you to select one of two methods for downloading
the file.

 Open with will download the file and load it immediately in the specified program.
 Save File will download it and save it to your hard drive.

Downloading
Usually, when you download a file you will start the download by clicking a link to that file. Many
of our tutorials contain links to files, like this:

Download our practice document.

If you click the link, your browser should prompt you to select one of two methods for downloading
the file.

 Open with will download the file and load it immediately in the specified program.
 Save File will download it and save it to your hard drive.
Uploading
If a site allows uploads, it will have an upload utility to help perform the file transfer. Each site
handles this process differently, but we’ll give some common examples. Usually, the site will have
help pages to walk you through the upload process.

Many sites have an upload button that opens a dialog box. For example, Facebook has a camera icon
that begins the upload process.

A dialog box will appear, prompting you to select a file. Browse to the location where your file is
stored, select it, then click the Open button. Afterward, a progress bar tracking the upload process
will appear on the page.
Electronic data Security:

Data security management is a way to maintain the integrity of data and to make sure that the data is not accessible by unauthorized
parties or susceptible person to corrupt it. Data security is put in place to ensure privacy in addition or protecting this data. Data itself
is a raw form of information that is stored on network servers, possible personal computers and in the form of columns and rows. This
data can be anything from personal files to intellectual property and even top-secret information. Data can be considered as anything
that can be understood and interpreted by humans. Because of the growing use of internet there is an emphasis on protecting personal
or company data and this protection is known as data security which can be acquired by using specific software solutions or hardware
mechanisms.

Information can be encrypted or unreadable to a person with no access. When encrypting this data, mathematical sequences and
algorithms are used to scramble information. Encryption allows only an approved party to decode this unreadable text with a key.
Only those that have this key can access any information. Authentication is another form of data security to be used for more daily
access. A sign-on to an email account, bank account etc., only allows the user with the proper key or password. The most commonly
used method of keeping data protected is with data security software. This software keeps unauthorized parties from accessing private
data and offers a variety of different options. Data can also be protected with IP security. Data security tends to be necessary for large
businesses but the small ones usually have fewer infrastructures in place, making the information not a great loss if breached.
Depending on the services and content that is to be protected, there can be preventative measures to further protect the information.
Access Database System:

Database security refers to the collective measures used to protect and secure a database or database
management software from illegitimate use and malicious threats and attacks.
It is a broad term that includes a multitude of processes, tools and methodologies that ensure security within a
database environment.
Database security covers and enforces security on all aspects and components of databases. This includes:

 Data stored in database

 Database server
 Database management system (DBMS)
 Other database workflow applications

Database security is generally planned, implemented and maintained by a database administrator and or
other information security professional.
Some of the ways database security is analyzed and implemented include:
 Restricting unauthorized access and use by implementing strong and multifactor access and data
management controls

 Load/stress testing and capacity testing of a database to ensure it does not crash in a distributed
denial of service (DDoS) attack or user overload

 Physical security of the database server and backup equipment from theft and natural disasters

 Reviewing existing system for any known or unknown vulnerabilities and defining and implementing a
road map/plan to mitigate them