Amity School of Business

Kareena Bhatia
Amity School of Business,
Amity University, UP

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 Amity School of Business

Module 2
Information Technology
Infrastructure

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A Central Tool of Modern Information
Systems
•What is a Computer?
–Commonly Operated Machine Purposely Used-in Training, Education & Research.
–An Electronic Device Definition.

•Block Diagram of a Computer?

Memory
Input CU Output
ALU
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Considerations in Purchasing Hardware

• Power
• Expandability
• Ports
• Ergonomics
• Compatibility
• Support
• Warranty
• Cost

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Software: Instruction to the computer

•What is a Software?
•Classification of Software.
–System software
•Operating System,
•Language Translators,
•Device Drivers.

–Application Software
•Packaged Software,
•Custom Designed Software.

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Considerations in Purchasing a Software

• Fitness for purpose

• Ease of learning to use

• Ease of Use

• Compatibility with other software

• Reputation of vendor

• Availability and quality of support

• Networking

• Cost

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Data Resource Management

• DRM Technologies

– Database

– Data Warehouse

– Data Mining

– Data Marts

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Data Resource Management
(DRM)

 A managerial activity that applies information system technologies like

database management, data warehousing, data mining, and other
data management tools to the task of managing an organization’s data
resources to meet the information needs of their business stakeholders.

 It deals with managerial implications of using data resource management

technologies and methods to manage an organization’s data assets to
meet business information requirement.

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Database

•Application of Databases in Business

•Understanding Database

•File Organization concepts

•Traditional File Processing

•Problems with Traditional File Processing

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Need to understand database

• This topic throws light on how businesses use database technology

to achieve their objectives.

• Once businesses use database management systems to properly

organize their data, the data can be analyzed.

• The resulting information can be used to develop new businesses,

achieve operational excellence, inform management decision

making, and help the firm fulfill its regulatory reporting requirements.

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Application of Databases in Business

• Finance and Accounting –

• Finance
• Human resources
• Manufacturing, Production or Operations management
• Sales and Marketing.
Marketing

Many more departments find many more applications of

databases. Students do not need to limit themselves to the
slides’ content.

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• File Organization Concepts

 Field
 Record
 File
 Database
 Entity
 Attribute

Understanding Database
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Traditional File Processing

 In most organizations, data files and systems tended to grow independently without a

company wide plan. Accounting, finance, manufacturing, human resources, and sales

and marketing all developed their own systems and data files.

 Each application requires its own files and its own computer program to operate.

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Problems with Traditional File
Processing
The resulting problems are:-

• Data redundancy

• Program-data dependence

• Inflexibility

• Poor data security

• Inability to share data among various applications

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Database approach to Data Management

• Database technology cuts through many of the problems of the

traditional file organization.

• A more rigorous definition of a database is a collection of data

organized to serve many applications efficiently by centralizing

the data and controlling the redundant data.

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Database
 It is an integrated collection of logically related data elements.
 It consolidates records previously stored into separate files into a
common pool of data elements that provides data for many
applications.
 The data stored in a database are independent of the application
programs using them and the type of storage devices on which they
are stored.
 Thus, database contain data elements describing entities and
relationships among entities.

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Types of Databases

• Operational Databases

• Distributes Databases

• External Databases

• Hypermedia Databses

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Database Management Systems
(DBMS)
• A Database Management System (DBMS) is software that permits

an organization to centralize data, manage them efficiently, and

provide access to the stored data by application programs.

• The DBMS acts as interface between application programs and the

physical data files.

• When the application program calls for a data item, such as gross

pay, the DBMS finds this item in the database and presents it to the

application program.

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Database Structures

 Hierarchical Structure.

 Network Structure.

 Object Oriented Structure.

 Relational Structure.

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Data Warehouse

•Data Warehouse

•Components of a Data Warehouse

•Phases in building a Data Warehouse in an

Organization

•Data Mart

•Data Mining

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Data Warehouse
• A Data Warehouse stores data that have been extracted from the

various operational, external, and other databases of an organization.

• It is a central source of Data that have been cleaned, transformed, and

cataloged so they can be used by managers and other business

professionals for data mining, online analytical processing, and other

forms of business analysis, market research and decision support.

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Components of a Data Warehouse
The Data Warehouse extracts current and historical data from
Operational multiple operational systems inside the organization. These data
Data are combined with data from external sources and reorganized
into a central database designed for management reporting and
analysis. The information directory provides users with
Internal Data

information about the data available in the Warehouse

Customer
Sources

Data

Manufacturing Data Data Access

Extract and
Data Ware- and Analysis
Transform
house

Historical •OLAP
Data
•Data
External

Sources

Mining
Data

External Information
Data Dictionary

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Phases in building a Data Warehouse in an

Organization
1. Extraction Phase.

2. Cleansing Phase

3. Loading Phase

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Data Marts
• A data warehouse may be sub-divided into data-marts, which hold

subsets of data from the warehouse that focus on specific aspects

of a company, such as a department or a business process.

• A Data Mart is a subset of a Data Warehouse in which a

summarized or highly focused portion of Organization’s data is

placed in a separate database for a specific population of users.

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 Data Warehouse and Data Marts
Applications AmityData Martsof Business
School

Finance
ERP

Marketing
Inventory
Control

Shipping Data Sales

Warehouse

Purchasing Accounting

CRM Management
Reporting

A Data Warehouse and its data mart subsets hold data that have been extracted from
various operational databases for business analysis, market research, decision support,
and data mining applications.
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Data Mining
• Data Mining is a major use of data warehouse & databases.

• In data-mining, data in a data warehouse are analyzed to reveal hidden

patterns, correlations and trends in historical business activity.

• This helps managers to make decisions about strategic changes in business

operations to gain competitive advantages in the market place.

• Data Mining software uses advanced pattern recognition algorithms, as well

as a variety of mathematical and statistical techniques to sift through
mountains of data to extract previously unknown strategic business
information.

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Data Mining
Interpretation/
Data Evaluation
Data
Selection Transformation Mining

Databases Target Data Data Warehouse Patterns Business Knowledge

Data Mining software uses advanced techniques to pattern

recognition algorithms, as well as a variety of mathematical and
statistical techniques to sift through mountains of data to extract
previously unknown strategic business information.

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Types of Information Available from Data
Mining

• Associations
• Sequences
• Classification
• Clustering
• Forecasting

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Applications of Data Mining

Many companies use Data Mining to:

• Perform “Market Basket Analysis” to identify new product bundles.

• Find root causes to quality or manufacturing problems.

• Prevent customer attrition and acquire new customers.

• Cross-sell to existing customers.

• Profile customers with more accuracy.

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