Computer Applications in Business Lecture Notes

ACHARYA INSTITUTE OF GRADUATE STUDIES

DEPARTMENT OF MANAGEMENT
EVEN SEMESTER 2012 - 2013
1. Concept o! In!o"#$t%on $n& D$t$'$e
Information plays a vital role for the survival of business firms. This information helps
business firms to grow and take decisions and actions.
D$t$(
ata is the raw material from which useful information is derived. The word !ata" is
derived from the Latin word )D$t*#+ which means )to ,%-e+. It is defined as raw facts
or observations# typically about physical phenomenon or business transactions. $o it can
be a character# symbol or a word.
In!o"#$t%on(
The data which has been converted into a useful and meaningful form is information. The
word !Information" is derived from a Latin word )In!o#$"e+ which means )Int"*ct+.
According to D$-% $n& O.on information is defined as# !data that have been processed
into a form that is meaningful to the recipient % is of real or perceived value in current or
prospective action or decision."
Fe$t*"e o! In!o"#$t%on
In!o"#$t%on $&& to $ "ep"eent$t%on(
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Computer Applications in Business Lecture Notes
Info is a collection of data which is useful and meaningful. The data represents or
describes a picture or model or statue or a thing which has meaning and useful.
It co""ect o" con!%"# p"e-%o* %n!o"#$t%on(
Info is considered as a processed data. It corrects or confirms about the previous
info or action taken place.
It /$ -$.*e(
&hen information is edited or processed to correct the previous info# it adds value
to the info.
It "e&*ce *nce"t$%nt0(
&hen there is a collection of data in the database# this helps to predict the future.
It /e.p %n &ec%%on #$1%n,(
&hen there is a correct info in the database# this helps in making decisions at the
appropriate time.
It % "e*$'.e(
As info is a collection of data and will be stored in the databanks it can be used as
and when re'uired.
D%!!e"ence 'et2een D$t$ $n& In!o"#$t%on
ata refers to a character or a symbol or a word but information is a collection of
data which gives meaning to it.
ata are facts but info is based on data % is not a fact.
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Computer Applications in Business Lecture Notes
All data cannot become info but information arises from data. There is a lot of
selective filtration of data before processing them into info.
ata are the result of routine recording of events and activities taking place.
(eneration of information is user driven which is not always automatic.
ata are independent of users whereas info is user dependent. Info reports will be
designed to meet the anticipated info needs of a user or group of users.
ata is representation of info whereas info is an interpreted data.
Input to any system may be treated as ata but )utput after processing in the
system is Information.
ata must be processed to understand whereas Information is already in
understandable form* it may be processed further to make it more understandable.
+,amples for data can be $tatistics# numbers# characters# images but e,amples for
information can be -eports# .nowledge.
D%#en%on o! In!o"#$t%on
Information has many facets and some of these facets or dimensions of interest to
information system people are/
+conomic imension
Business imension
Technical imension
Econo#%c D%#en%on(
The economic dimension includes both the cost of the information and its benefits from
use. The cost of information consists of the cost to ac'uire data# cost to maintain data#
cost for generating and communicating information. The cost is related to accuracy# speed
of generation of information. Cost is also related to the response time re'uired to generate
information and communicate it. If the response time is low# the costs are very high.
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Computer Applications in Business Lecture Notes
3*%ne D%#en%on(
The characteristics of information re'uired by managers at different levels of hierarchy
are different. The characteristics of information for top management are in striking
contrast with those of operating level management. The top level management is
concerned with strategic planning and giving direction to the organi0ation. $o# it re'uires
information that is future oriented# e,ternal and unstructured but whereas the operating
level management re'uires information about the operations 1ust finished or 1ust to be
started. $o# they mostly need information that is historical# internal and structured.
Tec/n%c$. D%#en%on(
The technical dimension of information depends on the 'uality and reliability of
technology used for data processing and info communication. The technical
considerations of database are its capacity# response time# data interrelationship# security
and validity.
Capacity/
This refers to the content of info. Info reports should be concise and clear. It should not
overload the user with unnecessary details.
$ecurity/
This aspect emphasi0es the privacy and security of data. Information systems must have
ade'uate safeguards against unauthori0ed access# hacking and other misuse of database
and facilities.
2alidity/
The data must be validated before they enter the database. The 'uality and 'uantity of
input data determine the 'uality of information. Ade'uate procedures must be built into
the applications for validation of input data at data entry points.
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Computer Applications in Business Lecture Notes
-esponse time/
This is the time taken by the system to respond to the user re'uests for information or
support. The response time depends on the technical capacity of the system and the
volume of such transactions to be processed by the system per unit of time.
In!o"#$t%on O-e".o$&(
It is a state when users are presented with too much of information. In such a case# it will
be impossible for the users to find out which information is relevant to the problem
conte,t and which is not. This overload causes a barrier to understand the information
presented and confuses the user. This problem is the result of unfocused and irrelevant
information. And also leads to poor presentation of information.
In!o"#$t%on F%.te"%n,(
It is a techni'ue that trims or cut shorts the irrelevant information before it reaches the
managers. The main purpose of information filtering is to avoid overloading of superiors
with irrelevant information. It permits managers in e,ercising control over the
information flow in the organi0ation. It also minimi0es the pressure on communication
channels and the e,penditure of money and time. This can also be harmful to the
organi0ation as some vital information may not reach the superiors.
3*%ne D$t$ P"oce%n,(
It is a ma1or application of computers. It is concerned with abstracting meaningful
information from large volumes of data. In business data processing# huge 'uantity of
data forms input and the processing results in collapsing the data into a small 'uantity of
meaningful information to the users.
+g/ C)B)L3 programming language developed in4567s to address the needs of business
data processing
.
IN89T 8-)C+$$)- )9T89T
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Computer Applications in Business Lecture Notes

Step %n D$t$ P"oce%n,(
)nce the information needs are identified# there is a need to follow certain steps to locate
data sources# generate information and communicate it. The basic steps are*
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ATA
ATA
$T)-A(+
8-)C+$$IN( IN:)-;ATI)N
Identifying the data
esigning forms
+ntering data
2alidation
(enerating reports
and communicating
them
$torage
8rocessing the data
Computer Applications in Business Lecture Notes
I&ent%!0%n, t/e &$t$(
Accuracy of information depends on accurate data input. )nce certain information
needs are determined# the data for generating that information need to be
identifies. The first step in data processing# therefore# is to locate data sources for
the re'uired information. Accurate# ade'uate and relevant data must be used as
input.
De%,n%n, !o"#(
The ne,t step is to design forms for data entry. The forms are linked to databases
so that it becomes easy to enter data into the system.
Ente"%n, &$t$(
)nce the input forms are designed# the actual data must be keyed into the forms.
ata entry personnel do this task. This task is monotonous# but the work has to be
done very carefully to avoid any correct data.
V$.%&$t%on(
The data entered must be valid. Certain validation procedures may be built into the
code so that input forms do not accept any incorrect data.
Sto"$,e(
The ne,t step is to organi0e and store the data in appropriate databases to facilitate
easy storage and retrieval of data. It should also take care of data security#
particularly in a multi3user environment.
P"oce%n, t/e &$t$(
The ne,t step is to retrieve the appropriate data for the information re'uired and
process them. The operations to be performed to generate information depend on
the nature of data and the information re'uired.
Gene"$t%n, "epo"t $n& co##*n%c$t%n, t/e#(
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Computer Applications in Business Lecture Notes
The information must be meaningfully presented to the users. Applications must
be developed to generate reports for the users. The report may be presented in the
form of print3out# on screen display etc.
D$t$'$e
A database is a set of logically connected data files that have common access methods
between them. The word <data bank= is sometimes used to mean a collection of databases.
A database is an organi0ed collection of data for one or more purposes# usually in digital
form. The data are typically organi0ed to model relevant aspects of reality >for e,ample#
the availability of rooms in hotels?# in a way that supports processes re'uiring this
information >for e,ample# finding a hotel with vacancies?.
D$t$'$e 0te#
A database system is a term that is typically used to encapsulate the constructs of a data
model# database ;anagement system >B;$? and database. It gives centrali0ed control
over the database resources.
Co#ponent o! D$t$'$e S0te#
The common database components are/
D$t$'$e !%.e( The database files store the transaction .
D3MS( It is a set of programs that manages the databases. It performs a number
of tasks like controlling access to the database# making security checks etc.
Hot .e-e. .$n,*$,e %nte"!$ce 0te#( This system interacts with application
programs and interprets their data re'uests that are issued in high3level language.
N$t*"$. .$n,*$,e %nte"!$ce( B;$ needs to process 'ueries and data re'uests
issued to it in natural languages called +nglish3like language. The natural language
interface performs interpreting the 'ueries and re'uests in natural language. It also
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Computer Applications in Business Lecture Notes
facilitates managerial interaction with the database for decision support
applications.
App.%c$t%on p"o,"$#( The application programs re'uest for data from the
database. The data independence permits the applications to use the data for a
variety of purposes.
D$t$ D%ct%on$"0( ata dictionary is an electronic document that contains data
definition and data use for every data type in the database. It describes the data and
their characteristics such as their location# si0e and type. It identifies data origin#
use# ownership and methods of accessing and security of data.
Repo"t ,ene"$to"( The system generates output for users in the form of 'uery
response or reports. It might also produce documents like invoice and process ad3
hoc 'ueries and special report re'uests.
A&-$nt$,e o! D$t$'$e 0te#(
The database system approach has the following advantages/
D$t$ %n&epen&ence/ The data are logically designed into databases and they are
independent of applications. $ince the data are program3independent# any
application can use them without any modification to the code.
D$t$ /$"e$'%.%t0/ atabase permits simultaneously multiple accesses to the
database. Thus# multiple users can share the same data at the same time.
D$t$ %nte,"%t0/ Access to the database is controlled by the database management
system. The system authorises personnel for entering# editing and deleting the
data. It also authorises people to access data for various data processing activities.
$ince the database stores one data item only in one place and updates it with fresh
transaction data automatically# there is little chance of inconsistency in the
database.
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Computer Applications in Business Lecture Notes
D$t$ $-$%.$'%.%t0/ The database is centrally and access to data is permitted
through an authorisation scheme. The data resources are therefore available to the
users in the organisation sub1ect to the security restrictions enforced.
D$t$ E-o.-e$'%.%t0/ The database is fle,ible and can store huge 'uantity of data.
It can evolve as the number of applications and 'ueries increases to meet their data
re'uirements for information generation.
D$t$'$e M$n$,e#ent S0te#
A database management system >B;$? is a software package with computer programs
that control the creation# maintenance# and use of a database. It allows organi0ations to
conveniently develop databases for various applications by database administrators
>BAs? and other specialists. A B;$ allows different user application programs to
concurrently access the same database. B;$s may use a variety of database models#
such as the relational model or ob1ect model# to conveniently describe and support
applications. A B;$ provides facilities for controlling data access# enforcing data
integrity# managing concurrency control# and recovering the database after failures and
restoring it from backup files# as well as maintaining database security.
T0pe o! D3MS
There are three main types of atabase ;anagement $ystem >B;$? and these are
based upon their management of database structures. In other words# the types of B;$
are entirely dependent upon how the database is structured by that particular B;$.
H%e"$"c/%c$. D3MS
A B;$ is said to be hierarchical if the relationships among data in the database are
established in such a way that one data item is present as the subordinate of another one.
@ere subordinate means that items have Aparent3childA relationships among them. irect
relationships e,ist between any two records that are stored consecutively. The data
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Computer Applications in Business Lecture Notes
structure BtreeB is followed by the B;$ to structure the database. No backward
movement is possible C allowed in the hierarchical database. @ierarchical databases were
difficult to handle because rolling of operations was highly tedious.
Net2o"1 D3MS
A B;$ is said to be a Network B;$ if the relationships among data in the database
are of type many3to3many. The relationships among many3to3many appear in the form of
a network. Thus the structure of a network database is e,tremely complicated because of
these many3to3many relationships in which one record can be used as a key of the entire
database. A network database is structured in the form of a graph that is also a data
structure. Though the structure of such a B;$ is highly complicated however it has two
basic elements i.e. records and sets to designate many3to3many relationships. ;ainly
high3level languages such as 8ascal# C)B)L and :)-T-AN etc. were used to
implement the records and set structures.
Re.$t%on$. D3MS
A B;$ is said to be a -elational B;$ or -B;$ if the database relationships are
treated in the form of a table. A statistical table that is composed of rows and columns is
used to organi0e the database and its structure and is actually a two dimension array in
the computer memory. A number of -B;$s are available* some popular e,amples are
)racle# $ybase# Ingress# Informi,# ;icrosoft $DL $erver# and ;icrosoft Access.
D$t$ 2$"e/o*e
A data warehouse >&? is a database used for reporting and analysis. The data stored in
the warehouse is uploaded from the operational systems. The data may pass through an
operational data store for additional operations before it is used in the & for reporting.
A &$t$ 2$"e/o*e maintains its functions in three layers/ staging# integration# and
access. $taging is used to store raw data for use by developers. The integration layer is
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Computer Applications in Business Lecture Notes
used to integrate data and to have a level of abstraction from users. The access layer is for
getting data out for users.
3ene!%t o! $ &$t$ 2$"e/o*e
A data warehouse maintains a copy of information from the source transaction systems.
This architectural comple,ity provides the opportunity to/
;aintain data history# even if the source transaction systems do not.
Integrate data from multiple source systems# enabling a central view across the
enterprise. This benefit is always valuable# but particularly so when the
organi0ation has grown by merger.
Improve data 'uality# by providing consistent codes and descriptions# flagging or
even fi,ing bad data.
8resent the organi0ationAs information consistently.
8rovide a single common data model for all data of interest regardless of the dataAs
source.
-estructure the data so that it makes sense to the business users.
-estructure the data so that it delivers e,cellent 'uery performance# even for
comple, analytic 'ueries# without impacting the operational systems.
Add value to operational business applications# notably customer relationship
management >C-;? systems.
D$t$ M$"t
A data mart is the access layer of the data warehouse environment that is used to get data
out to the users. The data mart is a subset of the data warehouse which is usually oriented
to a specific business line or team.
D$t$ #%n%n,
It is the step of the knowledge discovery in databases process. The goal of data mining is
to e,tract knowledge from a data set in a human3understandable structure. It is the young
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and interdisciplinary field of computer science is the process of discovering new patterns
from large data sets involving methods at the intersection of artificial intelligence#
machine learning# statistics and database systems.
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