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1.What are Operating Systems? What are their functions? Describe the
Open Systems Interconnection Reference Model (OSI Model) & its seven
layers.
Open Systems Interconnection Reference Model (OSI Model) & its seven
layers
The International Standards Organization developed a framework for computer
communication with an objective of providing a standard. The model provided by ISO
is known as Open Systems Interconnection Reference Model, popularly as OSI
model. The OSI model has seven layers. Each layer has a well-defined function and
interface. Development and management of software has become simple due to the
OSI model. The seven layers are briefly described here.
Application Layer
This is the top layer and provides user with an interface to the network. The primary
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Ans: MIS
The MIS is defined as an integrated system of man and machine for providing the
information to support the operations, the management, and the decision-making
function in the organization.
An MIS deals with information that is systematically and routinely collected in
accordance with a well-defined set of rules. In other words, data collection is a
planned activity for which resources are allocated and rules are defined.
Information systems are used in all functional areas and operating divisions of
business. In finance and accounting, information systems are used to forecast
revenue and business activity, determine the best sources and uses of funds.
Information systems have been used for managing cash and other financial
resources, and analyzing investment. Financial health of an organization is also
checked using IS. In sales and marketing, information systems are used to develop
new goods and services (product analysis), determining the best location for
production and distribution facilities (site analysis), determine the best advertising and
sales approaches (promotion analysis) and set product prices to get the highest total
revenues (price analysis).
In manufacturing, information systems are used to process customer orders, develop
production schedules; control inventory lends and monitor product quality. Service
industries such as airline industry and railways use information systems to serve their
customers better. Banks and other investment firms’ use IS to make good
investments and sanction sound loans. Publishing houses, healthcare organizations,
and retail companies all make use of information systems to serve their customers
better and maximize their profit.
Various Ways Of Assessing The Value Of Information
The value of information is measured in terms of benefits to the organization. The
benefits may be tangible that can be easily quantified. For example, 5% increase in
sales is a tangible benefit, which corresponds to Rs. 50,000. If the cost of the
information that led to this additional profit is Rs. 20,000. Then the value of the
information is Rs. 30,000. Sometimes, the benefits may be intangible and cannot be
easily quantified. For instance, the information may help consumers to connect to a
company better. The employees may feel respected in an organization if more
information is shared with them. In both the cases, the attrition rate will decrease
and the corresponding benefit cannot be directly measured in terms of financial
benefit to the organization.
There are many methods to assess value of information system, which is explained
below.
1) Cost-benefit analysis
IT project and investments has to take its place in the queue for all too scarce
cash
resources, and the rules for justifying are the same as for any other project
A more sophisticated argument is that, because the risks inherent in decision
about IT
are higher, the expected ROI needs to higher before an investment can be
justified.
Because of high sum, IT investment has a high potential to damage the
organization.
A new product is equally risky.
But fundamentally, decision makers are less comfortable about IT because of
their
ignorance of the issues and they lack faith in the estimates presented to them.
The
main points:
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• IT is high risk, high cost; at the same time IT has potential for substantial
benefits
• Managers are not conversant with all aspects of the decision - due to rapid pace
of change of technology.
• There is no trusted track record of benefits of IT investments
• IT decision should be made by IT professionals in consultation with general
management of the organization
• IT investment should get integrated with organization’s strategy/processes
• An organization should start with simple and inexpensive systems, gain
experience and then move to better, more involved systems
• The systems being used by the competition may be used as a guideline.
Identification of IT Costs
IT cost is so hard to estimate that one may be off by 50% or more. One of reasons
is
that the overheads are excessive. If one unit of money is invested in IT, 57 units
will
be spent on human resources etc. The Table 6.1 gives the cost involved.
a) Direct Cost
Environmental operating cost
Hardware cost
Software cost
Installation and configuration costs
Overheads
Training cost
Maintenance cost
b) Indirect Human Costs
Indirect human cost is more significant than direct cost and it is very illusive in
nature.
Following is the taxonomy of indirect human costs:
• Management Time
• Management effort and dedication
• Employee Training
• Management Resources
• Personnel Issues
• Cost of ownership
• Employee Time
• Employee Motivation
c) Indirect Organizational Costs
• Losses in productivity
• Organizational Productivity
• Strains on Organizational Resources
• Opportunity Cost and Risk
• Business Process Reengineering
• Covert Resistance
2) Return on Investment (ROI)
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determining the best sources and uses of funds and managing cash and other
financial resources. IT has also been used to analyze investments and perform
audits.
• Sales and Marketing : IT has been used to develop new services, which may
not exist without IT. IT has helped management of various organizations to
determine the best location for production and distribution facilities. The
operational data has been analyzed using IT to determine the best advertising and
sales approaches. The product prices have been set using IT to get the highest
total revenues. In other words, IT has been used for product analysis and price
analysis.
• Manufacturing : IT has been extensively used for processing customer orders,
controlling inventory levels, developing production schedules and for monitoring
product quality. A whole new discipline— Computer Aided Design and Computer
Aided Manufacturing has evolved due to application of IT to design and
manufacturing. The manufacturing is not what is used to be due to the use of
computers, Computer Integrated Manufacturing (CIM) dominates the
manufacturing sector.
• Human Resource Management : Companies are using IT systems for
screening applicants and conducting various tests.
• Project Management : A range of software packages are available in the
market for managing projects. These software products let the management set
the schedules, milestones, facilitate communication among group members, and
monitor the project progress. These products help in document and report
preparation.
• Data Analysis : Investment firms heavily use information systems to analyze
stocks, bonds and options to provide better service to their clients.
4.Discuss the steps involved in system analysis and design. What specific
considerations are required for proper implementation and maintenance?
Ans:
SYSTEMS ANALYSIS
Systems analysis is the analysis of the problem that the organization will try to solve
with an information system. It consists of
Defining the problem,
Identifying its causes,
Specifying the solution
Identifying the information requirements that must be met by a system solution.
The key to building any large information system is a thorough understanding of the
existing organization and system. Thus, the systems analyst creates a road map of the
existing organization and systems, identifying the primary owners and users of data in
the organization. These stakeholders have a direct interest in the information affected
by the new system. In addition to these organizational aspects, the analyst also briefly
describes the existing hardware and software that serve the organization.
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From this organizational analysis, the systems analyst details the problems of existing
systems. By examining documents, work papers, and procedures; observing system
operations; and interviewing key users of the systems, the analyst can identify the
problem are and objectives to be achieved by a solution. Often the solution requires
buildings a new information system or improving an existing one.
Feasibility
In addition to suggesting a solution, systems analysis involves a feasibility study to
determine whether that solution is feasible, or achievable, given the organization’s
resources and constraints. Three major areas of feasibility must be addressed:
Technical Feasibility: Whether the proposed solution can be implemented with the
available hardware, software, and technical resources.
Economic Feasibility: Whether the benefits of the proposed solution outweigh the
costs.
Organizational Feasibility: Whether the proposed solution is desirable within the
existing managerial and organizational framework.
Normally the systems analysis process will identify several alternative solutions that
can be pursued by the organization. The process will then assess the feasibility of
each. Three basic solution alternatives exist for every systems problem:
1. To do nothing, leaving the existing situation unchanged
2. To do modify or enhance existing systems
3. To develop a new system
Establishing Information Requirements
Perhaps the most difficult task of the systems analyst is to define the specific
information requirements that must be met by the system solution selected. This is the
area where many large system efforts go wrong and the one that poses the greater
difficulty for the analyst. At the most basic level, the information requirements of a
new system involve identifying who needs what information, where, when, and how.
Requirements analysis carefully defines the objectives of the new or modified system
and develops a detailed description of the functions that the new system must
perform. Requirements must consider economic, technical, and time constraints, as
well as the goals, procedures, and decision processes of the organization. Faulty
requirements analysis is a leading cause of systems failure and high systems
development costs.
Some problems do not require an information system solution, but instead need an
adjustment in management, additional training, or refinement of existing organizational
procedures. If the problem is information-related, systems analysis may still be
required to diagnose the problem and arrive at the proper solution.
SYSTEMS DESIGN
While systems analysis describes what a system should do to meet information
requirements, systems design shows how the system will fulfill this objective. The
design of an information system is the overall plan or model for that system.
Design Alternative
Before the design of an information system is finalized, analysts will evaluate various
design alternatives. Based on the requirements definition and systems analysis,
analysts construct high-level logical design models. They then examine the costs,
benefits, strengths, and weaknesses of each alternative
IMPLEMENTATION AND MAINTENANCE
The remaining steps in the systems development process translate the solution
specifications established during systems analysis and design into a fully operational
information system. These concluding steps consist of programming, testing,
conversion, and production and maintenance.
Programming
During the programming stage,system specifications that were prepared during the
design stage are translated into program code. On the basis of detailed design
documents for files, transaction and report layouts, and other design details,
specifications for each program in the system are prepared.
Testing
Exhaustive and thorough testing must be conducted to ascertain whether the system
produces the right results. Testing answers the question, “Will the system produce the
desired results under known conditions?”
Testing information system can be broken down into three types of activities: Unit
testing, or program testing, consists of testing each program separately in the system.
While it is widely believed that the purpose of such testing each program separately
in antee that programs is error free, this goal is realistically impossible. Testing should
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Features Of E-commerce
Lower Cost
Doing e-business is cost effective; it reduces logistical problems and puts a small
business on a par with giants such as Amazon.com or General Motors. In a commercial
bank, for example. a basic over-the-counter transaction costs £0.50 to process; over the
Internet, the same transaction costs about £0.01. Every financial transaction eventually
turns into an electronic process. The sooner it makes the conversion, the more cost-
effective the transaction becomes.
Economy
Higher Margins
E–commerce means higher margins. For example, the cost of processing an airline
ticket is £5. According to one travel agency, processing the same ticket online costs £1.
Along with higher margins, businesses can gain more control and flexibility and are able
to save time when manual transactions are done eletronically.
E–commerce means better and quicker customer service. Online customer service
makes customers happier. Instead of calling your company on the phone, the web
merchant gives customers direct to their personal account online. This saves time and
money. For companies that do business with other companies, adding customer service
online is a competitive advantage. The overnight package delivery service, where
tracking numbers allow customers to check the whereabouts of a package online, is one
good example.
Productivity Gains
Teamwork
E–mail is one example of how people collaborate to exchange information and work on
solutions. It has transformed the way organisations interact with suppliers, vendors,
business partners, and customers. More interactions means better results.
Knowledge Markets
E–commerce helps create knowledge markets. Small groups inside big firms can be
funded with seed money to develop new ideas. For example, DaimlerChrysler has
created small teams to look for new trends and products. A Silicon Valley team is doing
consumer research on electric cars and advising car designers.
Disadvantages Of E–commerce
Security
Data protection and the integrity of the system that handles the data are serious
concerns. Computer viruses are rampant, with new viruses discovered every day.
Viruses cause unnecessary delays, file backups, storage problems, and other similar
difficulties. The danger of hackers accessing files and corrupting accounts adds more
stress to an already complex operation.
System Scalability
A business develops an interactive interface with customers via a website. After a while,
statistical analysis determines whether visitors to the site are one–time or recurring
customers. If the company expects 2 million customers and 6 million show up, website
performance is bound to experience degradation, slowdown, and eventually loss of
customers. To stop this problem from happening, a website must be scalable, or
upgradable on a regular basis.
So far, success stories in e–commerce have forced large business with deep pockets and
good funding. According to a report, small retailers that go head–to–head with e–
commerce giants are fighting losing battle. As in the brick–and–mortar environment,
they simply cannot compete on price or product offering. Brand loyalty is related to this
issue, which is supposed to be less important for online firms. Brands are expected to
lower search costs, build trust, and communicate quality. A search engine can come up
with the best music deals, for example, yet consumers continue to flock to trusted
entities such as HMV.
Not many businesses realise that even e–business cannot survive over the long term
without loyal customers.
Corporate Vulnerability
The availability of product details, catalogs, and other information about a business
through its website makes it vulnerable to access by the competition. The idea of
extracting business intelligence from the website is called web framing.
Many stories unfolded in 1999 about successful executives in established firms leaving
for Internet start–ups, only to find out that their get–rich dream with a dot.com was just
that – a dream.