UNIT 1

INTRODUCTION

INTRODUCTION
Business intelligence key role in operations &

strategy

Quality business information managers essential

IM applied field that combines computer science

with business management practices

IM acquisition, custodianship and distribution of

useful information.

CONTD
Six closely related activities:
1. Identification of information needs
2. Acquisition & creation of information
3. Analysis & interpretation
4. Organization & storage
5. Information access & dissemination
6. Information use

BENEFITS OF IM
Reduce costs
Reduce uncertainty
Add value
Create value

DATA
Stream of raw facts such as values or measurements
Can be numbers, words, measurements, observations or

just a description

Examples:
57,63,45,77,84
Chocolate, vanilla, strawberry, mango
25-08-1992, 23-07-1994, 10-12-1990
Consist of alpha numeric as well as images & sounds
Datum singular, Data - plural

TYPES OF DATA

INFORMATION
Processed data that gives meaning is information
Data that is categorized, counted and thus gives

meaning & relevance

Critical business resource used every day

DATA PROCESSING CYCLE

TYPES OF INFORMATION

INTELLIGENCE
The ability to solve problems and to adapt & learn

from everyday experiences

Intelligence is a way of manipulating information and

knowledge to get certain things done one of which is

acquiring information & knowledge

KNOWLEDGE
Facts, feelings or experiences known by a person
Knowledge is knowing what works & how it works
Information with beliefs, experience and internalized

INFORMATION
TECHNOLOGY (IT)

INTRODUCTION
IT is the application of computers and

telecommunication equipment to store, retrieve,

transmit & manipulate data

Used in the context of a business or enterprise

Involves processing of information by a computer
Todays competitive environment has led businesses

to integrate IT in every processes.

COMPONENTS OF IT
1. Hardware
2. Software
3. Data
4. Network
5. People

ADVANTAGES OF IT
1. Globalization
2. Communication
3. Cost effectiveness
4. Bridging cultural gap
5. 24X7 operation
6. Creation of new jobs

DISADVANTAGES OF IT
1. Unemployment
2. Privacy & safety issues
3. Lack of job security
4. Dominant culture

APPLICATIONS OF IT
1. Education
2. Business & industry
3. Entertainment
4. Medicine

CHALLENGES OF IT
1. Challenge of globalization
2. Challenge of insularity
3. Challenge to privacy
4. Challenge of ethics

INFORMATION
SYSTEMS (IS)

INTRODUCTION
IS - set of people, procedures & resources that

collects, transforms & disseminate information in

organization

Two categories:
1. Manual Information Systems
2. Computer Based Information System (CBIS)

EVOLUTION OF IS

reso

s
ource
re res

Dat
a

a
Hardw

urce
s

COMPONENTS OF IS/CBIS

TYPES OF IS

ROLE OF IS IN BUSINESS
TODAY
1. Operational excellence
2. New products, services & business models
3. Customer/supplier intimacy
4. Improved decision making
5. Competitive advantage
6. Day to day survival

IS ACTIVITIES/FUNCTIONS
1. Input of data resources
2. Processing of data into information
3. Output of information
4. Storage
5. Control of system performance

CAPABILITIES OF IS
1. Provide fast & accurate transaction processing
2. Provide large capacity, fast access storage
3. Provide fast communications
4. Reduce information overload
5. Span boundaries
6. Provide support for decision making
7. Provide a competitive edge

SYSTEM
DEVELOPMENT
METHODOLOGY

INTRODUCTION
The How of systems engineering
Includes methods, tools, procedures, processes,

practices and skills

Rough outline & working of the system

Essential for managers to know

OBJECTIVES
Shows how the system works
Examines the components that work to produce a

system & outcome of components

Diagrammatic representation relation between each

system activity & impact

Valuable to see the overall picture
Reveals data collection needs
Helps in monitoring performance

TYPES OF SDM
1. System Development Lifecycle (SDLC)
2. Waterfall model
3. Prototyping model
4. Spiral model
5. Rapid Application Development (RAD)

1.SDLC

Advantages

Disadvantages

Control

Inflexible

Accountability

Time consuming

Error detection

Lack of changes

Systematic approach

Translation issues

Formal documentation

Poor documentation

2
.
W
A
T
E
R
F
A
L
L
M
O
D
E
L

Advantages

Easy
Well defined i/p & o/p at

each phase
Helps PM in project

planning
Provides a template

Disadvantages

Sequential
Lacks overlap &

interaction
Uncertainty

3.
Prototyping
Model

Advantages

Disadvantages

Clarity

High cost

Best for Non-IT users

Not useful after getting

Provides judgement to

developer
Risk identification
Takes less time

full requirements from

clients
Involvement of clients
Possibility of disruption

during changes

4. Spiral
Model

Advantages

Disadvantages

Early risk identification

Costly

Visible prototype to

Risk dependent

users
For high risk projects
Flexible

Not for small projects

Difficult to meet

budget

5. RAD MODEL

Advantages

Disadvantages

Requires live-ware

Fast product o/p

Efficient documentation
Interactive with user

support
Lack of balance

between interface &

components
Not suitable for

technical risks

KMS, GIS & IIS

KNOWLEDGE MANAGEMENT
SYSTEMS (KMS)
Process of identifying, collecting, preserving &

transforming information into knowledge

Information is used to create something actionable

COMPONENTS OF KMS
1. Business process management
2. Content management
3. Web content management
4. Knowledge applications management

TYPES
1. Enterprise wide system
2. Knowledge work system eg: CAD, 3D visualization,

etc.
3. Intelligent techniques eg: Data Mining, Fuzzy logic,

etc.

Advantages

Disadvantages
Investment decision

Information sharing
Elimination of

redundancy of work
Self - learning

non justifiable
Encouraging employees

to share knowledge
Aligning KMS with

current practices
Potential for over

reliance
Not static
Over ambitious

project

GEOGRAPHIC INFORMATION
SYSTEMS (GIS)

GIS
Special category of DSS that uses data visualization

technology to analyze & display data for planning &

decision making

GIS uses colored maps, statistical tables, graphs &

images to yield useful knowledge

Uses location, distribution pattern, geographic frame

work, etc.

Used in administrative, geology, climatology & related

deptartments

INTERNATIONAL
INFORMATION SYSTEM