Chapter-1 Concept of Information Technology (IT) Definition of IT- IT as defined by the Oxford dictionary: The study or use of systems

(especially computers and telecommunications) for storing, retrieving, and sending information. A term that encompasses all forms of technology used to create, store, exchange and utilize information in its various forms including business data, conversations, still images, motion pictures and multimedia presentations Information & Technology: Information: Information can be termed as facts provided or learned about something or someone. Technology: The application of scientific knowledge for practical purposes, especially in industry. Information Technology, or IT, is the study, design, creation, utilization, support, and management of computer-based information systems, especially software applications and computer hardware. IT is not limited solely to computers though. With technologies quickly developing in the fields of cell phones, PDAs and other handheld devices, the field of IT is quickly moving from compartmentalized computer-focused areas to other forms of mobile technology. Concept of IT: IT refers to anything related to computing technology, such as networking, hardware, software, the Internet, or the people that work with these technologies. Many companies now have IT departments for managing the computers, networks, and other technical areas of their businesses. IT jobs include computer programming, network administration, computer engineering, Web development, technical support, and many other related occupations. Since we live in the "information age," information technology has become a part of our everyday lives. That means the term "IT," already highly overused, is here to stay. Concept contd: IT is the area of managing technology and spans wide variety of areas that include but are not limited to things such as processes, computer software, information systems, computer hardware, programming languages, and data constructs. In short, anything that renders data, information or perceived knowledge in any visual format whatsoever, via any multimedia distribution mechanism, is considered part of the IT domain. IT provides businesses with four sets of core services to help execute the business strategy: business process automation, providing information, connecting with customers, and productivity tools.
People

Data
Information Technology

Network

Hardware

Software

1) Software: Defn: Software, is a collection of computer programs and related data that provide the instructions for telling a computer what to do and how to do it. Software is a conceptual entity which is a set of computer programs, procedures, and associated documentation concerned with the operation of a data processing system. We can also say software refers to one or more computer programs and data held in the storage of the computer for some purposes. In other words software is a set of programs, procedures, algorithms and its documentation. Program software performs the function of the program it implements, either by directly providing instructions to the computer hardware or by serving as input to another piece of software. The term was coined to contrast to the old term hardware (meaning physical devices). In contrast to hardware, software is intangible, meaning it "cannot be touched". Types of Software's: Programming Software: This is one of the most commonly known and popularly used forms of computer software. These software come in forms of tools that assist a programmer in writing computer programs. Computer programs are sets of logical instructions that make a computer system perform certain tasks. The tools that help the programmers in instructing a computer system include text editors, compilers and interpreters. 2) System Software: It helps in running the computer hardware and the computer system. System software is a collection of operating systems; devise drivers, servers, windowing systems and utilities. System software helps an application programmer in abstracting away from hardware, memory and other internal complexities of a computer. 3) Application Software: It enables the end users to accomplish certain specific tasks. Business software, databases and educational software are some forms of application software. Different word processors, which are dedicated for specialized tasks to be performed by the user, are other examples of application software. 2) Hardware: A Computer is made up of multiple physical components of computer hardware, upon which can be installed a system software called an operating system, and a multitude of software applications to perform the operator's desired functions. 3) Network: Network, is a collection of computers and devices interconnected by channels that facilitate communications and allows sharing of resources and information among interconnected devices. Simply, a computer network is a collection of two or more computers linked together for the purposes of sharing information, and resources, among other things. 4) Data:
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1)

Data can be defined as Characters, or symbols on which operations are performed by a computer, which may be stored and transmitted in the form of electrical signals and recorded on magnetic, optical, or mechanical recording media. Examples : Document files created by word processors Worksheet files crated by spreadsheets Database file created by database management programmes Presentation files created by presentation graphics programmes. Computers (pc, laptop, netbook, tablet pc etc) store information in the form of 1 and 0's in different types of storages such as memory (ram), hard disks, usb drives, etc, to be processed by software. The most of common unit of data storage is expressed as byte which is 8 bits. 5) People: Every technology needs people if it is to be useful. Often the most over-looked element of the IT are the people, probably the component that most influence the success or failure of information systems. Computer Hardware: For details on CPU, Primary Storage, Secondary Storage & Input Devices: Refer Book. Few Input Devices:

Touch- Screens: A touch screen is an electronic visual display that can detect the presence and location of a touch within the display area. The term generally refers to touching the display of the device with a finger or hand. Touch screens can also sense other passive objects, such as a stylus. The touch screen has two main attributes. First, it enables one to interact directly with what is displayed, rather than indirectly with a pointer controlled by a mouse or touchpad. Secondly, it lets one do so without requiring any intermediate device that would need to be held in the hand. Scanners: Scanner is a device that optically scans images, printed text, handwriting, or an object, and converts it to a digital image. How does a Scanner Work: The document to be scanned is placed on the Glass plate & the cover is closed. The cover provides a uniform background that the scanner software can use as a reference point for determining the size of the document being scanned. A lamp is used to illuminate the document which can be a cold cathode fluorescent lamp or a xenon lamp. The entire mechanism makes up a scan head which is moved slowly across the document by a belt that is attached to a motor. Mirrors are used to focus the image onto a lens which finally focuses the final image. Barcode reader (scanner):
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 Barcode scanner is an electronic device for reading printed barcodes. Like a flatbed scanner, it consists of a light source, a lens and a light sensor translating optical impulses into electrical ones. Additionally, nearly all barcode readers contain decoder circuitry analyzing the barcode's image data provided by the sensor and sending the barcode's content to the scanner's output port. Output Devices: An output device is any piece of computer hardware equipment used to communicate the results of data processing carried out by a computer to the outside world. Simply speaking: Output devices are things we use to get information OUT of a computer. Monitors: Monitor - A monitor is the screen on which words, numbers, and graphics can be seem. The monitor is the most common output device. A monitor or display (sometimes called a visual display unit) is an electronic visual display for computers. The monitor comprises the display device, circuitry, and an enclosure. The display device in modern monitors is typically a thin film transistor liquid crystal display (TFT-LCD) thin panel, while older monitors use a cathode ray tube about as deep as the screen size. Printer: A Printer is a peripheral which produces a text and/or graphics of documents stored in electronic form, usually on physical print media such as paper or transparencies. Types of Printers: Impact: These printers have a mechanism that touches the paper in order to create an image. Eg: Dot Matrix Non-Impact Printers: A type of printer that does not operate by striking a head against a ribbon. Examples of nonimpact printers include laser and ink-jet printers. The term nonimpact is important primarily in that it distinguishes quiet printers from noisy (impact) printers. Speaker: Speaker - A speaker gives you sound output from your computer. Some speakers are built into the computer and some are separate. Plotters: A Plotter is an Output device which produces images on a paper & usually used to print large-format images like drawings & graphs. Plotters are used for Architectural Drawings, Engineering Drawings, CAD, Assist design in Textiles. Data Communication Media/ Medium: The Sender-Medium-Receiver concept has been with us for a long time. Eg: Shouting to another person involves voice transmission on the medium air that carries voice as sound waves. Similarly, use of telephone lines as a transmission medium will considerably enhance possible communication distance.
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Like Telephone lines, there are several types of channels used for data transmission from one point to another. Types of Medium: 1) Bounded Media: In a bounded medium, the signals are confined to the medium, they never leave it. The three most popular types of bounded media areTwisted pair wire, Coaxial Cables & Fibre-Optic cables. 2) Unbounded media (Wireless Communication): In an unbounded media, the signals are not confined to the medium. Wireless media propagate signals through the atmosphere, the ocean & outer space. Types: Microwave Radio, Satellites, Cellular Phones & high Frequency Radios. 1)Bounded Media: A) Twisted pair: It consists of two insulated strands of copper wire, twisted together. An ordinary cable consists of a number of twisted pairs, grouped together & enclosed in a protective sheath. These are one of the most popular communication media for phone lines & computer networks. B) Coaxial cable: It consists of a central conducting copper core, surrounded first by a layer of insulating material & then by a second layer of braided wire mesh. A layer of nonconductive insulation called a jacket, also covers the wire to make it weather- resistant & usable both on land & Underwater. C) Fiber-Optic cable: It consists of thousands of Hair-thin strands of glass or plastic, called the core, bound together inside a glass cylinder which is then covered by a protective sheath called cladding. They will carry signals in the form of light beams. They have become very popular because they are smaller, lighter & faster than other cables. They also do not radiate energy or conduct electricity. 2) Unbounded media (Wireless Communication): 1) Microwave media: This is a popular unbounded medium that uses radio signals to transmit large volumes of voice & data traffic. The tall towers with large horns or disk antennas that we see across are the devices for wireless communication. These are useful for connecting networks that are only short distances apart. 2) Communication Satellites: Communication Satellites are launched into orbits at an altitude of about 22,300 miles above the equator. Objects orbiting at 22,300 miles move at the same rate at which the earth rotates & thus are stationary with respect to the surface. They can carry a variety of signals such as that of Television, Telephony & Data. 3) Cellular Phones: These are wireless personal telephones. A cellular system partitions geographical areas into cells, each cell having a base station with a radio transmitter, a receiver, an antenna & a computer. Calls are transmitted to a users telephone with radio waves, using a unique set of radio frequencies for each cell while a central computer & other communication devices send, receive, track & manage calls. 4) High Frequency Radio telephones: These use radio frequencies to transmit distances over a longer distance. High frequency signals radiate from antenna using two paths, a ground wave that follows the earths surface & a sky wave
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a. b. c. d. e.

f. g.

h.

2) 3) 4) 5) 6) 7)

that bounces between the earth & ionosphere. The ground wave can communicate over distances of upto 400 miles whereas the skywave can reach upto 4000 miles. Classification of Networks: 1)LAN (Local Area Network) This network is designed to operate over small physical area such as an office, a factory or a group of buildings. LANs are easy to design and troubleshoot. In LAN, all the machines are usually connected to a single cable. LAN is usually a privately owned network and links the devices in a single office building of up to few kilometers. Depending on the needs of the organization a LAN can be as simple as 2 personal computers and a printer in someone's office or home or it can be extended throughout a company and include voice, sound and video peripherals. LANs are widely used to allow resources to be shared between personal computers. Resources to be shared can be a hardware like a printer. One of the computer in a network can become a server serving all the remaining computers called clients. Software's can be stored on a server and it can be used by the remaining clients. The data rates for LAN range from 4 to 16 mbps with the maximum of 100 mbps. Characteristics of LAN:1) High rate of Data transmission. 2) Physical connection of computers is easy. 3) Every computer in the LAN can communicate with any other computer. 4) The medium used for data transmission is inexpensive. 5) It is possible to add a new computer easily. 6) LAN is highly reliable and failure of individual computers does not affect the entire LAN. 2) MAN (Metropolitan Area Network) A MAN is a bigger version of a LAN and normally uses similar technology. It is designed to extend over an entire city. MANs usually can cover a geographic area of around 50kms in diameter. Eg- Can be used to connect college campuses throughout the city. It can be a single network like as a Cable TV network or it can be a means of connecting a number of LANs into a larger network. A MAN can be wholly owned & operated by a private company or it may be a service provided by a public company. MANs are based on Fibre optics or Co-axial cables & provide high-speed interconnection between sites. It usually supports both Data & voice transmission. The cost for setting up MAN is more than LAN & less than WAN. 3)WAN (Wide Area Network):
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 When a network spans a large distance or when the computers to be connected to each other are at widely separated locations, a Local area network cannot be used. So WANs came into existence. A WAN is a communication system which can cover a broad area. The communication between different users of WAN is established using leased telephone lines or satellite links & similar channels. WANs are used to transfer large blocks of Data between its users. Example of WAN can be an Airline reservation System which are located all over the country through which reservations can be made. Because of large distances involved in WANs, the signal travel times are a major problem. Therefore, these cannot be used for critical time applications. Therefore they are mostly used for transfer of Data from one user to another which is not a time critical application. A WAN provides long distance transmission of Data, voice, image & video information over large geographical areas that may comprise a Country, a Continent or even the whole world. WAN can be a private or public leased type network. Designing, setting up & Maintaining of WAN is not an easy task & can incur huge costs as compared to other Network types. Further, when things go wrong, it is very difficult to identify the source of Problem as many elements come together in many different ways to make the network operational. WANs usually operate on low data transfer rates. Network Topologies: Network Topology refers to the way in which the Networks nodes (Computers or other devices that need to communicate) are linked together. Topology will simply indicate the way in which a network is physically laid out. Types of Network Topologies: Although number of possible network topologies is seemingly limitless, a few are used more often. The choice of Network Topology will depend on combination of following factors: 1) Size of the System (Number of nodes to be connected & their geographical distribution). 2) Expandability of the System. 3) Cost of Components & services required to implement the network. 4) Desired performance of the System. 5) Desired reliability of System. 6) Delays involved in routing information from one node to another. 1) Bus Topology: This Topology is used when a network installation is small, simple or temporary. 2) On a typical Bus network, the cable is just one or more wires with no active electronics to amplify the signal.

 3) The long cable called Bus is used as backbone to all nodes. A Tap is used as a Connector that is used to connect the node to the metallic core of Bus. 4) When one computer sends the signal up the cable, all the other on the network will receive the information but the one with the address that matches the one encoded in the message will accept the information while all other computers will reject it. Advantages: 1) Its easy to understand, Install & use for small networks. 2) The costing is less as bus topology requires least amount of cables & other equipments to connect the computers. 3) It is easier to expand the number of nodes. 4) Well-suited for temporary or small networks not requiring high speeds (quick setup), resulting in faster networks. 5) Easy identification of cable faults. Disadvantages: 1) Heavy network can slow down the bus speed. 2) Limited cable length and number of stations. 3) If there is a problem with the cable, the entire network breaks down. 4) Maintenance costs may be higher in the long run. Ring Topology: In a Ring Topology, each computer is connected to the next computer with the last one connected to the first.

In Ring Topology, each node has two communicating subordinates (adjacent nodes with which it can communicate) but there is no master node for controlling other nodes. A node receives data from one of its two adjacent nodes. The only decision a node has to take is whether the data is for its own use, if its addressed to it, it will utilize the data else will merely pass ti to the next node. Advantages:
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 Performs better than a bus topology under heavy network load. It is more reliable than Star network because the communication is not dependant on a single central node. Very orderly network wherein no one computer can monopolize the network as each computer is given equal access. Disadvantages: One malfunctioning workstation can create problems for the entire network. Moves, adds and changes of devices can affect the network. Communication delay is directly proportional to number of nodes in the network. It is difficult to troubleshoot than ring topology. Star topology: In a star topology, all the cables run from the computers (nodes) to a central location where they are all connected to a device called as Hub. This is one of the oldest network topologies where a central host computer receives messages and forwards them to various computers on the network. For one node to communicate with another node on the network, the central computer establishes a circuit between the two. The most common use of star topology is in PBXs (Private Branch Exchange), where the PBX is a central controller and the telephones are the nodes.

Star topology is used in concentrated networks where the end points are directly reachable from the central location, when network expansion is expected and when greater reliability of a star topology is needed. A star network topology can be expanded manifold times by placing another hub which allows several more computers or hubs to be connected to that hub. This creates a hybrid star network. Advantages: 1) It is easy to modify and add new computers to a star network without disturbing the rest of the network. 2) The centre of a star i.e. the hub is the best place to find network faults. 3) Single computer failures do not necessarily bring down the whole star network.
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 4) Different types cables can be used in the same network with the hub that can accommodate multiple cable types. 5) Transmission delays between two nodes do not increase by adding new nodes to the network. Disadvantages: 1) If the central Hub fails, the whole network fails to operate. 2) The cabling cost can be more since cables must be pulled from all computers to the central hub. 3) If the distance between the nodes and the central computer is very large, the cost of sending a message over the network increases significantly. 4) Mesh Topology In a Mesh topology, every device has a dedicated point to point link to every other device. The mesh topology is also called Complete topology. The mesh topology does not have traffic congestion because dedicated lines are used. This topology has an advantage in terms of data security.

5) Tree Topology A tree topology is a variation of a star topology. As in a star, nodes in a tree are linked to a central hub that controls the traffic to the network. However, not every computer plugs into the central hub, majority of them are connected to the secondary hub, which is in turn, connected to the central hub. Advantages: 1) It allows more devices to be attached to a single hub and can therefore increase the distance of a signal. 2) It allows the network to isolate and prioritize communications from different computers. Disadvantages: 1) If the central hub fails, the whole system breaks down. 2) The cabling cost is more.

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6) Hybrid Topology Hybrid topology is the one which makes use of two or more basic topologies. There are different ways in which a hybrid network is created. Practical networks generally posses a hybrid topology. Hybrid topologies are a combination of any two or more network topologies in such a way that the resulting network does not resemble any of the original topology types used to create it. Two common examples for Hybrid network are: star ring network and star bus network.

File Transfer Protocol (FTP): File Transfer Protocol (also known as FTP) enables an Internet User to move a file from one Computer to another on the Internet. A file may contain any type of digital information- text document, image, artwork, movie, sound, software etc. Moving a file from a remote computer to ones own computer is Downloading the file & moving the file from ones own computer to a remote computer is known as Uploading. By using the FTP service, a file transfer takes place in the following manner: 1) A user executes the ftp command on his local computer, specifying the address of the remote computer. 2) An FTP process running on users computer (called FTP client process) establishes a connection with an FTP process running on a remote computer (called FTP server process).

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 3) The system then asks the user to enter his Login name & password on the remote computer to ensure that the user is authorized to access the remote computer. 4) After the login is successful, the desired files are downloaded or uploaded by using get command for downloading & put command for uploading. The user needs access rights for a remote computer to transfer files to/ from it. With this restriction, it is almost impossible to provide access rights to the vast number of users on the Internet to a computer that contains sharable information IP address: An IP address is a unique address used to locate and identify a device over a network. That device can be an electronic device, a computer, a server, a router or even an IP phone. It is the addressing used for the transmission of data packets over a network working with the IP protocol. An IP address should be unique over a network. On the Internet, you never get two machines with the same IP address. Over a LAN as well, there should never be two machines with the same IP address. In case there are, then, packets won't know exactly where to go. This is called as IP conflict. All IP addresses are made up of four parts (quadrants) separated by dots, like this: XXX.XXX.XXX.XXX where each XXX can be any number between 0 and 255. Examples of IP addresses are: 192.168.66.5 127.0.0.1 An IP address consists of two parts: the network part and the machine part. Let us make an analogy to your house's address. It is made up of the country part, then the city part, then the street part. All people living in your locality will have the same country and city parts in their addresses. Only the house number and street parts will be different. For IP, all machines on a same network will have the same left (network) part. The right side varies based on machines. Below is an example of IP addresses of machines working in a same LAN. The LAN IP address is 10.15.30.1; machine's IP address is 10.15.30.5 and another computers LAN IP address is 10.15.30.6. In this LAN, the network part is 10.15.30 and the machine part is the last quadrant. We can have a maximum of 256 machines on a typical LAN. So as not to have any duplication or inconsistency in the allocation of IP addresses, there is an independent organisation that takes into charge the allocation of IP addresses. It is called the ICANN (International Company for the Assignment of Names and Numbers). Before the creation of the ICANN in the 90's, there was the InterNIC doing that work. Your computer, router and IP phone do have IP addresses, which you never set. These addresses come automatically and they are not permanent. They change each time you start a new session.
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 Your ISP has a pool of IP addresses which it distributes to a user once they connect. These addressed are recycled and redistributed to other users once they are free. This is carried out automatically using a protocol called DHCP (Dynamic Host Configuration Protocol). So, it is important you know that your device or computer will not keep its actual IP address forever. It changes after each session, or after regular time intervals for unlimited connections. Chapter-2 E-Business What is E-business? In corporate circles, the words e-commerce and e-business have for long been used synonymously and few have come to acknowledge the innate differences between them. And indeed there is! Traditionally, e-commerce relates only to those processes in a business which directly affects the customers, suppliers, vendors and other business partners. These processes include sales activities such as order taking delivery, payment via credit cards, customer support et al. It may also include interactions with suppliers regarding purchase of raw materials and office supplies. E-business however is a superset of e-commerce and includes other management processes that include inventory management, production and product development, supply chain management and financial management apart from ecommerce itself. It effectively fast forwards day to day activities of the ebusiness and streamlines its processes in such a way as to reduce costs augment and simplify access to information (for customers, employees and other business partners) and improve efficiency. With more businesses embracing the Internet revolution with ascending fervour day by day, it is fast becoming imperative for businesses to quickly carve a niche for themselves in cyberspace and better their competitors. This is true whether it be in the matter of increasing sales volumes or increasing profit margins or search engine optimization, lowering input costs or improving organisational efficiency and bettering aesthetics or greater website user satisfaction. At the centre of any such improvement is the concept of empowering through information. The organisation may use collaborative user applications, Intranets, extranets and the internet to make information accessible. An employee who has access to all the necessary information regarding his work will not only be able to perform better but will also feel as a part of the decision making process and thus put in his or her best. Similarly, customers would feel empowered if they have access to information regarding the specifications or delivery status of their order. E-business makes it possible for this information to be effectively disseminated using minimum man-hours and expense. The returns of a well networked e-business are very high even if it is at the cost of a major organizational reshuffle. The differences between e-commerce and e-business may be many but the real difference is reflected in the quality of performance of e-commerce companies and ebusinesses.
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Difference between E-Business & E-Commerce: In e-commerce, information and communications technology (ICT) is used in inter-business or inter-organizational transactions (transactions between and among firms/organizations) and in business-to-consumer transactions (transactions between firms/organizations and individuals). In e-business, on the other hand, ICT is used to enhance ones business. It includes any process that a business organization (either a for-profit, governmental or non-profit entity) conducts over a computer-mediated network. A more comprehensive definition of e-business is: The transformation of an organizations processes to deliver additional customer value through the application of technologies, philosophies and computing paradigm of the new economy. E-commerce implies business transactions over the internet where the parties involve are either selling or buying. The transactions conducted in e-commerce basically involve the transfer or handing over ownership and rights to products or services. Technically, e-commerce is only a part of e-business because, by definition, ebusiness refers to all online business transactions including selling directly to consumers (e-commerce), dealing with manufacturers and suppliers, and conducting interactions with partners. E-commerce principally involves money exchanges in the transactions. In ebusiness, as it is broader, it is not limited to monetary transactions. All aspects in business are included like marketing, product design, supply management, etc. E-business is more about making great products, brainstorming and giving quality service, planning about product exposure and executing it. Well, of course, e-commerce is an integral part of the e-business process but in strict terms, it is the activity of selling and buying. E-Business defn: The transformation of an organizations processes to deliver additional customer value through the application of technologies, philosophies and computing paradigm of the new economy. E-Business: Three primary processes are enhanced in e-business: 1. Production processes, which include procurement, ordering and replenishment of stocks; processing of payments; electronic links with suppliers; and production control processes, among others; 2. Customer-focused processes, which include promotional and marketing efforts, selling over the Internet, processing of customers purchase orders and payments, and customer support, among others; and 3. Internal management processes, which include employee services, training, internal information-sharing, video-conferencing, and recruiting. Electronic applications enhance information flow between production and sales forces to improve sales force productivity. Workgroup communications and electronic publishing of internal business information are likewise made more efficient.
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E-Business Architecture:

Customer relationship management (CRM): Customer relationship management (CRM) is a widely implemented strategy for managing a companys interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processesprincipally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments. Measuring and valuing customer relationships is critical to implementing this strategy. ERP/ Enterprise Resource Planning: Enterprise resource planning (ERP) integrates internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc. ERP systems automate this activity with an integrated software application. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. ERP/ Enterprise Resource Planning: Forecasting and Planning Purchasing and Material Management Inventory Management Finished Product distribution Accounting and Finance Supply chain management/ SCM: Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers (Harland, 1996).
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 Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption (supply chain). Supply chain management is a cross-function approach including managing the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and the movement of finished goods out of the organization and toward the end-consumer. As organizations strive to focus on core competencies and becoming more flexible, they reduce their ownership of raw materials sources and distribution channels. These functions are increasingly being outsourced to other entities that can perform the activities better or more cost effectively. The effect is to increase the number of organizations involved in satisfying customer demand, while reducing management control of daily logistics operations. Less control and more supply chain partners led to the creation of supply chain management concepts. Market demand Resource and capacity constraints Real-time scheduling KM/ Knowledge Management: Knowledge Management (KM) comprises a range of strategies and practices used in an organization to identify, create, represent, distribute, and enable adoption of insights and experiences. Such insights and experiences comprise knowledge, either embodied in individuals or embedded in organizations as processes or practices. Knowledge Management efforts typically focus on organizational objectives such as improved performance, competitive advantage, innovation, the sharing of lessons learned, integration and continuous improvement of the organization. KM efforts overlap with organizational learning, and may be distinguished from that by a greater focus on the management of knowledge as a strategic asset and a focus on encouraging the sharing of knowledge. Selling-Chain Management: Defn: Selling Chain Management can be defined as the Application of Technology to the activities in the whole life cycle of an Order-from Inquiry to Order. The purpose of Selling chain Management is to create new real-time links & to build a complete sales cycle, from initial customer contact & product information to billing transactions & sales completion. With the help of Selling Chain Management companies will begin to see things from their customers point of view, which will help them in winning their loyalty & respect. Selling chain applications are tools to streamline the integrated set of activities businesses perform to acquire & fulfill orders. Advantages of Selling-Chain Management: Make it easier for the Customer. Add value for the Customer. Make it easy to order Custom products. Increase sales force effectiveness. Coordinate team selling.
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Procurement Management/ Operating Resource Management (ORM): Procurement management is the process companies use to purchase economic resources and business input from suppliers or vendors. This process helps companies negotiate prices and get the best quality resources for production processes. Smaller businesses do not usually have a department dedicated to procurement since they have much smaller business operations. Usually, small business owners or entrepreneurs are responsible for working with vendors and suppliers to obtain the necessary goods for business operations. Larger companies are able to purchase resources and inputs in large volume quantities; high volume purchases usually require a procurement management process. PM/ ORM can be defined as the Procurement of Goods & Services it takes to operate a business- anything from Industrial supplies, office supplies & capital equipment to services, travel & entertainment. Middleware: Middleware is a layer of software that lets business applications inter-operate, easing the problem of constructing complex applications. Middleware is computer software that connects software components or people and their applications. The software consists of a set of services that allows multiple processes running on one or more machines to interact. This technology evolved to provide for interoperability in support of the move to coherent distributed architectures, which are most often used to support and simplify complex distributed applications. E business Strategy: E-Business strategy will mean different things to every business, but at its core, it is about value. Having an e-business strategy is about integrating technology into your business processes to improve your business, increasingly, it is about using the Technology, Communication & Internet as a key medium to market and communicate with your clients. The Internet and broadband technology has fundamentally changed the way just about any business can grow and service their client base. For large organisations e-business strategy incorporates grand concepts like 'architecture', while for small business it is about practical ways to improve how you engage with your clients in a more meaningful way. When you buy an airline ticket and travel, it is now a paperless electronic process from start to end. At the supermarket you have the option of scanning and paying for your own groceries. In the background these businesses have fundamentally changed their business processes and integrated technology to improve the level of service they can deliver their customers . Formulating an eBusiness strategy: To remain competitive and retain customers, many organizations are going to face a requirement to continuously improve their e-Business capability. This is particularly true of those, subject to international competition or dealing with large customers.
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 Step 1. Review our Business Strategy: ICT facilities are there to help us implement our business strategy. We thus need to be very clear on our overall business strategy, before deciding what ICT facilities we need. Step 2. Review problems and potential risks: We need to Review our problems and potential risks (e.g. lack of security) with our existing ICT set up. Step 3. Identify business problems: The next step is to Identify business problems like stock outs, long lead times, lack of available information etc., excessive staff time spend compiling reports etc. that could potentially be improved by better use of IT. Step 4. Identify possible Projects: Identify possible ICT projects that could address the above opportunities and problems. These projects may involve buying new facilities, changing the way you work, or simply training people so they actually make full use of the facilities they already have with the help of ICT. Step 5. Compare Costs versus Benefits for each possible project: Attempt to estimate the true cost of each potential initiative and compare these with the likely benefits. Step 6. Prioritise: Choices have to be made. Steps 7. Plan your supporting options: Plan for activities such as recruiting, training or redeploying staff, changing physical process, running a marketing campaign for a new website etc. Your overall plan has to take account of these. Step 8. Set Times, budgets, responsibilities & Actively manage the implementation of the strategy. Step 10. Review the strategy periodically: Do not be afraid to change it if changing circumstances make this necessary. E Business & Productivity: Increasing productivity with ICT is one of the easiest ways to help your business bottom line. With the right ICT tools, your company can cut costs and save time which equates with appreciable improved overall productivity. The deployment of Internet business solutions has yielded to date a cumulative cost savings of $155 billion to U.S. organizations, and is expected to produce another $373 billion in cost savings, most of which will be realized by 2015. Internet business solutions could account for 40% of the U.S. productivity growth increase over 10 years, possibly making it the single largest private sector contribution to productivity growth over the next decade. How does e-business affect productivity? Lower transaction costs Improved market information Intensifies competition Improves inventory Management Eases product delivery Impact of ICT On Increasing Revenues: Attracting new customers, Existing customers buy more frequently, Existing customers buy in greater volume.
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 Impact of ICT On Reducing Cost of Goods Sold: Increased workforce efficiencies, Improved inventory management, Reduced distribution or shipping costs, Reduced production costs. Remote access- ICT can help you create a mobile IT environment that lets you and your employees telecommute. Reducing the need for all employees to be physically present every work day decreases your need for physical office space. Decreasing the number of employees working in your physical space cuts your overhead on office space, utilities, and makes it easier to grow your business without outgrowing your physical site. Virtual meetings- ICT can help you at holding meetings over the internet which will save time and money. ICT can help you in Production Planning & Control viz- Advanced Planning and Scheduling, Capacity Planning, Make to Order, Factory Automation, Product Life Cycle Management, Quality Control. ICT can help you in Human Resource Management. Viz- Recruitment, Employee Appraisal Solutions, Time Reporting, Benefits Administration, Computer Based Training (CBT) ICT can help you in Office Productivity viz- Presentation, Spreadsheet, Text Processing, 3D Modelling and Rendering, emails E- Commerce- An Introduction Defn: E- Commerce can be broadly defined as, any form of Business Transaction in which the parties Interact Electronically rather than by Physical exchanges of Documents or Direct meetings amongst officials. E-Commerce is Doing Business Online History Of E- CommerceE- Commerce was first started around the 1970`s. At that time it was used to accommodate large corporations in creating private networks to share information with their suppliers & Business partners. This process was called Electronic Data Interchange (EDI). In the late 1990`s the Internet began replacing the private networks. E- Commerce is really a Broad term. It is becoming a common term & many people have started encountering it in their daily lives. Most people perceive E- Commerce as strictly Online shopping, but it is only a part of it. It includes Online shopping, Electronic Cash, Electronic payments, Credit Cards, ATM`s and so on Meaning of E-Commerce: The Internet is now a flourishing industry. With the technology advancing at a fast rate, more and more people are open to computers and internet. Increasingly they are learning to utilize the Internet for their day to day needs. Here Ecommerce websites take a front seat, moving out to the millions of people searching for your kind of product or services online.
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 E-commerce is the use of Internet & web to transact business. More formally, we can focus on digitally enabled commercial transactions between & among organizations & individuals. Digitally enabled transactions include all transactions mediated by digital technology which for the most part means transactions that occur over the Internet & the Web. An e commerce site can be as simple as a catalog page with a phone no, or it can range all the way to a real time credit and processing site where customer can purchase downloadable goods and receive them on the spot. Scope of E-commerce: The scope of e-commerce is to transact online. Transacting online can be either on products or services. Most of us are aware of buying products online through some sites like e-bay or amazon.com. Almost everything from gym equipment to laptops, from apparels to jewelries, are purchased online in this age of ecommerce. While these are products, people are also buying services online. Consultants to business lawyers are offering their services to their potential clients. Customers are also eager to transact online, as it is much hassle-free. Moreover, there is enough freedom offered to them to go online, look for a product, and compare a few more of different models, along with their prices. The bonus is that the customer can also go to other online product review sites, and discussion forums. Once the customer likes a product after all research, he can order for it online. E-commerce has also made it easy to pay. These days a number of methods have evolved to pay your dealers credit cards, debit cards, direct online money transfer and many more. Once the payment is made, the dealers dispatch the product, which reaches the doorstep of the customers within few days. As business means keeping your customers happy and doing things the way they like, businessmen are choosing e-commerce to traditional business. In fact, companies which already exist in traditional forms are also going for the extra option of online business for the ease of the customers. To cite a good example here would be Wal-mart. Although they have huge stores, they have gone online with their business. So, even if the customers cannot make it to their store can still log on and order things that he needs. Factors that encourage the businessmen are also that they do not have to set up a real store and spent a bulk of money in its maintenance. A real store also means employing a larger number of employers, the salary of which also needs to be borne by the entrepreneur. Instead of that an online business definitely gives the businessmen a chance to reach a higher profit acting as much cost as possible. And of course just like the customers, the businessmen also love the idea of getting their payments through online modes of payments which are fast, hasslefree, and reliable. E-commerce, has made it possible for the customers to avoid standing in the queue as to make payments for their bills, or booked tickets of flights and also hotel reservations. They can now do that all with just a click of a mouse, saving both the time and money. E-commerce has also facilitated the customers to or20

der a product sitting in one part of the globe, from another. Of course this idea has enchanted not only the customers but also the businessmen, who can now make their products or services available to their potential customers, who might be at any part of the world. Types of E-Commerce: Business-to-Consumer E-commerce: 1) Business-to-Consumer E-commerce: In this type of E-commerce, online businesses attempt to reach individual consumers. Eg- Amazon.com is a general merchandiser that sells consumer products to retail consumers. Within B2C category, there are many different types of business models: Portal, Content Provider, Transaction Broker, Market Creator, Service Provider, Community Provider. Portal: Portals offer powerful web search tools as an integrated package of content & services all in one place such as news, email, instant messaging, calendars, shopping, music downloads etc. Portals generate revenues primarily by changing advertisers for ad-placement, collecting referral fees for steering customers to other sites. Eg- Google, Yahoo, AOL, MSN. Content Provider: Content Provider distributes information content such as Digital news, music, photos, videos & artwork over the web. Content providers usually make money by charging a subscription fee. EgHarvard Business Review which charges customers for content downloads. Not all content providers charge for their information. Eg- cnn.com. These sites make money in other ways such as through advertising & partner promotions on the sites. However free content is limited to headlines & text, whereas premium content like in-depth articles is sold for a fee. Transaction Broker: Sites that process transactions for consumers that are normally handled in person, by phone or mail are Transaction brokers. The largest industries using this model are Financial Services, travel services & Job placement services. Eg- Monster.com offers job searchers a national marketplace for their talents & employers a national resource for that talent. Both Job seekers & employers are attracted by the convenience & currency of information. Market Creator: Market Creators builds a digital environment where buyers & sellers can meet, display products, search for products & establish a price for products. Eg- ebays auction business model is to create a digital electronic environment for buyers & sellers to meet, agree on a price & transact. Each sale on ebay nets
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the company a commission based on the percentage of the items sales price, in addition to listing fee. Service Provider: Service providers offer services online like photo sharing, video sharing, & user generated content like blogs & social networking sites. Eg- google maps, google docs & gmail. Service providers use a variety of revenue models- some charge a fee or monthly subscription, while others generate revenue from sources like advertising & collecting personal information which is used for direct marketing. Community Provider: Community Provider sites create a digital online environment where people with similar interests can transact (buy & sell goods); share interests, photos & videos; communicate with like minded people & receive interest related information. Eg- sites like ivillage.com make money through affiliate relationships with retailers & from advertising. For instance, a parent might visit babystyle for tips on diapering a baby & be presented with a link on huggies.com; if the parent clicks the link & then makes a purchase from huggies.com; babystyle gets a commission. Business to Business E-commerce: Business to Business E-commerce in which businesses focus on selling to other businesses. Business-to-business (B2B) describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer. Contrasting terms are business-to-consumer (B2C) and businessto-government (B2G). The volume of B2B (Business-to-Business) transactions is much higher than the volume of B2C transactions. The primary reason for this is that in a typical supply chain there will be many B2B transactions involving sub components or raw materials, and only one B2C transaction, specifically sale of the finished product to the end customer. For example, an automobile manufacturer makes several B2B transactions such as buying tires, glass for windscreens, and rubber hoses for its vehicles. The final transaction, a finished vehicle sold to the consumer, is a single (B2C) transaction. Applications of E-commerce: E-banking: E-banking means any user with a personal computer and a browser can get connected to his banks website to perform any of the virtual banking functions. In internet banking system the bank has a centralized database that is web-enabled. All the services that the bank has permitted on the internet are displayed in menu. Any service can be selected and further interaction is dictated by the nature of service. Some Applications of E-banking: Bill payment service : You can facilitate payment of electricity and telephone bills, mobile phone, credit card and insurance premium bills as each bank has tie-ups with various
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utility companies, service providers and insurance companies, across the country. To pay your bills, all you need to do is complete a simple one-time registration for each biller. You can also set up standing instructions online to pay your recurring bills, automatically. Generally, the bank does not charge customers for online bill payment. Fund transfer: You can transfer any amount from one account to another of the same or any another bank. Customers can send money anywhere in India. Once you login to your account, you need to mention the payees's account number, his bank and the branch. The transfer will take place in a day or so, whereas in a traditional method, it takes about three working days. ICICI Bank says that online bill payment service and fund transfer facility have been their most popular online services. Credit card customers: With Internet banking, customers can not only pay their credit card bills online but also get a loan on their cards. If you lose your credit card, you can report lost card online. Investing through Internet banking : You can now open an FD online through funds transfer.Now investors with interlinked demat account and bank account can easily trade in the stock market and the amount will be automatically debited from their respective bank accounts and the shares will be credited in their demat account. Moreover, some banks even give you the facility to purchase mutual funds directly from the online banking system. Nowadays, most leading banks offer both online banking and demat account. However if you have your demat account with independent share brokers, then you need to sign a special form, which will link your two accounts. Recharging your prepaid phone Now just top-up your prepaid mobile cards by logging in to Internet banking. By just selecting your operator's name, entering your mobile number and the amount for recharge, your phone is again back in action within few minutes. Shopping With a range of all kind of products, you can shop online and the payment is also made conveniently through your account. You can also buy railway and air tickets through Internet banking. Electronic trading:] Electronic trading, sometimes called etrading, is a method of trading securities (such as stocks, and bonds), foreign exchange electronically. Information technology is used to bring together buyers and sellers through electronic trading platform and networks to create a virtual market places such as NASDAQ, NYMEX etc. Advantages of E-trading: You can get real time stock trading without calling or visiting brokers office. You will get real time market watch, historical datas. Investment in IPOs, Mutual Funds , Stocks and Bonds with the same account.
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Place offline orders for buying or selling stocks. Customer service through Email or Chat. Trading is Secure. Reduced cost of transactions - By automating as much of the process as possible, costs are brought down. The goal is to reduce the incremental cost of trades as close to zero as possible, so that increased trading volumes don't lead to significantly increased costs. This has translated to lower costs for investors. Greater liquidity - electronic systems make it easier to allow different companies to trade with one another, no matter where they are located. This leads to greater liquidity (i.e. there are more buyers and sellers) which increases the efficiency of the markets. E-payment: Electronic payment is an Integral Part of E-commerce. Defn: E-payment is defined as the Financial exchange that takes place online between buyers & sellers. The content of this exchange is usually some form of digital financial instrument such as encrypted credit card numbers or digital cash. Why E-payment? 1) Desire to reduce Costs: The desire to reduce costs is one of the major reasons for the increase in electronic payments. 2) Reduced Operational & processing costs: Cash & cheques are very expensive to process & financial institutions are seeking less costly alternatives which is provided by E-payment. 3) Increasing Online commerce: There is a steep rise in the use of online commerce which has also led to the increase in E-payment methods simultaneously. E-Governance: E-Governance is the application of Information and communication Technology (ICT) for delivering government Services, exchange of information communication transactions, integration various stand-one systems and services between Government-to-citizens (G2C), Government-to-Business(G2B),Government-toGovernment( G2G) as well as back office processes and interactions within the entire government frame work. E-Governance defn: E-Governance is defined as Performance of the governance via electronic medium in order to facilitate an efficient, speedy and transparent process of disseminating information to the citizens and also facilitating the electronic channel of communication from citizens to government which would led to efficient and effective service delivery and proper grievance redressal. Use by government agencies of information and communication technologies to improve and transform relations with citizens, businesses, and other arms of government. Need for E-Governance: World economies have recognised Information Technology (IT) as an effective tool in catalyzing the economic activity, in efficient governance and in developing human resource. They have, therefore, made significant investments in it
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and successfully integrated it with the development process, thereby reaping the benefits to their society. In India also these developments have impacted the industrial, education, service and Government sectors and their influence on various applications is increasingly being felt of late. Government can become more responsive and accessible. Government can enhance its role as a catalyst of economic growth. Government can provide better Government services and use advanced technologies for transferring benefits, improving health care and education. Improve transparency Providing information speedily to all citizens. Improving administration efficiency. Improving public services such as transportation, power, health, water, security and municipal services. E-Governance Challenges Specific to India We list down some of the challenges which are specific to India - (Some of the inputs are taken from an officer from NIC). Lack of Integrated Services: Most of the eGovernance Services being offered by state or central governemets are not integrated. This can mainly be attributed to Lack of Communication between different Departments. So the information that resides with one department has no or very little meaning to some other department of Government. Lack of Key Persons: eGovernance projects lack key persons, not only from technological aspect, but from other aspects as well. Population: This is probably the biggest challenge. Apart from being an asset to the country it offers some unique issues, an important one being Establishing Person Identities. There is no unique identity of a person in India. Apart from this, measuring the population, keeping the database of all Indian nationals (& keeping it updated) are some other related challenges. Different Languages: A challenge due to the diversity of the country. It enforces need to do governance (upto certain level), in local languages. Ensuring eGovernance in local language is a big task to achieve. Challenges for E-Governance: Requires huge investments for the purchase of hardware and software. Establishing complete connectivity between various ministries and departments so that transfer of files and papers could be done through Internet thereby choosing efficacious speed as an alternative to manual labour. To make this really effective, there is a need to make databases of various departments compatible with one another. Supplying information to the public in a language that they understand and are comfortable with, and generally, it is the local language. Changing the mindset of the government employees who are used to working only in the manual mode. This is a big task and needs patience and careful planning. Workshops, seminars, and training Programmes are required to be organized to spread awareness among the employees at all levels.
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 Last of all the Government must address on urgent basis: the two major concerns in the IT implementation- the security and privacy. Steps must be initiated to generate confidence among the individuals and organizations to conduct online transactions and communications. Applications of E-Governance: Application & value addition of e-governance Putting the Citizen First E-government can transform governments by making them more accessible to its citizens. In addition, through e-government, governments can become more accountable, effective and transparent. A properly implemented e-government strategy will enhance and cement the bond between government and citizens. The bond will enable government to have confidence that their policies have the best interest of its citizens and furthermore these policies had been influenced by their inputs. Government should encourage its citizen to increase their use of online services to do their business, including interactions with the public service, online (through the Internet, through PCs, phone, etc). The net result should be better value for money is delivered to the citizen through the increased efficiencies enabled through e-Government. Building from consultation with its e-citizens, governments should support means that increase the participation among citizens on issues concerning them. The participation of the ecitizens will have real value only if all sections of civil society are able to participate equally. There are a number of issues that determine the bond between government and its citizens: Better delivery of government services to citizens. Improved interactions with business and industry. Citizen empowerment through access to information. More efficient government management. Increased transparency. Greater convenience. Reduced corruption. Revenue growth. Reduced cost of running government. The bond between government and its citizens is greater at the local level than at the national one. The use of e-government at the local level will enable a broad cross-section of e-citizens to see the results of their participation. As a result, people will continue to enhance their participation once they see that views have an impact on government. As noted, the UN World Public Sector Report of 2003, participation must be well informed and skilled. Education, including literacy, general knowledge and civic knowledge must be present in this process. If education and those skills are not present, they must be supplied in an easy-to-use, affordable way. Literacy today also means ICT literacy and skills. Participation means networking skills; skills to organize and sustain domains of shared interest and action; debating and negotiating skills, etc.
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If the governments cannot provide the necessary skills and knowledge to the vast majority of its citizens then there is a very real possibility that cross-section of society will be disenfranchised and thus will not be able to voice their views and inputs. This could create an elitist class that has its views incorporate into government policies, while others are left behind. Advantages of E-Governance 1. Speed Technology makes communication speedier. Internet, Phones, Cell Phones have reduced the time taken in normal communication. 2. Cost Reduction Most of the Government expenditure is appropriated towards the cost of stationary. Paper-based communication needs lots of stationary, printers, computers, etc. which calls for continuous heavy expenditure. Internet and Phones makes communication cheaper saving valuable money for the Government. 3. Transparency Use of ICT makes governing profess transparent. All the information of the Government would be made available on the internet. The citizens can see the information whenever they want to see. But this is only possible when every piece of information of the Government is uploaded on the internet and is available for the public to peruse. Current governing process leaves many ways to conceal the information from all the people. ICT helps make the information available online eliminating all the possibilities of concealing of information. 4. Accountability Once the governing process is made transparent the Government is automatically made accountable. Accountability is answerability of the Government to the people. It is the answerability for the deeds of the Government. An accountable Government is a responsible Government. Object of E-Governance The object of E-Governance is to provide a SMARRT Government. The Acronym SMART refers to Simple, Moral, Accountable, Responsive, Responsible and Transparent Government. S - The use of ICT brings simplicity in governance through electronic documentation, online submission, online service delivery, etc. M - It brings Morality to governance as immoralities like bribing, red-tapism, etc. are eliminated. A - It makes the Government accountable as all the data and information of Government is available online for consideration of every citizen, the NGOs and the media. R - Due to reduced paperwork and increased communication speeds and decreased communication time, the Government agencies become responsive. R - Technology can help convert an irresponsible Government Responsible. Increased access to information makes more informed citizens. And these empowered citizens make a responsible Government.
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a)

T - With increased morality, online availability of information and reduced redtapism the process of governance becomes transparent leaving no room for the Government to conceal any information from the citizens. Chapter 3 Concept of DBMS A Database-Management System (DBMS) is a collection of Interrelated data & a set of Program to access those data. The collection of data, usually referred to as the database, contains information relevant to an enterprise. The primary goal of a DBMS is to provide a way to store & retrieve database information that is both convenient & efficient. Database systems are designed to manage large bodies of information. Management of Data involves both defining structures of information & providing mechanisms for the manipulation of information. In addition, the database system must ensure the safety of the information stored, despite system crashes or attempts at unauthorized access. If Data are to be shared among several users, the system must avoid possible anomalous results. Purpose of DBMS: a) Redundancies and inconsistencies can be reduced: In the conventional file processing system, every user group maintains its own files for handling its data files. This may lead to Duplication of same data in different files. Wastage of storage space, since duplicated data is stored. Errors may be generated due to updation of the same data in different files. Time in entering data again and again is wasted. Computer Resources are needlessly used. It is very difficult to combine information. Redundancies and inconsistencies can be reduced: In the file processing system information is duplicated throughout the system. So changes made in one file may be necessary be carried over to another file. This may lead to inconsistent data. So we need to remove this duplication of data in multiple file to eliminate inconsistency. Data inconsistency are often encountered in every day life Consider an another example, w have all come across situations when a new address is communicated to an organization that we deal it (Eg - Telecom, Gas Company, Bank). We find that some of the communications from that organization are received at a new address while other continued to be mailed to the old address. So combining all the data in database would involve reduction in redundancy as well as inconsistency so it is likely to reduce the costs for collection storage and updating of Data.
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b) Better service to the users A DBMS is often used to provide better services to the users. In conventional system, availability of information is often poor, since it normally difficult to obtain information that the existing systems were not designed for. Once several conventional systems are combined to form one centralized database, the availability of information and its updateness is likely to improve since the data can now be shared and DBMS makes it easy to respond to anticipated information requests. c) Flexibility of the System is Improved Since changes are often necessary to the contents of the data stored in any system, these changes are made more easily in a centralized database than in a conventional system. Applications programs need not to be changed on changing the data in the database. d) Integrity can be improved Since data of the organization using database approach is centralized and would be used by a number of users at a time. It is essential to enforce integrityconstraints. In the conventional systems because the data is duplicated in multiple files so updating or changes may sometimes lead to entry of incorrect data in some files where it exists. e) Security can be improved: In conventional systems, applications are developed in an adhoc/temporary manner. Often different system of an organization would access different components of the operational data, in such an environment enforcing security can be quiet difficult. Setting up of a database makes it easier to enforce security restrictions since data is now centralized. It is easier to control who has access to what parts of the database. Different checks can be established for each type of access (retrieve, modify, delete etc.) to each piece of information in the database. f) Provides backup and Recovery Centralizing a database provides the schemes such as recovery and backups from the failures including disk crash, power failures, software errors which may help the database to recover from the inconsistent state to the state that existed prior to the occurrence of the failure, though methods are very complex. g) Overall cost of developing and maintaining systems is lower Although the initial cost of setting up of a database can be large, the overall cost of setting up of a database, developing and maintaining application programs to be far lower than for similar service using conventional systems. Also the productivity can be higher in using DBMS system than in conventional system. h) Atomicity problems:
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A computer system, like any other mechanical or electrical device, is subject to failure. In many applications, it is crucial that, if a failure occurs, the data be restored to the consistent state that existed prior to the failure. Consider a program to transfer $50 from account A to account B. If a system failure occurs during the execution of the program, it is possible that the $50 was removed from account A, but was not credited to account B, resulting in an inconsistent database state. Clearly, it is essential to database consistency that either both the credit and debit occur, or that neither occur. That is, the funds transfer must be atomicit must happen in its entirety or not at all. It is difficult to ensure atomicity in a conventional file-processing system. Disadvantages Of Dbms: Although there are many advantages of DBMS, the DBMS may also have some minor disadvantages. These are: 1. Cost of Hardware & Software A processor with high speed of data processing and memory of large size is required to run the DBMS software. It means that you have to up grade the hardware used for file-based system. Similarly, DBMS software is also very costly. 2. Cost of Data Conversion When a computer file-based system is replaced with a database system, the data stored into data file must be converted to database file. It is very difficult and costly method to convert data of data files into database. You have to hire database and system designers along with application programmers. Alternatively, you have to take the services of some software house. So a lot of money has to be paid for developing software. 3. Cost of Staff Trailing Most DBMSs are often complex systems so the training for users to use the DBMS is required. Training is required at all levels, including programming, application development, and database administration. The organization has to be paid a lot of amount for the training of staff to run the DBMS. 4. Appointing Technical Staff The trained technical persons such as database administrator, application programmers, data entry operators etc. Are required to handle the DBMS. You have to pay handsome salaries to these persons. Therefore, the" system cost increases. 5. Database Damage In most of the organizations, all data is integrated into a single database. If database is damaged due to electric failure or database is corrupted on the storage media, then your valuable data may be lost forever.
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Relational Database Management System (RDBMS): A DBMS that is based on relational model is called as RDBMS. Relation model is most successful mode of all three models. Designed by E.F. Codd, relational model is based on the theory of sets and relations of mathematics. Relational model represents data in the form a table. A table is a two dimensional array containing rows and columns. Each row contains data related to an entity such as a student. Each column contains the data related to a single attribute of the entity such as student name. Figure shows how data is represented in relational model and what are the terms used to refer to various components of a table. The following are the terms used in relational model.

Table Name: Each table is given a name. This is used to refer to the table. The name depicts the content of the table.

DBMS vs. RDBMS: Relationship among tables is maintained in a RDBMS whereas this is not the case in DBMS as it is used to manage the database. DBMS is used for simpler business applications whereas RDBMS is used for more complex applications. RDBMS solution is required by large sets of data whereas small sets of data can be managed by DBMS. DBMS supports Single User only whereas RDBMS supports multiple users.
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Database Model: A database model is the theoretical foundation of a database and fundamentally determines in which manner data can be stored, organized, and manipulated in a database system. It thereby defines the infrastructure offered by a particular database system. Hierarchical model: In a hierarchical model, data is organized into a tree-like structure, implying a single upward link in each record to describe the nesting, and a sort field to keep the records in a particular order in each same-level list. Hierarchical structures were widely used in the early mainframe database management systems, such as the Information Management System (IMS) by IBM.

Network model: The network model is a variation on the hierarchical model, to the extent that it is built on the concept of multiple branches (lower-level structures) emanating from one or more nodes (higher-level structures), while the model differs from the hierarchical model in that branches can be connected to multiple nodes. The network model is able to represent redundancy in data more efficiently than in the hierarchical model.

Relational model:
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 The basic data structure of the relational model is the table, where information about a particular entity (say, an employee) is represented in rows (also called tuples) and columns. Thus, the "relation" in "relational database" refers to the various tables in the database; a relation is a set of tuples. The columns enumerate the various attributes of the entity (the employee's name, address or phone number, for example), and a row is an actual instance of the entity (a specific employee) that is represented by the relation. As a result, each tuple of the employee table represents various attributes of a single employee. Normalization Concepts: Normalization is the process of efficiently organizing data in a database. There are two goals of the normalization process: eliminating redundant data (for example, storing the same data in more than one table) and ensuring data dependencies make sense (only storing related data in a table). Both of these are worthy goals as they reduce the amount of space a database consumes and ensure that data is logically stored. The advantages of database normalisation are that it makes the process of changing the data in a table for a lot if its components easier, because normalising a database enables the user to create relationship strands between the pieces of information. Like pieces of information will appear in a separate, smaller table when a database is normalised. This is also an advantage of normalisation because it means that you can easily find like pieces of information within a table. Normalisation helps to reduce redundancy rates within companies because when a database is normalised, it pulls out all the abnormal factors to do with workers that do not fit in to the general consensus of the company. This can help when recruiting personnel, because it means that only the suitable candidates go through to interview in the first place, lessening the strain on company resources but at the same time making sure that the company gets the very best workers. Normalisation can also be handy in finding anomalies within data. For example, if an employee recently changed addresses, but only one of the databases that they are on is updated, normalisation would recognise this as abnormal and flag the issue up to human resources. The issue can then be rectified quickly and effectively by the human resources team simply updating the other databases. Normalisation also has its disadvantages, though. It can be very difficult and time consuming to input the relevant formulas to get the database to function properly, but if you are competent with computing this should not be too much of an issue.
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 Normalisation is used in almost all large company databases because it is the easiest way to organise large scores of data. It has a lot more advantages than disadvantages for the companies that use it. Chapter 4 Data Warehousing And Data Mining Data Warehouse: A single, complete and consistent store of data obtained from a variety of different sources made available to end users in a what they can understand and use in a business context. Data warehousing: A process of transforming data into information and making it available to users in a timely enough manner to make a difference. Large companies have presence in many places, each of which may generate a large volume of data. For instance, large retail chains have hundreds or thousands of stores, whereas insurance companies may have data from thousands of local branches. Further, large organizations have a complex internal organization structure & therefore different data may be present in different locations or on different operational systems. For Instance, manufacturing data & customer data may be stored on different database systems. Corporate decision makers require access to information from all sources. Setting up queries on individual sources is both cumbersome & inefficient. A data warehouse is a repository of information gathered from multiple sources stored at a single site. Once gathered, the data are stored for long time, permitting access to historical data. Thus data warehouses provide the single user a single consolidated interface to data, making the decision support easier. Data Marts: 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. A data mart is a simple form of a data warehouse that is focused on a single subject (or functional area), such as Sales, Finance, or Marketing. Data marts are often built and controlled by a single department within an organization. Given their single-subject focus, data marts usually draw data from only a few sources. The sources could be internal operational systems, a central data warehouse, or external data. Data Mining: Data Mining (sometimes called data or knowledge discovery) is the process of analyzing data from different perspectives and summarizing it into useful information - information that can be used to increase revenue, cuts costs, or both. Data mining software is one of a number of analytical tools for analyzing data.
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It allows users to analyze data from many different dimensions or angles, categorize it, and summarize the relationships identified. Technically, data mining is the process of finding correlations or patterns among dozens of fields in large relational databases. For example, one Midwest grocery chain used the data mining capacity of Oracle software to analyze local buying patterns. They discovered that when men bought diapers on Thursdays and Saturdays, they also tended to buy grocery. Further analysis showed that these shoppers typically did their weekly grocery shopping on Saturdays. On Thursdays, however, they only bought a few items. The retailer concluded that they purchased the grocery to have it available for the upcoming weekend. The grocery chain could use this newly discovered information in various ways to increase revenue. For example, they could move the grocery display closer to the diaper display. And, they could make sure grocery and diapers were sold at full price on Thursdays. On-line transaction processing (OLTP): Online transaction processing, or OLTP, refers to a class of systems that facilitate and manage transaction-oriented applications, typically for data entry and retrieval transaction processing. OLTP has also been used to refer to processing in which the system responds immediately to user requests. An automatic teller machine (ATM) for a bank is an example of a commercial transaction processing application. Online analytical processing: Online analytical processing, or OLAP, is an approach to swiftly answer multidimensional analytical queries. OLAP is part of the broader category of business intelligence, which also encompasses relational reporting and data mining. Typical applications of OLAP include business reporting for sales, marketing, management reporting, business process management (BPM), budgeting and forecasting, financial reporting and similar areas, with new applications coming up, such as agriculture. The term OLAP was created as a slight modification of the traditional database term OLTP (Online Transaction Processing). OLAP tools enable users to interactively analyze multidimensional data from multiple perspectives. OLAP consists of three basic analytical operations: consolidation, drill-down, and slicing and dicing. Consolidation involves the aggregation of data that can be accumulated and computed in one or more dimensions. For example, all sales offices are rolled up to the sales department or sales division to anticipate sales trends. In contrast, the drill-down is a technique that allows users to navigate through the details. For instance, users can access to the sales by individual products that make up a regions sales. Slicing and
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dicing is a feature whereby users can take out (slicing) a specific set of data of the cube and view (dicing) the slices from different viewpoints.

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