IT in Business

Instructor: Kashif Abrar

  A database is a collection of information that is organized so
that it can easily be accessed, managed, and updated. In one
view, databases can be classified according to types of
content: bibliographic, full-text, numeric, and images.

 One or more large structured sets of persistent data, usually

associated with software to update and query the data.

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  A database is a collection of data which has been organized so
that a computer program can quickly select desired items.
This could be something as straightforward as a list of names
in alphabetical order or an ascending list of numeric stock
codes.

 The secret to the successful use of database technology is the

way in which data or information is structured to enable
efficient processing.

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 A database system is essentially nothing more than a
computerized record keeping system. The database itself can be
regarded as a kind of electronic filing cabinet; in other words, it is
a repository for a collection of computerized data files/tables.
 The user of the system will be given facilities to perform a variety
of operations on such files including the following among other: -
 Adding new, empty files / tables to the database
 Inserting new data into existing files / tables
 Retrieving data from existing files / tables.
 Updating data in existing files / tables.
 Deleting data from existing files / tables.
 Removing existing files / tables from the database.

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 The database is one of the cornerstones of Information Technology, and its
ability to organize, process and manage information in a structured and
controlled manner is key to many aspects of modern business efficiency.

Library catalogues Medical records Bank accounts

Stock control Personnel systems Product catalogue

Student records Telephone directories Train timetables

Airline bookings Credit card details Customer histories

Stock market prices Discussion boards & so on…

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  A database system consists of:
 Data (the database)
 Software
 Hardware
 Users
 Database systems allow users to:
 Store
 Update
 Retrieve
 Organize & Protect their data.

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  Databases generally have one of two basic forms
 the single-file database or
 the multi-file relational database.

 Single-file databases are often called "flat file" systems

And
 Relational databases are frequently known as "structured"
databases

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  The type of database system or tool that you require depends
on a number of factors, such as:
 the complexity of the data involved, e.g plain text, images,
sound files
 the quantity of data to be stored and processed
 whether the data needs to be accessed and amended by
more than one person simultaneously
 whether data needs to be imported from, or exported to,
other IT systems

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  A database model is a theory or specification describing how
a database is structured and used. Several such models have
been suggested.

 Some of the models include:

 Relational model  Concept-oriented
 Hierarchical model  Entity-Attribute-Value
 Network model  Multi-dimensional model
 Object model  Star schema
 Object-Relational model  XML database
 Associative
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  The relational model for database management is a database
model based on predicate logic and set theory

 It consists of the following three components:

 Data structure: Data are organized in the form of tables
with rows and columns.
 Data manipulation: Powerful operations (using SQL
language) are used to manipulate data stored in the relations.
 Data integrity: Facilities are included to specify business
rules that maintain the integrity of data when they are
manipulated.

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  A relational database can be designed with four different
types of relationships:

 One-to-One. EMPLOYEE to PARKING_SPACE

 One-to-Many. CUSTOMER to ORDERS
 Many-to-One. (Simply looking at One-to-Many the other way
around).
 Many-to-Many. ORDERS to PRODUCTS

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  End users
 Use the database system to achieve some goal

 Application developers
 Write software to allow end users to interface with the
database system
 Database Administrator (DBA)
 Plans, Designs & manages the database system/security

 Database systems programmer

 Writes the database software itself

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  A database is a collection of files which are related
(information). A database management system (DBMS) serves
as a software interface between an application program, the
Operating System, and the actual database files.
 A database management system (DBMS) is the software used to
control the information
 As an example, consider the relationship between three database
files (called Tables) that make up the database containing:
STUDENT data, COURSE data, ENROLLMENT data.
 Note these files can be linked by shared logical primary key
fields.
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  Examples:
> Oracle > DB2 (IBM)
> MS SQL Server > MS Access
> Ingres > PostgreSQL
> MySQL

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  Data independence - data definitions are stored in the
database definition and not in programs.
 Data Redundancy - this is minimized by enabling data
sharing across functional areas.
 Improves data integrity - consistency and accuracy of data
stored by the organization.
 Improves data sharing throughout the organization.
 Improves programmer productivity.
 Improves data administration and control.
 Standards can be enforced
 Security restriction can be applied
 Conflicting requirements can be balanced
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  A network is a way to connect computers together so that
they can communicate, exchange information and share
resources.

 Computer networking is a combination of software, hardware

and cables that joins computers together to share resources
such as data, messages, printers, fax machines, modems and
other devices.

 Each computer connected to the communication medium with

a network adapter, called Network Interface Card(NIC).

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  At least two computers
 A network interface on each computer (the device that lets
the computer talk to the network—usually called a network
interface card [NIC] or adapter)
 A connection medium—usually a wire or cable, but wireless
communication between networked computers and
peripherals is also possible
 Network operating system software—such as Microsoft
Windows, Novell NetWare, Apple Share, or Artisoft
LANtastic Most networks—even those with just two
computers also have a hub or a switch to act as a connection
point between the computers.
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  Access to remote  Communication
information  electronic e-mail
 World Wide Web  Internet phone
 On-line newspapers  videoconferencing
 Public data bases  newsgroups and
discussion forums
 Entertainment
 Video and TV on
demand
 Networked games

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 Generally networks can be put into three categories.

 Local area networks (LAN)

 Wireless Local Area Network (WLAN)

 Wide area networks (WAN)

 Metropolitan Area Network (MAN)

 Virtual private networks (VPN)

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  A communications network that is a high-speed, fault-tolerant
data network and serves users within a confined geographical
area & are group of computers connected together to permit
the (rapid) transfer of information between them.

 It typically connects workstations, personal computers,

printers, and other devices.

 LANs offer computer users many advantages, including

shared access to devices and applications, file exchange
between connected users, and communication between users
via electronic mail and other applications.
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  LANs are designed to do the following:
 Operate within a limited geographic area
 Allow many users to access high-bandwidth media
 Provide full-time connectivity to local services
 Connect physically adjacent devices

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  A wireless LAN lets users roam around a building with a
computer (equipped with a wireless LAN card) & stay
connected to their network without being connected to a wire.

 The standard for WLANs put out by the Institute of Electrical

and Electronics Engineers (IEEE) called "802.11B" or "Wi-
Fi" is making WLAN use faster & easier.

 A WLAN can reach 150 m radius indoors and 300 m

outdoors. WLANs require a wired access point that connects
all the wireless devices into the wired network.

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  There are four general types of wireless (radio)
communication systems:
 Cellular Telephone
 Basic 2-Way Radio
 Point-to-point
 Wi-Fi (Wireless Fidelity) also known as Wi-Max

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  In some environments, role for the wireless LAN
 Buildings with large open areas
 Manufacturing plants, stock exchange trading floors,
warehouses
 Historical buildings
 Small/congested offices where wired LANs not economical

 To be taken into consideration

 High prices
 Low data rates
 Safety concerns.
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  Communication networks that are regional, nationwide or
worldwide in (relatively broad) geographic area, with a
minimum distance typical of that between major metropolitan
areas and often uses transmission facilities provided by
common carriers, such as telephone companies.
 A wide area network is a geographically dispersed
telecommunications network. The term distinguishes a
broader telecommunication structure from a local area
network.
 WAN technologies function at the lower three layers of the
OSI reference model, the Physical layer, the Data link layer,
and the network layer.
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  WANs often connect multiple smaller networks, such as local
area networks or metro area networks. , which then provided
access to computers or file servers in other locations.

 Because WANs connect user networks over a large

geographical area, they made it possible for businesses to
communicate with each other across great distances. As a
result of being networked or connected, computers, printers,
and other devices on a WAN could communicate with each
other to share information and resources, as well as to access
the Internet.

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  Some common WAN technologies are:
 Modems
 ISDN (Integrated Services Digital Network)
 DSL (Digital Subscriber Line)
 Frame relay
 ATM (Asynchronous Transfer Mode)
 The T (US) and E (Europe) Carrier Series: T1, E1, T3, E3,
etc.
 SONET (Synchronous Optical Network)

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  A VPN is a communications environment in which access is
controlled to permit peer connections only within a defined
community of interest, and is constructed though some form
of partitioning of a common underlying communications
medium, where this underlying communications medium
provides services to the network on a non-exclusive basis.

 A VPN is private network constructed within a public

network infrastructure, such as the global Internet

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 In general, all of the machines on the network can be categorized
as two types: servers and clients. Those machines that provide
services (like Web servers or FTP servers) to other machines are
servers. And the machines that are used to connect to those
services are clients. (e.g. Yahoo)
 Client: A client is a stand alone computer that gathers data from a
user and prepares it for the server. The client accesses the shared
resources provided by a server. The "clients" are the user's
workstations typically running Windows, although Mac and Linux
clients are also used.
 Server: controls & provides network resources i.e. The "servers"
hold programs, data & Peripherals that are shared by the clients.
e.g. file server, print server, mail server, database server etc.
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  The Open Systems Interconnection (OSI) reference model
describes how information from a software application in one
computer moves through a network medium to a software
application in another computer. The OSI reference model is a
conceptual model composed of seven layers, each specifying
particular network functions.
 The OSI model divides the tasks involved with moving
information between networked computers into seven smaller,
more manageable task groups. A task or group of tasks is then
assigned to each of the seven OSI layers. Each layer is
reasonably self-contained, so that the tasks assigned to each
layer can be implemented independently.
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  The following list details the seven layers of the Open System
Interconnection (OSI) reference model:

 Layer 7—Application layer

 Layer 6—Presentation layer
 Layer 5—Session layer
 Layer 4—Transport layer
 Layer 3—Network layer
 Layer 2—Data Link layer
 Layer 1—Physical layer

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  Although the OSI reference model is universally recognized,
the technical open standard of the Internet is Transmission
Control Protocol/Internet Protocol (TCP/IP).
 The TCP/IP reference model and the TCP/IP protocol stack
make data communication possible between any two
computers, anywhere in the world, at nearly the speed of light.

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  An IP address consists of 32 bits, grouped into four octets

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 IP addressing supports five different address classes: A, B,C, D,
and E. Only classes A, B, and C are available for commercial use.

 There are IP networks reserved for private networks; 10.0.0.0 /

172.16.0.0 / 192.168.0.0

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  Similarities
 Both have layers.
 Both have application layers, though they include very
different services.
 Both have comparable transport and network layers.
 Packet-switched (not circuit-switched) technology is
assumed.
 Networking professionals need to know both.

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  Differences
 TCP/IP combines the presentation and session layer issues
into its application layer.
 TCP/IP combines the OSI data link and physical layers into
one layer.
 TCP/IP appears simpler because it has fewer layers.
 TCP/IP protocols are the standards around which the
Internet developed, so the TCP/IP model gains credibility
just because of its protocols. In contrast, typically networks
aren't built on the OSI protocol, even though the OSI model
is used as a guide.
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  Data packets are transmitted between computers on the network
either as electrical signals in electric wires, as light signals in
Fiber optic cables or as electromagnetic waves through space.
 Cable is the medium through which information usually moves
from one network device to another.
 Several types of cables are used in Networks. In some cases, a
network will utilize only one type of cable, other networks will
use a variety of cable types.
 There are three basic types of cables:
 Twisted pair
 Coaxial
 Fiber optic
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  Network Interface Card (NIC) is a printed circuit board that
provides network communication capabilities to and from a
personal computer. Also called a LAN adapter or card, it
plugs into a motherboard and provides a port for connecting
to the network. This card can be designed as an Ethernet card,
a Token Ring card, or a Fiber Distributed Data Interface
(FDDI) card
 Every NIC has a 48 bit unique Media Access Control (MAC)
address.

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  Hubs are simple devices that interconnect groups of users.
Hubs forward any data packets they receive over one port
from one workstation to all of their remaining ports. Its a
Layer 1 device.

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  Routers use a more complete Packet “address” to determine
which router or workstation should receive each packet.
Based on a network roadmap called a “routing table,” routers
can help ensure that packets are traveling the most efficient
paths to their destinations. If a link between two routers goes
down, the sending router can determine an alternate route to
keep traffic moving. It operates on Layer 3 of the OSI model.

 Modems can be of different types depending on the service

you have, i.e. Dial Up, ISDN, DSL, FTTH, etc. It is also
referred to as Customer Premises Equipment (CPE)

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  An Enterprise is a group of people with a common
goal, with certain resources at its disposal to achieve
that goal.
 Resources include money, manpower and all other
things that are required to run the enterprise.
 Planning is putting necessary functions in place and
more importantly putting them together.

 Enterprise Resource Planning is not software

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  Support effective  Enterprise systems (Es)
resource planning  Packages of computer
 Make much of it applications that support
feasible many, even most, aspects
 But do not truly do it. of a company’s
information needs. (Thomas
 Contain many business H. Davenport)

processes other than

resource planning

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 E E
R S
P
ERP
Processes not ERP Non-ERP
part of a Processes Processes
typical ES Found in a Found in a
typical ES typical ES

•Master Production •Accounts Receivable

•Sale Forecast
•Sales & Operation
Schedule •Accounts Payable
•Rough-cut Capacity •General Ledger
Planning
•Advanced
Planning •Cash Management
•Material Requirement •Customer Relations
Planning Systems
•Suppliers Rating
Planning Management
•Capacity Requirement •Human Resources
Systems
•Performance
Planning •Data Warehousing
•Distribution Requirement
Matrics
Planning
•Customer Order Entry &
Promising
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 an
Finance Le ce
du ower
Personnel e
R np
Cut Down Adv. New Ma
Budget Recruitment

Ma
Production r ke
Prod. planning More Mo ti ng
Reduce re
Stocks M
Inventory on
e y

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 on
ti
olu
S
r ic
n e
ge
A
Manufacturing

Company
Business
M anuf ctu ring

Co mp an y
Bu sin es s
Pla n
En gine erin g

Plan
Engineering

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 eERP Beyond
ERP
ERP ( Information
& Knowledge
( Information as ASSET)
MRPII as Resource)
MRP ( Material & SCM
Capacity
( Material as Resource) CRM
Application as Resource) BI/KM
Systems In-
house
E-Comm
Development
( Data as Resource)

Early 70’s Early 80’s Late 80’s Early 90’s Late 90’s
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 Information Technology Developing Fast

Impact on our lives and the Revolutionizing

way we do businesses?

We can handle information fast and accurately, calculational

power increasing exponentially.

Delivery of high quality Manage

Competition Survival information to the
What to decision makers at the right time.
Managing
The
Automating collection
Brutal Essential & processing
Do?means harnessing IT’s full potential
Information
Future

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  ERP systems or ES are software systems for business
management encompassing modules covering functional areas
such as planning, manufacturing, sales, marketing,
distribution, accounting, financials, human resource
management, project management, inventory management,
service and maintenance, transportation and e-business.
 The architecture of the software facilitates transparent
integration of modules, providing flow of information
between all functions within the enterprise in a consistently
transparent manner.
 A single integrated system replaces legacy information
systems.

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 Strategic &
Operational Planning
Manufacturing
Finance

Materials Management
Human Resource

Quality Management Logistics Management

Maintenance Management
Sales & Distribution

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 Strategic &
Operational Planning
Manufacturing
Finance

Materials Management
Human Resource
ERP

Quality Management Logistics Management

Maintenance Management
Sales & Distribution

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 Benefits How
Reliable information access Common DBMS, Consistent and
accurate data, improved reports.
Avoid data and operations Modules access data from the
redundancy same DB, avoids multiple data
inputs and update operations.
Delivery and cycle time reduction Minimizes retrieving and reporting
delays
Cost Reduction Time Saving, Improved control by
enterprise-wide analysis of
organizational decisions.

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 Benefits How
Easy adaptability Changes in business processes
easy to adapt and restructure.
Improved Scalability Structured and modular design
Improved Maintenance Vendor-supported long term
contract as part of the system
procurement.
Global Outreach Extended modules such as CRM
and SCM.
E-commerce, e-business Internet Commerce, Collaborative
Culture.

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 Disadvantage How to overcome?
Time Consuming Minimize sensitive issues, internal politics
and raise general consensus.
Expensive Cost mat vary from thousands of dollars to
millions. Business process reengineering
costs may be extensively high.
Conformity of the modules The architecture and components of the
selected system should conform to the
business processes, culture and strategic
goals of the organization.

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