Transcript Information System - Softech Computer Education

Chapter [4]
Business Information
Systems
IT: A Business Enabler

Information is a significant resource to an
organization as important as 5M’s.

Information Systems are integrated process
of components for collecting, storing,
processing, and communicating information.

Information
operations,
making.
Systems support
management and
business
decision
 Information
System refers to the interface of
PPT.
 People need Technology to Process the
information in fast and accurate manner.
 IT systems ~
• automates day-to-day business operations,
• expanded the scope of service offerings,
• empowered enterprises to reach out to customer
across the world,
• All these without the limitations of time and
space.
Information Systems Terminology
Information
• Information is data that has been processed into the form
which is meaningful to the recipient and of some value in
decision making process.
• This requires a process that is used to collect, store, and
transform data into information.
System
• It is an inter-related, elements working together to
accomplish common goals.
• Often a system contains several subsystems with sub-goals.
• There are five components of a system : Input, Process,
Output, Feedback and Control.
Information System
• IS is a combination of people, hardware, software,
communication devices, network and data resources that
processes data and information.
• Information System aims to support operations,
management and decision-making.
Business Information System
• BIS may be defined as systems integrating Information,
Technology, People and Business.
• It brings business function and information together for
making timely and accurate decisions.
Concepts of Information System
• IS work on four basic concepts. These are ~
 People, hardware, software, and data are four basic
resources of IS;
 People consist of end users and IT specialists;
Hardware involves machines and media; Software
consist of programs and procedures; and Data
includes database, model base, and knowledge
base;
 A process is used to convert data into information;
 Information processes consist of input, processing,
output, storage, and control processes.
Business Processes and IS
 A business process is an organized set of
activities that will transform a given set of inputs
into specific outputs, A business process:




Has a Goal
Has specific inputs and outputs
Uses resources
Has a number of activities that are performed in
some order
 May affect more than one organizational unit.
 Creates value of some kind for the customer;
internal or external.
 Information Technology/System
is a key enabler of organization’s business processes.
 In order to deliver high quality information to the
decision makers it is essential to bring into play IT
especially BIS to its full potential.
 IS must be able to:

• have large capacity for storage and provide faster
access;
• provide support for decision making;
• grant a competitive edge;
• ensure fast and accurate processing of data when
required;
• offer faster communication and exchange of
information;
• reduce information redundancy;
Stages of IS Evolution
Task centric
• IS was used merely on routine job
Information
• Integration of subsystems
centric
User centric • Includes office automation and DSS
Customer
centric
Service
centric
• Working as CRM.
• Services to internal and external customer.
Role of IS in Businesses
Information system helps business ~
 in better management of business processes.
 to be more successful and competitive.
 provide goods and services to their customers, more
promptly and cheaper than their competitors.
 to process data and facilitate reporting.
 in formulating effective strategy.
 improve quality and pervasiveness of decision making.
 in managerial learning.
 expand business and industry into global markets by
using WWW, Internet, EDI, ERP, SCM, CRM, and E-Com.
ESS
MIS, DSS
KWS, OAS
TPS
Strategic
level
systems
Senior Managers
Management
level system
Middle
Managers
Knowledge level
system
Operational level system
Knowledge
workers
Operational
Managers
S.
No.
1
2
3
4
Level
Strategic
Management
Knowledge
Operational
User
Use
System
CEO, CFO, Chief Deals with strategic
Operational
issues, and longOfficers, BoD, range planning
President
G.M. and
R.M.
Monitoring,
controlling,
decision-making,
and admin.
Knowledge and Discovery,
Data workers
Processing
Storage
knowledge
Operational
Managers or
Supervisors
ESS
MIS and
DSS
and
of
tracking elementary
activities viz. Orders,
Invoice, Payments
etc.
KWS
and OAS
TPS
Transaction Processing System
• TPS is an information system that collects, stores,
modifies and retrieves the day-to-day data
transactions of an enterprise.
Access Control
Equivalence
• Unauthorised people are not allowed to access.
• Processing consistency is maintained every time to
ensure effectiveness.
High Volume,
• High momentum and full Automation
Rapid Processing
Trustworthiness
• TPS is designed to be Robust and Trustworthy.
Atomicity
• A transaction is either completed in full or not at all
Consistency
• TPS exist within a set of operating rules(integrity constraints).
Isolation
• Transactions are processed as independent from each other.
Durability
• Once transactions are completed they cannot be undone.
OAS is a combination of hardware, software,
and other resources used to following activities~





Exchange of information;
Management of administrative documents;
Handling of numerical data; and
Meeting planning
Management of work schedules.
 Information
and Knowledge are the most
important source of influence in today’s society.
 Knowledge Management Systems (KMS) refer
to any kind of IT system that stores and
retrieves knowledge, locates knowledge
sources, mines repositories for hidden
knowledge, captures and uses knowledge.
 There are two broad types of knowledge—
Explicit
and
Tacit
 Explicit knowledge
 It is the knowledge which is formalized and easily
available across the organization.
 Explicit knowledge is represented as spoken words,
written material and compiled data.
 E.g. ~ Online tutorials, Policy and procedural manuals.

Tacit knowledge
 This resides in just one person and hasn’t been made
available to others.
 It is represented as intuition, beliefs and values that
individuals form based on their experiences.
 It is personal, experimental and context specific.
 E.g. ~ Hand-on skills, Special know-how, Experiences.
 Tacit
knowledge differentiates between
organizations and provides the strategic edge.
A
knowledge base is a special kind of database
for knowledge management. It is a repository
that provides a means for knowledge to be
collected, organized, shared, searched and
utilized.
A
Knowledge Discovery in Databases system
facilitates search, identify captured knowledge,
or identify experts who have the knowledge.
Information v/s Knowledge
 Information is an important resource used to
improve and
efficiency.
ensure
effectiveness
and
 Knowledge is power. Knowledge is derived
from information.
1
2
• Information is piecemeal, fragmented, particular,
whereas knowledge is structured, coherent, and
often universal.
• Information is timely, transitory, perhaps short-lived,
whereas knowledge is of enduring significance.
3
• Information is a flow of messages, whereas
knowledge is a stock,
4
• Information is acquired by being told, whereas
knowledge can be acquired by thinking.
5
• New knowledge can be acquired without
new information being received.
6
• Information is “know what” whereas
knowledge is “know-how”.
7
• Information is “what is” at the same time
as knowledge is “what works.”
8
• Information that helps achieve an action
well again is knowledge.
 Knowledge
is a gathering of values, wisdom,
education, experience, morals, and beliefs.
 Knowledge Discovery and Data Mining (KDD)
fundamentally deals with ways and means of
making obtainable knowledge of the experts
to others, in electronic form.
 Knowledge worker (intellectual worker) is a
key person who is employed due to his or her
acquaintance of a subject matter.
Growing
Connections
Altering
Business
surroundings
Globalization
Why
Knowledge
is
important
Change in
Organizational
composition
 Altering Business surroundings: Previously the
business environment used to be stable one, so
the people of any organization naturally became
knowledgeable over time. But now rapid change
means speedy knowledge obsolescence, so there
is need to manage it before it disappears without
leaving a trace.
 Growing Connections: Extremely dispersed
operations, global expansion, continual change –
none of these would have been possible if it was
not possible to deploy knowledge officially and
deliberately. Cheap computing has made it
probable.
Globalization: It’s putting pressure on firms
for innovation as markets are open for new
players and competition is stiff. The scenery
of goods and services has changed. Now
companies have started selling knowledge in
addition.
Modification in Organizational composition:
In today’s state of affairs, the organizational
structures
are
changing.
The
new
arrangement is that of “Virtual Organization”.
Altering
Business
surroundings
• From Static to Dynamic Environment.
Growing
Connections
• Dispersed operations, Global expansion,
Continual change are now possible….
Globalization
• Product Innovation.
• Knowledge as product.
Modification in
Organizational
composition
• Become Virtual Organization



MIS is an organization's functional area that
provides this information to managers.
MIS is a tool for better management and
scientific decision making.
MIS consists of 3 elements :
 Management
 Information
 System
Management Information System
Definition ~
MIS is an : Integrated man-machine system,
for providing timely information to managers,
to support managerial function and decision making.
It utilizes : Computer hardware and software,
Manual procedures, and
Data Bases.
Step 1 : Groundwork examination




The problem definition
Magnitude and scope
Alternatives
Viability and cost effectiveness
Step 2 : Requirements psychoanalysis




Knowing the primary and secondary users
Ascertaining user needs
Primary and secondary sources of information
Design, development and implementation needs
Step 3 : Systems blueprint
Inputs
Output
Procedure
Processing
Storage
Human resources
Step 4 : Acquirement /procurement






Compatibility
Cost effectiveness
Performance standards
After sales service
Configuration
Portability
S No. Particular
1
Layman
2
Bridging
3
4
5
6
7
Do’s
Don’t
Have
simpler
and Be ambitious
manageable system
Develop
understanding Be unrealistic in developing
between consultant and action plan.
the organization
Contribution Involve programmer in
in Totality needs assessment
Customize
off-the-shelf
Tailor-made
software
Delay decisions on hiring
application developer/s
Have simple software for
users to handle
Extensively involve users
in MIS development
Invest heavily in in-house
application development
Let vendors determine
hardware needs for LAN
Interpretatio
n
Synchronizati
on
Application
Depend heavily on the
Consultant
Adopt modular approach Go for large applications
for s/w development
Decision Support Systems
DSS is a computer-based information system that
supports business or organizational decisionmaking activities.
 It can be either fully computerized, human or a
combination of both.
 It is an interactive software
 It has user friendly interface.
 It does not automate decision making.
Components of DSS
• User ~
 Managers with un-structured problem.
 Computer background is not required.
 Knowledge of problem and factors to be
considered in solving the problem is essential.
• Data Base ~
 One or more database with routine and non-
routine data from internal and external sources.
 Database must be implemented at 3 levels :
Physical level, Logical level and External level.
• Model base ~
 It is the “Brain” of DSS.
 Decision model is a program used to test the
decision from consequences.
 Models are custom developed.
• Planning Language ~
 It is user interface of DSS.
 Types :
• General purpose planning language
• Special purpose planning language
Framework of DSS
The framework of Decision Support System
consists of four phases:
 Intelligence - Searching for conditions that call
for decision.
 Design- Inventing, developing and analyzing
possible alternative actions of the solution.
 Choice- Selecting a course of action among
alternatives.
 Implementation- Adopting the selected course of
action in decision situations.
Benefits of DSS
Produce data models and “What if”
scenarios
Manipulate data directly
Plan in advance to make non-routine
decisions
Extract data from external sources
Executive Information System
 An EIS is a tool that provides direct on-line access
to relevant information in a useful & navigable
format.
 EIS is designed to renovate all significant data into
aggregated information that makes sense and
brings value to the business strategy.
 Also known as Enterprise Information System or
Executive Support Systems (ESS).
 These systems are designed for top executive; Easy
to use; present Information in summerised form.
Components of EIS
Component
Description
Hardware
Includes data-entry devices, CPU, Data Storage files and
Output Devices.
Software
Includes Text base software, Database and Graphic software
such as charts, diagrams, maps, motion graphics, models etc.
User
Interface
Includes hardware (physical) and software (logical)
components by which users interact with a machine. Several
types of interfaces available to the EIS structure, such as
scheduled reports, questions/answers, menu driven, command
language, natural language.
Telecommuni Involves transmitting data from one place to another in a
reliable networked system.
cation
ERP
HRMS
CRM
AIS
SCM
CBS
Enterprise Resource Planning
 The
ERP is a system that brings all the
resources of an organization together and
integrate business operations & information
flow in the company to synergise the
resource of the organization.
 An
ERP system is a fully integrated business
managements system covering all functional
areas of an enterprise.

In simple words ERP promises one database,
one application and one user interface for the
entire enterprises.

ERP has evolved from the system known as
Manufacturing Requirement Planning.

ERP Software facilitates competent and
efficient administration and automated
business activities.

Some of the "popular" ERP packages are SAP,
JD Edwards, Baan, Oracle 9i.
Stages of Evolution
Stage -1 : Inventory Control
 It is the supervision of supply, storage and
accessibility of raw material, WIP and finished
goods in order to make certain a sufficient supply
without oversupply.
Stage – 2 : ABC Analysis
 It divides material into three categories and
investment is done according to the value and
nature of that category’s materials.
 A-items : high consumption less investment items.
 C-items : less consumption high investment items.
 B-items : the interclass items, 15-25% of annual
consumption and typically accounts for 30% of
total inventory items.
Stage – 3 : Economic order Quantity (EoQ)
 EoQ is a regular review of inventory to compare with reorder point and a fixed magnitude is ordered each time
the inventory level reaches a particular reorder point.
 The EOQ provides a model for calculating the reorder point
and the optimal reorder quantity to make sure that there
is no shortages.
Stage – 4 : Just-In-Time (JIT)
– JIT is a management practice in which non-value-adding
activities are identified and removed for the purposes of:
• Reducing Cost
• Improving Performance
• Adding Flexibility
• Improving Quality
• Improving Delivery
• Increase innovativeness
– When the JIT principles are implemented successfully,
significant competitive advantages are realized.
Stage – 5 : Material Requirement
Planning (MRP – I)
 MRP is a production planning and inventory
control system intend to meet three
objectives:
• Ensure materials are available for production
and products are available for delivery to
customers.
• Maintain the lowest possible material and
product levels in store.
• Plan manufacturing activities, delivery schedules
and purchasing activities.
Stage-6 : Manufacturing Resource Planning
 It is a system for operational planning, financial
planning, and has a ability to respond "what-if"
questions and extension of MRP-I.
Stage – 7 : Distribution Resource Planning
 DRP is a system used in business administration for
planning orders within a supply chain. The objectives
of DRP System are:
To improve customer service levels by anticipating
customer demand at distribution centers and providing
finished products at the correct location.
To provide an accurate requirements plan for
manufacturing.
To optimize the distribution of stock.
Stage – 8 Enterprise Resource Planning (ERP-I)
– This has a broader role and is not confined to one
department. ERP takes a customer order and provides a
road map for automating the dissimilar stages along the
path to fulfilling it.
Stage – 9 : Money Resource Planning (ERP-II)
– This has more emphasis on planning of capital or
managing surplus money.
Stage - 10 : Web Enabled EIS (ERP-III)
– This is the third stage of ERP in which it is made available
to its user through web client software.
Customer Relationship Management
• The main objective of retaining as much loyal
customers as one can, has led to the emergence of
Customer Relationship Management.
• CRM is a set of methodology and technology that
helps organization to maintain healthy relationship
with its customer.
• Increased competition is driving organizations to
implement CRM and handle business challenges
liike, declining revenue, cut-off in the profit margin,
costs occurred due to lost customers etc.
Definitions
Analytical CRM definition
• CRM = Customer Understanding + Relationship Mgmt.
• Customer understanding means analysis of customer
data and relationship management means interaction
with the customer through various channels.
Greenberg’s definition
• CRM is a business strategy, which drives transformation
in the business, and influences work processes. These
processes are enabled by information technology.
There are three elements of CRM :
Customer
Customer is a ‘Human Being’
Relationship
Relationship is the ‘Feeling’
Management
Management is ’ Tactics’
 Customer :
– Since the buying decision is a collaborative activity,
CRM provides the abilities to distinguish and
manage the real customers.
 Relationship :
– The relationship involves continuous bidirectional
communication for the attainment of mutual
benefits.
 Management :
– A set of activities in which customer is at the
centre. It involves collecting and analyzing customer
data to transform it into corporate knowledge.






Create customer loyalty.
Raising market intelligence.
Preserving existing customers.
Providing enhanced services.
Developing connection and affiliation with customer.
Smoothens the progress by capture, analysis, and
dissemination of data from customers.
These benefits can be achieved in three ways ~
– Take Action: Customer supporting Policies & Procedures
– Analyze: Customer’s need, expectation, preferences etc.
– Discover: Create new trends in market.



The chain that starts with Manufacturer and
ends with customers.
SCM is a process of planning, implementing
and controlling the operations of the supply
chain with the purpose of satisfying the
customer's requirement as efficiently as
possible.
SCM covers all movement and storage of raw
materials, work-in-process, and finished
goods from the point of origin to the point of
consumption.
 Procurement/Purchasing
• SCM ensure that the right items are delivered in the
right quantity at the right location on the right time
at right cost.
 Operations/Production
• SCM ensures that transformation of raw material
into finished goods is conducted in an efficient and
effective manner.
 Distribution
• Distribution
involves
activities
such
as
transportation (logistics) and warehousing. SCM
ensures that distribution is cost effective, time
efficient and Error free.
 Integration
• SCM integrate all supply chain partners together
making supply chain a single process.
• SCM ensure mutual success.
• SCM ensures coordination and cooperation among
supply chain partners.
ERP v/s CRM v/s SCM
• ERP
improves • ERP provides a structured
internal
business
environment for scientific
processes.
decision making.
• CRM
improves • CRM software focuses on
the identification, targeting,
relationship
acquisition and retention of
between business
customers
and customers.
• SCM
facilitates • SCM ensures flow of
materials and information
collaboration
through the supply chain
between
supply
with
efficiency
and
chain partners.
effectiveness.
Human Resource Management
Systems

HRMS is a software application that combines
many human resources functions together
such as recruiting, administration, payroll,
training, and performance analysis.

HRMS = HRM + IT
• HRMS integrate the following processes ~
Compensation Management
Recruiting & Hiring
Succession Planning
Workforce Management
Payroll & Benefits
 Compensation Management
It is about deciding wages, salary or contract amount to
be paid daily, monthly or at the end of contract period.
 Recruiting & Hiring
HRMS maintains information of newly hired employee
which can be automatically populated into the employee’s
records.
 Succession Planning
It is concerned with transfers, promotions and demotions.
 Workforce Management
HRMS provides tools to effectively manage labour rules,
ensure compliance, and control labour costs.
 Payroll & Benefits
It keeps an account of the expenses made towards human
resources and provides efficient, flexible and easy–to-use
service well suited for complex environments.
 It bringing industry best practices to the HR functions.
 It lets us assess and utilize the HR potential completely.
 It increases the operational efficiency and productivity
of the HR department;
 It reduces HR administrative costs.
 It increases employee satisfaction.
 It ensures seamless flow of information between
employees, supervisors, managers and administrators;
 It improves leadership development and succession.
 It enhances data integrity within the enterprise.
 It enables to meet compliance and audit requirements.
Core Banking System
 CORE stands for "Centralized Online Real-time
Environment".
 CBS is a set of software components that manage
the services provided by a bank to its customers
through its branches.
 Platform where communication technology and
information technology are integrated together to
provide banking services.
 These systems run 24x7 basis to support Internet
banking, global operations, and real time
transactions via ATM, Internet, phone and debit/
credit cards.
1
2
3
4
5
• Making and servicing loans;
• Opening new accounts;
• Processing cash deposits and withdrawals;
• Processing payments and cheques;
• Calculating interest;
6
7
8
9
10
• Customer
activities;
relationship
management
(CRM)
• Managing customer accounts;
• Setting criteria for minimum balances, interest
rates, no. of withdrawals allowed etc.
• Establishing interest rates;
• Maintaining records for all the bank’s transactions.
Enterprise customer information
• To create and maintain a customer information files, across
multiple host systems.
Consumer banking
• This includes Savings accounts, Personal and Auto finance,
Structured deposits, multi-currency accounts, term deposits,
revolving loans etc.
Corporate banking
• This includes multi-currency receipts and payments, flexible
interest rate setup, debt consolidation, maintain the corporate
customer information files, corporate deposits, commercial
lending etc.
Trade finance
• This module presents trade finance with the payment
system and exchange rate setup. It also supports
multicurrency processing, documentary credit, import and
export financing, letter of guarantee etc.
Customer analytics
• This module supports data acquisition, analysis, quantitative
modeling techniques and multi-dimensional reporting.
Wealth management
• This creates new revenue streams by offering high net worth
products and services powered by the Finacle wealth
management solution.
Payments
• The module processes payments regardless of payment
instruments, originating channels, hosting modules and
payment networks.
Origination
• This module simplifies complete credit lifecycle, across
retail and commercial loans with Finacle’s enterprise
loan origination solution.
Dashboards
• This enhances user experience by enabling availability
of frequently used functions on a single console.
 AIS
is defined as a system of collection, storage
and processing of financial and accounting data
that is used by decision makers.
 Six

elements of AIS ~
People
accountants, consultants,
managers, and auditors.

business
analysts,
Procedure
manual and automated methods for collecting,
storing, retrieving and processing data.

Data
Sales orders, Customer’s bills, purchase requisitions,
Vendor invoices, inventory data, Payroll information,
Tax information Sales analysis data etc.

Software
Computer programs used to stored, retrieved,
processed, analyzed financial data. They provide
quality, reliability and security in reporting.

IT Infrastructure
Hardware, network, media etc.

Controls
Security measures to protect sensitive data against
unauthorized access.
Characteristics of AIS
1
• AIS are a system to collect, store and process data
to prepare information.
2
• AIS can use extremely developed technology or
be a trouble-free manual system, or be something
in amid.
3
• AIS implements sufficient controls to make
certain that the information are obtainable,
accurate and reliable.
4
• AIS transform that data into information with
the intention to assist management in decision
making.
5
• AIS has different sub components that includes Budgeting
and Planning, Expenses Management, Revenue
Management, Cash and Treasury Management,
Accounting, Electronic Banking, Payroll etc.
6
• AIS also helps in enhancing the performance of a company
by allowing it to conduct systematic operations across the
market.
Artificial Intelligence

AI is the technology focusing on creating
machines that emulates human behavior
such as seeing, hearing, communicating
reasoning etc.

AI is a research field that tries to translate the
intelligent human behaviors on a computer.

Expert systems, Pattern Recognition, Natural
language, Data Mining are some of the
applications of AI.
Expert System
• ES is a decision making system that helps managers by
providing them ready made decision.
• Components :~
(i) User Interface
(ii) Database of facts
(iii) Inference Engine
(iv) Knowledge Base
(v) Explanation facility
User
interface
Database
of facts
Inference Engine
Explanation Facility
Knowledge Base
 Knowledge Base
 This includes the data, knowledge, relationships,
and decision trees used by experts to solve a
particular problem.
 The knowledge base of expert systems encloses
both realistic and heuristic knowledge.
 Realistic knowledge is that knowledge of the job
domain that is found in textbooks or journals.
 Heuristic knowledge is empirical, supplementary
judgmental knowledge of performance. It is
principally individualistic.

Inference Engine
 This program contains the logic and reasoning
mechanisms that simulate the expert logic process and
deliver advice.

User Interface
 This program allows the user to communicate with the
expert system.

Explanation facility
 This facility provides the user with an explanation of the
logic the ES used to arrive at its conclusion.

Database of Facts
 This holds the user's input about the current problem
which the inference engine will use to come to a
decision. The quality and quantity of data gained from
the user will influence the reliability of the decision.
 Expert systems are designed to deal with imprecise
data or problems that have more than one solution.
 Expert Systems use fuzzy logic to guess users
problem and compare with knowledge base.
 Expert systems also use neural network to simulate
thought process of brain to learn from experience.

Types
 Example based
 Rule based
 Frame based
 BI
is the timely, accurate and actionable
business information.
 BI
is the delivery of accurate, useful information
to support effective decision making.
 BI
refers to the process of collecting analyzing
and presenting information to the user who
need it, when they need it.
 BI
is the technology and methodology to assist
business managers to make better decisions.
Business Intelligence Tools
Reporting and
Querying
Data Mining or
Statistical
Analysis
Scorecards
Business Analysis
Dashboards
[A] Simple Reporting and Querying

This involves using the data warehouse to get
response to the query.

There are reporting tools used to arrange
information into a readable format and distribute it
to the people who need it.

This requires all the necessary data is available in
one place, in one common format and BI is
connected to it.
[B] Business Analysis

Business analysis refers to presenting, visualizing
data in a multidimensional manner.

BA allows the user to plot data in row and column
coordinates to further understand the intersecting
points.

ETL (Extract, Transform, Load) tools bring in data
from outside sources, transform it to meet
business needs, and then load the results into the
company database.
[C] Dashboards

Dashboards are the tools that uses information
gathered from the data warehouse and making it
available to users as snapshots of many different
things.

It includes a collection of graphs, reports, and KPIs
that can help monitor such business activities.
[D] Scorecards
 Scorecards
offer a rich, visual means to display the
performance of specific activities, business units,
or the enterprise as a whole.
A
list of attainable strategic milestones, combined
with benchmarks and measures on how well the
company has actually performed are linked in the
scorecard with graphical display.
[E] Data Mining or Statistical Analysis




This involves using statistical, artificial intelligence,
and related techniques to mine through large
volumes of data and providing knowledge.
The objective is to provide interesting and useful
information to users even without their querying.
Data Mining involves data analysis for discovering
useful patterns that are “hidden” in large volume
of data.
OLAP (Online Analytical Processing) is a multidimensional analytical tool typically used in data
mining.
Business Reporting
 Report
is a tool provided users to get
immediate access to business information.
 Reports facilitate us to:
 Get conclusions about a trouble or issue.
 Communicate.
 Endow with recommendations for upcoming
events.
 Exhibit our analytical, reasoning, and evaluation
skills.
 Scrutinize obtainable and potential solutions to a
problem, situation, or question.

Business reporting is a step towards enhanced
business
intelligence
and
knowledge
management.

While reports can be distributed in print form
or via email, they are characteristically
accessed via a corporate intranet.

With the help of IT hardware and software like
MIS, reports are access by managers using
terminals connected to company’s INTRANET
server.
Benefits of MIS reporting for
micro-businesses
Paperless lodgment
Electronic record keeping
Pre-filled forms
Ease of sharing
Secure Public key authentication
Same-time validation
Benefits of MIS reporting for
large-businesses
A single reporting language : XBRL
Reduce costs
Streamline the process of aggregating data
Increased access information
Secure Public key authentication
Same-time validation
Access and Privilege Controls
 Controls
are the procedures used to safeguard
software
systems
from
unauthorized
modification, disclosure or destruction and to
ensure that information remains accurate,
confidential, and is available when required.
 Types
~
– Access Controls : Allow or reject access to systems.
– Privilege Controls : restrict the use of systems.
Approaches to Access Control
• Role-based Access Control (RBAC)
– In RBAC administrators place user into roles. Users receive
only the rights and permissions assigned to those roles.
When employee’s job role change, all previous access is
removed, and new rights and permissions are assigned.
• Rules-based Access Control (RAC)
– RAC is largely context-based system. RAC takes into account
the data affected, the person attempting to perform a task,
and other factors governed by business rules.
– For example - A manager can approve his employees’ hours
worked. However, he can not approve his own hours. A rule
built into the application temporarily removes approval
privilege.
– This is dynamic and occurs at the time a transaction occurs.
This also sometimes called dynamic RBAC.
 This is a fundamental principle of information
security, which refers to give only those privileges
to a user account, which are essential to that
user's work. For example, a backup user does not
need to install software; hence, the backup user
has rights only to run backup.
 Also called Least-privileged User Account (LUA)
this principle refers that all user accounts at all
times should run with as few privileges as
possible. Software bugs may be exposed when
applications do not work correctly without
elevated privileges.
 In
addition to conventional mode of payments
like cash and cheques, the past few years have
seen the speedy creation of plastic payment
mechanisms such as credit, debit, smart, and
cash cards.
 With the increase in online shopping and ecommerce industry, it has now become a
requirement that the web stores are integrated
with a payment gateway.
 Payment gateway is fundamentally a service used
to process credit card transactions when orders
are accepted online from clients.
Order
Customer
Request to PG
Web Server
Server Response
PG Response
Payment
Gateway
Bank Response
Funds transferred
Merchant
To merchant A/c
Bank
Request for
Confirmation
Electronic Payment
Credit Card
Clearing
Authorization
Batching
Funding
Purchase request
Card Holder
Merchant
Issuing
Bank
Authorization
request
Step 1 : Authorization
Authorization
Product
Authorization
request
Acquirer
Authorization code
Step 2 : Batching
The merchant transmits the batch of sales transactions of the day to
acquirer to receive the payment.
Step 3 : Clearing
The acquirer sends each sales transaction to the appropriate issuing
bank. The bank subtracts the interchange fee and transfer remaining
amount to the acquirer.
Step 4 : Funding
The acquirer subtract its discount fee and transfer the remainder to the
merchant’s account.
SET
•
•
•
Secure Electronic Transaction is a payment standard
developed jointly by Master card and VISA card.
It is used to handle C.C. transactions securely.
Objectives ~
•
•
•
•
•
Provide confidentiality of payment information transmitted
over network.
Ensure Integrity of all transmitted data.
Provide system to authenticate the card user.
Provides protocol that is independent of other security
mechanism.
Facilitate interoperability between various servers.
Electronic Cheque
There 2 systems developed to use e-cheques –
(i) FSTC



Here buyer authenticate the cheque by digital signature and
send it electronically to the issuing bank. The E-cheque is
then handled by EPH software installed at the bank server.
The user can designate e-cheque as Certified Cheque or
Electronic Charge Card Slip(Standard e-cheque).
The National Automated Clearing House Association clears echeque and transfer the fund.
(ii) Cyber cash
Here buyer, after authentication, send the e-cheque to the seller.
The seller then put it to the bank and get transfer of fund into his
account.
Smart Card
The plastic card that has an embedded microprocessor chip that
stores and manipulates the data.
Contact Card
Contact less Card
Combo Card
Electronic Purse
Pre-paid Card pass through the POS terminal, no credit check or
signature required.