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Different Functions of Management Planning Function

Planning means looking ahead and chalking out future courses of action to be followed. It is a preparatory step. It is a systematic activity which determines when, how and who is going to perform a specific job. Planning is a detailed programme regarding future courses of action. It is rightly said Well plan is half done. Therefore planning takes into consideration available & prospective human and physical resources of the organization so as to get effective co-ordination, contribution & perfect adjustment. It is the basic management function which includes formulation of one or more detailed plans to achieve optimum balance of needs or demands with the available resources. According to Urwick, Planning is a mental predisposition to do things in orderly way, to think before acting and to act in the light of facts rather than guesses. Planning is deciding best alternative among others to perform different managerial functions in order to achieve predetermined goals. According to Koontz & ODonell, Planning is deciding in advance what to do, how to do and who is to do it. Planning bridges the gap between where we are to, where we want to go. It makes possible things to occur which would not otherwise occur.

Steps in Planning Function


Planning function of management involves following steps:-

1. Establishment of objectives
a. b. c. d. e. f. g. h. a. b. c. d. e. f. g. a. b. c. d. e. a. b. c. d. Planning requires a systematic approach. Planning starts with the setting of goals and objectives to be achieved. Objectives provide a rationale for undertaking various activities as well as indicate direction of efforts. Moreover objectives focus the attention of managers on the end results to be achieved. As a matter of fact, objectives provide nucleus to the planning process. Therefore, objectives should be stated in a clear, precise and unambiguous language. Otherwise the activities undertaken are bound to be ineffective. As far as possible, objectives should be stated in quantitative terms. For example, Number of men working, wages given, units produced, etc. But such an objective cannot be stated in quantitative terms like performance of quality control manager, effectiveness of personnel manager. Such goals should be specified in qualitative terms. Hence objectives should be practical, acceptable, workable and achievable. Planning premises are the assumptions about the lively shape of events in future. They serve as a basis of planning. Establishment of planning premises is concerned with determining where one tends to deviate from the actual plans and causes of such deviations. It is to find out what obstacles are there in the way of business during the course of operations. Establishment of planning premises is concerned to take such steps that avoids these obstacles to a great extent. Planning premises may be internal or external. Internal includes capital investment policy, management labour relations, philosophy of management, etc. Whereas external includes socio- economic, political and economical changes. Internal premises are controllable whereas external are non- controllable. When forecast are available and premises are established, a number of alternative course of actions have to be considered. For this purpose, each and every alternative will be evaluated by weighing its pros and cons in the light of resources available and requirements of the organization. The merits, demerits as well as the consequences of each alternative must be examined before the choice is being made. After objective and scientific evaluation, the best alternative is chosen. The planners should take help of various quantitative techniques to judge the stability of an alternative. Derivative plans are the sub plans or secondary plans which help in the achievement of main plan. Secondary plans will flow from the basic plan. These are meant to support and expediate the achievement of basic plans. These detail plans include policies, procedures, rules, programmes, budgets, schedules, etc. For example, if profit maximization is the main aim of the enterprise, derivative plans will include sales maximization, production maximization, and cost minimization. Derivative plans indicate time schedule and sequence of accomplishing various tasks.

2. Establishment of Planning Premises

3. Choice of alternative course of action

4. Formulation of derivative plans

5. Securing Co-operation


a. b. After the plans have been determined, it is necessary rather advisable to take subordinates or those who have to implement these plans into confidence. The purposes behind taking them into confidence are :a. Subordinates may feel motivated since they are involved in decision making process. b. The organization may be able to get valuable suggestions and improvement in formulation as well as implementation of plans. c. Also the employees will be more interested in the execution of these plans. After choosing a particular course of action, it is put into action. After the selected plan is implemented, it is important to appraise its effectiveness. This is done on the basis of feedback or information received from departments or persons concerned. This enables the management to correct deviations or modify the plan. This step establishes a link between planning and controlling function. The follow up must go side by side the implementation of plans so that in the light of observations made, future plans can be made more realistic.

6. Follow up/Appraisal of plans


a. b. c. d. e. f.

Organizing function
Organizing is the function of management which follows planning. It is a function in which the synchronization and combination of human, physical and financial resources takes place. All the three resources are important to get results. Therefore, organizational function helps in achievement of results which in fact is important for the functioning of a concern. According to Chester Barnard, Organizing is a function by which the concern is able to define the role positions, the jobs related and the co- ordination between authority and responsibility. Hence, a manager always has to organize in order to get results. A manager performs organizing function with the help of following steps:1. 2. 3. Identification of activities - All the activities which have to be performed in a concern have to be identified first. For example, preparation of accounts, making sales, record keeping, quality control, inventory control, etc. All these activities have to be grouped and classified into units. Departmentally organizing the activities - In this step, the manager tries to combine and group similar and related activities into units or departments. This organization of dividing the whole concern into independent units and departments is called departmentation. Classifying the authority - Once the departments are made, the manager likes to classify the powers and its extent to the managers. This activity of giving a rank in order to the managerial positions is called hierarchy. The top management is into formulation of policies, the middle level management into departmental supervision and lower level management into supervision of foremen. The clarification of authority help in bringing efficiency in the running of a concern. This helps in achieving efficiency in the running of a concern. This helps in avoiding wastage of time, money, effort, in avoidance of duplication or overlapping of efforts and this helps in bringing smoothness in a concerns working. Co-ordination between authority and responsibility - Relationships are established among various groups to enable smooth interaction toward the achievment of the organizational goal. Each individual is made aware of his authority and he/she knows whom they have to take orders from and to whom they are accountable and to whom they have to report. A clear organizational structure is drawn and all the employees are made aware of it.

4.

Staffing Function of Management


The managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal and development of the personnels to fill the roles assigned to the employers/workforce. According to Theo Haimann, Staffing pertains to recruitment, selection, development and compensation of subordinates.

Nature of Staffing Function


1. Staffing is an important managerial function- Staffing function is the most important mangerial act along with planning, organizing, directing and controlling. The operations of these four functions depend upon the manpower which is available through staffing function. Staffing is a pervasive activity- As staffing function is carried out by all mangers and in all types of concerns where business activities are carried out. Staffing is a continuous activity- This is because staffing function continues throughout the life of an organization due to the transfers and promotions that take place. The basis of staffing function is efficient management of personnels- Human resources can be efficiently managed by a system or proper procedure, that is, recruitment, selection, placement, training and development, providing

2. 3. 4.


5. 6. remuneration, etc. Staffing helps in placing right men at the right job. It can be done effectively through proper recruitment procedures and then finally selecting the most suitable candidate as per the job requirements. Staffing is performed by all managers depending upon the nature of business, size of the company, qualifications and skills of managers,etc. In small companies, the top management generally performs this function.In medium and small scale enterprise, it is performed especially by the personnel department of that concern.

DIRECTING Function of Management


DIRECTING is said to be a process in which the managers instruct, guide and oversee the performance of the workers to achieve predetermined goals. Directing is said to be the heart of management process. Planning, organizing, staffing have got no importance if direction function does not take place. Directing initiates action and it is from here actual work starts. Direction is said to be consisting of human factors. In simple words, it can be described as providing guidance to workers is doing work. In field of management, direction is said to be all those activities which are designed to encourage the subordinates to work effectively and efficiently. According to Human, Directing consists of process or technique by which instruction can be issued and operations can be carried out as originally planned Therefore, Directing is the function of guiding, inspiring, overseeing and instructing people towards accomplishment of organizational goals. Direction has got following characteristics: 1. 2. 3. 4. 5. 6. Pervasive Function - Directing is required at all levels of organization. Every manager provides guidance and inspiration to his subordinates. Continuous Activity - Direction is a continuous activity as it continuous throughout the life of organization. Human Factor - Directing function is related to subordinates and therefore it is related to human factor. Since human factor is complex and behaviour is unpredictable, direction function becomes important. Creative Activity - Direction function helps in converting plans into performance. Without this function, people become inactive and physical resources are meaningless. Executive Function - Direction function is carried out by all managers and executives at all levels throughout the working of an enterprise, a subordinate receives instructions from his superior only. Delegate Function - Direction is supposed to be a function dealing with human beings. Human behaviour is unpredictable by nature and conditioning the peoples behaviour towards the goals of the enterprise is what the executive does in this function. Therefore, it is termed as having delicacy in it to tackle human behaviour.

Controlling Function of Management


What is Controlling?
Controlling consists of verifying whether everything occurs in confirmities with the plans adopted, instructions issued and principles established. Controlling ensures that there is effective and efficient utilization of organizational resources so as to achieve the planned goals. Controlling measures the deviation of actual performance from the standard performance, discovers the causes of such deviations and helps in taking corrective actions According to Brech, Controlling is a systematic exercise which is called as a process of checking actual performance against the standards or plans with a view to ensure adequate progress and also recording such experience as is gained as a contribution to possible future needs. According to Donnell, Just as a navigator continually takes reading to ensure whether he is relative to a planned action, so should a business manager continually take reading to assure himself that his enterprise is on right course. Controlling has got two basic purposes 1. 2. It facilitates co-ordination It helps in planning

Features of Controlling Function


Following are the characteristics of controlling function of management1. 2. 3. 4. Controlling is an end function- A function which comes once the performances are made in confirmities with plans. Controlling is a pervasive function- which means it is performed by managers at all levels and in all type of concerns. Controlling is forward looking- because effective control is not possible without past being controlled. Controlling always look to future so that follow-up can be made whenever required. Controlling is a dynamic process- since controlling requires taking reviewal methods, changes have to be made


5. wherever possible. Controlling is related with planning- Planning and Controlling are two inseperable functions of management. Without planning, controlling is a meaningless exercise and without controlling, planning is useless. Planning presupposes controlling and controlling succeeds planning.

Leadership
Leadership is a process by which an executive can direct, guide and influence the behavior and work of others towards accomplishment of specific goals in a given situation. Leadership is the ability of a manager to induce the subordinates to work with confidence and zeal. Leadership is the potential to influence behaviour of others. It is also defined as the capacity to influence a group towards the realization of a goal. Leaders are required to develop future visions, and to motivate the organizational members to want to achieve the visions. According to Keith Davis, Leadership is the ability to persuade others to seek defined objectives enthusiastically. It is the human factor which binds a group together and motivates it towards goals.

Characteristics of Leadership
1. 2. 3. 4. 5. It is a inter-personal process in which a manager is into influencing and guiding workers towards attainment of goals. It denotes a few qualities to be present in a person which includes intelligence, maturity and personality. It is a group process. It involves two or more people interacting with each other. A leader is involved in shaping and moulding the behaviour of the group towards accomplishment of organizational goals. Leadership is situation bound. There is no best style of leadership. It all depends upon tackling with the situations.

Leadership and management are the terms that are often considered synonymous. It is essential to understand that leadership is an essential part of effective management. As a crucial component of management, remarkable leadership behaviour stresses upon building an environment in which each and every employee develops and excels. Leadership is defined as the potential to influence and drive the group efforts towards the accomplishment of goals. This influence may originate from formal sources, such as that provided by acquisition of managerial position in an organization. A manager must have traits of a leader, i.e., he must possess leadership qualities. Leaders develop and begin strategies that build and sustain competitive advantage. Organizations require robust leadership and robust management for optimal organizational efficiency.

Differences between Leadership and Management


Leadership differs from management in a sense that: 1. 2. 3. 4. 5. 6. 7. 8. 9. While managers lay down the structure and delegates authority and responsibility, leaders provides direction by developing the organizational vision and communicating it to the employees and inspiring them to achieve it. While management includes focus on planning, organizing, staffing, directing and controlling; leadership is mainly a part of directing function of management. Leaders focus on listening, building relationships, teamwork, inspiring, motivating and persuading the followers. While a leader gets his authority from his followers, a manager gets his authority by virtue of his position in the organization. While managers follow the organizations policies and procedure, the leaders follow their own instinct. Management is more of science as the managers are exact, planned, standard, logical and more of mind. Leadership, on the other hand, is an art. In an organization, if the managers are required, then leaders are a must/essential. While management deals with the technical dimension in an organization or the job content; leadership deals with the people aspect in an organization. While management measures/evaluates people by their name, past records, present performance; leadership sees and evaluates individuals as having potential for things that cant be measured, i.e., it deals with future and the performance of people if their potential is fully extracted. If management is reactive, leadership is proactive. Management is based more on written communication, while leadership is based more on verbal communication


A leader has got multidimensional traits in him which makes him appealing and effective in behavior. The following are the requisites to be present in a good leader: Physical appearance- A leader must have a pleasing appearance. Physique and health are very important for a good leader. 2. Vision and foresight- A leader cannot maintain influence unless he exhibits that he is forward looking. He has to visualize situations and thereby has to frame logical programmes. 3. Intelligence- A leader should be intelligent enough to examine problems and difficult situations. He should be analytical who weighs pros and cons and then summarizes the situation. Therefore, a positive bent of mind and mature outlook is very important. 4. Communicative skills- A leader must be able to communicate the policies and procedures clearly, precisely and effectively. This can be helpful in persuasion and stimulation. 5. Objective- A leader has to be having a fair outlook which is free from bias and which does not reflects his willingness towards a particular individual. He should develop his own opinion and should base his judgement on facts and logic. 6. Knowledge of work- A leader should be very precisely knowing the nature of work of his subordinates because it is then he can win the trust and confidence of his subordinates. 7. Sense of responsibility- Responsibility and accountability towards an individuals work is very important to bring a sense of influence. A leader must have a sense of responsibility towards organizational goals because only then he can get maximum of capabilities exploited in a real sense. For this, he has to motivate himself and arouse and urge to give best of his abilities. Only then he can motivate the subordinates to the best. 8. Self-confidence and will-power- Confidence in himself is important to earn the confidence of the subordinates. He should be trustworthy and should handle the situations with full will power. (You can read more about Self-Confidence at : Self Confidence - Tips to be Confident and Eliminate Your Apprehensions). 9. Humanist-This trait to be present in a leader is essential because he deals with human beings and is in personal contact with them. He has to handle the personal problems of his subordinates with great care and attention. Therefore, treating the human beings on humanitarian grounds is essential for building a congenial environment. 10. Empathy- It is an old adage Stepping into the shoes of others. This is very important because fair judgement and objectivity comes only then. A leader should understand the problems and complaints of employees and should also have a complete view of the needs and aspirations of the employees. This helps in improving human relations and personal contacts with the employees. From the above qualities present in a leader, one can understand the scope of leadership and its importance for scope of business. A leader cannot have all traits at one time. But a few of them helps in achieving effective results. 1.

Coordination function
There are three basic coordinating mechanisms: mutual adjustment, direct supervision, and standardization (of which there are three types: of work processes, of work outputs, and of worker skills).

Mutual Adjustment This mechanism is based on the simple process of informal communication. It is used in very small companies, such as a 5-person software shop, or for very, very complicated tasks, such as putting the first person on the moon. Mutual adjustment is the same mechanism used by furniture movers to manoeuvre through a house, or paddlers to take a canoe downriver, or jazz musicians playing a live engagement. It's especially useful when nobody really knows ahead of time how to do what they're doing. Direct Supervision Achieves coordination by having one person take responsibility for the work of others, issuing instructions and monitoring their actions. An example is the offensive unit of a football team. Here, there is marked division of labor and specialization, and the efforts of the players are coordinating by a quarterback calling specific plays. If the organization is large enough, one person cannot handle all the members, so multiple leaders or managers must be used, then the efforts of these people (the managers) are coordinated by a manager of managers, and so on.

Standardization A third mechanism of coordination is standardization. Here, the coordination is achieved "on the drawing board", so to speak, or "at compile-time" if you like, not during the action or "run-time". The coordination is pre-programmed in one of three ways: Work Processes. An example is the set of assembly instructions that come with a child's toy. Here, the manufacturer standardizes the work process of the parent. Often, the machinery in a factory effectively standardizes work by automatically providing only, say, blue paint when blue paint is needed, and only red paint when red paint is needed. Outputs. Standardized outputs means that there are specifications that the product or work output must meet, but aside from that the worker is free to do as they wish. Stereo equipment manufacturers have a lot of freedom in designing their products, but the interface portions of the product (the connections to other stereo devices like CD's, speakers, tape-recorders, etc.) must be the same as everyone else's, or else it would be hard to put together a complete system.


Worker Skills. Professional schools, like medical schools, law school, business school, produce workers that do stuff exactly the same way. How do you treat a staphylococcus infection? You use one of the following antibiotics. It's a series of recipes that are memorized. Employers (e.g., hospitals) can rely on these employees (physicians) to do things the standard way, which allows other employees (e.g., nurses) to coordinate smoothly with them. When a surgeon and an anaesthesiologist meet for the first time in the operating room, they have no problem working together because by virtue of their training they know exactly what to expect from each other.

Cooperation function
Cooperation or co-operation is the process of working or acting together, which can be accomplished by both intentional and nonintentional agents. In its simplest form it involves things working in harmony, side by side, while in its more complicated forms, it can involve something as complex as the inner workings of a human being or even the social patterns of a nation. It is the alternative to working separately in competition. Cooperation can also be accomplished by computers, which can handle shared resources simultaneously, while sharing processor time.

Frederick W. Taylor: Management Theory


Frederick Winslow Taylor is a controversial figure in management history. His innovations in industrial engineering, particularly in time and motion studies, paid off in dramatic improvements in productivity. At the same time, he has been credited with destroying the soul of work, of dehumanizing factories, making men into automatons. F. W. Taylor & Scientific Management by Vincenzo Sandrone

Under Taylor's management system, factories are managed through scientific methods rather than by use of the empirical "rule of thumb" so widely prevalent in the days of the late nineteenth century when F. W. Taylor devised his system and published "Scientific Management" in 1911. The main elements of the Scientific Management are : "Time studies Functional or specialized supervision Standardization of tools and implements Standardization of work methods Separate Planning function Management by exception principle The use of "slide-rules and similar time-saving devices" Instruction cards for workmen Task allocation and large bonus for successful performance The use of the 'differential rate' Mnemonic systems for classifying products and implements A routing system A modern costing system etc. etc. " Taylor called these elements "merely the elements or details of the mechanisms of management" He saw them as extensions of the four principles of management. 1. The development of a true science 2. The scientific selection of the workman 3. The scientific education and development of the workman 4. Intimate and friendly cooperation between the management and the men. Taylor warned of the risks managers make in attempting to make change in what would presently be called, the culture, of the organization. He stated the importance of management commitment and the need for gradual implementation and education. He described "the really great problem" involved in the change "consists of the complete revolution in the mental attitude and the habits of all those engaged in the management, as well of the workmen." Taylor taught that there was one and only one method of work that maximized efficiency. "And this one best method and best implementation can only be discovered or developed through scientific study and analysis... This involves the gradual substitution of science for 'rule of thumb' throughout the mechanical arts." "Scientific management requires first, a careful investigation of each of the many modifications of the same implement, developed under rule of thumb; and second, after time and motion study has been made of the speed attainable with each of these implements, that the good points of several of them shall be unified in a single standard implementation, which will enable the workman to work faster and with greater easy than he could before. This one implement, then is the adopted as standard in place of the many different kinds before in use and it remains standard for all workmen to use until superseded by an implement which has been shown, through motion and time study, to be still better." An important barrier to use of scientific management was the limited education of the lower level of supervision and of the work force. A large part of the factory population was composed of recent immigrants who lacked literacy in English. In Taylor's view, supervisors and workers with such low levels of education were not qualified to plan how work should be done. Taylor's solution was to separate planning from execution. "In almost all the mechanic arts the science which underlies each act of each workman is so great and amounts to so much that the workman who is best suited to actually doing the work is incapable of fully understanding this science.." To apply his solution, Taylor created planning departments, staffed them with engineers, and gave them the responsibility to: 1. Develop scientific methods for doing work. 2. Establish goals for productivity. 3. Establish systems of rewards for meeting the goals. 4. Train the personnel in how to use the methods and thereby meet the goals. Perhaps the key idea of Scientific management and the one which has drawn the most criticism was the concept of task allocation. Task allocation is the concept that breaking task into smaller and smaller tasks allows the determination of the optimum solution to


the task. "The man in the planning room, whose specialty is planning ahead, invariably finds that the work can be done more economically by subdivision of the labour; each act of each mechanic, for example, should be preceded by various preparatory acts done by other men." The main argument against Taylor is this reductionist approach to work dehumanizes the worker. The allocation of work "specifying not only what is to be done but how it is to done and the exact time allowed for doing it" is seen as leaving no scope for the individual worker to excel or think. This argument is mainly due to later writing rather than Taylor's work as Taylor stated "The task is always so regulated that the man who is well suited to his job will thrive while working at this rate during a long term of years and grow happier and more prosperous, instead of being overworked." Taylor's concept of motivation left something to be desired when compared to later ideas. His methods of motivation started and finished at monetary incentives. While critical of the then prevailing distinction of "us "and "them" between the workforce and employers he tried to find a common ground between the working and managing classes. "Scientific Management has for its foundation the firm conviction that the true interests of the two are one and the same; that prosperity for the employer cannot exist a long term of years unless it is accompanied by prosperity for the employee [sic], and vice versa .." However, this emphasis on monetary rewards was only part of the story. Rivalry between the Bethlehem and Pittsburgh Steel plants led to the offer from Pittsburgh of 4.9 cents per ton against Bethlehem's rate of 3.2 cents per day to the ore loaders. The ore loaders were spoken to individually and their value to the company reinforced and offers to re-hire them at any time were made. The majority of the ore loaders took up the Pittsburgh offers. Most had returned after less than six weeks. The rates at Pittsburgh were determined by gang rates. Peer pressure from the Pittsburgh employees to not work hard meant that the Bethlehem workers actually received less pay than at Bethlehem. Two of the Bethlehem workers requested to be placed in a separate gang, this was rejected by management for the extra work required by management to keep separate record for each worker. Taylor places the blame squarely on management and their inability "to do their share of the work in cooperating with the workmen." Taylor's attitudes towards workers were laden with negative bias "in the majority of cases this man deliberately plans to do as little as he safely can." The methods that Taylor adopted were directed solely towards the uneducated. "When he tells you to pick up a pig and walk, you pick it up and walk, and when he tells you to sit down and rest, you sit down. You do that right through the day. And what's more, no back talk". This type of behaviour towards workers appears barbaric in the extreme to the modern reader, however, Taylor used the example of Schmidt at the Bethlehem Steel Company to test his theories. Taylor admits "This seems rather rough talk. And indeed it would be if applied to an educated mechanic, or even an intelligent labourer." The fact that Taylor took the effort to firstly know the workers name and to cite it is some indication that he empathized with the workforce. This study improved the workrate of Schmidt from 12.5 tons to 47.5 tons per day showing the worth of Scientific Management. The greatest abuse of Scientific Management has come from applying the techniques without the philosophy behind them. It is obvious from Taylor's own observations that the above discussion would be misplaced in other workers. Taylor acknowledged the potential for abuse in his methods. "The knowledge obtained from accurate time study, for example, is a powerful implement, and can be used, in one case to promote harmony between workmen and the management, by gradually educating, training, and leading the workmen into new and better methods of doing the work, or in the other case, it may be used more or less as a club to drive the workmen into doing a larger day's work for approximately the same pay that they received in the past." Scientific Study and standardization were important parts of the Scientific Management. One example, was the study undertaken to determine the optimum shovel load for workers. The figure of 21 pounds was arrived at by the study. To ensure that this shovel load was adhered to, a series of different shovels were purchased for different types of material. Each shovel was designed to ensure that only 21 pounds could be lifted. This stopped the situation where "each shoveller owned his own shovel, that he would frequently go from shoveling ore, with a load of about 30 pounds per shovel, to handling rice coal, with a load on the same shovel of less than 4 pounds. In the one case, he was so overloaded that it was impossible for him to do a full day's work, and in the other case he was so ridiculously under-loaded that it was manifestly impossible to even approximate a day's work." Taylor spent a considerable amount of his books in describing "soldiering" the act of 'loafing' both at an individual level and "systematic soldiering". He described the main reasons that workers were not performing their work at the optimum. Though worded in a patronizing way the essence of the descriptions are still valid: 1. The belief that increased output would lead to less workers. 2. Inefficiencies within the management control system such as poorly designed incentive schemes and hourly pay rates not linked to productivity. 3. Poor design of the performance of the work by rule-of-thumb The fear of redundancies within the workforce was a valid argument during the previous style of management. Taylor not only countered this argument by using economic arguments of increased demand due to decreased pricing but put forward the idea of sharing the gains with the workforce. Taylor saw the weaknesses of piece work in the workers reactions to gradual decreases in the piece rate as the worker produced more pieces by working harder and/or smarter. The worker then is determined to have no more reduction in rate by "soldiering". This deception leads to an antagonistic view of management and a general deterioration of the worker/management relationship. Taylor also was a strong advocate of worker development. It follows that the most important object of both the workman and the establishment should be the training and development of each individual in the establishment, so that he can do ( at his fastest pace and with the maximum of efficiency) the highest class of work for which his natural abilities for him." Taylor's ideas on management and workers speaks of justice for both parties. "It (the public) will no longer tolerate the type of


employer who has his eyes only on dividends alone, who refuses to do his share of the work and who merely cracks the whip over the heads of his workmen and attempts to drive them harder work for low pay. No more will it tolerate tyranny on the part of labour which demands one increase after another in pay and shorter hours while at the same time it becomes less instead of more efficient." Taylor's system was widely adopted in the United States and the world. Although the Taylor system originated in the factory production departments, the concept of separating planning from execution was universal in nature and, hence, had potential application to other areas: production support services offices operations service industries. Management's new responsibilities were extended to include: Replacing the old rule-of-thumb with scientific management Scientifically select and train, teach and develop the workman "Heartily cooperate with the men so as to insure[sic] all the work being done in accordance with the principles of the science which has been developed" Take over the work for which they are "better fitted" than the workmen. Relationship between Taylorism and TQM Taylor's more general summary of the principles of Scientific Management are better suited for inclusion into the TQM methodology, than the narrow definitions. "It is no single element , but rather the this whole combination, that constitutes Scientific Management, which may be summarized as: Science, not rule of thumb Harmony, not discord Cooperation, not individualism Maximum output in place of restricted output The development of each man to his greatest efficiency and prosperity" Much has happened, since Taylor developed his method of Scientific Management, to make obsolete the premises on which he based his concepts: Lack of education is no longer reason enough to separate the planning function The balance of power between managers and the work force has changed. Whereas in Taylor's time it was heavily weighted against the workers. Unionism (or the threat of it) has profoundly changed that balance. Changes in the climate of social thinking. Revolts against the "dehumanizing" of work. A basic tenet of Scientific management was that employees were not highly educated and thus were unable to perform any but the simplest tasks. Modern thought is that all employees have intimate knowledge of job conditions and are therefore able to make useful contributions. Rather than dehumanizing the work and breaking the work down into smaller and smaller units to maximize efficiency without giving thought to the job satisfaction of the working. Encouragement of work based teams in which all workers may contribute. Such contributions increase worker morale, provide a sense of ownership, and improve management-worker relations generally.

Fayol (1841-1925) Functions and Principles of Management


Fayol's career began as a mining engineer. He then moved into research geology and in 1888 joined, Comambault as Director. Comambault was in difficulty but Fayol turned the operation round. On retirement he published his work - a comprehensive theory of administration - described and classified administrative management roles and processes then became recognised and referenced by others in the growing discourse about management. He is frequently seen as a key, early contributor to a classical or administrative management school of thought (even though he himself would never have recognised such a "school"). His theorising about administration was built on personal observation and experience of what worked well in terms of organisation. His aspiration for an "administrative science" sought a consistent set of principles that all organizations must apply in order to run properly. F. W. Taylor published "The Principles of Scientific Management" in the USA in 1911, and Fayol in 1916 examined the nature of management and administration on the basis of his French mining organisation experiences.. Fayol synthesised various tenets or principles of organisation and management and Taylor on work methods, measurement and simplification to secure efficiencies. Both referenced functional specialisation. Both Fayol and Taylor were arguing that principles existed which all organisations - in order to operate and be administered efficiently - could implement. This type of assertion typifies a "one best way" approach to management thinking. Fayol's five functions are still relevant to discussion today about management roles and action.

1. toforecastandplanprevoyance examinethefutureanddrawupplansofaction 2. toorganise buildupthestructure,materialandhumanoftheundertaking 3. tocommand maintainactivityamongthepersonnel 4. tocoordinate bindtogether,unifyandharmoniseactivityandeffort 5. tocontrol seethateverythingoccursinconformitywithpolicyandpractise

Fayolalsosynthesised14principlesfororganisationaldesignandeffectiveadministration.Itisworthwhilereflecting onthesearecomparingtheconclusionstocontemporaryutterancesbyPeters,KanterandHandytonamebutthree managementgurus.Fayol's14principlesare:

specialisation/divisionoflabour Aprincipleofworkallocationandspecialisationinordertoconcentrateactivitiestoenablespecialisationof skillsandunderstandings,moreworkfocusandefficiency. authoritywithcorrespondingresponsibility Ifresponsibilitiesareallocatedthenthepostholderneedstherequisiteauthoritytocarrytheseout includingtherighttorequireothersintheareaofresponsibilitytoundertakeduties.Authoritystemsfrom: thatascribedfromthedelegationprocess(thejobholderisassignedtoactastheagentofthehigh authoritytowhomtheyreporthierarchy) allocationandpermissiontousethenecessaryresourcesneeded(budgets,assets,staff)tocarryout theresponsibilities. selectionthepersonhastheexpertisetocarryouttheresponsibilitiesandthepersonalqualitiesto winthesupportandconfidenceofothers. The R = A correspondence is important to understand. R = A enables accountability in the delegation process.WhodowecopewithsituationswhereR>A?ArethereworksituationswhereourR<A? "judgement demands highmoralcharacter,therefore,agoodleadershouldpossessandinfuseintothose aroundhimcouragetoacceptresponsibility.Thebestsafeguardagainstabuseofauthorityandweaknesson thepartofahighermanagerispersonalintegrityandparticularlyhighmoralcharacterofsuchamanager .....thisintegrity,isconferredneitherbyelectionnorownership."1916 A manager should never be given authority without responsibilityand also should never be given responsibilitywithouttheassociatedauthoritytogettheworkdone.

discipline The generalisation about discipline is that discipline is essential for the smooth running of a business and withoutitstandards,consistencyofaction,adherencetorulesandvaluesnoenterprisecouldprosper. "in an essence obedience, application, energy, behaviour and outward marks of respect observed in accordancewithstandingagreementsbetweenfirmsanditsemployees"1916

unityofcommand Theideaisthatanemployeeshouldreceiveinstructionsfromonesuperioronly.Thisgeneralisationstill holdsevenwhereweareinvolvedwithteamandmatrixstructureswhichinvolvereportingtomorethan onebossorbeingaccountabletoseveralclients.Thebasicconcernisthattensionsanddilemmasarise wherewereporttotwoormorebosses.OnebossmaywantX,theotherYandthesubordinateiscaught betweenthedevilandthedeepbluesea. unityofdirection Theunityofcommandideaofhavingonehead(chiefexecutive,cabinetconsensus)withagreepurposesand objectivesandoneplanforagroupofactivities)isclear. subordinationofindividualinteresttothegeneralinterest Fayol'slinewasthatoneemployee'sinterestsorthoseofonegroupshouldnotprevailovertheorganisation asawhole.Thiswouldsparkalivelydebateaboutwhodecidesthattheinterestsoftheorganisationasa wholeare.Ethicaldilemmasandmattersofcorporateriskandthebehaviourofindividual"chancers"are involvedhere.Fayol'sworkassumesasharedsetofvaluesbypeopleintheorganisationaunitarism wherethereasonsfororganisationalactivitiesanddecisionsareinsomewayneutralandreasonable. remunerationofstaff 10

" the price of services rendered. " 1916 The general principle is that levels of compensation should be "fair" and as far as possible afford satisfaction both to the staff and the firm (in terms of its cost structures and desire for profitability/surplus).

centralisation CentralisationforHFisessentialtotheorganisationandanaturalconsequenceoforganising.Thisissuedoes notgoawayevenwhereflatter,devolvedorganisationsoccur.Decentralisationisfrequentlycentralisaed decentralisation !!! The modes of control over the actions and results of devolved organisations are still mattersrequiringconsiderableattention. scalarchain/lineofauthority Thescalarchainofcommandofreportingrelationshipsfromtopexecutivetotheordinaryshopoperativeor driverneedstobesensible,clearandunderstood. order Thelevelofgeneralisationbecomesdifficultwiththisprinciple.Basicallyanorganisation"should"providean orderlyplaceforeachindividualmemberwhoneedstoseehowtheirrolefitsintotheorganisationandbe confident, able to predict the organisations behaviour towards them. Thus policies, rules, instructions and actions should be understandable and understood. Orderliness implies steady evolutionary movement ratherthanwild,anxietyprovoking,unpredictablemovement. equity Equity,fairnessandasenseofjustice"should"pervadetheorganisationinprincipleandpractice. stabilityoftenure Timeisneededfortheemployeetoadapttohis/herworkandperformiteffectively.Stabilityoftenure promotesloyaltytotheorganisation,itspurposesandvalues. initiative Atalllevelsoftheorganisationalstructure,zeal,enthusiasmandenergyareenabledbypeoplehavingthe scopeforpersonalinitiative.(Note:TomPetersrecommendationsinrespectofemployeeempowerment) espritdecorps HereFayolemphasisestheneedforbuildingandmaintainingofharmonyamongtheworkforce,teamwork andsoundinterpersonalrelationships.

In the same way that Alfred P Sloan, the executive head of General Motors reorganised the company into semi autonomous divisions in the 1920s, corporations undergoing reorganisation still apply "classical organisation" principlesverymuchinlinewithFayol'srecommendations.

Juran's view of Quality


Qualitytrilogy Juran'sviewisthat,"Qualitydoesnothappenbyaccidentitmustbeplanned".Seeingqualityplanningasthethree elementsofQualityPlanning,QualityControlandQualityImprovementrunningparalleltobudgeting,costcontrol andcostreduction.Statingthatplanning'skeyelementsrequiredtoimplementacompanywidestrategywereto identifycustomerneeds,definequalitygoals,identifyandimplementqualitymetrics,planningprocesscapability, andcontinuallymonitorresultstoreducedmanufacturingandnonmanufacturingerrors.Allthissupportshistheory thatqualityisnotfreeandthereisapointwhereconformanceismorecostlythanthevalueofthequalityobtained. QualityPlanningRoadMap 11

1. Identifycustomers. 2. Determinecustomerneeds. 3. Translatecustomerneedsintospecifications. 4. Developproductorservicetomeetcustomerneeds. 5. Optimizeproductorservicefeaturesandcharacteristics. 6. Developprocesscapabilitiestoproduceproductorservice. 7. Proveprocess. 8. Productioniseprocess.

Different Types of Management Info Systems


Managementinformationsystemsarethosesystemsthatallowmanagerstomakedecisionsforthesuccessful operationofbusinesses.Managementinformationsystemsconsistofcomputerresources,people,and proceduresusedinthemodernbusinessenterprise.ThetermMISstandsformanagementinformation systems.MISalsoreferstotheorganizationthatdevelopsandmaintainsmostorallofthecomputersystems intheenterprisesothatmanagerscanmakedecisions.ThegoaloftheMISorganizationistodeliver informationsystemstothevariouslevelsofcorporatemanagers.MISprofessionalscreateandsupportthe computersystemthroughoutthecompany.Trainedandeducatedtoworkwithcorporatecomputersystems, theseprofessionalsareresponsibleinsomewayfornearlyallofthecomputers,fromthelargestmainframeto thedesktopandportablePCs. Managementinformationsystemscanbeusedasasupporttomanagerstoprovideacompetitiveadvantage. Thesystemmustsupportthegoalsoftheorganization.Mostorganizationsarestructuredalongfunctional lines,andthetypicalsystemsareidentifiedasfollows: Accountingmanagementinformationsystems:Allaccountingreportsaresharedbyalllevelsofaccounting managers. Financialmanagementinformationsystems:Thefinancialmanagementinformationsystemprovidesfinancial informationtoallfinancialmanagerswithinanorganizationincludingthechieffinancialofficer.Thechief financialofficeranalyzeshistoricalandcurrentfinancialactivity,projectsfuturefinancialneeds,andmonitors andcontrolstheuseoffundsovertimeusingtheinformationdevelopedbytheMISdepartment. Manufacturingmanagementinformationsystems:Morethananyfunctionalarea,operationshavebeen impactedbygreatadvancesintechnology.Asaresult,manufacturingoperationshavechanged.Forinstance, inventoriesareprovidedjustintimesothatgreatamountsofmoneyarenotspentforwarehousinghuge inventories.Insomeinstances,rawmaterialsareevenprocessedonrailroadcarswaitingtobesentdirectlyto 12

thefactory.Thusthereisnoneedforwarehousing. Marketingmanagementinformationsystems:Amarketingmanagementinformationsystemsupports managerialactivityintheareaofproductdevelopment,distribution,pricingdecisions,promotional effectiveness,andsalesforecasting.Morethananyotherfunctionalarea,marketingsystemsrelyonexternal sourcesofdata.Thesesourcesincludecompetitionandcustomers,forexample. Humanresourcesmanagementinformationsystems:Humanresourcesmanagementinformationsystemsare concernedwithactivitiesrelatedtoworkers,managers,andotherindividualsemployedbytheorganization. Becausethepersonnelfunctionrelatestoallotherareasinbusiness,thehumanresourcesmanagement informationsystemplaysavaluableroleinensuringorganizationalsuccess.Activitiesperformedbythehuman resourcesmanagementinformationsystemsinclude,workforceanalysisandplanning,hiring,training,andjob assignments.

Relationship of MIS with other discipline


Definition:ManagementInformationSystems(MIS)isthetermgiventothedisciplinefocusedontheintegrationof computersystemswiththeaimsandobjectivesonanorganisation. Thedevelopmentandmanagementofinformationtechnologytoolsassistsexecutivesandthegeneralworkforcein performinganytasksrelatedtotheprocessingofinformation.MISandbusinesssystemsareespeciallyusefulinthe collationofbusinessdataandtheproductionofreportstobeusedastoolsfordecisionmaking. ApplicationsofMIS Withcomputersbeingasubiquitousastheyaretoday,there'shardlyanylargebusinessthatdoesnotrely extensivelyontheirITsystems. However,thereareseveralspecificfieldsinwhichMIShasbecomeinvaluable. *StrategySupport Whilecomputerscannotcreatebusinessstrategiesbythemselvestheycanassistmanagementinunderstandingthe effectsoftheirstrategies,andhelpenableeffectivedecisionmaking. MISsystemscanbeusedtotransformdataintoinformationusefulfordecisionmaking.Computerscanprovide financialstatementsandperformancereportstoassistintheplanning,monitoringandimplementationofstrategy. MISsystemsprovideavaluablefunctioninthattheycancollateintocoherentreportsunmanageablevolumesof datathatwouldotherwisebebroadlyuselesstodecisionmakers.Bystudyingthesereportsdecisionmakerscan identifypatternsandtrendsthatwouldhaveremainedunseeniftherawdatawereconsultedmanually. MISsystemscanalsousetheserawdatatorunsimulationshypotheticalscenariosthatanswerarangeofwhatif questionsregardingalterationsinstrategy.Forinstance,MISsystemscanprovidepredictionsabouttheeffecton salesthatanalterationinpricewouldhaveonaproduct.TheseDecisionSupportSystems(DSS)enablemore informeddecisionmakingwithinanenterprisethanwouldbepossiblewithoutMISsystems. *DataProcessing 13

NotonlydoMISsystemsallowforthecollationofvastamountsofbusinessdata,buttheyalsoprovideavaluable timesavingbenefittotheworkforce.Whereinthepastbusinessinformationhadtobemanuallyprocessedforfiling andanalysisitcannowbeenteredquicklyandeasilyontoacomputerbyadataprocessor,allowingforfaster decisionmakingandquickerreflexesfortheenterpriseasawhole. ManagementbyObjectives WhileMISsystemsareextremelyusefulingeneratingstatisticalreportsanddataanalysistheycanalsobeofuseas aManagementbyObjectives(MBO)tool. MBOisamanagementprocessbywhichmanagersandsubordinatesagreeuponaseriesofobjectivesforthe subordinatetoattempttoachievewithinasettimeframe.ObjectivesaresetusingtheSMARTratio:thatis, objectivesshouldbeSpecific,Measurable,Agreed,RealisticandTimeSpecific. Theaimoftheseobjectivesistoprovideasetofkeyperformanceindicatorsbywhichanenterprisecanjudgethe performanceofanemployeeorproject.ThesuccessofanyMBOobjectivedependsuponthecontinuoustrackingof progress. IntrackingthisperformanceitcanbeextremelyusefultomakeuseofanMISsystem.SinceallSMARTobjectivesare bydefinitionmeasurabletheycanbetrackedthroughthegenerationofmanagementreportstobeanalysedby decisionmakers. BenefitsofMIS ThefieldofMIScandeliveragreatmanybenefitstoenterprisesineveryindustry.Expertorganisationssuchasthe InstituteofMISalongwithpeerreviewedjournalssuchasMISQuarterlycontinuetofindandreportnewwaysto useMIStoachievebusinessobjectives. CoreCompetencies Everymarketleadingenterprisewillhaveatleastonecorecompetencythatis,afunctiontheyperformbetterthan theircompetition.Bybuildinganexceptionalmanagementinformationsystemintotheenterpriseitispossibleto pushoutaheadofthecompetition.MISsystemsprovidethetoolsnecessarytogainabetterunderstandingofthe marketaswellasabetterunderstandingoftheenterpriseitself. EnhanceSupplyChainManagement Improvedreportingofbusinessprocessesleadsinevitablytoamorestreamlinedproductionprocess.Withbetter informationontheproductionprocesscomestheabilitytoimprovethemanagementofthesupplychain,including everythingfromthesourcingofmaterialstothemanufacturinganddistributionofthefinishedproduct. QuickReflexes Asacorollarytoimprovedsupplychainmanagementcomesanimprovedabilitytoreacttochangesinthemarket. BetterMISsystemsenableanenterprisetoreactmorequicklytotheirenvironment,enablingthemtopushout aheadofthecompetitionandproduceabetterserviceandalargerpieceofthepie. FurtherinformationaboutMIScanbefoundattheBentleyCollegeJournalofMISandtheUSTreasurysMIS 14

handbook,andanexampleofanorganisationalMISdivisioncanbefoundattheDepartmentofSocialServicesfor thestateofConnecticut.

Data Communications
DataCommunicationsisthetransferofdataorinformationbetweenasourceandareceiver.Thesourcetransmits thedataandthereceiverreceivesit.TheactualgenerationoftheinformationisnotpartofDataCommunications noristheresultingactionoftheinformationatthereceiver.DataCommunicationisinterestedinthetransferof data,themethodoftransferandthepreservationofthedataduringthetransferprocess. InLocalAreaNetworks,weareinterestedin"connectivity",connectingcomputerstogethertoshareresources.Even thoughthecomputerscanhavedifferentdiskoperatingsystems,languages,cablingandlocations,theystillcan communicatetooneanotherandshareresources. ThepurposeofDataCommunicationsistoprovidetherulesandregulationsthatallowcomputerswithdifferentdisk operatingsystems,languages,cablingandlocationstoshareresources.Therulesandregulationsarecalled protocolsandstandardsinDataCommunications.

Typesofdatacommunications
Simplex Datainasimplexchannelisalwaysoneway.Simplexchannelsarenotoftenusedbecauseitisnot possibletosendbackerrororcontrolsignalstothetransmitend.It'slikeaonewaystreet.An exampleofsimplexisTelevision,orRadio.Thesimplexchannelalsocorrespondsdirectlyto Shannon'smodelofcommunicationdiscussedearlier

Simplextransmissionallowsdatatotravelonlyinasingle,prespecifieddirection.Anexamplefromeverydaylifeis doorbellthesignalcangoonlyfromthebuttontothechime.Twootherexamplesaretelevisionandradio broadcasting.Thesimplexstandardisrelativelyuncommonformosttypesofcomputerbasedtelecommunications applications;evendevicesthataredesignedprimarilytoreceiveinformation,suchasprintersmustbeableto communicateacknowledgementsignalsbacktothesenderdevices

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Halfduplex
Notethatthisisoneoftwocontradictorydefinitionsforhalfduplex.

Asimpleillustrationofahalfduplexcommunicationsystem. Ahalfduplex(HDX)systemprovidescommunicationinbothdirections,butonlyonedirectionatatime(not simultaneously).Typically,onceapartybeginsreceivingasignal,itmustwaitforthetransmittertostop transmitting,beforereplying(antennasareoftransreceivertypeinthesedevices,soastotransmitandreceivethe signalaswell). Anexampleofahalfduplexsystemisatwopartysystemsuchasa"walkietalkie"styletwowayradio,whereinone mustuse"Over"oranotherpreviouslydesignatedcommandtoindicatetheendoftransmission,andensurethat onlyonepartytransmitsatatime,becausebothpartiestransmitandreceiveonthesamefrequency. Agoodanalogyforahalfduplexsystemwouldbeaonelaneroadwithtrafficcontrollersateachend.Trafficcan flowinbothdirections,butonlyonedirectionatatime,regulatedbythetrafficcontrollers. Inautomaticallyruncommunicationssystems,suchastwowaydatalinks,thetimeallocationsforcommunications inahalfduplexsystemcanbefirmlycontrolledbythehardware.Thus,thereisnowasteofthechannelfor switching.Forexample,stationAononeendofthedatalinkcouldbeallowedtotransmitforexactlyonesecond, andthenstationBontheotherendcouldbeallowedtotransmitforexactlyonesecond.Andthenthiscyclerepeats overandoveragain.

Fullduplex

Asimpleillustrationofafullduplexcommunicationsystem,althoughfullduplexisnotcommoninshownhandheld radiosduetothecostandcomplexityofcommonduplexingmethods. Afullduplex(FDX),orsometimesdoubleduplexsystem,allowscommunicationinbothdirections,and,unlikehalf duplex,allowsthistohappensimultaneously.Landlinetelephonenetworksarefullduplex,sincetheyallowboth 16

callerstospeakandbeheardatthesametime.Agoodanalogyforafullduplexsystemwouldbeatwolaneroad withonelaneforeachdirection. Examples:Telephone,MobilePhone,etc. Twowayradioscanbe,forinstance,designedasfullduplexsystems,whichtransmitononefrequencyandreceive onadifferentfrequency.Thisisalsocalledfrequencydivisionduplex.Frequencydivisionduplexsystemscanbe extendedtofartherdistancesusingpairsofsimplerepeaterstations,becausethecommunicationstransmittedon anyonefrequencyalwaystravelinthesamedirection.

A local area network (LAN)


Definition: A local area network (LAN) supplies networking capability to a group of computers in close proximity to each other such as in an office building, a school, or a home. A LAN is useful for sharing resources like files, printers, games or other applications. A LAN in turn often connects to other LANs, and to the Internet or other WAN. Most local area networks are built with relatively inexpensive hardware such as Ethernet cables, network adapters, and hubs. Wireless LAN and other more advanced LAN hardware options also exist. Specialized operating system software may be used to configure a local area network. For example, most flavors of Microsoft Windows provide a software package called Internet Connection Sharing (ICS) that supports controlled access to LAN resources. The term LAN party refers to a multiplayer gaming event where participants bring their own computers and build a temporary LAN. Also Known As: local area network Examples:

17


The most common type of local area network is an Ethernet LAN. The smallest home LAN can have exactly two computers; a large LAN can accommodate many thousands of computers. Many LANs are divided into logical groups called subnets. An Internet Protocol (IP) "Class A" LAN can in theory accommodate more than 16 million devices organized into subnets. A computer network that spans a relatively small area. Most LANs are confined to a single building or group of buildings. However, one LAN can be connected to other LANs over any distance via telephone lines and radio waves. A system of LANs connected in this way is called a wideareanetwork(WAN). Most LANs connect workstations and personal computers. Each node (individual computer ) in a LAN has its own CPU with which it executes programs, but it also is able to access data and devices anywhere on the LAN. This means that many users can share expensive devices, such as laser printers, as well as data. Users can also use the LAN to communicate with each other, by sending e-mail or engaging in chat sessions. There are many different types of LANs Ethernets being the most common for PCs. Most Apple Macintosh networks are based on Apple's AppleTalk network system, which is built into Macintosh computers. The following characteristics differentiate one LAN from another:

topology : The geometric arrangement of devices on the network. For example, devices can be arranged in a ring or in a
straight line.

protocols : The rules and encoding specifications for sending data. The protocols also determine whether the network uses a peer-to-peer or client/server architecture. media : Devices can be connected by twisted-pair wire, coaxial cables, or fiber optic cables. Some networks do without
connecting media altogether, communicating instead via radio waves. LANs are capable of transmitting data at very fast rates, much faster than data can be transmitted over a telephone line; but the distances are limited, and there is also a limit on the number of computers that can be attached to a single LAN.

CharacteristicsofaLANinclude: Limitedgeographicoperation Highspeeddatatransferrates Fulltimeconnectivitytolocalservices

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GenerallylowerincostthanaWAN Cablingisprimarytransmissionmedium

What is a WAN?
A wide area network (WAN) is a geographically dispersed telecommunications network. The term distinguishes a broadertelecommunicationstructurefromalocalareanetwork(LAN).Awideareanetworkmaybeprivatelyowned or rented, but the term usually connotes the inclusion of public (shared user) networks. An intermediate form of networkintermsofgeographyisametropolitanareanetwork(MAN).

CharacteristicsofWAN 1.ConnectMultipleLANsviaanEthernetNetwork ConnectmultipleLANsusingEthernettechnology.BuildanetworkasasingleoverallLANsegment. 2.WideAreaLANthatutilizesaHighSpeedLayer2Switch Layer2switchwithineachbackbonehousesaaccessline.UsershaveaccesstoafullmeshWANarchitecture thatdoesnotrelyonLayer3orotherhigherorderlayers. 3.Layer2LevelAdvancedSecurity VirtualLANtechnology(VLAN)isusedtoassignauserIDforeachuser,allowingnetworksegmentationbelow theIPlayer. 4.CompatiblewithaVarietyofAccessLines Offersanumberofnetworkservicescompatiblewithbandwidthsfrom128kbpsto1Gbps,aswellasEther/ ATM/DSL/MDN,etc.

Metropolitan Area Network(MAN)


Itisacomputernetworksusuallyspanningacampusoracity,whichtypicallyconnectafewlocalareanetworks usinghighspeedbackbonetechnologies.AMANoftenprovidesefficientconnectionstoawideareanetwork(WAN). TherearethreeimportantfeatureswhichdiscriminateMANsfromLANsorWANs: 19

1. ThenetworksizefallsintermediatebetweenLANsandWANs.AMANtypicallycoversanareaofbetween5 and50kmrange.ManyMANscoveranareathesizeofacity,althoughinsomecasesMANsmaybeassmall asagroupofbuildings. 2. AMAN(likeaWAN)isnotgenerallyownedbyasingleorganisation.TheMAN,itscommunicationslinksand equipmentaregenerallyownedbyeitheraconsortiumofusersorbyanetworkserviceproviderwhosells theservicetotheusers. 3. AMANoftenactsasahighspeednetworktoallowsharingofregionalresources.Itisalsofrequentlyusedto provideasharedconnectiontoothernetworksusingalinktoaWAN. MANadoptedtechnologiesfrombothLANandWANtoserveitspurpose.SomelegacytechnologiesusedforMAN areATM,FDDI,DQDBandSMDS.TheseoldertechnologiesareintheprocessofbeingdisplacedbyGigabitEthernet and10GigabitEthernet.Atthephysicallevel,MANlinksbetweenLANshavebeenbuiltonfibreopticalcablesor usingwirelesstechnologiessuchasmicrowaveorradio. CharacteristicsofaMAN AMANisarelativelynewclassofnetwork,itservesarolesimilartoanISP,butforcorporateuserswithlarge LANs.TheytypicallyusewirelessinfrastructureorOpticalfiberconnectionstolinktheirsites. 1.ThenetworksizefallsintermediatebetweenLANsandWANs.AMANtypicallycoversanareaofbetween5 and50kmdiameter.ManyMANscoveranareathesizeofacity,althoughinsomecasesMANsmaybeas smallasagroupofbuildingsoraslargeastheNorthofScotland. 2.AMAN(likeaWAN)isnotgenerallyownedbyasingleorganisation.TheMAN,itscommunicationslinksand equipmentaregenerallyownedbyeitheraconsortiumofusersorbyasinglenetworkproviderwhosellsthe servicetotheusers.ThislevelofserviceprovidedtoeachusermustthereforebenegotiatedwiththeMAN operator,andsomeperformanceguaranteesarenormallyspecified. 3.AMANoftenactsasahighspeednetworktoallowsharingofregionalresources(similartoalargeLAN).Itis alsofrequentlyusedtoprovideasharedconnectiontoothernetworksusingalinktoaWAN.
Typical MAN

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ROLE OF SATELLITE COMMUNICATIONS In the context of a worldwide military communications network, satellite communications systems are very important. Satellite communications links add capacity to existing communications capabilities and provide additional alternate routings for communications traffic. Satellite links, as one of several kinds of long-distance links, interconnect switching centers located strategically around the world. They are part of the defence communication systems (DCS) network. One important aspect of the satellite communications network is that it continues in operation under conditions that sometimes render other methods of communications inoperable. Because of this, satellites make a significant contribution to improved reliability of Navy communications. ADVANTAGES OF SATELLITE COMMUNICATIONS Satellite communications have unique advantages over conventional long distance transmissions. Satellite links are unaffected by the propagation variations that interfere with hf radio. They are also free from the high attenuation of wire or cable facilities and are capable of spanning long distances. The numerous repeater stations required for line-of-sight or troposcatter links are no longer needed. They furnish the reliability and flexibility of service that is needed to support a military operation. Capacity The present military communications satellite system is capable of communications between backpack, airborne, and shipboard terminals. The system is capable of handling thousands of communications channels. Reliability Communications satellite frequencies are not dependent upon reflection or refraction and are affected only slightly by atmospheric phenomena. The reliability of satellite communications systems is limited only by the equipment reliability and the skill of operating and maintenance personnel. Vulnerability Destruction of an orbiting vehicle by an enemy is possible. However, destruction of a single communications satellite would be quite difficult and expensive. The cost would be excessive compared to the tactical advantage gained. It would be particularly

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difficult to destroy an entire multiple-satellite system such as the twenty-six random-orbit satellite system currently in use. The earth terminals offer a more attractive target for physical destruction. These can be protected by the same measures that are taken to protect other vital installations. A high degree of freedom from jamming damage is provided by the highly directional antennas at the earth terminals. The wide bandwidth system that can accommodate sophisticated anti-jam modulation techniques also lessens vulnerability. a.Whileitispossibletodestroyanorbitingsatellitebyrocketfire,thepresentdevelopmentsinrocketrysuggestthatthiswould be quite difficult. It would be particularly difficult to destroy an entire system employing random orbit satellites, primarily becauseofthenumberinvolved. b.Thepresentstateoftheartindicatesthatsatellitecommunicationsgroundstationsincertaininstanceswillbevulnerableto jamming attacks. However, by judicious planning and systems design, the enemy could be forced to expend so much time, effort,andequipmenttoeffectivelyjamourcommunicationsfacilitiesthattheattemptwouldbeunwarrantedfromhispointof view. c.Arocketorsatellitebasedjammerwithlimitedpowermustbepositionedwithinthemainbeamofthegroundstationtobe effective. This implies that the rocket or satellite jammer must be in approximately the same position and orbit as the communicationssatellite.Considerableeffortonthepartoftheenemywouldberequiredtoachievetheprecisionofposition necessarytoestablish.

What is a Topology?
The physical topology of a network refers to the configuration of cables, computers, and other peripherals. Physical topology should not be confused with logical topology which is the method used to pass information between workstations.

Main Types of Physical Topologies


Thefollowingsectionsdiscussthephysicaltopologiesusedinnetworksandotherrelatedtopics. LinearBus Star Tree(ExpandedStar)

Linear Bus
Alinearbustopologyconsistsofamainrunofcablewithaterminatorateachend(Seefig.1).Allnodes(fileserver, workstations,andperipherals)areconnectedtothelinearcable.

Fig. 1. Linear Bus topology

Advantages of a Linear Bus Topology


Easytoconnectacomputerorperipheraltoalinearbus. Requireslesscablelengththanastartopology. 22

Disadvantages of a Linear Bus Topology


Entirenetworkshutsdownifthereisabreakinthemaincable. Terminatorsarerequiredatbothendsofthebackbonecable. Difficulttoidentifytheproblemiftheentirenetworkshutsdown. Notmeanttobeusedasastandalonesolutioninalargebuilding.

Star
Astartopologyisdesignedwitheachnode(fileserver,workstations,andperipherals)connecteddirectlytoacentral networkhub,switch,orconcentrator(Seefig.2). Dataonastarnetworkpassesthroughthehub,switch,orconcentratorbeforecontinuingtoitsdestination.The hub,switch,orconcentratormanagesandcontrolsallfunctionsofthenetwork.Italsoactsasarepeaterforthedata flow.Thisconfigurationiscommonwithtwistedpaircable;however,itcanalsobeusedwithcoaxialcableorfiber opticcable.

Fig. 2. Star topology

Advantages of a Star Topology


Easytoinstallandwire. Nodisruptionstothenetworkwhenconnectingorremovingdevices. Easytodetectfaultsandtoremoveparts.

Disadvantages of a Star Topology


Requiresmorecablelengththanalineartopology. Ifthehub,switch,orconcentratorfails,nodesattachedaredisabled. Moreexpensivethanlinearbustopologiesbecauseofthecostofthehubs,etc.

Tree or Expanded Star


Atreetopologycombinescharacteristicsoflinearbusandstartopologies.Itconsistsofgroupsofstarconfigured workstationsconnectedtoalinearbusbackbonecable(Seefig.3).Treetopologiesallowfortheexpansionofan existingnetwork,andenableschoolstoconfigureanetworktomeettheirneeds. 23

Fig. 3. Tree topology

Advantages of a Tree Topology


Pointtopointwiringforindividualsegments. Supportedbyseveralhardwareandsoftwarevenders.

Disadvantages of a Tree Topology


Overalllengthofeachsegmentislimitedbythetypeofcablingused. Ifthebackbonelinebreaks,theentiresegmentgoesdown. Moredifficulttoconfigureandwirethanothertopologies.

Mesh Topology
Meshtopologyworkontheconceptofroutes.InMeshtopology,messagesenttothedestinationcantakeanypossible shortest,easiestroutetoreachitsdestination.Intheprevioustopologiesstarandbus,messagesareusuallybroadcastedto everycomputer,especiallyinbustopology.SimilarlyintheRingtopologymessagecantravelinonlyonedirectioni.e clockwiseoranticlockwise.InternetemploystheMeshtopologyandthemessagefindsitsrouteforitsdestination.Router worksinfindtheroutesforthemessagesandinreachingthemtotheirdestinations.Thetopologyinwhicheverydevices connectstoeveryotherdeviceiscalledafullMeshtopologyunlikeinthepartialmeshinwhicheverydeviceisindirectly connectedtotheotherdevices.

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The Impact of the Internet on Business Current Uses of the Internet


TheInternethasawidevarietyofuses.Itprovidesanexcellentmeansfordisseminatinginformationand communicatingwithotherpeopleinallregionsoftheworld.WhilethegreatestuseoftheInternethasbeensharing information,othersourcesofusearerapidlydeveloping.Forinstance,chatrooms,aspacewherepeoplecangoto discussanassortmentofissues,andInternetCommerce,whichconnectsbuyersandsellersonline.Thefollowingare otherexamplesofcurrentInternetuses:

1. Technical Papers
Originally,theInternetwasonlyusedbythegovernmentanduniversities.ResearchscientistsusedtheInternetto communicatewithotherscientistsatdifferentlabsandtoaccesspowerfulcomputersystemsatdistantcomputing facilities.Scientistsalsosharedtheresultsoftheirworkintechnicalpapersstoredlocallyontheircomputersystem inftpsites.ResearchersfromotherfacilitiesusedtheInternettoaccesstheftpdirectoryandobtainthesetechnical papers.ExamplesofresearchsitesareNASAandNASA AMES.

2. Share Company Information


CommercialcompaniesarenowusingtheWebformanypurposes.Oneofthefirstwaysthatcommercialcompanies usedtheWebwastoshareinformationwiththeiremployees.Sterling Software's Web pageinformsemployees aboutsuchthingsastrainingschedulesandC++ Guidelines.Thereisalsosomeinformationwhichiscompany privateandaccessisrestrictedtocompanyemployeesonly.AnothercompanyexampleisSun Microsystemswhich similarilycontainsgeneralinformationabouttheSunMicrosystemscompany.

3. Product Information
OneofthewaysbusinessesshareinformationistopresenttheirproductinformationonaWebpage.Some examplesare:Cray Research,Sun Microsystems,Hewlet Packard,andGM's Pontiac Site.TheWebprovides aneasyandefficientwayforcompaniestodistributeproductinformationtotheircurrentandpotentialcustomers.

4. Advertising
Alongtheselines,companiesarebeginningtoactuallyadvertiseonline.Someexamplesofdifferentwaysto advertiseonlineareNetscape's Ad Page.Netscapehasalistofadvertisingcompanies.Theyalsouseabannerfor advertisementsontheirYahooWebPage.Starwaresimilarlyusesbanneradvertisement.Theseadvertisementsare createdintheestablishedadvertisingmodelwheretheadvertisingispositionedbetweenratherthanwithin editorialitems.Anothertypeofadvertisingfocusesonentertainingthecustomersandkeepingthematthe companies'siteforalongertimeperiod. 25

5. Business & Commerce on the Net


CommercialuserestrictionsoftheInternetwereliftedin1991.Thishascausedanexplosionofcommercial use.MoreinformationaboutbusinessontheInternetcanbefoundattheCommerce Net.Thissitehas informationsuchastheprojectedgrowthofadvertisingontheInternetandonlineservices.Commercial Services on the NethasalistofvariousbusinessesontheInternet.Theyaremanyunusualbusinesses listedheresuchthatyoubegintowonderiftheyarelegitimatebusinesses.Thistopicisdiscussedinmore detailinthesectiononrisks and consumer confidence.Business and Commerceprovidesconsumer productinformation.The Federal Trade Commissionisalsoquiteconcernedaboutlegalbusinessonthe Internet. WWWusersareclearlyupscale,professional,andwelleducatedcomparedwiththepopulationasawhole. Forexample,fromCommerceNetsSurvey(CommerceNetisanotforprofit501c(6)mutualbenefit corporationwhichisconductingthefirstlargescalemarkettrialoftechnologiesandbusinessprocessesto supportelectroniccommerceviatheInternet)asof10/30/95:

25%ofWWWusersearnhouseholdincomeofmorethan$80,000whereasonly10%ofthetotalUS andCanadianpopulationhasthatlevelofincome. 50%ofWWWusersconsiderthemselvestobeinprofessionalormanagerialoccupations.In contrast,27%ofthetotalUSandCanadianpopulationcategorizethemselvestohavesuchpositions. 64%ofWWWusershaveatleastcollegedegreeswhiletheUSandCanadiannationallevelis29%.

CommerceNet'sstudyalsofoundthatthereisasizablebaseofInternetUsersintheUSandCanada.With 24millionInternetusers(16yearsofageorolder)and18millionWWWusers(16yearsofageorolder), WWWusersareakeytargetforbusinessapplications.Approximately2.5millionpeoplehavemade purchasesusingtheWWW.TheInternetis,however,heavilyskewedtomalesintermsofbothusageand users.AccessthroughworkisalsoanimportantfactorforboththeInternetandonlineservicessuchas AmericaOnlineandCompuServe.Foranexampleofthesizeofthemarket,thetotalInternetusageexceeds onlineservicesandisapproximatelyequivalenttoplaybackofrentedvideotapes.

6. Magazines
Magazinesarestartingtorealizethattheycanattractcustomersonline.Examplesofmagazinesnow publishedonlineareOutside,Economist,andBusiness Week.Thesemagazinesarestillpublishedinhard copy,buttheyarenowalsoavailableonline.Manyofthesepublicationsareavailablefreesometimes becauseofthetimedelay(i.e.publicationsonlinearepastissues)orusuallytodrawinsubscribersforafree initialtrialperiod.Someofthesepublicationsmayremainfreeonlineifadvertiserspayforthepublications withtheiradvertisementbanners.

7. Newspapers
Somenewspapersarebeginningtopublishonline.TheSan Jose Mercury Newsisafullnewspaperonline, whiletheSeattle Timesoffersjustclassifiedadsandeducationalinformation.TheDow Jones Wall Street Journalpublishesitsfrontpageonlinewithhighlightedlinksfromthefrontpagetocompletestories.The Journalalsoprovideslinkstobriefingbooks,whichprovidefinancialinformationonthecompany,stock performance,andrecentarticlesandpressreleases.Foranexampleofabriefingbooksee,Netscape Briefing Book.ThisisallfreebytheWallStreetJournalduringthetrialperiodwhichshouldlastuntilmid 1996. 26

8. Employment Ads
Companiesarealsobeginningtolisttheiremploymentadsonlinetoattracttalentedpeoplewhotheymight nothavebeenabletoreachbythemoretraditionmethodofadvertisinginlocalpapers.Sun Microsystems providesalistofjobopeningsontheInternet.Interestedpartiescansubmitaresumeorcalltoschedulean interview,whichsavestimeforeveryoneinvolved.Universitiescanalsohelptheirstudentsfindjobsmore easilybyusingjoblistingsontheInternet.TheUniversityofWashingtonhasajoblistingsite.Localpapers canalsomakeiteasierforjobsearchersbycreatingadatabasesearchfeature.Thejobsearcherscanselect thetypeofjobsthattheyareinterestedinandthesearchwillreturnalistofallthematchingjobopenings. San Jose Mercury Newsisagoodexampleofthisapproach.

9. Stock Quotes
Thereareseveraltimedelayed(15minutes)waystotrackstockperformance,andtheyareallarefree.The firsttoprovidethisservicewasPAWWS Financial Network,andnowCNNalsoletsyoutrackstocks. Thesearecommercialcompanieswhichprovidestockquotesforfreebutchargeforotherservices.Anon commercialsite,MIT's Stock & Mutual Fund Charts,updatesinformationdailyandprovidesahistoryfile foraselectnumberofstocksandmutualfunds.Informationinthesehistoryfilescanbegraphically displayedsothatitiseasiertoseeastock'sperformanceovertime.

10. Country Investment Information


Thinkingaboutinvestinginaparticularcountry?Informationoncountriescanbefoundonline.Forexample, checkoutthegraphicalinformation(GDP,inflation,directforeigninvestment,etc.)onIndonesia.

11. Order Pizza


Youcanorderapizza online.ThisWebsiteisactuallyajoke,butyoucaneasilyimaginepeopleworkinglate attheirofficesandorderingoutforfoodonline.

12. Software Distribution


AveryeffectiveandefficientuseoftheWebistoordersoftwareonline.Thisreducesthepackagingand shippingcosts.Alsodocumentationcannowbeprovidedonline.AgoodexampleisNetscape Navigator. AnotherexampleisMacromedia's Shockwave.WhatisShockwaveforDirector?Thedescriptiononlineis asfollowing: "ShockwaveforDirectoristheproductnamefortheMacromediaDirectorontheInternetproject. ShockwaveforDirectorincludestwodistinctpiecesoffunctionality: (1)ShockwavePlugInforWebbrowserslikeNetscapeNavigator2.0whichallowsmoviestobeplayed seamlesslywithinthesamewindowasthebrowserpage. (2)AfterburnerisapostprocessorforDirectormoviesourcefiles.Multimediadevelopersuseittoprepare contentforInternetdistribution.Afterburnercompressesmoviesandmakesthemreadyforuploadingtoan HTTPserver,fromwhichthey'llbeaccessedbyInternetusers." Sobyreadingabouttheproductonline,youcandecideifitsoundsinteresting.Youcanthenimmediately getthesoftwarebydownloadingitfromMacromedia'scomputertoyours.Next,youinstallitonyour systemandyou'reallset.Youdidn'tevenhavetoleaveyourterminal,andtherewasnoshippingcosttoyou orthecompany.

13. Traffic Information


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Everwonderwhattherushhourtrafficwaslikebeforeyouheadhomeandgetstuckinit?Manydifferent citiesareputtingtrafficinformationonline.InSeattle,agraphical traffic reportisavailable.

14. Tourism
PlanatriptoAustraliaorNew ZealandwithinformationgatheredofftheInternet.Theseandother countriesareontheInternet.Soyoucanplanyourvacationfromyourcomputer.

15. Movie Previews


WhoneedsSiskelandEbert,whenyoucanbeyourownmoviecritic?Buena Vista Movie Clipsprovides movieclipsfrommanyoftheirnewreleases.Forasamplemovieclippreview"Unstrung Heroes".

16. Chat Rooms on AOL


Chatroomsareamoreinteractivetechnology.AmericaOnlineprovidesareaswherepeoplecan"logon" andconversewithotherswithsimilarinterestsinrealtime.Thisisthefirstpopularuseofinteractivitybythe generalpublic.Theotherusesupuntilrecentlyhavebeenmorestatic,onewaydistributionofinformation. InteractivityisthefutureoftheInternet(Seethenextsection).

Forecast of How the Internet & WWW Might Be Used in the Future
TherearemanywaysthattheInternetcouldbeusedinthenext3to5years.Themainaspectthattheyall haveincommonistheincreaseduseofinteractivityontheInternet.ThismeansthattheInternetwillshift frombeingaonewaydistributionofinformationtoatwowayinformationstream.Scientistswillcontinue toleadthewayinthisareabywatchingtheresultsfromscientificexperimentsandexchangingideas throughliveaudioandvideofeeds.Duetobudgetcuts,thiscollaborationshouldbeexpectedtoincrease evenmoretostretchwhatbudgettheydohave.(Formoreinformationonthis,checkoutBusinessWeek articleonscienceandtechnology"WelcomeToTheWorldWideLab"10/30/95.)

1. Interactive Computer Games


OneofthefirstareaswhereinteractivitywillincreaseontheInternetarecomputergames.Peoplewillno longerhavetotaketurnsplayingsolitaryorcrowdaroundonemachine.Insteadtheywilljoinacomputer networkgameandcompeteagainstplayerslocatedatdistantsites.AnexampleofthisisStarwave'sFantasy SportsGame.Thisgameisstillamoretraditionalapproachofupdatingstatisticsonthecomputerand playerslookingattheirstatus.AmoreactivegameisMarathonMan,whichportraysplayersonthescreen reactingtovarioussituations.Inthefuture,manyofthesegameswillalsoincludevirtual reality.

2. Real Estate
Buyingahomeonlinewillbecomepossible.Whileveryfewpeoplewouldwanttobuyahomewithout seeingitinperson,havinghouselistingsonlinewillhelpreducethetimeittakestopurchaseahome.People cannarrowdownwhichhousesthattheyareactuallyinterestedinviewingbyseeingtheirdescriptionand pictureonline.Anexampleisthislistofhousedescriptionsbyregionofthecountry.Thiswillbeimproved whendatabasesearchcapabilitiesareadded.Peoplecanselectthefeaturesthattheyareinterestedinand thensearchthedatabase.Inresponse,theywillreceivealistofhousesthatmeettheircriteria.Also,having severaldifferentimagesoftheHouseaswellasashortvideoclipofawalkthroughofthehouse,willhelp buyersmaketheirselectionquicker.Thisareaisgrowingquickly.Forexample,thefollowingsitesofinterest 28

totheWestCoastwereaddedonlinesincethewritingofthispaper:Windermere Real Estate,Fractals, andListinglink.

3. Process Mortgages online


Afterahouseischosen,potentialbuyerscanapplyforamortgageonline.Nolongerwillbuyersberestricted tolocallendinginstitutions,sincemanylenderswillbeabletocompeteonlineforbusiness.Visitanexample ofanonline mortgage computation.Inthefuture,eachlenderwillhaveaWebpagewhichwillprocessthe mortgageapplication.Oneofthemainreasonsthishasnotbeenimplementedissecurity,whichisdiscussed furtherunderthestrategic risks and securitysection.

4. Buying stocks
StockswillsoonbeabletobepurchasedovertheInternetwithouttheassistanceofabroker.Charles SchwabhasaprototypethatisbeingtestedcurrentlyinFlorida.Oncethesecurityissuesareironedout,this applicationwillalsobeactive.

5. Ordering products.
Orderingproductsonlineisanimportantapplication.Asmentionedabove,thePizzaPageshowedhoweasy itcouldbedone.OthercompaniesaresettingupWebpagestoactuallydothis.AnexampleisTSI Soccer. Customerscanactuallyorderonlineiftheychoosetodoso.Theycanevensendtheircreditcardnumber overthenetwork.Sincethisisnonsecure,mostpeopleprobablystillcallthecompanytoorderanyitem.

6. Live Video
Viewinglivevideoclipswillbecomemorecommoninthefuture.CNNhasfilesofvideoclipsofnewsstories atvideo vaultwhichcanbedownloadedandviewedonahomecomputer.Seeingactuallivevideofeedis dependentonnetworkspeed,andmosthomeusersdonothavefastenoughconnectionstomakethisa practicalapplicationyet.Thisisdiscussedinmoredetailunderthesectionstrategic risk and speed of network access.Oncethespeedofnetworkconnectionincreases,morepeoplewillbeinterestedinlive videoclips.

7. "Chat" Internet Telephone


WhileAOLusersarecurrentlyaccessing"ChatRooms"tocommunicatewithotherpeopleontheInternet, theyarerestrictedtotextbasedcommunicationorpossiblyaniconastheiridentityonline.CUCMEfrom CarneigeMellonprovidesameansforpeopletoactuallyseeotherpeopleonline.However,networkspeed isonceagainalimitingfactor.IfauserisnotdirectlyconnectedtotheInternet(mostconnectionsarevia modem),thentheimageisextremelyslow.Thisapplicationwillbecomemorepopularwithincreased networkconnections.

8. Video Conferencing
Ontheotherhand,businesseswillbeginusingvideotocommunicatewithothers.AndersenConsultingis settinguptrainingonline.Thereshouldalsobesomeapplicationsthatbusinessescanchoosetohelpsetup videoconferencing.IBMboughtLOTUSNotesforthisreasonlastsummer.IBMneedstomakeitamore flexiblesolutionbyinteractingLOTUSNoteswiththeInternet.Theycurrentlyareintheprocessofdoingthis. NetscapealsooffersasolutionbasedonthesoftwarecompanyCollaborathattheypurchasedlastfall.These possiblesolutionsshouldencouragebusinessestousevideoconferencingandonlinetraining.Additional informationonVideo Conferencingisalsoavailable. 29

Strategic Risks Associated with Business Uses of the Internet 1. Targeting right market segments.
Itisimportantforadvertiserstospendtheiradvertisementdollarswisely.Theycanachievethisbyusing appropriatemethodsofadvertisingandtargetingtherightmarketsegments.Twodifferenttypesof advertisingareentertainmentadsandtraditionaladvertising.Entertainmentadsfocusonentertaininga customerwhereastraditionaladvertisingismoredirectandusuallypositionedbetweenratherthanwithin editorialitems.Whentheentertainmentadsworkwell,theycanbequitesuccessfulindrawingcustomersto theirsite;however,itisveryeasyforthistypeofadtoflopresultinginnoonereturningtovisitthe advertisementsiteaftertheyseeitonce.Traditionaladvertisinghasbetterreadership.Itcanalsobeused wellintargetingtherightmarketsegments.Forinstance,theESPNSportspagewouldbeagoodsiteto placeadsbyGatoradeandNike.Sportsmindedpeoplethatmightbeinterestedintheseproductswouldbe likelytoaccessthesepages.AgoodreferenceforresearchingthistopicfurtherisatAdvertising Age.

2. Security
Oneofthemainfactorsholdingbackbusinesses'progressontheInternet,istheissueofsecurity.Customers donotfeelconfidentsendingtheircreditcardnumbersovertheInternet.Computerhackerscangrabthis informationofftheInternetifitisnotencrypted.Netscapeandseveralothercompaniesareworkingon encryptionmethods.StrongencryptionalgorithmsandpubliceducationintheuseoftheInternetshould increasethenumberofonlinetransactions.Afterall,gettingyourcreditcardnumberstolenineveryday transactionsiseasier.Inaddition,securingprivatecompanyinformationandenforcingcopyrightissuesstill needtoberesolvedbeforethebusinesscommunityreallytakesadvantageofInternettransactions.There are,however,currentlysomemethodswithinNetscapeforplacingtheinformationonlineyetrestrictingitto onlycertainpeoplesuchascompanyemployees.

3. Consumer confidence
Consumerconfidenceisessentialforconductingbusinessonline.Althoughrelatedtosecurity,consumer confidencealsodealswithfeelingconfidentaboutdoingbusinessonline.Forinstance,canconsumers believethatacompanyislegitimateifitisontheInternet,orcoulditbesomekindofboilerroom operation?Also,companiesmustbeabletosubstantiatetheiradvertisingclaimsiftheyarepublished online.ThesearesomeoftheissuesthatconcerntheFederal Trade Commission,aswellasthefutureof Internetcommerce.Afterall,ifconsumerconfidenceislow,businesseswillnotsucceed.

4. Speed of network access


Thespeedofnetworkaccessisariskforbusinesses.Ifbusinessesspendalotofmoneyforfastnetwork connectionsanddesigntheirsiteswiththisinmindyetcustomershavelowerspeedconnections,thismay resultinlessconsumersaccessingtheirsite.Lessconsumersaccessingtheirsitemostlikelyresultsinlower profitswhichisinadditiontotheextracostofthefasternetworkconnection.Ontheotherhand,ifthe companydesignedforsloweraccessyetcustomershavefasteraccess,theycouldstillloseoutinprofits. Currently,someoftheoptionsthathomeusershavetochoosefromaretraditionalmodems,ISDN,and CableModems.Traditionalmodemsarecheaperbutthecurrentspeedisamaximumof28.8Kbps.ISDNis fasterat56Kbps,butmoreexpensive.Cablemodemsarefasteryetwithaspeedof4Mbps.However,two wayinteractionwithacablemodemneedssomemoretestingtobesurethatitworksaswellasISDN.

5. Picking Wrong Industry Standards


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Alongtheselinesofpickingindustrystandards,companiesmustalsobesurethattheWebBrowserthatthey developforisthestandard.Otherwise,someofthefeaturesthattheyareusingtohighlighttheirsitemay notwork.CurrentlythedefactostandardisNetscape.Therealsoneedstobeastandardlanguagethatadds highqualityfeaturessuchasanimation,sothatsoftwareapplicationswrittenfortheInternetwillrunonall thedifferenttypesofarchitecturescustomersmayhave.MajorcomputerindustryplayershavebackedJAVA bySunMicrosystems.Sowhilesomeareasarebecomingstandardized,companiesmustbealerttoindustry changestoavoidbecomingobsoleteinhardware,software,anddatacommunications.

6. Internet Community & Philosophy


TheInternetwasoriginallydevelopedwithaphilosophyforsharinginformationandassistingothersintheir research.Theoriginalintentemphasisedconcernforothers,technologicaladvances,andnotforprofit organizations. Withtheliftingofcommercialrestrictionsin1991,businessesarenowjoiningtheInternetcommunity.As withanysmalltownthathasasuddenincreaseinpopulation,fastgrowthcancauseproblems.Oldresidents couldcreateanimosityiftheyfeelthatthenewresidentsaretakingovertheircommunityandcausing congestionandpricestoincrease.Businessesneedtobeconsciousofthisphenomenon. WhilebusinessescanexpecthelpfromInternetusers,businesseswilllosethishelpiftheyonlyuseitto makeaquickprofit.Asinalargecity,peoplewillstarttofeellesslikehelpingothersinneed.Businesseswill bemoresuccessfulontheInternetiftheycanemphasizehowtheycanhelpaddvaluetotheInternetrather thanfocusingonhowtomakeaquickprofit.Forexample,businessescantakeadvantageoftheopportunity toprovideadditionalInternetservices(e.g.,servicesdiscussedinthesectionsoncurrentusesoftheInternet andfutureuses)nowthatfundingfromthegovernmentisbeingreduced. Anexampleofacitythathasgrownrapidly,yetstillconsideredverylivable,isSeattle.Oneofthereasons attributedtoSeattle'ssuccessfulgrowthis,thatdespiteitbeingalargecity,therearenumeroussmall communitieswithinthecity.Thesesmallcommunitiesretainsuchbenefitsasconcernforotherswithinthe frameworkofservicesthatalargecitycanprovide.IfbusinessesalongwiththeInternetcommunityfollow thismodel,theInternetwillhaveachancetokeepitssuccessfulsmalltownatmospherewhileadding increasedservicesformorepeople.

The Impact of the Internet on culture


a.TheInternetadvocateswesternlifestyles.Thesewebsitesdisplayvariousaspectsofwesternsocietyandlife,and theoverwhelmingmajorityofthemhavepositiveportrayalsofthewesternlifestyle.Itmakespeoplebelievethat theWestseemstobecountriesofabsolutefreedomandparadiseforindividualachievementwhereprivatelifeis withoutobstaclesandexternalinferences.Partialinformationsuchasthisisparticularlyappealingtoouryouths whoselifephilosophyandworldviewhaveyettomature.Manyoftheseyouthsaspirewithgreatdiligencetogo abroadjusttochangeawayofliving. b.TheInternethelpsdominantculturesimpactandhomogenizeculturesinaninferiorposition.BecausetheInternet overwhelminglyisacultureoftheEnglishlanguage,itfurtherstrengthensthroughouttheglobetheculturebased upontheEnglishlanguage.Incomparison,culturesbasedupontheChinese,theFrenchandotherlanguageshave beenweakened.BecauseoftheintroductionoftheInternet,someunderdevelopedcountrieshavemade themselvesvulnerabletoforeigndominantcultures,busydefendingthemselves.Thissituationhasbecomesobad thatscholarsinsomedevelopingcountriesareconcernedabouttheirindigenousculturesbeinghomogenizedand haveprovidedproposalstocounterculturalinvasionondifferentfronts. c.TheInternetcorruptspeoplesminds,influencesandchangespeoplesmoralperspectivesandethicalvalues. Drivenbytheprofitsinthenumbersofhundredsofmillionsofdollars,thepornographymerchantsinWestern 31

countrieshaveopenedpornographicwebsites,massivelyproducingvariouskindsofsexinformation.Nudemales andfemalesareeverywhere,performancesbycomputerprostituteshavealsoopenlyenteredtheInternet.This developmenthasledtheCommerceCommitteeoftheU.S.Senatetoproposethe1995

What is e-commerce?
Electroniccommerceorecommercereferstoawiderangeofonlinebusinessactivitiesforproductsandservices.It alsopertainstoanyformofbusinesstransactioninwhichthepartiesinteractelectronicallyratherthanbyphysical exchangesordirectphysicalcontact. EcommerceisusuallyassociatedwithbuyingandsellingovertheInternet,orconductinganytransactioninvolving thetransferofownershiporrightstousegoodsorservicesthroughacomputermediatednetwork.Thoughpopular, thisdefinitionisnotcomprehensiveenoughtocapturerecentdevelopmentsinthisnewandrevolutionarybusiness phenomenon. A more complete definition is: Ecommerce is the use of electronic communications and digital informationprocessingtechnologyinbusinesstransactionstocreate,transform,andredefinerelationshipsforvalue creationbetweenoramongorganizations,andbetweenorganizationsandindividuals. Ecommerce(ecommerce)orelectroniccommerce,asubsetofebusiness,isthepurchasing,selling,andexchanging ofgoodsandservicesovercomputernetworks(suchastheInternet)throughwhichtransactionsortermsofsaleare performedelectronically.Contrarytopopularbelief,ecommerceisnotjustontheWeb.Infact,ecommercewas aliveandwellinbusinesstobusinesstransactionsbeforetheWebbackinthe70sviaEDI(ElectronicData Interchange)throughVANs(ValueAddedNetworks).Ecommercecanbebrokenintofourmaincategories:B2B,B2C, C2B,andC2C.

B2B(BusinesstoBusiness) Companiesdoingbusinesswitheachothersuchasmanufacturerssellingtodistributorsandwholesalers sellingtoretailers.Pricingisbasedonquantityoforderandisoftennegotiable. ThevolumeofB2B(BusinesstoBusiness)transactionsismuchhigherthanthevolumeofB2Ctransactions. TheprimaryreasonforthisisthatinatypicalsupplychaintherewillbemanyB2Btransactionsinvolvingsub componentsorrawmaterials,andonlyoneB2Ctransaction,specificallysaleofthefinishedproducttothe endcustomer.Forexample,anautomobilemanufacturermakesseveralB2Btransactionssuchasbuying tires,glassforwindscreens,andrubberhosesforitsvehicles.Thefinaltransaction,afinishedvehiclesoldto theconsumer,isasingle(B2C)transaction. B2Bisalsousedinthecontextofcommunicationandcollaboration.Manybusinessesarenowusingsocial mediatoconnectwiththeirconsumers(B2C);however,theyarenowusingsimilartoolswithinthebusiness soemployeescanconnectwithoneanother.Whencommunicationistakingplaceamongstemployees,this canbereferredtoas"B2B"communication.

B2C(BusinesstoConsumer) Businessessellingtothegeneralpublictypicallythroughcatalogsutilizingshoppingcartsoftware.Bydollar volume,B2Btakestheprize,howeverB2CisreallywhattheaverageJoehasinmindwithregardsto ecommerceasawhole. Havingahardtimefindingabook?Needtopurchaseacustom,highendcomputersystem?Howabouta firstclass,allinclusivetriptoatropicalisland?Withtheadventecommerce,allthreethingscanbe purchasedliterallyinminuteswithouthumaninteraction.

BusinessToConsumer.Atransactionthatoccursbetweenacompanyandaconsumer,asopposedtoatransaction between companies (called B2B). The term may also describe a company that provides goods or services for consumers. 32

Advantages Accordingtomarketingterms"B2Cbusinessesplayedalargeroleintherapiddevelopmentofthecommercial Internetinthelate20thcentury.Largesumsofventurecapitalflowedtoconsumersintheformoffreeonline servicesanddiscountedshopping,spurringadoptionofthenewmedium."BusinesstoConsumereconsumer quicklydevelopedasanalternativewayforcompaniestosellmoreproductstoalargermarket.B2Cecommerce providednotonlymultipleadvantagestoacompanybutalsototheconsumers.Themainadvantagesforboththe businessandconsumerarethatbyopeningtheirmarketuptoB2Cecommercetradetheyarereducingtransactions costs.Businessesusuallyshiptheirproductstoanumberofstorestomakethemvisibletotheconsumer.However, byusingB2Ccommercetheycaninsteadshowcasealloftheirproductsontheinternetwhichreducesthecostof transaction.B2Calsoallowstheircustomerstobetteraccessinformationaboutdifferent

C2B(ConsumertoBusiness) Aconsumerpostshisprojectwithasetbudgetonlineandwithinhourscompaniesreviewtheconsumer's requirementsandbidontheproject.Theconsumerreviewsthebidsandselectsthecompanythatwill completetheproject.Elanceempowersconsumersaroundtheworldbyprovidingthemeetinggroundand platformforsuchtransactions.

Consumertobusiness(C2B)isanelectroniccommercebusinessmodelinwhichconsumers(individuals)offer productsandservicestocompaniesandthecompaniespaythem.Thisbusinessmodelisacompletereversalof traditionalbusinessmodelwherecompaniesoffergoodsandservicestoconsumers(businesstoconsumer=B2C). Wecanseethisexampleinblogsorinternetforumswheretheauthoroffersalinkbacktoanonlinebusiness facilitatingthepurchaseofsomeproduct(likeabookonAmazon.com),andtheauthormightreceiveaffiliate revenuefromasuccessfulsale. Thiskindofeconomicrelationshipisqualifiedasaninvertedbusinesstype.TheadventoftheC2Bschemeisdueto majorchanges:

Connectingalargegroupofpeopletoabidirectionalnetworkhasmadethissortofcommercialrelationship possible.Thelargetraditionalmediaoutletsareonedirectionrelationshipwhereastheinternetis bidirectionalone. Decreasedcostoftechnology:Individualsnowhaveaccesstotechnologiesthatwereonceonlyavailableto largecompanies(digitalprintingandacquisitiontechnology,highperformancecomputer,powerful software C2C(ConsumertoConsumer) Therearemanysitesofferingfreeclassifieds,auctions,andforumswhereindividualscanbuyandsellthanks toonlinepaymentsystemslikePayPalwherepeoplecansendandreceivemoneyonlinewithease.eBay's auctionserviceisagreatexampleofwherepersontopersontransactionstakeplaceeverydaysince1995.

Companiesusinginternalnetworkstooffertheiremployeesproductsandservicesonlinenotnecessarilyonlineon theWebareengaginginB2E(BusinesstoEmployee)ecommerce.

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Consumertoconsumer(C2C)(orcitizentocitizen)electroniccommerceinvolvestheelectronicallyfacilitated transactionsbetweenconsumersthroughsomethirdparty.Acommonexampleistheonlineauction,inwhicha consumerpostsanitemforsaleandotherconsumersbidtopurchaseit;thethirdpartygenerallychargesaflatfee orcommission.Thesitesareonlyintermediaries,justtheretomatchconsumers.Theydonothavetocheckquality oftheproductsbeingoffered. Consumertoconsumer(C2C)marketingisthecreationofaproductorservicewiththespecificpromotional strategybeingforconsumerstosharethatproductorservicewithothersasbrandadvocatesbasedonthevalueof theproduct.Theinvestmentintoconceptinganddevelopingatopofthelineproductorservicethatconsumersare activelylookingforisequatabletoaBusinesstoconsumer(B2C)prelaunchproductawarenessmarketingspend.

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E-Banking (Impact of technology on Banking)


Internet banking (or E-banking) means any user with a personal computer and a browser can get connected to his bank -s 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. The traditional branch model of bank is now giving place to an alternative delivery channels with ATM network. Once the branch offices of bank are interconnected through terrestrial or satellite links, there would be no physical identity for any branch. It would a borderless entity permitting anytime, anywhere and anyhow banking. The network which connects the various locations and gives connectivity to the central office within the organization is called intranet. These networks are limited to organizations for which they are set up. SWIFT is a live example of intranet application.

Internet banking in India


The Reserve Bank of India constituted a working group on Internet Banking. The group divided the internet banking products in India into 3 types based on the levels of access granted. They are: i) Information Only System: General purpose information like interest rates, branch location, bank products and their features, loan and deposit calculations are provided in the banks website. There exist facilities for downloading various types of application forms. The communication is normally done through e-mail. There is no interaction between the customer and bank's application system. No identification of the customer is done. In this

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system, there is no possibility of any unauthorized person getting into production systems of the bank through internet.

ii) Electronic Information Transfer System: The system provides customer- specific information in the form of account balances, transaction details, and statement of accounts. The information is still largely of the 'read only' format. Identification and authentication of the customer is through password. The information is fetched from the bank's application system either in batch mode or off-line. The application systems cannot directly access through the internet. iii) Fully Electronic Transactional System: This system allows bi-directional capabilities. Transactions can be submitted by the customer for online update. This system requires high degree of security and control. In this environment, web server and application systems are linked over secure infrastructure. It comprises technology covering computerization, networking and security, inter-bank payment gateway and legal infrastructure.

Automated Teller Machine (ATM):


ATM is designed to perform the most important function of bank. It is operated by plastic card with its special features. The plastic card is replacing cheque, personal attendance of the customer, banking hours restrictions and paper based verification. There are debit cards. ATMs used as spring board for Electronic Fund Transfer. ATM itself can provide information about customers account and also receive instructions from customers - ATM cardholders. An ATM is an Electronic Fund Transfer terminal capable of handling cash deposits, transfer between accounts, balance enquiries, cash withdrawals and pay bills. It may be on-line or 0ff-line. The on-line ATN enables the customer to avail banking facilities from anywhere. In off-line the facilities are confined to that particular ATM assigned. Any customer possessing ATM card issued by the Shared Payment Network System can go to any ATM linked to Shared Payment Networks and perform his transactions. Credit Cards/Debit Cards: The Credit Card holder is empowered to spend wherever and whenever he wants with his Credit Card within the limits fixed by his bank. Credit Card is a post paid card. Debit Card, on the other hand, is a prepaid card with some stored value. Every time a person uses this card, the Internet Banking house gets money transferred to its account from the bank of the buyer. The buyers account is debited with the exact amount of purchases. An individual has to open an account with the issuing bank which gives debit card with a Personal Identification Number (PIN). When he makes a purchase, he enters his PIN on shops PIN pad. When the card is slurped through the electronic terminal, it dials the acquiring bank system - either Master Card or VISA that validates the PIN and finds out from the issuing bank whether to accept or decline the transactions. The customer can never overspend because the system rejects any transaction which exceeds the balance in his account. The bank never faces a default because the amount spent is debited immediately from the customers account.

Smart Card:
Banks are adding chips to their current magnetic stripe cards to enhance security and offer new service, called Smart Cards. Smart Cards allow thousands of times of information storable on magnetic stripe cards. In addition, these cards are highly secure, more reliable and perform multiple functions. They hold a large amount of personal information, from medical and health history to personal banking and personal preferences.

You can avail the following services through 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 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. Railway pass This is something that would interest all the aam janta. Indian Railways has tied up with ICICI bank and you can now make your railway pass for local trains online. The pass will be delivered to you at your doorstep. But the facility is

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limited to Mumbai, Thane, Nashik, Surat and Pune. 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. Advantage of Internet banking As per the Internet and Mobile Association of India's report on online banking 2006, "There are many advantages of online banking. It is convenient, it isn't bound by operational timings, there are no geographical barriers and the services can be offered at a miniscule cost." Through Internet banking, you can check your transactions at any time of the day, and as many times as you want to. Where in a traditional method, you get quarterly statements from the bank. If the fund transfer has to be made outstation, where the bank does not have a branch, the bank would demand outstation charges. Whereas with the help of online banking, it will be absolutely free for you.

Security Precautions
Customers should never share personal information like PIN numbers, passwords etc with anyone, including employees of the bank. It is important that documents that contain confidential information are safeguarded. PIN or password mailers should not be stored, the PIN and/or passwords should be changed immediately and memorised before destroying the mailers. Customers are advised not to provide sensitive account-related information over unsecured e-mails or over the phone. Take simple precautions like changing the ATM PIN and online login and transaction passwords on a regular basis. Also ensure that the logged in session is properly signed out.

Advantages of Online Hotel Booking


The internet is one of the most useful tools invented by mankind in connection to the computers. There are various sectors which have adopted the use of the internet and the computers in carrying out their day to day activities. The hospitality industry is one of the sectors which has taken to the internet in the best possible manner. It has become extremely difficult for the different hotels to compete with the others without having a presence on the internet. One of the facilities provided by the hotels include the online hotel booking. The advantages of online hotel booking are discussed below. Presence on the internet The internet is becoming extremely popular with the people as a preferred source of information on various travel related needs. Thus it is quite natural for the people to look for numerous details regarding hotel accommodation around the world on the internet. One of the advantages of online hotel booking is that it automatically creates a presence on the internet for the hotel. Many of the popular hotels of the world hava put up their own website on the internet. That also helps the hotels to generate a visible presence on the internet. More enquires for hotel room Another one of the advantages of online hotel booking which the people get is the generation of more enquiries about the hotel. It is only when enquiries are generated that more customers could be obtained. Many of the hotel websites provide an enquiry form for the people to fill up. The chances of an enquiry to lead to a room booking is quite high. Rise in occupancy rates The online presence of the hotels help in the matter of generating more room bookings through the internet. A great

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number of the travelers opt for the online room bookings when they are planning for a holiday in a distant location of the world. That is again one of the advantages of online hotel booking which the hoteliers could derive. Hotel internet marketing ensures that the search engines show the details of the hotel in top results. Payment methods easier The online reservation system makes the task of booking for hotel rooms a lot more easier and hassle free. You could do away with the tension which usually accompanies when a travel to hotel booking agent is used for the same purpose. The payment for online hotel booking could be done by the method of using a credit or debit card. That is also one of the advantages of online hotel booking which you could make use of. The vulnerability of the online security system which the website has installed has to be checked for ensuring the safety of your personal details. The numerous benefits of online hotel booking has made the popular hotels and hotel chains to look at the internet to boost their business. The internet also provides an advantage to those hotels which have an online presence against those which do not have one. The advantages of online hotel booking are too numerous for either the hotels or the guests to ignore.

Online Real Estate Marketing Ideas


(Studentsareadvisedtowritethefollowinganswerpointwise)
If the mortgage crisis is winding down, online real estate marketing ideas will once again be explored in earnest. Some economic indicators, along with some prognosticators, have suggested that indeed the mortgage crisis is bottoming out. If this is true, then not only online approaches will be re evaluated, but all real estate marketing tools will be taken out of storage and placed on broker's grindstones to be honed to a new height of effectiveness. The fact is, real estate brokers have used real estate marketing tools that include online strategies for a number of years. The only question at this point is how much improvement can be made to the process. "For all have sinned and fallen short of the glory of God." Traditional methods of marketing houses, businesses and buildings for sale are still a staple for agents. In fact, marketing experts for all types of selling recommend at least three or four mediums to drive the sales wagon of any venture, including real estate. Traditional ways of advertising include newspaper ads, flyers, pens, calendars, open houses, mass mailings, brochures, ground signs, and even road advertisements. Many a refrigerator magnet has adorned appliances all over the country, reminding owners of that friendly agent just around the corner who is waiting to list the next home for sale. There have also been, over the years, the many home salespeople riding in the local Fourth of July parade with a friendly wave and a large magnetic sign on the convertible's door. These kinds of personal, up-close contacts can never be replaced in the arsenal of real estate marketing tools. From broker to broker, rules are different, but many agents must pay for these traditional marketing tools from their own income. These advertising methods are personal, and tax deductible, but they are also expensive. Giving out a number of different products to prospective clients can be a heavy fiscal outlay. A healthy balance between the traditional methods and the online real estate marketing tools that are now voraciously ensconced in the business are called for in the 21st century. The marketing of any product has become a delicate science of knowing when and where to use the advertising mediums that are available. Real estate advertising methods are becoming more and more imaginative. When it comes to online real estate marketing ideas, the Web has really become the oyster for the

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agent. It is a less expensive way to engage prospective buyers per capita than the traditional methods that still need to be used. And data supports the assertion that Internet customers looking for homes spend at least 25% more for a home purchase than non users. The handwriting is indeed on the wall. The Web today provides a number of advantages that brokers no doubt wished they had possessed twenty years ago. Consider the following real estate marketing tools that are available to agents today: Websites are now emerging to make investigating a property's history available to online prospects which include former sale prices, virtual inside tours of the property, satellite images and now even allow for the negotiation and final sale of the house, saving a large chunk of the agent fee on the buyer's end. There is the availability of pod casting and even video casting, which enables agents to give daily or weekly personal messages to all clients, thus building a trust factor as clients get to better know the broker. Websites now allow clients to view housing price reductions on the property of interest, and can also see how long the property has been on the market. These features can play right into the hand of a savvy broker. Here is another of a number of real estate advertising possibilities tools: Consider a fictional agent who uses a viral marketing plan as part of a number of online real estate marketing ideas to sell a million dollar house. The agent contracts an author to write a half page mystery story with an ending that is not complete. The story is loaded online and sent to every email address that the agent has ever collected. It is hoped that the unsolved mystery piece will then be sent as a fun interlude to all friends and family of the original recipients and on and on. At the end of the short mystery story, a link is provided with an invitation to travel to the agent's website for the solution. Upon arrival at the website, a sweeping panorama unfolds of the house's many amenities and beauty, as well as a place to get the mystery's solution. While wild video clips and online games have been used for viral marketing to younger people, this more cerebral approach could appeal to the demographic that possesses the economic means to make such a purchase. Online real estate marketing ideas also include the ability to give a virtual tour of any listed home, room by room. In addition, clients can have realtors automatically send them more home choices, selected by location, price, schools or a combination of all three. Broker authored newsletters that can be sent as email attachments are a good way to keep in touch with customers after the sale. Sending valued clients important holiday greetings with actual personal handwritten messages, through traditional mail sources, can all be done from online services. As the mortgage crisis begins to wane, the real estate broker has plenty of help to make the future business outlook bright. (Students are allowed to add the information that they know.)

Supplychainmanagement(SCM)
It is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers. 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). Another definition is provided by the APICS Dictionary when it defines SCM as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally."

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Supply chain management (SCM) is the systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole. A customer focused definition is Supply chain strategies require a total systems view of the linkages in the chain that work together efficiently to create customer satisfaction at the end point of delivery to the consumer. As a consequence costs must be lowered throughout the chain by driving out unnecessary costs and focusing attention on adding value. Throughput efficiency must be increased, bottlenecks removed and performance measurement must focus on total systems efficiency and equitable reward distribution to those in the supply chain adding value. The supply chain system must be responsive to customer requirements."

Advantages of SCM

Supply chain management (SCM)a term that first appeared in the late 1980srefers to the management of a distribution channel across organizations. All the members of the channel, from suppliers to end users, coordinate their business activities and processes to minimize their total costs and maximize their effectiveness in the market. The goal is to achieve the coordination and continuity of a vertically integrated channel without centralized ownership of the entities comprising the channel. The firms in the channel form a long-term partnership or strategic alliance in order to improve service to the end consumer, reduce channel costs, and create a competitive advantage.

Supply chain management can be contrasted with a traditional distribution channel in which firms deal with one another on a short-term, arm's-length basis, with each one trying to maximize their own gain from each transaction. Without supply chain management, the relationship between firms in the channel lasts only from transaction to transaction. Most organizations in the traditional channel do not really see themselves as part of a vertically integrated channel. They only see themselves as independent businesses that buy from suppliers at the lowest possible price and sell to customers at the highest possible price. Diseconomies caused by redundancies, particularly of inventory, are common in such a channel. By looking across the entire channel, supply chain management tries to eliminate these redundancies.

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There are a number of key characteristics of supply chain management. One of the most important is that the firms involved see themselves as part of the channel and understand that their future depends to a large extent on the success of the whole channel. The relationships are viewed as long term, and the corporate cultures, philosophies, and missions are similar. There is joint planning of products, locations, and quantities of inventory to be kept in the system. There is also a great deal of information sharing between firms in order to coordinate the efficient flow of goods through the channel. Modern computing and communication technology, such as electronic data interchange, is used to rapidly provide information within the channel as needed. Cost advantages are exploited wherever possible. For example, the production of a product requiring a great deal of human labor would be produced by the member with the lowest labor costs. Performance of a company's supply chain management can be analyzed in terms of cost control, customer service, and asset productivity. A study of leading supply chain management companies, conducted by William C. Copacino in association with the Massachusetts Institute of Technology, suggests there are several areas in which the leaders excel. These include functional excellence in such areas as procurement, manufacturing, transportation and distribution, and customer service, with a highly developed level of skills and integrated management. Leaders are also skilled at managing complexity, especially the management of surge and uncertainty in such areas as new product introductions, product-line complexity, and seasonal variations. Leading supply chain managers also employ the best information technology for applications, data management, decision support tools, and communications. They are able to leverage the distinctive capabilities of supply chain providers as well as to create an extended supply chain with visibility and collaboration across the channel.

The rapid growth of electronic commerce is expected to have an effect on supply chain management. Benefits include process efficiency, with greatly reduced costs made possible by utilizing the power of the Internet to enhance efficiency and effectiveness of various supply chain processes from order entry to supplier management. Electronic commerce will also result in channel restructuring, the elimination of some intermediaries, and a drastic reduction of channel inventories, handling costs, and transition costs. Companies will be able to better integrate electronically with their suppliers and customers to lower transaction costs, manufacturing costs, and supply costs, among other benefits.

Just in time production (JIT)


Just in time is a pull system of production, so actual orders provide a signal for when a product should be manufactured. Demand-pull enables a firm to produce only what is required, in the correct quantity and at the correct time. This means that stock levels of raw materials, components, work in progress and finished goods can be kept to a minimum. This requires a carefully planned scheduling and flow of resources through the production process. Modern manufacturing firms use sophisticated production scheduling software to plan production for each period of time, which includes ordering the correct stock. Information is exchanged with suppliers and customers through EDI (Electronic Data Interchange) to help ensure that every detail is correct. Supplies are delivered right to the production line only when they are needed. For example, a car manufacturing plant might receive exactly the right number and type of tyres for one days production, and the supplier would be expected to deliver them to the correct loading bay on the production line within a very narrow time slot.

Advantages of JIT Lower stock holding means a reduction in storage space which saves rent and insurance costs As stock is only obtained when it is needed, less working capital is tied up in stock There is less likelihood of stock perishing, becoming obsolete or out of date Avoids the build-up of unsold finished product that can occur with sudden changes in demand

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Less time is spent on checking and re-working the product of others as the emphasis is on getting the work right first time

Disadvantages of JIT There is little room for mistakes as minimal stock is kept for re-working faulty product Production is very reliant on suppliers and if stock is not delivered on time, the whole production schedule can be delayed There is no spare finished product available to meet unexpected orders, because all product is made to meet actual orders however, JIT is a very responsive method of production.

INFORMATION SYSTEM DESIGN FOR INTERNETWORKED BUSINESS (Students are advised to report carefully the following steps in this COURIER SYSTEM)
Example 1 of The Digitally Supported Movement of Things-Federal Express (FedEx) as The Logistics Link between Customers and Merchants If organized chaos has a home, it is at the Federal express Super Hubin Memphis, Tennessee. There, in a frantic four-hour period that begins just before midnight, more than 100 airplanes wing in bearing 1.2 million packages for approximately 7000 employees to sort on 200 miles of conveyor belts. On the night in 1973 that FedEx was launched , the firm carried 19 items. Today its more than 108,000 employees and 35,000 trucks mean that FedEx has captured half of the overnight delivery market. Federal Express is a series of networks, and it takes about 17 hours for a package to move from shipper to receiver During that seventeen hours they do everything possible to keep this shipment from going astray as it moves from shipper to station, to airport, to one of the sorting hubs, and on to the destination customer. they have a flawless set of events happen for seventeen hours.. Every time that parcel changes status, information is recorded through sensors and entered into the COSMOS (customer, operations, management, and services) database. The database contains all the basic customer information-name, account number, address, package pickup location data-and it communicates with a number of other systems and devices to maintain a complete record of each shipment that FedEx handles, from the beginning to the end of the process. When a customer calls in to have a package picked up, that call is taken by a customer service agent at one of the forty-two (42) call-centers worldwide. The package pickup request is transmitted to the COSMOS system, and relayed to the dispatch center in the city closest to the shipper. Seconds later this pickup request is transmitted to a small computer (called DADS, or digitally assisted dispatch system) located aboard a FedEx van. The courier then drives to the customers location and picks up the package. It is at this point that service quality measurement begins. The courier uses the Super trackera small, portable, battery-operated, menu-driven computer having bar code scanner-to scan the smart bar code on the package. As well, the courier keys in certain information such as the destination ZIP code. The Super tracker device is very smart. It knows its own ZIP code, which route it is on, who the courier is, and the time and date. When the courier leaves the customer and returns to the van, the courier places the Super tracker into a port located on the DADS computer. The package information is automatically transmitted back to the dispatch center and to the COSMOS database, making the data available to all customer-service personnel worldwide. At that point, less than five minutes after the package is picked up, FedEx has all the information required for the shipper and consignee about when the package was picked up, who picked it up, the location, the type of service, where the package is going, and the intended routing. As the package moves through the system and is scanned, this information is continually updated. Before the night is over FedEx will have scanned 2.4 million shipments, up to nine times each, as they move through the network. All during this period FedEx is running comparison reports in all systems to determine if any shipments has gone astray.

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The idea is to be proactive-to spot and correct a problem before there is a failure from the customers perspective. After the package arrives at the destination city, it is scanned and sorted. When it is placed on a couriers van for delivery that morning, another scan is carried out so that the system knows which truck and driver has the package. Finally, when the van arrives at the customers destination a scan for proof of delivery is conducted by keying in the name of the person who signed for the package. The courier then returns to the van and places Super tracker in the DADS computer, and the final proof of delivery information is transmitted back to the main database in less than four minutes. The result is that FedEx has complete package of information. What is more important, is if that package was delivered five minutes late, if there was an exception, if it had been damaged or misrouted, we have been able to capture all that information on real time basis, says CIO Dennis Jones. By the middle of the afternoon , FedEx will know how many packages in the cycle have been misdelievered, delivered late, damaged, or lost. The next morning the individual courier receives a quality feedback report giving details of all transactions that were not 100% correct. Other teams work to understand exactly why an error was made and follow up if if there is a dissatisfied customer. The FedEx approach combines continuous learning and action. Information technology is no different from marketing. It is continuous and needs always to be taken into account. It requires more expertise by people at lower level to understand information technology. They need to know where the information is and where it is coming from. When technology is so integral, one has got to know more than just whats coming across your desk What this technology integration at FedEx has achieved is business process transformation though three levels leading to integrated enterprise. These three levels are: With technology integration business process transformation is achievable at five levels leading to an internetworked enterprise These five levels are: Level 1: The Effective Individual, Level 2: The High-Performance Team, Level 3: The Integrated Enterprise, Level 4: The Extended Enterprise, There is a shift from value-added enterprise to an enterprise that is a value network. Level 5: The Internetworked Enterprise is this:

ealthcare
Following is a real case example of application of convergence technology to healthcare. The case example was
carried out in real life by the National Information Infrastructure Testbed (NIIT). A 40-year-old woman from Baltimore, vacationing with her family and driving in the family car through the south eastern desert of California, is seriously injured in an accident. She is unconscious and unresponsive. Transported to a nearby rural hospital she arrives looking pale, with a pulse of 120 and blood pressure of 110/90. A breathing tube is inserted through her trachea, and she is placed on a ventilator. The emergency physician of the rural California hospital, High Desert hospital-conducts a tele-consultation with specialists from the University of Southeren California/Los Angeles County Medical Center (USC/LAC). As a result of this consultation, the patient is immediately transported to USC/LAC for further evaluation and treatment. A computer tomography(CT) scan of the abdomen reveals a massive hemetoma of the liver with no free blood. The patients health Care Identification (HCI) card is swiped through a card reader that gives access over a national network of records. The patients electronic records show two very useful facts: she had a triple bypass operation a year ago and she is allergic to certain drugs. The discovery of the pre existing condition eliminates the need to perform surgery on a possible ruptured aorta. The information about the drug allergy allows the physician to prescribe a non-allergenic drug. Next, the doctors at USC/LAC initiate another tele-consultation with the patients personal physician located at Johns Hopkins University Medical Center in Baltimore. During the consultation both doctors view, manipulate, and analyze three-dimensional medical images of the patients internal organs. They see that a segment of the small bowl has

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been ruptured. They then compare the previous CT scan with the new 3D reconstruction of the abdomen and agree on a very limited surgical approach that avoids the need for other invasive tests and more dangerous surgery. This case description demonstrates how healthcare process can be transformed into an internetworked process for effective healthcare.

CoreBanking
Core Banking is normally defined as the business conducted by a banking institution with its retail and small business customers. Many banks treat the retail customers as their core banking customers, and have a separate line of business to manage small businesses. Larger businesses are managed via the Corporate Banking division of the institution. Core banking basically is depositing and lending of money. Nowadays, most banks use core banking applications to support their operations where CORE stands for "Centralized Online Real-time Exchange". This basically means that all the bank's branches access applications from centralized datacenters. This means that the deposits made are reflected immediately on the bank's servers and the customer can withdraw the deposited money from any of the bank's branches throughout the world. These applications now also have the capability to address the needs of corporate customers, providing a comprehensive banking solution. A few decades ago it used to take at least a day for a transaction to reflect in the account because each branch had their local servers, and the data from the server in each branch was sent in a batch to the servers in the datacenter only at the end of the day (EoD). Normal core banking functions will include deposit accounts, loans, mortgages and payments. Banks make these services available across multiple channels like ATMs, Internet banking, and branches.

Mobile Phones - Convergence


Views History From M/Cyclopedia of New Media Jump to: navigation, search The convergence of the telecommunications, media and information technology industries has generated massive change in the creative industries field. This innovation is the process whereby communications technologies blend together to facilitate wider, more integrated methods for the distribution of information. Convergence has revolutionized and created many new technologies, but none are more apparent than the mobile phone. Each new model released onto the market promises more features, more technology and more possibilities than its predecessor. This capability of convergence has enabled the mobile phone to transcend from a traditional voice communication piece to an instrument facilitating an interaction of the three major sectors of telecommunications, media and information technology. This convergence is embodied in new mobile phone technology enables the user to make video conference calls, check the world events in Hong Kong and surf the internet all at the same time. Central issues associated with this new technology are the rise and impact on the creative industries, opportunities and threats and the social impact of mobile phone convergence. Furthering this is of importance as it is at the forefront

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of convergent mobile phone technologies. Currently, this form of convergence is at the height of its technology and is strengthening with further developments and innovations. Unlike traditional formats of technology, convergence has generated rapid growth, as it is an improvement on an existing technology of the common mobile phone communications device. Presently, the convergence of mobile phone technology is its third generation (3G) encompassing the telecommunications, media and information technology industries. It has progressed in its design and value from an initial talking device to an instrument whereby its applications fulfill industry, cultural, emotional and informative objectives. The future will see the device performing more operations and comprising more technologies and information so as to intensify its intrinsic link to how people function in their daily lives and business. This form of convergence is relevant as it is a new media technology marking the transition towards an informational mode of development and the rise of the network society. As such, like many other new media technologies cited in the New Media Wikipedia, mobile phone convergence has changed the way in which we live and operate.

The steadfast rise of convergence has revolutionized the creative industry and has posed many significant issues, trends and developments directly affecting the sector. It has shaped the way the industries operate; allowing them a more concentrated access point to the consumer, and with this intimate contact, convergence has posed many ethical and moral issues.

Furthering this, the blending of technologies, although permitting the user the opportunity to access plentiful amounts of information, has also posed various threats.

Convergence has enabled a basic device like a mobile phone, the capacity to become an all-in-one telecommunications, media and computer handheld machine. This new media technology has generated massive social change in the behaviours and lifestyle patterns of the consumer. The transforming mobile technology is affecting people far more rapidly than what they realise. The chosen case study of 3 Hutchinson Australia mobile phones is highly appropriate in proving the impact that convergent technology has had on society. The newest example of convergent technology, the 3 mobile phone, operating on the 3G network, utilises the three industries, revolutionizing the handset as a multi-function portable office. This convergence allows the operator to download the latest financial review (media), send and receive emails (information technology) and make a standard or video conference call (telecommunications) without the hindrance of being chained to a computer or a desk.

This information revolution, driven by major technological changes in communications, enables the handset to blur the

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boundaries between what was once just a telecommunications device to what it is now- a catalyst comprising all three sectors of the communications industry. Although a relatively new technology and issue to emerge from the creative industries, convergence has swiftly impacted the industry and society. This is for the reason that in its short time, it has managed to generate mass change to the three major industries of telecommunications, media and information technology. This change, impelled by consumer demand, has prompted the three industries to band together to prevail.

Mobile phone convergence is an imperative facet of convergence, as it is rooted in the lives of people who find their sense of self and the social and cultural context in which they live embedded in their access to and use of various media technologies. It is a relatively new technology and in a short amount of time, mobile phone convergence has managed to impact the creative industries, and create many opportunities and threats as well as considerably effect society

Impact on the Creative Industries

The steadfast rise of convergence has revolutionised the creative industry and has posed many significant issues, trends and developments directly affecting the sector. It has shaped the way the industries operate; allowing them a more concentrated access point to the consumer, and with this intimate contact, convergence has posed many ethical and moral issues. The mobile telecommunications market has undergone a stream of rapid changes in recent years, including the progressive deregulation of the industry, the challenges of the digital revolution, the increases in new technologies and communications channels, and the race to rollout third generation (3G) technology.

New technologies are constantly causing an effect in the creative industries but none more apparent than mobile phone convergence. This is for the reason that this new technology will be as significant as the birth of television after a generation of radio? This revelation is fitting to todays situation as companies have been rapidly revamped, merged, acquired and have been forced to make real competitive decisions to capitalise on and stay afloat of the new technology.

In the past it was difficult to justify the vast new investments in 3G, as most service ideas were only theories and no evidence existed to validate the concepts. Today companies, for their own survival, have been impelled to get behind the technology with big budgets for research and development, advertising and sharing of tangible and intangible assets. The industries of telecommunications, media and information technology once divided by their differences have come together forming a single integrated communications grid as a kind of global nervous system enveloping the world today. The industry is realising its new role as "more than just network providers- but service and content providers as well". The redefining of roles as a result of this form of convergence has brought enterprises together in deep webs of mutuallyinterdependentrelationships, where they share activities and pursuits. Businesses are connecting with suppliers and customers to share intangible resources in the form of information and expertise, as well as physical resources, with the conviction that by pooling their strengths, each firm can better optimise its own objectives.

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The mobile phone convergence has "affected companies far removed from the digital content industries, such as vending machines, rock concert ticketing, gaming and public transportation". These industries are adapting mobile phone based solutions to save money, improve customer service and profit from this convergent technology.

The effects on the creative industries from this network approach have invaded every type of business and will be a key to success and profits. It is necessary then for the industry to become aware of the opportunities and threats generated by the convergence of mobile phones, to be able to prepare to survive and win in the emerging new environment.

Functional Convergence Moderm mobile phones are not only can make and receive voice calls; but also can send and receive data. The first short message, as known as SMS was sent on the Vodafone GSM network in 1992; since then, the potential of mobile phones beyond voice transimission have been extended. Currently, it is fairly to say that all mobile phones are functional converged in varying degrees. Games and calculator is common extra function on early days mobile phones; in addition, features used to be proved by other handheld devices, such as, PDA (Personal Data Assistant), MP3 player, digital camera, and GPS (Global Positioning System) often are included in the latest phones.

Accompany with the development of 3G networks, the capacities of mobile phone have been enhanced; along with personal communication device, mobile phone could eventually be part of individuality.

The 3G mobile phone will not replace the PC as a device for computing--no miniature spread sheets, differential equation analyzers, and not even a word processor. It will, however, combine your phone book, calendar, and task list more effectively than was previously possible. It will be able to encapsulate a description of you, your identity, and your preferences in such a way, and with such assuredness, that you will be able to use a mobile phone to pay for items highway tolls, drinks from vending machines--and to confirm your presence to devices such as ATMs and forthcoming flight and train check-in machines

In this viewpoint, mobile phone will be able to send and receive various data at realtime, such as commercial transaction and personal schedule; even the mobile phone itself could be an identity item. Therefore, as a data storage and data
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transmission device, privacy and security issues are no less important than protecting information on computers.
Currently, Bluetooth wireless technology and Infrared transmission is used for short range data transmission, it can replace the cable between devices, for instance, linking mobile phone and its wireless headset. However, some of the Bluetooth enables phones have been discovered several security holes; an attacker can download the contact details or phone book without leaving trace from a vulnerable phone. It could be a threat of privacy and information security while using those vulnerable phones in public environment.

It is expected that future mobile phones will be able to switch between multiple wireless communication modes, such as GSM, GPRS, GPS, satellite phone, WiFi, etc., consequently, the importance of data transmission security and cryptology requirements are increasing day by day.

2.5G (GPRS)
2.5G is a stepping stone between 2G and 3G cellular wireless technologies. The term "second and a half generation is used to describe 2G-systems that have implemented a packet-switched domain in addition to the circuit-switched domain. It does not necessarily provide faster services because bundling of timeslots is used for circuit-switched data services (HSCSD) as well. The first major step in the evolution of GSM networks to 3G occurred with the introduction of General Packet Radio Service (GPRS). CDMA2000 networks similarly evolved through the introduction of 1xRTT. The combination of these capabilities came to be known as 2.5G. GPRS could provide data rates from 56 kbit/s up to 115 kbit/s. It can be used for services such as Wireless Application Protocol (WAP) access, Multimedia Messaging Service (MMS), and for Internet communication services such as email and World Wide Web access. GPRS data transfer is typically charged per megabyte of traffic transferred, while data communication via traditional circuit switching is billed per minute of connection time, independent of whether the user actually is utilizing the capacity or is in an idle state. 1xRTT supports bi-directional (up and downlink) peak data rates up to 153.6 kbit/s, delivering an average user data throughput of 80-100 kbit/s in commercial networks. It can also be used for WAP, SMS & MMS services, as well as Internet access.

Technologicalconvergence
Technological convergence is the tendency for different technological systems to evolve towards performing
similar tasks. Convergence can refer to previously separate technologies such as voice (and telephony features), data (and productivity applications), and video that now share resources and interact with each other, synergistically creating new efficiencies. Today, we are surrounded by a multi-level convergent media world where all modes of communication and information are continually reforming to adapt to the enduring demands of technologies, "changing the way we create,

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consume, learn and interact with each other" Convergence in this instance is defined as the interlinking of computing and other information technologies, media content, and communication networks that have arisen as the result of the evolution and popularization of the Internet as well as the activities, products and services that have emerged in the digital media space. Many experts view this as simply being the tip of the iceberg, as all facets of institutional activity and social life such as business, government, art, journalism, health, and education are increasingly being carried out in these digital media spaces across a growing network of information and communication technology devices. Also included in this topic is the basis of computer networks, wherein many different operating systems are able to communicate via different protocols. This could be a prelude to artificial intelligence networks on the Internet eventually leading to a powerful superintelligence via a technological singularity. The rise of digital communication in the late 20th century made it possible for media organizations (or individuals) to deliver text, audio, and video material over the same wired, wireless, or fiber-optic connections. At the same time, it inspired some media organizations to explore multimedia delivery of information. This digital convergence of news media, in particular, was called "Mediamorphosis" by researcher Roger Fidler, in his 1997 book by that name.

TheInternet TheInternet
The Internet is a globalized network and was officially launched in 1969. Over the past 40 years, its rapidly from its original use as a communication tool to provide easier and faster access to informatio and various other educational institutions. In today's world, it is an important tool used to reach v around the world. Its users have been constantly trying to create more uses for the Internet than the academic information. The television, radio and newspapers are the world's main mediums for acc entertainment. Now, all three mediums have converged into one, and people all over the world now c the Internet. They can also watch videos, television shows, listen to music, and download and uploa and videos. One doesn't have to wait until the next day to hear the latest in news, fashion, and musi so easy to access that should anything happen, it would be displayed to the whole world within minute Convergence of media occurs when multiple products come together to form one product with the ad them, also known as the black box. This idea of one technology, concocted by Henry Jenkins, ha more as a fallacy because of the inability to actually put all technical pieces into one. For example, have e-mail and Internet on their phone, they still want full computers with Internet and e-mail Concentration of media ownership for the similar sounding phrase of media convergence. Convergence is a concept in which old and new media intersect; when grassroots and corporate m such a way that the balance of power between media producers and media consumers shifts in unp Jenkins states that convergence is, "the flow of content across multiple media platforms, the cooperation between multiple media ind migratory behaviour of media audiences."

TheInternet TheInternet
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The Internet is a globalized network and was officially launched in 1969. Over the past 40 years, its role has changed rapidly from its original use as a communication tool to provide easier and faster access to information for universities and various other educational institutions. In today's world, it is an important tool used to reach various audiences around the world. Its users have been constantly trying to create more uses for the Internet than the mere sharing of academic information. The television, radio and newspapers are the world's main mediums for accessing news and entertainment. Now, all three mediums have converged into one, and people all over the world now can read news on the Internet. They can also watch videos, television shows, listen to music, and download and upload pictures, music and videos. One doesn't have to wait until the next day to hear the latest in news, fashion, and music. The Internet is so easy to access that should anything happen, it would be displayed to the whole world within minutes. Convergence of media occurs when multiple products come together to form one product with the advantages of all of them, also known as the black box. This idea of one technology, concocted by Henry Jenkins, has become known more as a fallacy because of the inability to actually put all technical pieces into one. For example, while people can have e-mail and Internet on their phone, they still want full computers with Internet and e-mail in addition. See Concentration of media ownership for the similar sounding phrase of media convergence. Convergence is a concept in which old and new media intersect; when grassroots and corporate media intertwine in such a way that the balance of power between media producers and media consumers shifts in unpredictable ways. Jenkins states that convergence is, "the flow of content across multiple media platforms, the cooperation between multiple media industries, and the migratory behaviour of media audiences." Media convergence is not just a technological shift or a technological process, it also includes shifts within the industrial, cultural, and social paradigms that encourage the consumer to seek out new information. Convergence, simply put, is how individual consumers interact with others on a social level and use various media platforms to create new experiences, new forms of media and content that connect us socially, and not just to other consumers, but to the corporate producers of media in ways that have not been as readily accessible in the past. For example, the Wii is not only a games console, but also a web browser and social networking tool. Mobile phones are another good example, in that they increasingly incorporate digital cameras, mp3 players, camcorders, voice recorders, and other devices. This type of convergence is very popular. For the consumer, it means more features in less space, while for the media conglomerates it means remaining competitive in the struggle for market dominance. With the advance in technology comes the ability for technological convergence which Rheingold believes alters the "social-side effects" in that "the virtual, social and physical world are colliding, merging and coordinating" However, convergence can have its downside. Particularly in their initial forms, converged devices are frequently less functional and reliable than their component parts (e.g. a DVD may perform better on a traditional DVD player than on a games console). As the amount of functions in a single device escalates, the ability of that device to serve its original function decreases. For example, the iPhone (which by its name implies that its primary function is that of a mobile phone) can perform many different tasks, but does not feature a traditional numerical pad to make phone calls. Instead, the phone features a touchpad, which some users have found more troublesome than a conventional phone numberpad. As Rheingold asserts, technological convergence holds immense potential for the "improvement of life and liberty in some ways and (could) degrade it in others He believes the same technology has the potential to be "used as both a weapon of social control and a means of resistance"Regardless, an ever-wider range of technologies are being converged into single multipurpose devices. Since technology has evolved in the past ten years or so, companies are beginning to converge technologies to create demand for new products. This would include phone companies integrating 3G on their phones. In the mid 20th century, television converged the technologies of movies and radio, and television is now being converged with the mobile phone industry. Phone calls are also being made with the use of personal computers. Converging technologies seems to be squashing many types of demanded technologies into one. Mobile phones are becoming manufactured to not only carry out phone calls, text messages, but also hold images, videos, music, television, camera, and multimedia of all types. Manufacturers are now integrating more advanced features such as video recording, GPS

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receivers, data storage, and security mechanisms into the traditional cellphone. These paradigm shifts are ongoing in the media, and often occur from time to time as the technology to create better devices evolves. It was predicted in the 1990s that a digital revolution would take place,and that old media would be pushed to one side by new media. Broadcasting is increasingly being replaced by the Internet, enabling consumers all over the world the freedom to access their preferred media content more easily and at a more available rate than ever before. However, when the dot com bubble of the 1990s suddenly popped, that poured cold water over the talk of such a digital revolution. In today's society, the idea of media convergence has once again emerged as a key point of reference as newer as well as established media companies attempt to visualize the future of the entertainment industry. If this revolutionary digital paradigm shift presumed that old media would be increasingly replaced by new media, the convergence paradigm that is currently emerging suggests that new and old media would interact in more complex ways than previously predicted. The paradigm shift that followed the digital revolution assumed that new media was going to change everything. When the dot com market crashed, there was a tendency to imagine that nothing had changed. The real truth lay somewhere in between as there were so many aspects of the current media environment to take into consideration. Many industry leaders are increasingly reverting to media convergence as a way of making sense in an era of disorientating change. In that respect, media convergence in theory is essentially an old concept taking on a new meaning. Media convergence in reality is more than just a shift in technology. It alters the relationship that already exists between industries, technologies, audiences, genres and markets. Media convergence changes the rationality in which media industries operate and also the way that media consumers process news and entertainment. Bearing in mind that media convergence in reality is essentially a process and not an outcome, there is no single black box that controls the flow of media into our homes and workplaces. With the proliferation of different media channels and the increasing portability of new telecommunications and computing technologies, we have entered into an era where the media is constantly surrounding us. Believe it or not, today's modern society is already existing within a convergence culture. Media convergence requires companies operating within the scope of the media to rethink existing assumptions about media from the consumer's point of view, as these assumptions affect both marketing and programming decisions. Media producers have to respond to these newly empowered consumers in today's society to reinvent existing concepts to keep them up to date with emerging trends. Consumers these days do not just want to be on a one way transmission model where they simply receive information. They want to interact with it. They want to create it. They want to participate within it. Media convergence has allowed that to happen and as the proliferation of new communication technologies continues to occur, this trend is here to stay.

Fanculture
"catalyst" for amateur digital film-making and what this case study suggests about the future directions popular culture may take. Star Wars fan films represent the intersection of two significant cultural trends -- the corporate movement towards media convergence and the unleashing of significant new tools which enable the grassroots archiving, annotation, appropriation, and recirculation of media content. These fan films build on long-standing practices of the fan community but they also reflect the influence of this changed technological environment that has dramatically lowered the costs of film production and distribution.

Messagingconvergence
Combinational services include those which integrate SMS with voice, such as voice SMS - providers include Bubble Motion, Jott, Kirusa, and SpinVox. Several operators have launched services that combine SMS with mobile instant messaging (MIM) and presence. Text-to-landline services also exist, where subscribers can send text messages to any landline phone and are charged at standard rates. This service has been popular in America, where fixed and mobile numbers are similar. Inbound SMS has been also converging to enable reception of different formats (SMS, voice, MMS, etc.). UK companies, including consumer goods companies and media giants, should soon be able to let consumers contact them via voice, SMS, MMS, IVR, or video using one five-digit number or long number. In April 2008, O2 UK launched

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voice-enabled shortcodes, adding voice functionality to the five-digit codes already used for SMS. This type of convergence is particularly helpful for media companies, broadcasters, enterprises, call centres and help desks who need to develop a consistent contact strategy with the consumer. Because SMS is very popular today with any demographic, it became relevant to include text messaging as a contact possibility for consumers. To avoid having multiple numbers (one for voice calls, another one for SMS), a simple way is to merge the reception of both formats under one number. This means that a consumer can text or call one number and be sure that the message will be received.

Multiplay
Multi-play is a marketing term describing the provision of different telecommunication services, such as Broadband Internet access, television, telephone, and mobile phone service, by organisations that traditionally only offered one or two of these services. Multi-play is a catch-all phrase; usually, the terms triple play (voice, video and data) or quadruple play (voice, video, data and wireless) are used to describe a more specific meaning. A dual play service is a marketing term for the provisioning of the two services: it can be high-speed Internet (ADSL) and telephone service over a single broadband connection in the case of phone companies, or highspeed Internet (cablemodem) and TV service over a single broadband connection in the case of cable TV companies. The convergence can also concern the underlying communication infrastructure. An example of this is a triple play service, where communication services are packaged allowing consumers to purchase TV, Internet, and telephony in one subscription. A quadruple play service combines the triple play service of broadband Internet access, television, and telephone with wireless service provisions. This service set is also sometimes humorously referred to as "The Fantastic Four" or "Grand Slam" The broadband cable market is transforming as pay-TV providers move aggressively into what was once considered the telco space. Meanwhile, customer expectations have risen as consumer and business customers alike seek rich content, multi-use devices, networked products and converged services including on-demand video, digital TV, high speed Internet, VoIP, and wireless applications. It's uncharted territory for most broadband companies. Incidentally, the "mobile service provisions" aspect refers not only to the ability of subscribers to be able to purchase mobile phone like services as is often seen in co-marketing efforts between providers of land-line services. Rather, it is one major ambition of wireless - the ability to have access to all of the above including voice, Internet, and content/video while on the go and requiring no tethering to the network via cables. Given advancements in WiMAX and other leading edge technologies, the ability to transfer information over a wireless link with a variety of speeds, distances, and non-line-of-sight conditions is rapidly improving. It is possible that one could never need to be connected by a wire to anything, even while at home. One fundamental aspect of the quadruple play is not only the long awaited broadband convergence but also the players involved. Many of them, from the largest global service providers to whom we connect today via wires and cables to the smallest of startup service providers are interested. The opportunities are attractive: the big three telecom services - telephony, cable television, and wireless - could combine the size of their respective industries. The next level of service might be the integration of RFID into the quadruple play which will add the capability for home equipment to communicate to the outside world and schedule maintenance on its own. In the UK, the recent merger of NTL:Telewest and Virgin Mobile resulted in a company offering a quadruple play of cable television, broadband Internet, home telephone, and mobile telephone services.

Homenetwork
Early in the 21st century, home LAN convergence so rapidly integrated home routers, wireless access points, and DSL modems that users were hard put to identify the resulting box they used to connect their computers to their

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Internet service. A general term for such a combined device is a residential gateway.

"Blackboxfallacy"  
Some expect we will eventually access all media content through one device, or "black box". As such, media business practice has been to identify the next "black box" to invest in and provide media for. This has caused a number of problems.

 
Some expect we will eventually access all media content through one device, or "black box". As such, media business practice has been to identify the next "black box" to invest in and provide media for. This has caused a number of problems.

TheInternet TheInternet
The Internet is a globalized network and was officially launched in 1969. Over the past 40 years, its role has changed rapidly from its original use as a communication tool to provide easier and faster access to information for universities and various other educational institutions. In today's world, it is an important tool used to reach various audiences around the world. Its users have been constantly trying to create more uses for the Internet than the mere sharing of academic information. The television, radio and newspapers are the world's main mediums for accessing news and entertainment. Now, all three mediums have converged into one, and people all over the world now can read news on the Internet. They can also watch videos, television shows, listen to music, and download and upload pictures, music and videos. One doesn't have to wait until the next day to hear the latest in news, fashion, and music. The Internet is so easy to access that should anything happen, it would be displayed to the whole world within minutes. Convergence of media occurs when multiple products come together to form one product with the advantages of all of them, also known as the black box. This idea of one technology, concocted by Henry Jenkins, has become known more as a fallacy because of the inability to actually put all technical pieces into one. For example, while people can have e-mail and Internet on their phone, they still want full computers with Internet and e-mail in addition. See Concentration of media ownership for the similar sounding phrase of media convergence. Convergence is a concept in which old and new media intersect; when grassroots and corporate media intertwine in such a way that the balance of power between media producers and media consumers shifts in unpredictable ways. Jenkins states that convergence is,

The term supply chain management was coined by consultant Keith Oliver, of strategy consulting firm Booz Allen Hamilton in 1982. The definition one America professional association put forward is that Supply Chain Management encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies. Supply chain event management (abbreviated as SCEM) is a consideration of all possible occurring
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events and factors that can cause a disruption in a supply chain. With SCEM possible scenarios can be created and solutions can be planned. Our team of Supply Chain experts can work across a wide spectrum of vertical industries and help to optimize it.

UNCERTAINITIES CHARACTERIZING INFORMATION ENVELOPE UNCERTAINTIESINSETTINGGOAL,INIDENTIFYINGMANYFACTORSAND MULTIPLECRITERIAARECAUSEDBY.

Goal selection based on obviousness of a problem or competence to solve it,


Due to difficulty in taking a systems view, recourse to an ad hoc Repair-Service approach, Minimal capacity and inclination in dealing with time, Need to preserve a sense of self competence amounting to self-protection tendency, Difficulty in recognizing complex goals, Not analyzing complex goals by breaking them into concrete, partial goals; risking activity at hand taking a life of its own, Clear Guidelines for applying criteria & for assessing if goals met not common in the real world, Danger of Goal Degeneration through: (a)Effect of Flow Experience; (b) Adherence to safe option in the wake of insecurity. This can lead to incorrect identification of multiple goals, which make implicit goals explicit, Malfunctions that emerge with delay,

UNCERTAINTIES IN SETTING OPERABLE GOAL STATEMENT ARE CAUSED BY.


Difficulty to recognize that complex goals are characterized by inter-related criteria. This leads to incorrect identification of interdependent goals, Goal inversion, conceptual integration, and conspiracy theories, leading to incorrect identification of conflicting goals, which are negatively linked,

UNCERTAINTIES IN DEVELOPING PROBLEM INFORMATION STRUCTURE ARE CAUSED BY.

Uncertainties in developing problem information structure concern


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uncertainties in identifying interdependencies of culled out information variables. These are caused by variety of reasons. These reasons are as follows. Insufficient assessment of reality model, Disregard for systemic nature of situations, Difficulty in thinking by analogy, Difficulty in pursuing efforts to know more, Difficulty recognizing interrelated variables, Looking at problem as a sequence of problems to be solved one ata time, Not accounting for side effects and repercussions of certain measures, Not recognizing problems that come with delay, Difficulty in having big picture, Preoccupation with immediate goals leading to dealing with partial goals in isolation, Information overload, Economizing on cognitive energy leading to see a system as a bundle of unrelated individual systems and leading to neglect of side effects and repercussions, Adoption of reductive hypothesis, Effects of overgeneralization in the form of: (a) Tendency to deconditionalize, (b) Tendency for similarity (as against dissimilarity) matching, (c ) Inability to recognize that effectiveness of a measure almost always depends on the context within which measure is produced, and (d) Tendency (in the face of insecurity) to act either with minimal information (saving on cognitive energy) or by gathering excessive information Other types of uncertainties: Uncertainty in observing co-variance, between which there is time lag . This requires collection and integration of data/information over time. How long should one observe? Observation over less time will give incorrect structural information. To continue to observe for long time will delay planning and action. How to decide on the optimum time needed for observation? Difficulty due to complexity, All Information variables not observable,

UNCERTAINTIES IN DEVELOPING PROBLEM INFORMATION STRUCTURE DYNAMICS ARE CAUSED BY.

Difficulty in perceiving recognizing, dealing, arranging in time, Tendency to treat successive steps in temporal development as individual steps, Reliance on only few mechanisms of prognostication to gain insight in to the future, Limited focus on the present, Fixation with the characteristics of the moment brings with danger that too much significance ascribed to present circumstances, Fixation on linear future development preventing from anticipating changes in direction and pace.
Difficulty in dealing with non-linear configurations like exponential growth, Tendency to interpret numbers solely on the basis of their size, Tendency to rely on feelings or intuition-even professionals demonstrate this strait, Reliance on magical hypothesis as a result of overgeneralization, Misjudging non-linear growth, Fallacy of progressive conditionalizing resulting in action completely devoid of reality,
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Fallacy of meta hypotheses, Absence of learning mechanisms in the form of continuity and constant correctives in respect of information, making prediction difficult, Other types of uncertainties: Difficulty due to complexity Information dynamics difficult to develop Limited focus on a notable feature of the present Extension of the perceived trend in a more or less linear and monotone fashion (that is, without allowing for any change in direction)

Errors in decision making (I*I risks)


-In fact there is the issue of Information Integrity (I*I) risk that the decision making process in a complex and changing environment experiences. Specifically, I*I risk is of making a decision choice ex ante which will, according to the ex ante estimate of the decision-making process, perhaps turn out to have been sub-optimal ex-post. -This kind of risk has to be caused by insufficiently full and perfect information, which is either misleading (biased, i.e., distorted) and/or incomplete (noisy).Such information is with inadequate integrity, hence with a requirement for additional information value, which improves value of available I*I. -Search for IS model that helps analyze I*I risk (and uncertainty) and hence value of information and of I*I defined as above is then the concern of study through the rest of the course.

NEED FOR THEORY OF ERRORS

Information with loss of integrity is insufficiently full and perfect information. This is the question of
information error. Any pursuit to do something about errors in any application (for example, in banking operations or say in medicine, etc.) would depend directly and strongly on some theory of what an error is, how an error is generated, what happens after an error comes into being, how it is that an error is detected, and what it is that causes damage (minor, acceptable or unacceptable). This is true for errors in physical systems as also in informational systems. To cure error in any application sector (nuclear power plants, manufacturing industry, banking sector, telecommunications network, medical application, or kitchen), one must know something about faults/irregularities/deviations in that application sector. What is an error? Why do errors occur? The causal mechanisms of errors in a given specific application sector of say nuclear power plant, if there are any, must be the same as those of errors in manufacturing sector, or in a medical application, or in the kitchen. Although most people use the terms specifying errors from their application sectors, what they talk about are accidents. What is the difference between error and accident? What is required is to give answers to such and other questions? From the viewpoint of an external observer, an error can be seen as a failure to ensure an optimum, desired, or intended value (for a view, format, variable, or process, etc. as the case may be) that is correct given the circumstances (situation), the cause and form of error notwithstanding. An error can occur only if there is an appropriate identified source of value (standard) to ensure on the basis of a documented state of events. An error must not be defined as an adverse or serious outcome. An adverse outcome or accident may
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happen with no antecedent error. This may occur if the intention (standard) was the proper one, the action was properly executed, and the outcome was not certain. Examples are playing a game, deciding whether to carry an umbrella, administering a medicine, or performing an operation known to be risky.

WHAT IS AN ERROR IN APPLICATION SETTING THEN?

How is an Error defined in the context of a given application domain (sector)?


It is common to discuss errors in a given application setting in terms of their expressions, that is, what went wrong or what was done wrong. It is common to report errors in an application sector (domain) only in terms of their adverse consequences, that is, what happened as a result (for example, in case of a medical setting, what happened to the patient). This has serious shortcomings. Only those consequences that result in irreversible damages get reported (in say a medical setting, irreversible damage/consequence may be injury or death). Thus, in reality, what are reported are not errors in a given application domain (sector) but application sector specific accidents consequent on errors for which a process or processor (for this purpose human is considered as a processor) might be held responsible. What is not seen are those errors which occurred and were caught before they were completed. For example, in the medical sector, there is no good estimate of the probability of substitution errors on the night shifts, or by physicians, or by pharmacists. Similarly, a coding error in a software may not be located until the program in the course of its execution visits that code; thereby suggesting poor estimate of the probability of substitution errors. It is of great importance to know the modes of errors that are not harmful. The information could, for example, help in estimating the risk of introduction of a new product, a new package, or a new device in to the application domain under consideration. This calls for some kind of better data/information collection process. It is usually the case that if there is no adverse outcome-no accident-the error is not reported and dose not become part of the experience base of the practices in the application domain under consideration. However, to understand what accidents are likely to happen in the application domain under consideration, (feedback) information must be obtained about all errors: those that damage, and the near misses or those that have yet to come (detection, estimation and prediction). Then appropriate protective measures can be in place to wait for the error and interdict rather than to be put into place after the incident. Que: What is I*I Risk? What are its components? List them. Define components of I*I risk. Explain why Usability Risk by itself is irrelevant with respect to determining which decision action to choose. How is I*I Risk quantified? I*I risk aversion has requirement for additional information and is a costly activity. Explain.

RISK AND UNCERTAINTY


Information processing is a decision process. For our purpose, decision-process is same as a decision57

making process and includes decision-maker. Decisions differ in a number of ways. One dimension of decision types, which is useful in information systems, is knowledge of decision outcomes. Three types of knowledge with respect to outcomes are usually distinguished.

CERTAINTY, RISK,UNCERTAINTY
Certainty: Complete and accurate knowledge of the outcome of each alternative. There is only one outcome for each alternative. Risk: Multiple possible outcomes of each alternative can be identified, and a probability of occurrence can be attached to each. Uncertainty: Multiple outcomes for each alternative can be identified, but there is no knowledge of the probability to be attached to each other.

NATURE OF DECISION PROCESS FOR DIFFERING OUTCOMES


Outcome states: Decision-making under Certainty: If the outcomes are known and values of the outcomes are certain, the decision process computes the optimal alternative or outcome. The optimising criterion may be cost. Decision-making under Risk: When only the probabilities of various outcomes are known; instead of optimising outcomes, the decision making process optimises the expected outcome. A basic assumption is that the decision is rational Decision-making under Uncertainty: When outcomes are known but not the probabilities, decision process must be handled differently because, without probabilities, the optimisation criterion cannot be applied. Most suggestions for handling uncertainty are designed to supply the unknown probabilities. Some suggestions are: to assign equal probabilities, minimization of regret, and application of game theory (maxmin and minmax criterion).

ACCURACY (A) -1
Within above framework then Accuracy attribute (A) is defined as the degree of agreement between a particular value and an identified source. It can be assessed by identifying the relevant established source (standard) and by determining an acceptable tolerance. Specifically, the identified source provides the correct value preferably the value corresponding to the optimum Integrity. It can be an object or relationship in the real world; it can also be the same value in another database, or the result of a computational database. Given that value of data/information is expressed in a numerical, accuracy of the data/information can be quantified in a number of ways: i)Difference between the actual value (i.e., value of the identified source) and the value processed by the information system. ii)Error Ratio = Actual Error/Acceptable Error iii) Accuracy Index = Number of correct values/ Number of total values
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iv)Number of records examined: R Number of records with at least one defect of loss of Accuracy: D1 Percent Defective = [D1/ R ] 100 Accuracy Index (A)= [ 1 -( D1/ R ) ] Percent Defective is a quantifier used extensively in statistical quality control. v) Number of defects (cases of loss of accuracy detected: D, Number of records examined: R Defects/Losses of accuracy per record= D/R Accuracy Index (A)= [ 1 -( D1/ R ) ] It may be mentioned that defect denotes accuracy violation, i.e., presence of error, and hence the absence of accuracy. Ratios based on defects/errors can be converted into accuracy ratio by the transformation: Accuracy Ratio = 1 Defect (i.e., Error) Ratio.

CONSISTENCY (C) -1
Consistency is the degree to which multiple instances of a value satisfy a set of constraints. The multiple instances may exist across space (such as databases or systems) or over time. Thus, consistency is with respect to a set of constraints and data/information is said to be consistent with respect to a set of constraints if it satisfies all constraints of the data/information model. Constraints can apply to the same attributes in different entities (such as the salary attribute in the entities of several employees); they can also apply to different attributes in the same entity (such as the salary level and salary attributes in the entity for a particular employee). Given the number of constraints specified (CS) and the number of constraints for which error/defect detected in the sense constraints are not satisfied (CE), consistency can be quantified as follows: Consistency Index (C) = [ 1 (CE/ CS )]

RELIABILITY (R) 1 ITS DUAL INTERPRETAION


Reliability, which traditionally is a large concern in the system development lifecycle model, is a little complex attribute to define as it has a dual meaning in modern technical usage. Interpretation 1: In the broad sense, it refers to a wide range of issues relating to the design of large systems (complex computerized information system [CIS] included), which are required to work well for specified periods of time. In such a case, the term reliability includes descriptors such as quality (commonly understood from the traditional standard product angle) and dependability(Reliability Analysis), and is interpreted as a qualitative measure of how a system matches the specifications and expectations of a user. From this point of view for an IS the definition of reliability given as accuracy with which information obtained represents data item in whatever respect the information system processed it can be seen to define the reliability requirement for the IS as a whole; reliability index being amenable to quantification through techniques such as Analysis of Variance (AOV). Interpretation 2: Then, as mentioned in Lecture # 10, reliability is also seen as completeness issue. Of course, the completeness requirement itself has two different aspects. One is that of exactness requirement. This narrower requirement occurring due to the ever-present system noise is the main concern in communication theory and in security research as also in the standard product in high volume seeking business models under quality paradigm emphasizing reduced defects in system processing.
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Here, reliability is a measure denoting the probability of the operational success of an item under consideration. The notion of reliability, in this case, may be applied to a single component (e g., a diode or a light bulb); a complex system (e g., an aircraft, a computer or a network of computers); a computer program; a procedure (e g., conversation between a pilot and an air-traffic controller); an element of an IS; namely, data, i. e., IS input, or IS output which is data processed, i.e., information; or even a human. Specifically, reliability analysis is concerned with occurrences of undesirable or unanticipated events during the course of operation of a system or an item and the impact of these events on the systems behaviour or the items use. And the undesirable events may be failures of components (and, for information systems, failures of resulting data and information in the form of data/information errors) caused by deterioration or wearing out of components due to age and usage or even design problems and inadequacies, etc. surfacing in the course of the use of the system. There is another aspect of completeness requirement, though. In the form of observability, it is to be found in system theory. Specifically, the problem considered is that of state variables derived based on measured system outputs at several times and the knowledge of the system-forcing function (control) effort. It is conceivable that the structure of the system and/or measurements taken is such that the measurements do not contain all the information about the system states. The usual technique in systems engineering is to generate control efforts (strategies) based on measurements of system outputs. If the measurements are missing basic information on actual system response (that is, if there is information distortion), erroneous control efforts could be generated, which is not desirable; just as, if, in the IS, value of information element is missing from the information record, the desired information use (IU) value is not achievable, however high may be the information usability factor. In other words, when concerned with reliability factor under correctness requirement of information, there are incompleteness issues due to noise and distortion. For the purpose of the investigation at hand, whether inexactness due to the noise factor or incorrectness due to distortion factor, both result in information item exhibiting error and therefore loss of integrity. As a result, reliability attribute of correctness aspect of information requirement in considering completeness must account for both these possibilities. It is within this framework then the reliability (R) can be heuristically defined as follows: Reliability(R) refers to completeness, currency and audit ability of data/information. Specifically, data/information is complete when all component elements are present (effects both of distortion and noise are counted). Information is current when it represents the most recent value. And, information is auditable if there is a record of how it was derived and that record allows one to trace information back to its source. Information Integrity: Need for Economic Framework for Information Integrity Information requirements of usefulness, usability, and integrity are determinants of information value. Integrity attributes of accuracy, consistency and reliability are fundamental or basic to the information requirements of usefulness and usability and, therefore, to the value of information; and as a result a critical requirement of an IS. Trivial as it may look, this observation is not that obvious as to be found from the difficulty that researchers from the fields of EDP, auditing, data quality, computer science and information systems have in convincing the business managers to put their dollar on improving integrity of their information systems and of information there from. This is because much of the research efforts in defining integrity have invariably been addressed without reference to developing a scientific structure for costs and benefits associated with Information Integrity. Briefly, the integrity research in computer science has its origin in study of secured computer systems and of confidentiality of information. Here, security has normally been taken to mean confidentiality, integrity and availability. Researchers involved with
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information security issue are at ease with this terminology except that the meaning of the word "integrity" is not adequately resolved, the word being frequently used to describe a range of attributes (or requirements) such as: validity of information in a computer system; correctness and protection of Trusted Computing Base and Procedures; reliability, accuracy, faithfulness, non corruptibility and credibility of information transmitted; internal consistency of a system (a correctness aspect) and external consistency (correspondence with reality an appropriateness aspect). In other words, the integrity research effort has been either very pragmatic, and/or technological, or almost semantic and in any case there is no reference to the cost benefit framework for Information Integrity an aspect so crucial to business decisions . In accounting/auditing research there seems to have been no corresponding debate concerning the exact meaning of integrity. Specifically, the auditor assesses control risk, according to Statement of Auditing Standard: SAS 55, as determined by the relevant parts of the entity s (Auditee s) internal control structure. With respect to accounting information, relevant part of the internal control structure is thus made up of three parts (categorizations): the control environment, the accounting system, and the control procedures. This certainly offers a way of structuring the analysis of different possible control mechanisms. However, there is a problem in that there is no explicit coupling to cost and benefits, in the sense that items in different categories can be compared. The categorization in three parts is essentially adhoc. Then there is the COSO report that provides an extended framework, but it is qualitative in nature. It sees internal control, from the management point of view, as consisting of five interlocking factors: monitoring, information and communication, control activities, risk assessment, and control environment. However, the same line of inadequacy that is levelled at SAS 55 above, that is, lack of explicit cost benefit links between the components of model, applies here. This points to the need to develop an economic framework for Information Integrity facilitating cost benefit analysis of Information Integrity so as to scientifically arrive at Integrity attributes and establish Information Integrity as a critical requirement for competitive advantage in business decisions at strategy, control and operational levels. Development of such an economic framework is a separate research study and does not form part of the current investigation. However, it is submitted that IS based visualization of data and information when modelled as decision process (as discussed earlier) is amenable to developing such an economic framework. Cost Benefit Analysis of Information Integrity: Outlining the Approach Briefly, a generic business process covers entire supply chain from concept to delivery. A competitive business strategy calls for a good understanding of business process, which in turn requires choice of a good business model. With advances in computer integrated Systems and in data and information driven technologies, it has become possible to obtain process data and information on current basis and to manipulate it smarter for strategic advantage. What this leads to is modelling the entire supply chain emphasizing information as against material, flow, energy, etc. as has been the practice when, constrained by non-integrated technologies, businesses were mainly concerned with only standard product in high volume syndrome for strategic advantages. And, specifically, what this leads to is a closed loop information and control system based model of a business process IS view of which generic business process is an integral part. It is by systematically controlling the information processing under this business process IS view that competitive advantage can be achieved in complex and changing business environments of today. As mentioned earlier, core IS model can be represented as a decision process model. Traditionally, within the system engineering framework, decision process is viewed to comprise of stages of forecasting (prediction), evaluation of alternatives and selection (for control or any other type of use as the case may be). However, what one has now is an information and control system based model of a business process and this IS is a complex, open system in that, at all levels, the information it processes is accompanied by respective objective and is impacted by and impacts its environment. As a result, for it, the more workable, extended model of a decision process spans multiple stages. They are: initial problem recognition (goal setting); identifying information variables for a complex problem system (goal); constructing problem solving opportunity and constraining spaces; developing information structure, and information structure dynamics models; and undertaking customized planning & design for development of alternatives for the evaluation of final choice for delivery of flexible information decision (itself an information), and the
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control implementation, i. e., the information use part . What is significant is that all of the above stages {Si}, from goal setting to final choice of information for use and control implementation, by themselves are complex information processing stages and, therefore, involve information gathering and processing activities with reference to their respective information bases. And of still greater implication is the reality that at each stage (Si), these information gathering and processing activities are affected by uncertainties; resulting in errors in information processed from stage to stage . The cost benefit analysis of Information Integrity then needs to be carried out with reference to this information processing reality between and within the subsystems/ components of the complex, open system that the business process IS view is. As indicated earlier, development of cost benefit analysis methodology is outside the scope of the present investigation. But in the rest of this subsection, for the purpose of analytical explanation to the criticality of Integrity objective for competitive advantage (as against definitional approaches normally reported in the literature; for example computer security research), an effort is made to outline an approach to the cost benefit analysis of Information Integrity . Consider any information processing stage (Si) of the information and control system representing the business process IS view. Such IS can be viewed as formed by a number of core IS models connected in series and parallel. It is recalled that core IS model to which data and information are integral is modelled as a decision process. To outline the cost benefit analysis methodology of Information Integrity, one can consider such decision process. The decision purpose can be taken to process/transform/convert data as in core IS to deliver information decision (by itself an information) which can be seen as a decision outcome so as to achieve better information use (for example better control). Thus the purpose of processing data/information through the core IS can be taken as improvement in information use, which in turn then can be considered as the strategic or competitive advantage. It is understood that this improvement (shown as D) will be a function of the information (I) being processed under the stage {Si} and, accordingly, it can be represented by [DIU(I)], where IU(I) denotes the variable giving the upper bound of information use as function of I (given that such function can be defined). Let a(I) denote Usefulness factor and b(I) Usability factor. Both factors, functions of I, may take values between (0,1] and, accordingly, can be seen as appropriately defined proportionality variables. Then, the improvement in information use at stage ( Si ) is given by Equation (1).

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Systems Thinking for Education and Research


Education and research are most exciting when they move out of the lecture hall and library and provide opportunity to create, experience, and see. STELLA offers a practical way to dynamically visualize and communicate how complex systems and ideas really work. Whether they are first-time or experienced modelers, teachers, students, and researchers use STELLA to explore and answer endless questions like: How does climate change influence an ecosystem over time? Would Hamlets fate have changed if hed killed Claudius earlier? How do oil prices respond to shocks in supply and/or demand? What will happen when the ozone layer is gone? How do basic macroeconomic principles affect income and consumption?

The Gold Standard


Easy-to-use, STELLA models provide endless opportunities to explore by asking "what if," and watching what happens, inspiring the exciting ah-ha moments of learning. Thousands of educators and researchers have made STELLA the gold standard; using it to study everything from economics to physics, literature to calculus, chemistry to public policy. K-12, college, and research communities have all recognized STELLAs unique ability to stimulate learning.

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Shared Learning

You know that your students have learned when they can, in turn, explain. STELLA models allow you to comm system works what goes in, how the system is impacted, what are the outcomes. STELLA supports diverse learning styles with a wide range of storytelling features. Diagrams, charts, and animation help visual learners discover relationships between variables in an equation. Verbal learners might surround visual models with words or attach documents to explain the impact of a new environmental policy.

Use STELLA to: Simulate a system over time Jump the gap between theory and the real world Enable students to creatively change systems Teach students to look for relationships see the Big Picture Clearly communicate system inputs and outputs and demonstrate outcomes

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Simulation and Analysis Simulations "run" systems over time Sensitivity analysis reveals key leverage points and optimal conditions Partial model simulations focus analysis on specific sectors or modules of the model Results presented as graphs, tables, animations, QuickTime movies, and files

Communication

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STELLA is a commercial software package that facilitates the creation of both simple and complex numerical models. It has a friendly graphical interface that aids in laying out, constructing, and utilizing a model. Models can be configured to run independently with set inputs (either numerically or graphically specified) or in an interactive "flight simulator" mode. Model output can be observed via numerical readouts, tables, and graphs. The STELLA software also provides a variety of tools that facilitate documentation and presentation of the model as a structured "learning environment". Using STELLA Model Simulations STELLA Modeling software is a powerful tool for constructing mathematical models of physical/chemical systems. After constructing a model, simulations can be run by changing the input variables and following the response of a model on a graph or in a table of output variables or results.

Studying Graphs We are going to take the graphical approach to studying variables. Here are some items we are going to investigate on graphs in a number of models in kinetics, equilibria, and radioactive decay: independent versus dependent variables direct versus indirect relationships linear versus non-linear behaviour equation of a line - y = mx +b slope (m) and its variation y-intercepts (b) transformation of variables such as log plots translation of a curve/line You may want to consult an algebra textbook to review some of these simple mathematical concepts. Investigating Changing Variables When we change a variable using a slider, we want to see how the graph responds. A good approach to this is to change a variable from low to high at 3 or 4 different values. Try to explore the total
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range of the variable. Then investigate another variable if required. Before starting another variable, set the previous variable at mid-range on the slider. Discover the trend in a variable and then move on to the next one. Many of the graphs will show multiple runs to allow easy comparison of changes. If a graph becomes to busy, press the clear button. Sketching and labelling graphs are highly recommended.

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