MME - 305

Data and Digital Economy

By TS Rangarajan
 INTRODUCTION

● Rangarajan Thirumpoondi ITBHU Alumni

1980-1985
● Employed in India As Process Engineer,
Production Manager In various Electronic Ceramic
component manufacturing units in Chennai and
Bengaluru from 1985 to 1996
● Employed In the USA from 1997 to 2021 As IT
Consultant, Data Modeller, Data Architect, ETL
Specialist, SQL specialist, Cloud migration
consultant for various clients
 Course Plan
● This will be a non-technical course
● This is for those wanting to know about the workings of the IT industry
● This provides our virtual visit to an IT workplace and to learn the different
terminologies, working methods/standards, data & material flow, types of
industries, associated problems/solutions, hierarchies, IT tools, etc
● Different aspects of SDLC (Software Development Life Cycle), SDLC
implementation methods and tools, etc
● Changes happening in IT sector (technology, marketing, legal &
environmental changes) and the impact they have on digital economy
● Short history of software languages, databases, data types, memory storage
improvements, IT tools
 Notes
● A short history of nearly everything by Bill Bryson ( 2003)
● RDBMS - Rules - Normalization - Cloud - Structured Data -
Unstructured Data
● Data Security - Data Scalability - Ethics - Standards - Data Types
● Communication
Information Technology and
Digital Economy
● Economic activity that uses digital information ,
knowledge or tools as a factor of production and
consumption.
● Discussion on supply demand imbalance
● Recent examples of more supply
● More demand and less supply means to resolve the
imbalance
● Economy measures - by GDP, by investments, by individual
income, consumer price index, monthly unemployment
reports
● Supply-demand imbalance mitigation
Case study - walmart
inventory based pricing
● Information Technology user
● 1996-1999: Better Every Day Low Prices! Always.
● 1999-2007: Always Low Prices. Always.
● 2007-present: Save Money. Live Better.
● Inventory control - method
● How walmart outwitted other competitors
● How they lost to Amazon
● How they are catching up
 Data and Digital Economy
● Discussion about what a good economy means and how
every economic idea is based on bridging the gap between
supply and demand
● Effect of more supply and less demand – causes recession
● More demand and less supply causes inflation
● More supply/less demand of some commodities and less
supply/more demand of others causes a false outlook on
the economy
5 pillars of Digital Economy
1. INFRASTRUCTURE
● Basic Needs - Roti kapda aur makkaan
● Water and electricity
● Network systems
2. INVESTMENT
● Banking systems
● Private funding
● collaborations
3. ATTITUDE
4. GOVERNANCE
● Legal systems
● Control mechanism
5. INNOVATION
 Role and Rule of Business
● The purpose of business with ethics is to make some
money now and to make more in future.
● Business is a sign of growth
● Monopoly is a sign of or causes inefficiency, corruption and
exploitation of consumers
● Consumers should have a choice on price, quality, look,
texture and quantity
● Customer service should include after sales service,
warranty, return policies, replacement/repair.
EFFECTS of WORLD WAR 2 (WWII)
● Development of Electronics and in general Technology including
atom bomb
● America was recognized as a superpower
● A new country, Israel, was created
● Great britain lost its name, fame and power
● India and other countries got independence
● US helped Japan to rise up after devastation
● Europe on whole developed in Science and Technology
● Germany regained from defeat
 Brief History of World War II
World war II lasted
GERMANY + ITALY + JAPAN = Axis
Great Britain + France + Belgium = Allies
US and Canada were first neutral and later joined allies
(Pearl harbour effect)
Russia was first neutral and then supported allies
https://www.pbs.org/wgbh/masterpiece/specialfeatures/world-war-ii-major-events-timeline/#
1. Practical radar technology got its official start here
2. Enigma, planting the seeds of Artificial Intelligence.
During WWII, Germany had developed an encrypted
communications system, called `Enigma, which many people
believed to be unbreakable. The machine contained a series of
interchangeable rotors, which rotated every time a key was
pressed, so that the cipher changed continuously. The machine
also had a plug board where pairs of letters were transposed.
Combining these two systems resulted in 103 sextillion possible
settings to choose from, which the Germans believed made
Enigma unbreakable.
3. The importance of pressurized cabins.
f you have ever flown in an airplane, you may have been aware that the
I

cabin was pressurized. Airplane cabins are pressurized to protect

passengers and crew from hypoxia, a lack of oxygen at high altitudes. To
prevent hypoxia, airplanes must pump air into the cabin to mimic the 14.7
pounds per square of pressure found at sea level.

The planes initially used in World War II were not pressurized, and pilots
and crew relied on oxygen masks. As bombers became larger and
required the crew to move around the cabin, a need emerged for cabin
pressurization.

The first bomber with cabin pressurization was the Boeing B-29
Superfortress, which also included the first-ever mass-produced system
designed for regulating air pressure.
4. Penicillin changed the world for the better.
The world before
antibiotics was a more
dangerous place, a place
where a simple scratch,
never mind a bullet
wound, could lead to
death from infection.
While the antibiotic
penicillin was developed
in the 1930s by Alexander
Fleming, Howard Florey,
and Ernst Chain, the drug
first came into widespread
practical use during WWII.
5. The underappreciated aerosol can got its start in WWII.
6. Wernher von Braun and V2 missiles
Wernher von Braun was a
German rocket scientist
who worked for the Nazis
until making his way to the
US at the end of the war.
He has been dubbed The
Father of the Rocket, and
his research helped to lay
the foundations for the U.S.
space program. However,
before this, he was
responsible for the
"Vergeltungswaffe 2" or V2
missiles, the world's first
long-range ballistic
missiles.
7. The atomic bomb and nuclear energy.
Rank & Country GDP (USD billion) GDP Per Capita (USD thousand)

#1 United States Of America (U.S.A) 26,854 80.03

#2 China 19,374 13.72

#3 Japan 4,410 35.39

#4 Germany 4,309 51.38

#5 India 3,750 2.6

#6 United Kingdom (U.K.) 3,159 46.31

#7 France 2,924 44.41

#8 Italy 2,170 36.81

#9 Canada 2,090 52.72

9.67
#10 Brazil 2,080
Year Unemployment Rate (percent)

2023 7.95 (as of July)

2022 7.33

2021 5.98

2020 8.00

2019 5.27

2018 5.33

2017 5.36

2016 5.42

2015 5.44

2014 5.44

2013 5.42

2012 5.41
Rank & Country % unemployment

#1 United States Of America (U.S.A) 3.8

#2 China 4.1

#3 Japan 2.3

#4 Germany 3.3

#5 India 7.3

#6 United Kingdom (U.K.) 4.2

#7 France 7.4

#8 Italy 8.3

#9 Canada 5.8

#10 Brazil 8.2

India's manufacturing sector is a key contributor to the country's economic growth. It accounts for about
15% of India's Gross Domestic Product (GDP) and employs around 12% of the country's workforce. The
sector is diverse and includes a range of industries such as textiles, pharmaceuticals, automobiles, and
consumer durables.

In recent years, the Indian government has implemented a number of initiatives to boost the manufacturing
sector, including the "Make in India" campaign, which aims to increase the share of manufacturing in the
country's GDP and promote the growth of domestic manufacturing. The government has also set up a
number of special economic zones (SEZs) to attract foreign investment in the sector.

Despite these efforts, the manufacturing sector in India has faced a number of challenges, including a lack
of infrastructure, a shortage of skilled labor, and difficulties in obtaining credit. In addition, the sector has
been hit by a slowdown in global demand and increased competition from countries such as China.
What are the Challenges Related to India’s Manufacturing
Sector?

■ Inadequate Tech Based Infrastructure: Technology-based infrastructure, especially for

communication, transportation, and skilled manpower are important for enhancing
manufacturing competitiveness.
○ Telecom communication facilities are mainly confined to big cities. Most of the
State Electricity Boards are running in loss and are in deplorable condition.
■ Access to Credit for MSME: The Micro, Small and Medium-sized enterprises (MSME)
sector appears to have less favorable access to credit and higher costs for working capital
compared to medium and large-scale industrial and service sectors.
■ Skilled Labour Shortages: There is a lack of trained and skilled labor in the manufacturing
sector in India, which limits the growth of the sector.
■ Complex Regulations and Poor Supply Chain: The manufacturing sector in India is subject to
a number of complex regulations like license, tender, audit, which can be a burden for
businesses and hinder their growth.
○ Also, the sector is often plagued by poor supply chain management, which can lead
to inefficiencies and increased costs.
■ Competition from Other Countries and Imports: India's manufacturing sector faces intense
competition from other countries, which can make it difficult for domestic businesses to
compete on the global market.
○ Also, India is still dependent on foreign imports for transport equipment,
machinery (electrical and non-electrical), iron and steel, paper, chemicals and
fertilizers, plastic material etc.
 What Should be the Way Forward?
■ Investing in Infrastructure: Improving the quality and availability of infrastructure, such as
roads, ports, and power supply, could help attract more investment and businesses to the
manufacturing sector.
○ This could involve building new infrastructure or upgrading existing
infrastructure.
■ Promoting Export-Oriented Manufacturing: Encouraging the development of
export-oriented manufacturing could help Indian businesses tap into new markets and
increase their competitiveness.
○ This could involve providing support for businesses looking to enter new
markets, or implementing policies that incentivize export-oriented
manufacturing.
 What Should be the Way Forward? (contd..)
■ Fostering Innovation: Supporting research and development in the manufacturing sector, and
promoting the adoption of new technologies and processes, could help drive innovation and
boost productivity.
■ This could involve providing funding for R&D or implementing policies that encourage the
adoption of new technologies.
■ Improving Access to Finance: Making it easier for small and medium-sized enterprises
(SMEs) in the manufacturing sector to access credit and other forms of financing could help
support their growth and development.
○ This could involve implementing policies that encourage banks and other financial
institutions to lend to SMEs in the manufacturing sector or providing
government-backed loan guarantees to support SME lending.
○
 What Should be the Way Forward? (contd..)

■ Streamlining Regulations: Simplifying and streamlining regulations could help reduce the
burden on businesses and encourage more investment in the manufacturing sector.
○ This could involve streamlining the process for obtaining licenses and permits or
simplifying compliance requirements.
■ Encouraging Skill Development: Providing more opportunities for training and skill
development could help address the shortage of skilled labor in the manufacturing sector
and increase its competitiveness.
○ This could involve investing in vocational training programs, or implementing
policies that encourage businesses to invest in employee training.
 IT Industry
● IT industries work for themselves or for multiple clients
● They are of two types : product based or service based
● Product based industries are mostly manufacturing units
with their own supply chain system
● It industries have data sources - from: OLTP (Online
Transaction Process) systems, during registration, Look-Up
Tables, other Data Marts, financial systems, BOM (Bill of
Material), purchase order/purchase order details, process
flows, sales invoice, surveys,etc
 SOME ACRONYMS

SKU - SEMI KNOCKED UNIT

BOM - BILL OF MATERIAL
EDW - ENTERPRISE DATA WAREHOUSE
CDW - CENTRALIZED DATA WAREHOUSE
DBMS - DATA BASE MANAGEMENT SYSTEM
RDBMS - RELATIONAL DATA BASE MANAGEMENT SYSTEM
ETA - EXPECTED TIME OF ARRAIVAL, EXPECTED TIME OF COMPLETION
SQL - STRUCTURED QUERY LANGUAGE
PL/SQL - PROCEDURAL LANGUAGE/STRUCTURED QUERY LANGUAGE
SP - STORED PROCEDURE
DM - DATA MART
ETL - EXTRACTION TRANSFORMATION AND LOADING
GIGO - GARBAGE IN GARBAGE OUT
Potato chip manufacturing process - automation
 Manufacturing Processes
Supplier
Purchase Order
Raw Material
Bill Of Material
Scheduling
Production Routing Order
Testing/QA
Test Result
Finished Goods
Sales Order
Sales/Delivery/Fulfillment
Better stock control

Easier management of inventory

Logistics planning

Analytics

Tracking

Increased efficiency and productivity

Flexible solution
Company A, which is unable to keep track of the stocks left in the warehouse, runs out of stocks to
meet last-minute demands. It happened consecutively for two months, given the sudden
replacement of the person recording the data manually. As a result, the shortage or unavailability of
the products from the market made their customers switch to other brands.

In their annual meeting, the top management decides to have an inventory control system deployed
in the firm. It should automatically update the software as soon as a product goes out of the storage
unit. As a result, they will have the latest details updated on their centralized databases. Thus, they
deployed the RFID system for a regular labeling system to avoid errors.

Thus, the database reflects the updates automatically as and when the products enter and exit the
warehouse. Hence, they could track the right numbers of stocks for them to decide when to reorder
and never witnessed stockouts ever again.
1. PROSTHETICS
2. NANOTHERAPY FOR
CANCER

the researchers at Israel’s

Bar-Ilan University has already
developed nanobots for targeting
and the delivery of drugs to
appropriate defective cell using
syringes leaving behind the
healthy ones without harm.
3. ROBOTIC SURGERY
4. FETAL DNA TESTING

Cell-free DNA testing is the latest

medical technology brought in
the field of medicine for testing
the unborn fetus without any
harm and strain by the testing
from mother’s blood
Requirements gathering is the process of identifying
your project's exact requirements from start to finish.
This process occurs during the project initiation phase, but
you'll continue to manage your project requirements
throughout the project timeline.

The most important phase of the SDLC is the requirement

gathering and analysis phase because this is when the
project team begins to understand what the customer wants
from the project. During the requirements gathering sessions,
the project team meets with the customer to outline each
requirement in detail.
Requirement gathering is the act of generating a
list of requirements to define what a project is
about and its goal. You can gather insights from
the stakeholders, whether they are clients,
employee users, consumers or vendors.
Requirement gathering often acts as the
blueprints of a project. Poorly established
requirements can have a negative impact, while
properly established ones can lead to success.
A 6-Step Requirements Gathering
Process
● Identify the relevant stakeholders.
● Establish project goals and objectives.
● Elicit requirements from stakeholders.
● Document the requirements.
● Confirm the requirements.
● Prioritize the requirements.
The four main types of requirements that
you can expect on a program are:
Functional Requirements.
Performance Requirements.
System Requirements
Technical Requirements.
A business requirements document (BRD) is a report
detailing everything a new project requires for success.
There are seven key components of a BRD template,
which serve to provide clarity and context for stakeholder
Phases of Software Testing Life Cycle (STLC)
 Different types of tests

1. UNIT TESTING 2. INTEGRATION TESTING

3. SOFTWARE PERFORMANCE TESTING 4.FUNCTIONAL TESTING

5. END TO END TESTING 6. SANITY TESTING

7.SYSTEM INTEGRATION TESTING 8. VOLUME TESTING

9.REGRESSION TESTING 10. GRAPHIC USER INTERFACE (GUI) TESTING

11. USER ACCEPTANCE TESTING 12. SCALABILITY TESTING

13.. SMOKE TESTING

 CAPITALISM, COMMUNISM AND SOCIALISM
The essential feature of capitalism is the motive to make a
profit. As Adam Smith, the 18th century philosopher and father
of modern economics, said: “It is not from the benevolence of
the butcher, the brewer, or the baker that we expect our dinner,
but from their regard to their own interest.”
In its modern form, communism grew out of the socialist
movement in 19th-century Europe. As the Industrial Revolution
advanced, socialist critics blamed capitalism for the misery of
the proletariat—a new class of urban factory workers who
labored under often-hazardous conditions.
French Revolution
5 May 1789 – 9 Nov 1799
The capitalist economy refers to an economic environment
characterized by competition, property ownership, and free
enterprise systems.
Capitalism is often thought of as an economic system in
which private actors own and control property in accord
with their interests, and demand and supply freely set
prices in markets in a way that can serve the best
interests of society. The essential feature of capitalism is
the motive to make a profit.
 DRAWBACKS OF CAPITALISM

● Creates inherent class conflict between capital and labor.

● Generates enormous wealth disparities and social
inequalities.
● Unequal conditions lead to poverty and unemployment for
some.
● Can incentivize corruption and crony capitalism in the
pursuit of profit.
● Produces negative externalities such as pollution.
Socialism is, broadly speaking, a political and economic
system in which property and the means of production are
owned in common, typically controlled by the state or
government. Socialism is based on the idea that common or
public ownership of resources and means of production leads
to a more equal society.

Norway, Sweden, Denmark, Iceland, and Finland follow

socialism strictly. They are purely socialistic countries.
These five Nordic countries are examples of the Socialist
Economy. They distribute the income equally according to
their hard work and contribution.
 DRAWBACKS of SOCIALISM

Disadvantages of socialism are

● Slow economic growth
● Less entrepreneurial opportunity
● Less competition
● A potential lack of motivation by individuals due
to lesser rewards.
 Can Data Analysis Solve these problems?
● Inventory ● Marketing

● Supply chain ● Fulfillment

● Line Balancing ● Backlogs

● Logistics ● Warranties
 What is Data?
● Data - Any useful information in digital form
● Data can be sourced from: OLTP (Online
Transaction Process) systems, during registration,
Look-Up Tables, other Datamarts, financial
systems, BOM (Bill of Material), purchase
order/purchase order details, process flows, sales
invoice, etc
 Supplier
Supplier AA Supplier B

Eastern Regional Center Central Regional Center Western Regional Center

Warehouse EA
Warehouse CA Warehouse WA

Warehouse EB
Warehouse CB Warehouse WB

Service centers
Service Stations
https://www.youtube.com/watch?v=2fnv_3qn3Yc
 Brief History of Comp Languages/OS/RDBMS
● COBOL ● Mainframe Computers

● C ● Oracle

● SQL ● MS SQL Server

● UNIX ● Teradata

● Linux ● Cloud
End