Information Management

Unit 5: New It Initiatives

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 Content
• Role of Information Management in ERP

• E- business

• E- Governance

• Data mining

• Business Intelligence

• Pervasive computing

• Cloud computing

• CMM (Capability Maturity Model)

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 ERP – Introduction

• Covers the techniques and concepts employed for the

integrated management of businesses as a whole
• Effective use of management resources
• ERP – technological backbone of e-business, an
enterprise – wide transaction framework with link
into sales order processing, inventory management
and control, production and distribution, planning and
finance” MSM-MBA Even Semester2020 3
 Evolution of ERP
Level of Business Integration

ERP II

Extended ERP

ERP
MRPII
MRP

1970 1980 1990 2000 2005

Column1 Column2 Column3

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 ERP II

• Next generation ERP

• System can quickly, accurately and consistently operate

an entire organization
• ERP II solution offers greater flexibility in the integration
of functions between departments and even industries
• ERP II encourages user participation, facilitating
interaction between customers and vendors
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 Significance of ERP II

1. Industry specific

applications

2. Flexibility

3. Web centric application

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 Need of ERP system

1. Business Integration

2. Flexibility

3. Better analysis and planning

capabilities

4. Use of latest technology

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 Characteristic of ERP
1. Accommodating variety – multi facility provided
2. Integrated management information – All in one place
3. Database creation – analysis, reporting becomes easy
4. Seamless integration – integration of new products
5. Supply chain management – flow of demand and supply from
end to end
6. Resource Management - facilitate the effective utilization of
resources
7. Integrated data model – providing data for employees, suppliers
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and customers.
 Elements of ERP

Repository

GUI Logic DB
Driver server driver RDBMS

Operating System
(UNIX, NT)

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• Advantages:

1. Intangible benefits (qualitative benefits): a,

inventory reduction b, material cost reductions
c, labor cost reductions
2. Tangible (quantitative benefits): a. Effects on
production b. Effects on production and materials
management c. Effects on MIS function
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• Disadvantages:

1. Expense and time in implementation

2. Difficulty implementing change
3. Difficulty integrating with other system
4. Risks in using one vendor
5. Risk of implementation failure
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 Role of IM in ERP

1. Cycle time
2. Transaction processing
3. Productivity
4. Supply chain management

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 E-Business

• Electronic business – utilization of formation

and communication technologies in support of
all the activities of business
• E-business includes any process that a
business organization conducts business over
computer mediated network
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• Electronic and communication technology

comprised of:

1. E-business

2. E-marketing

3. E-commerce

4. E-operations
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 Characteristics of E-Business

1. Collaborative product development

2. Procurement and order management

3. Collaborative planning, forecasting and
replenishment

4. Operations and logistics

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• E- Business framework consists of

1. Business partners, suppliers, distributers, resellers

2. Employees
3. Supply chain Management
4. Enterprise resource planning
5. Customer relationship management
6. E-procurement
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• Advantages:

1. Business survival

2. Finding new customers

3. Retaining existing customers

4. Improvement in process
• Disadvantages:
1. Technical and non – technical limitations
2. Need for hardware and software to evolve
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• Applications of E-Business:

1. E - Banking

2. E - trading

3. E - Learning

4. Employment and job market

5. Online publishing

6. E- tailing

7. E- Auctions
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 E- Governance

• E- Governance is the application of

information and communication technologies
to transfer the efficiency, effectiveness,
transparency and accountability – within
Government and between Government and
etc.,
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• E- governance is a form of e-business in

governance comprising of process and

structures involved in deliverance of electronic

services to the public viz., citizens

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 Objectives of E- governance

1. To build an informed society

2. To increase government and citizen
interaction
3. To encourage citizen participation
4. To bring transparency in governing process
5. To make the government accountable
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 Model of E-Governance

Community Transition
Management system Management system

Knowledge Infrastructure
Management system Management System

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 Advantages of E-Governance

1. Integration of various ministers and departments

2. Documentation, monitoring, and control of various projects

3. Geographic information based system

4. Crime control and management

5. Welfare projects

6. Revenue generation

7. Birth and Death monitoring and control

8. Citizen Identification system

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Applications of E-Governance

• Public sector

1. Issue of driving license and registration of

vehicles

2. Payment of taxes, bills and submission of

returns

3. Issue of Passport

4. E- policing
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 Data Mining

• Data mining – concerned with discovery

knowledge
• Uncovering relationship of patterns
hidden in data that can be used to
predict behaviors, outcomes.
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• Knowledge Discovery Databases (KDD)is the non

trivial extraction of implicit, previously unknown

and potentially useful information of data.

• These relationships represent valuable knowledge

about the database and the object in the database

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 Components of data mining

1. Database 5. Knowledge base

2. Data warehouse 6. Data mining Engine
3. Information 7. Pattern Evaluation
repository module
4. Data warehouse 8. Graphical user
server interface

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 Data mining Techniques

1. Cluster analysis – unsupervised learning environment

2. Induction – technique to infer information that is
generalized from the database a, decision tress b,
rule induction.
3. Neural networks – remarkable ability to derive
meaning from complicated or imprecise data and can
be used to extract patterns and detect trends
Contd…
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4. OLAP – online analytical processing –
relationships among data as a
multidimensional structure

5. Data Visualization – make it possible analyst to

gain a deeper, more institutive understanding

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CRISP – DM (Cross industry standard
process for data mining
Ph
as
• Business understanding
e1

Ph
as
• Data Understanding
e2

Ph
as
• Data Preparation
e3

Ph
as
• Modeling
e4

Ph
as
• Evaluation
e5

Ph
as
• Deployment
e6

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 Advantages of data mining

1. Automated prediction of trends and

behavior
2. Automated discovery of previously
unknown patterns
3. Databases can be larger in both depth and
breath
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 Disadvantages of Data Mining

1. Privacy Issues

2. Security Issues

3. Misuse of Information/Inaccurate
Information

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 Data Mining Applications

1. Retail/marketing

2. Banking

3. Insurance and healthcare

4. Transportation

5. Medicine
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 Business Intelligence

• The term BI represents the tools and systems

that a key role in the strategic planning
process
• BI systems gather data from multiple sources
and use the analytics and reporting – support
decision making
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 Key performance Indicators

• Are quantifiable measurements

1. General: year to year measurements

2. Finance: EPS, profit margin and alike

3. HR: applicants to job opening, employee turnover

ratio and alike

4. Education: graduation rates, no. of incoming,

student retention rates
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 Components of BI (Business
Intelligence)

1. Data extraction, transformation and

loading tools

2. Data store

3. Data query and analysis tools

4. Data presentation and visualization

tools
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 Advantages of BI
1. Authorize employees

2. Unite people to access data competently and successfully

3. Simplify team work and allocation

4. Convey BI to the entire firm

5. Examine and increase insight

6. Enhance association

7. Lesson training requirements

8. Transport refined investigation and reporting

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 Disadvantages of BI

1. Piling of historical data

2. Cost

3. Complexity

4. Disordering of commercial settings

5. Limited use

6. Time consuming implementation

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Applications of Business intelligence

1. Measurement

2. Analytics

3. Reporting/Enterprise reporting

4. Collaboration/collaboration platform

5. Knowledge Management

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 Pervasive computing

• Pervasive means “Existing everywhere” –

ubiquitous computing
• Rapidly developing area of information and
computing technology (ICT)
• May lead to a greater degree of user technology –
control over things (computers)
• Opposite to “Virtual Reality”
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Pervasive computing principles

1. Decentralization

2. Diversification
3. Connectivity

4. Simplicity

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 Pervasive computing techniques

1. Computing devices – 1. sensors 2.

processors 3. Actuators
2. Communications (connectivity)

3. User interface (Human Computer

interaction) – active and passive and
coercive
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 Applications of pervasive computing

• Could have a range of applications

1. Smart home – highlighting, energy management,

water control, home security and communications,
home theatre
2. Smart appliances
3. Smart cars
4. Smart “things’ – Barcodes and Auto - ID
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 Cloud computing
• Cloud computing is a type of computing that rules
on sharing computing resources rather than local
servers or personal device to handle applications
• Word cloud is the ‘metaphor’ for Internet

• The idea of cloud computing is based on a very

fundamental and basic principal of ‘re-usability of
It capabilities”
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Characteristics of cloud computing

1. On demand self service

2. Broad network access

3. Resource pooling

4. Rapid elasticity

5. Measured service
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 Cloud Computing

1. Clients (mobile, thin, thick)

2. Data centre

3. Distributed server

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 Cloud Computing models

1. Software as a service (SaaS)

2. Platform as a service (PaaS)

3. Infrastructure as a service (IaaS)

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 Types of cloud computing

1. Public cloud
2. Private cloud – on premise
private cloud and externally
hosted private cloud
3. Hybrid cloud
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 Capability Maturity model (CMM)
• Capability Maturity model (CMM) – service mark
registered with the U.S patent and trademark office
• - Was originally developed as a tool for objectively
assessing the ability of Government contractors’ processes
to perform a contracted software project
• CMM provides the means to measure an organizations
process maturity against a set of common feature that are
specified at each of the maturity lends
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 KPA (Key Process Area)
• 5 common features

1. Commitment to perform
2. Ability to perform
3. Activities performed
4. Measurement and analysis
5. Verifying implementing
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 Structure of CMM
Maturity levels
Process contain
indicate
Capability
Key process Areas

Goals Organized by
achieve
Common features
Implementation contain
Address

Key practices
Activities
describe

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Levels of CMM (Capability Maturity
Model)
Level 1: Initial level

Level 2: Repeatable level

1. Requirements management

2. Software project planning

3. Software project tracking and oversight

4. Software sub contract Management

5. Software quality assurance

Contd…
6. Software configuration Management
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• Level 3: Defined level

1. Organization process focus

2. Organization process definition

3. Training program

4. Integrated software management

5. Software product engineering

6. Inter group co-ordination

7. Peer reviews
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• Level 4: Managed level

1. Quantitative process management

2. Software quality management

• Level 5: Optimized level
1. Defect prevention

2. Technology change management

3. Process change Management

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The End

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