Information Technology & Systems (MB231) : October 2006

 Information Technology & Systems (MB231) : October 2006

Section A : Basic Concepts (30 Marks)
• This section consists of questions with serial number 1 - 30.
• Answer all questions.
• Each question carries one mark.
• Maximum time for answering Section A is 30 Minutes.
1.
If the finance manager is provided with information on customers who exceeded their credit limits only, such report is termed as
(a)
Exception report
(b)
Scheduled report
(c)
Demand report
(d)
Response report
(
e)
Push report.
< Answer >
2.
Which of the following refers to the storage of data in such a way that it is not affected by modification in the data structure or changes in the application program?
(a)
Data integrity
(b)
Data independence
(c)
Data security
(d)
Data maintenance
(
e)
Data consistency.
< Answer >
3.
The repository of information gathered from multiple sources, stored under a unified schema at a single site is known as
(a)
Data warehouse
(b)
Distributed database
(c)
Undistributed database
(d)
Data mining
(
e)
Object oriented database.
< Answer >
4.
Transformation of data to binary codes, which the primary memory of a computer is designed to accept is done by units called
(a)
Input interfaces
(b)
Transformation interfaces
(c)
Output interfaces
(d)
Internal processing interfaces
(
e)
Binary interfaces.
< Answer >
5.
The unit that maintains order and directs the operations of the entire system, by selecting, interpreting and ensuring the execution of the program instructions is known as
(a)
Arithmetic unit
(b)
Processing unit
(c)
Input unit
(d)
Control unit
(
e)
Memory unit.
< Answer >
6.
Which of the following documents serve as confirmation or proof for their recipients, that certain transactions have occurred?
(a)
Action documents
(b)
Turn-around documents
(c)
Information documents
(d)
Control documents
(
e)
Transaction documents.
< Answer >
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7.
Tasks like printing a block of the worksheet, copying functions and formulae into a new row, etc. can be saved as
(a)
Micros
(b)
Macros
(c)
Templates
(d)
Functions
(
e)
Cell references.
< Answer >
8.
Which of the following stages of system development life cycle involves the monitoring evaluation and modification of a system to make desirable or necessary improvements?
(a)
System analysis
(b)
System design
(c)
Database design
(d)
Systems implementation
(
e)
Systems maintenance.
< Answer >
9.
Which of the following best describes an RDBMS?
(a)
A database with an index on every field
(b)
A database with an object-oriented structure
(c)
A database where related tables are kept separately, but can be used together
(d)
A database designed for high-speed transaction processing
(
e)
A database with a constraint on every field.
< Answer >
10.
Which of the following comes under first generation computers?
I. ENIVAC.
II. EAVAC.
III. EDVAC.
IV. EDSAC.
(a)
Both (I) and (II) above
(b)
Both (II) and (III) above
(c)
(I), (II) and (III) above
(d)
(II), (III) and (IV) above
(
e)
(I), (III) and (IV) above.
< Answer >
11.
Which of the following provides an in-depth study of the end user information needs?
(a)
System analysis
(b)
System design
(c)
Systems specification
(d)
Systems implementation
(
e)
Systems maintenance.
< Answer >
12.
Application programs that are used to create and maintain the database to provide information to users is called as
(a)
File
(b)
DBMS
(c)
Database
(d)
Data
(
e)
System file.
< Answer >
13.
Which of the following determines the cost effectiveness of a proposed system?
(a)
Organizational feasibility
(b)
Economic feasibility
(c)
Technical feasibility
(d)
Operational feasibility
(
e)
Transactional feasibility.
< Answer >
14.
An ATM switch breaks voice, video and other data into fixed cells of
(a)
51 bytes
(b)
52 bytes
(c)
53 bytes
(d)
54 bytes
(
e)
55 bytes.
< Answer >
15.
Which of the following charts are useful for Mr.Suresh, if he wants to compare the population of Hyderabad with the population of Andhra Pradesh?
(a)
Column charts
(b)
Bar charts
(c)
Line charts
(d)
Pie charts
(
e)
Gantt charts.
< Answer >
16.
Which of the following operating systems enables the computer to execute more than one task in a single program?
(a)
Single tasking
(b)
Cooperative multitasking
(c)
Preemptive multitasking
(d)
Multithreading
(e)
Non-preemptive multitasking.
< Answer >
17.
Which of the following work like photocopy machines?
(a)
Line printers
(b)
Dot matrix printers
(c)
Inkjet printers
(d)
Laser printers
(
e)
Plotters.
< Answer >
18.
The collection of information stored in a database at a particular moment is called
(a)
View
(b)
Instance
(c)
Schema
(d)
Entity
(
e)
Field.
< Answer >
19.
In project implementations, the management tool that is most commonly used is
(a)
Line chart
(b)
Column chart
(c)
Gantt chart
(d)
Data chart
(
e)
Pie chart.
< Answer >
20.
Which of the following commands is used to send blind carbon copies to the list of names in UNIX operating system?
(a)
mail-c
(b)
mail-v
(c)
mail-s
(d)
mail-b
(
e)
mail-i.
< Answer >
21.
Which of the following commands is used to read the contents of mail box in UNIX operating system?
(a)
mail-c
(b)
mail-f
(c)
mail-s
(d)
mail-b
(
e)
mail-i.
< Answer >
22.
Which of the following commands in UNIX operating system is used for displaying the count of the number of occurrences of a pattern in a file?
(a)
grep-c
(b)
grep-l
(c)
grep-n
(d)
grep-v
(
e)
grep-i.
< Answer >
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23.
Which of the following (in communication network context) refers to the way in which the end points or stations of a network are linked together?
(a)
Communication protocol
(b)
Topology
(c)
Network protocol
(d)
Scalability
(
e)
Resource sharing.
< Answer >
24.
Which of the following commands in Novell Netware Operating System deletes trustee rights from a directory?
(a)
NCOPY
(b)
REMOVE
(c)
SALVAGE
(d)
REVOKE
(e)
FLAG.
< Answer >
25.
The process of designating a system for the simultaneous transmission of two or more messages over the same channel is called
(a)
Multiplexing
(b)
Networking
(c)
Synchronizing
(d)
Digitizing
(e)
Asynchronizing.
< Answer >
26.
Which of the following protocols in TCP/IP Reference Model is a reliable connection oriented protocol that allows a byte stream originating on one system to be delivered without error to any other system in the network?
(a)
Transmission Control Protocol
(b)
User Datagram Protocol
(c)
File Transfer Protocol
(d)
HyperText Transfer Protocol
(e)
Internet Protocol.
< Answer >
27.
Code conversion is the function of which layer in OSI reference model?
(a)
Data link layer
(b)
Network layer
(c)
Session layer
(d)
Presentation layer
(e)
Application layer.
< Answer >
28.
Which of the following is/are false about functions?
I. Library functions are written by users.
II. main ( ) is user-defined function.
III. Function name should not be same that of library name.
(a)
Only (I) above
(b)
Only (II) above
(c)
Both (I) and (II) above
(d)
Both (II) and (III) above
(e)
All (I), (II) and (III) above.
< Answer >
29.
How many categories of functions are present in C language?
(a)
2
(b)
3
(c)
4
(d)
1
(e)
5.
< Answer >
30.
In C language, which of the following variable(s) is/are stored in memory?
I. Automatic variable.
II. Static variable.
III. Register variable.
(a)
Only (I) above
(b)
Only (II) above
(c)
Both (I) and (II) above
(d)
Both (II) and (III) above
(e)
All (I), (II) and (III) above.
< Answer >
END OF SECTION A
Section B : Caselets (50 Marks)
• This section consists of questions with serial number 1 – 6.
• Answer all questions.
• Marks are indicated against each question.
• Detailed explanations should form part of your answer.
• Do not spend more than 110 - 120 minutes on Section B.
Caselet 1
Read the caselet carefully and answer the following questions:
1.
How are companies using Information Technology to improve services, lower costs, and become more competitive?
(7 marks)
< Answer >
2.
How do you correlate the implementation of Information Technology, if the following case was of a bank or a financial services firm?
(8 marks)
< Answer >
Endura Corporation is the country’s leading manufacturer and marketer of major home appliances, with headquarters in Mumbai. Its 60,000 employees manufacture fine appliances in 21 states and market them under 11 major brand names in approximately 140 districts around the country. Recent revenues exceeded Rs.78.3 crore annually.
Responding to a competitive price change used to take a lot of effort for Endura. When one of its competitors dropped price, a flurry of faxes and overnight packages flew out of Endura’s headquarters to match them. Yet, it was often weeks before Endura could adjust its prices. A price increase also created major problems. Customers, ranging from mega-retailers to little stores, became understandably upset when they ordered a product and received an invoice with a higher price when the product arrived. Endura had to issue a credit for the difference, but this created extra paperwork and worse yet, dissatisfied customers.
Under this system, changing pricing on every product each quarter took over three months and was error prone. Performing the quarterly pricing required calculating new prices, reviewing, printing, re-reviewing, and feeding them into a mainframe-based computer system. After that, the new price lists were mailed, faxed, and sent by overnight delivery to trading partners and regional sales representatives.
To break free of the cumbersome pricing system, Endura implemented a new system and streamlined work processes to give immediate responses to market changes or to launch a special promotion of its own. Now sales agents access a centralized pricing database for quick reference when making their calls. The new system consolidates pricing and order entry systems of the entire company and halves the time it takes to re-price Endura’s entire product line of more than 2,000 models. The result is that it is easier to do business with Endura.
Endura’s Information Technology overhaul is spreading to other systems also. Not only is the company implementing a new corporate pricing system, it is also undergoing a massive reorganization to streamline all of its business functions. Why is this necessary? To enable Endura to compete with major companies such as Electrolux, BPL, and Videocon.
Caselet 2
Read the caselet carefully and answer the following questions:
5
6
3
If you were in the position of CTO of Innova Solutions, what software and hardware solutions would you recommend to solve the problems faced by the Janardhan Bank in the stipulated time?
(10 marks)
< Answer >
4
After solving the above problem, what other technological improvements do you suggest to make the system future perfect?
(10 marks)
< Answer >
Raipur merchant Janardhan died a couple of decades ago, leaving an enormous amount to be divided between a bank and a private institute that would bear his name. Both the organizations would work as separate entities. Both the organizations operate in many cities with multiple branches in metropolitan cities. The average time taken to process a transaction like making payments by cheque, giving DD etc., was substantial as banking operations were slow, average time taken to create a document like the reconciliation statement, sending and receiving the documents from the main branch was relatively longer and moreover the preparation of the periodical reports and financial statements like the income statement, balance sheet every month/quarter/year used to consume lot of time. The customer satisfaction was on the wane, as the waiting times and response times were longer compared to other banks, and there was a significant drop in the number of customers, in due course of time.
The CEO has decided to computerize the bank and its operations in order to provide better services at lower cost and thus regain/retain the customer base. It was decided that the customer can have access to any of the branches in the metropolis. It has also been decided by the board of directors that the bank would outsource the computerization process from Innova Solutions, a leading software and hardware solutions provider in the country. The bank has planned to complete the total process within six months from now.
Caselet 3
Read the caselet carefully and answer the following questions:
5
Do you think that the bank is adopting a good strategy by entering into Internet banking and also providing a big league of complimentary services?
(7 marks)
< Answer >
6
What do you think the customers will benefit from this kind of innovation by a bank?
(8 marks)
< Answer >
Today more and more companies are seeking to gain a closer relationship with their customers using the Internet. On the other hand, heightened sensitivity to privacy has even the most ambitious businesses treading lightly. “Privacy is clearly at the forefront of our minds in the online arena,” says Krishna Agrawal, manager of on-line banking at Standard Bank, which recently unveiled a major overhaul of its Website for regular customers/investors. Standard is using software that generates personalized Web pages by monitoring and responding to customers’ activities while on the Website. This process is known as personalization.
The Standard Bank’s site represents one of the most aggressive uses of personalization to date. Each time a person visits the site, he or she will see Web pages driven by data from three sources: Standard’s existing database, a detailed questionnaire submitted by customers, and observation of what the person does while on the site. Standard’s cross-marketing partners Jet Airways, Maruti Suzuki and ITC Hotels will also participate in the site. A person who books a ticket in Jet Airways is given travellers cheques from this bank, a person who owns a Maruti Suzuki is charged a less interest rate on the loan availed by him and similarly a discount on the bills made during a stay in ITC Hotels. Such sites may be the wave of the future. Advertisers and Website managers stand to profit from this additional exposure but are concerned with censure from privacy advocates.
How do Websites collect data? Sites gather information with and without consumer’s knowledge. The most common way is through “click stream” data — information about where people go within a site and the ads and content they see. Click stream data is collected by so-called cookies, or small data files placed on users’ hard drives when they first visit a Website. When the individual goes back to that Website, the site’s computer server can read the usage data from the cookies. This data is then stored in a database and can be used to target ads or content, based on preferences tracked. Personal information such as e-mail address, name, street address, age or sex is gathered through registration at such sites. The same sort of data can also be obtained from so called “web stakes”.
Marketers say the ability to gather data and target consumers is what makes the net unique and is key to attracting advertisers and spurring e-commerce. Many say they are taking steps to protect their consumers, but they use information to deliver customized services and ads rather than something random.
END OF SECTION B
Section C : Applied Theory (20 Marks)
• This section consists of questions with serial number 7 - 8.
• Answer all questions.
• Marks are indicated against each question.
• Do not spend more than 25 -30 minutes on section C.
7
The primary goal of Database Management System (DBMS) is to provide a convenient and effective environment for storing and retrieving information in a database. In this context, briefly explain about the components of a database system.
(10 marks)
< Answer >
8
Online Analytical Processing (OLAP) designates a category of applications and technologies that allow the collection, storage and reproduction of multidimensional data. In this context, briefly explain about the characteristics, functions and benefits of OLAP.
(10 marks)
< Answer >
END OF SECTION C
END OF QUESTION PAPER
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8
Suggested Answers Information Technology & Systems (MB231) : October 2006
Section A : Basic Concepts
1.
Answer : (a)
Reason : Managers and other decision makers use MIS to request information at their networked workstation that supports their decision-making activities. This information takes the form of periodic, exception, and demand reports and immediate responses to enquiries. Exception reports are generated only in exceptional situations.
(b) This is the traditional form of providing information to the managers that uses a pre specified format designed to provide managers with information on a regular basis.
(c) Here, information is available whenever a manager demands it.
(d) Response report is not the report used by a finance manager who is provided with information on customers who exceeded their credit limits only.
(e) Push report is not the report used by a finance manager who is provided with information on customers who exceeded their credit limits only.
Hence option (a) is the correct answer.
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2.
Answer : (b)
Reason : An ideal database should provide rapid access to data, ensuring efficiency in storage and retrieval of data.
(a) This refers to the validity of the data contained in a database.
(b) This refers to the storage of data in such a way that it is not affected by modification in the data structure or changes in the application program.
(c) The data stored in the database should be made accessible only to the authorized users.
(d) Good database systems usually have a system in place for data maintenance.
(e) Data consistency can be maintained by upgrading all the related files of the database at the same time.
Hence option (b) is the correct answer.
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3.
Answer : (a)
Reason : (a) A data warehouse is a repository of information gathered from multiple sources stored under a unified schema, at a single site.
(b) Many organizations replicate and distribute copies or parts of databases to network servers at various sites. Distributed databases may be copies of operational or analytical databases.
(c) Not relevant.
(d) Data mining refers to finding relevant information or discovering knowledge.
(e) The object oriented database systems is an adopting from the object oriented programming paradigm.
Hence option (a) is the correct answer.
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4.
Answer : (a)
Reason : All computers performs four basic operations called the IPOS cycle. The internal architectural design of computers may differ from one system to another. But, the basic organization remains the same for all computer systems. Input devices provide a computer with data that is transformed into binary codes.
(a) This transaction is done by input interfaces.
(b) Not relevant.
(c) Output interfaces accomplish the task of converting the binary code, which is produced by the computer, into human readable form.
(d) Not relevant.
(e) Not relevant.
Hence option (a) is the correct answer.
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5.
Answer: (d)
Reason : (a) This is the place where the actual execution of the instructions takes place during the processing operation.
(b) The microprocessor performs processing tasks under the direction of a program.
(c) The input unit enters the data and instructions in the computer system bank links the external environment with the computer system.
(d) The control unit maintains order and directs the operation of the entire system, by selecting, interpreting and ensuring the execution of the program instructions.
(e) Internal storage areas in a computer are referred to as memory.
Hence option (d) is the correct answer.
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6.
Answer : (c)
Reason : Information documents serve as confirmation or proof for their recipients that certain transactions have occurred.
So option (c) is the answer.
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7.
Answer: (b)
Reason : A macro is a set of operations that accomplishes a specific task. When a macro name is issued, the entire set of operations is executed.
Tasks like printing a block of the worksheet, copying functions and formulae into a new row, etc. can be saved as macros.
Hence, from above discussion, we can infer that option (b) is correct.
Option (a) is incorrect. Micros are not defined. So, they are not applicable here.
Option (c) is incorrect. Templates are ready-made designs that include an overall layout, font and font-size choices, a color scheme, and other design elements. So, they are not applicable here.
Option (d) is incorrect. Functions help to write complex formulae more quickly in spreadsheet programs. So, they are not applicable here.
Option (e) is incorrect. Cell references are ways to get values into a formula correctly, in a spreadsheet program. So, they are not applicable here.
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8.
Answer : (e)
Reason : The systems maintenance stage of system development life cycle involves the monitoring evaluation and modification of a system to make desirable or necessary improvements. So, Option (e) is the correct answer.
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9.
Answer : (c)
Reason : An RDBMS consists of a collection of tables, each of which is assigned a unique name. These tables consist of different fields which can be used together as and when necessary.
Hence, from above discussion, we can infer that option (c) is correct.
Options (a), (b), (d) and (e) are not correct regarding RDBMS.
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10.
Answer: (e)
Reason : Some of the first generation computers were ENIVAC, EDVAC and EDSAC. EAVAC is not a first generation computer. So option (e) is the correct answer.
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11.
Answer: (a)
Reason : System analysis provides an in-depth study of the end user information needs. So option (a) is the correct answer.
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12.
Answer: (b)
Reason : DBMS is used to create and maintain database. So option (b) is the correct answer.
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13.
Answer: (b)
Reason : Economic feasibility determines the cost effectiveness of a proposed system. So option (b) is the correct answer.
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14.
Answer: (c)
Reason: ATM switch breaks voice, video, data into fixed cells of 53bytes and routes it to its next destination on the network. So option (c) is answer.
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15.
Answer : (d)
Reason : Pie charts are used to compare the parts of a whole. So pie charts are useful for Mr.Suresh, if he wants to compare the population of Hyderabad with the population of Andhra Pradesh. So option (d) is correct answer.
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16.
Answer : (d)
Reason : Multithreading operating systems enables the computer to execute more than one task in a single program. So option (d) is the correct answer.
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17.
Answer : (d)
Reason : Laser printers work like photo copy machines. A laser beam creates electrical changes on a rotating print drum. These changes attract tones, which are transferred to the paper and fused to its surface b a heating process. So option (d) is the correct answer.
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18.
Answer : (b)
Reason : The collection of information stored in a database at a particular moment is called AN instance of the database. So option (b) is the correct answer.
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19.
Answer : (c)
Reason : The Gantt chart is a bar chart used as a project scheduling technique. The structure of the chart shows output plotted against units of time. It gives quick picture of a project’s progress by the status of actual time lines and projected time lines. The other charts do not provide means to track a project during project implementation. So option (c) is the correct answer.
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20.
Answer : (d)
Reason : The ‘mail-b’ command is used to send blind carbon copies to the list of names in UNIX operating system. So option (d) is the answer.
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21.
Answer : (b)
Reason : The ‘mail-f’ command is used to read the contents of mail box in UNIX operating system. So option (b) is the correct answer.
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22.
Answer : (a)
Reason : ‘grep-c’ command in UNIX operating system is used for displaying the count of the number of occurrences of a pattern in a file. So option (a) is the answer.
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23.
Answer : (b)
Reason : Topology (in communication network context) refers to the way in which the end points or stations of a network are linked together. So option (b) is the answer.
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24.
Answer : (d)
Reason: The REVOKE command in Novell Netware Operating System deletes trustee rights from a directory. So option (d) is the answer.
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25.
Answer : (a)
Reason : The process of designating a system for the simultaneous transmission of two or more messages or over the same channel is called multiplexing. So option (a) is the answer.
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26.
Answer : (a)
Reason : Transmission Control Protocol in TCP/IP Reference Model is a reliable connection oriented protocol that allows a byte stream originating on one system to be delivered without error to any other system in the network. So option (a) is the answer.
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27.
Answer : (d)
Reason : Code conversion is the function of presentation layer in OSI reference model. So the option (d) is the answer.
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28.
Answer : (a)
Reason : Library functions are not written by users .The remaining statements are true about the functions. So option (a) is answer.
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29.
Answer : (b)
Reason: Three categories of functions present in C language are functions with no arguments and no return values, functions with arguments and no return values and functions with arguments and return values. So option (b) is answer.
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30.
Answer : (c)
Reason : The variables, which are stored in memory are automatic variables and static variables. Register variables are stored in register. So option ( c) is answer.
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Section B : Caselets
1. Information systems in many large organizations are combinations of various functional information systems. They support business processes such as product development, production, distribution, order management, etc. Improvements in business processes can help the organization cut costs, improve quality and customer service and develop innovative products. If competitors vary the price, then it becomes mandatory in some situations that the company also change the price. For this, a lot of re-work has to be done. It is not possible to cope up with the competition unless and until there is a competitive edge in using Information Technology to solve the problem. Thus, the company can make use of information Technology tools such as Computer Aided Engineering and Computer Aided Design (CAD), Material Requirements Planning (MRP), Enterprise Resource Planning (ERP) and Supply Chain Management (SCM). Decision Support Systems (DSS) help the managers in decision-making. They are developed using analytical models, specialized databases, and the knowledge and experience of decision-makers. Executive Information Systems (EIS) enable online access to relevant information in a comprehensible format. The use of IT helps streamline the operational and managerial processes. Information technology can be used to develop products, services and other capabilities that will enable companies to achieve strategic advantage.
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2. The impact of Information Technology is also felt by the service sectors such as Banking, Insurance, Leasing companies, Investment consultancy, Stock exchanges, Share registry and Custodial services. Most of these services require storage and processing of huge volumes of data. The vast processing capacity of computers along with the latest communication technology enables these companies to operate efficiently. Hence, banks have come up with more customer friendly services such as anytime and anywhere banking using ATMs, and Internet and Mobile Banking. As a result, the banks are able to offer electronic banking, which makes use of computer and telecommunication networks. Some are Internet only banks, which offer banking on the internet. Technology has enabled banks to reduce costs, and improve operating efficiency and customer satisfaction levels.
These developments, collectively, are fostering demand for better services in other industries which are using e-commerce applications. Thus, Information Technology in banking provides a range of services; however, there is a need for the issues related to security that are to be addressed properly.
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3. In order to solve this problem, the main hardware resources at the disposal are installing terminals for handling the accounts, a central server which acts as database and the connecting links. The terminals such as microcomputers with all the peripherals such as the keyboards, mouse, scanners, printers, monitors, etc., would suffice the needs of the bank in the present scenario. Coming to software, there is a need for multi-user operating system such as UNIX or Windows 2000. And utility software that can be used are data compression, backup and recovery software, anti virus software. There will be however the application software for writing/creating, editing and formatting the documents. A number of office suites are available in the market and support application software in their own style. There is a need for fiber optic cables for interlinking the branches. The accounting package that is likely to be implemented, brings into play effectiveness. All the other things support this package.
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4. The communication links such as the optical fiber cable will suffice the needs likely to come up in the near future also. Installing a workstation instead of a terminal is a costly proposition but that could have an advantage because workstations are more sophisticated and are more reliable in terms of security. The software should be flexible enough for upgradations and this will be an added advantage. The accounting package should be secure enough and there should be options for authorized entry into the banking software. Software, which includes the above options, could be used in the bank thus making it “future perfect”.
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5. Yes, the bank is adopting a right strategy by foraying into Internet banking and also providing complimentary services. These days there is a rapid shift of business into the online environment, the pressure to enhance market value, expansion and consolidation — there can be no doubt that the current trends in retail banking confront financial service providers with challenges. Each of these trends already had or will have a considerable effect on retail business; combined together, they will ensure retail banking.
The latest technological innovations, such as broadband transmission, WebTV and wireless Internet access via mobile phones, will all provide further impetus for the digital revolution. Private customer business will also be very strongly affected by the trend to Internet usage. The retail bank of the future will thus have little in common with the bank we know today.
Three important changes will take place: Customer contact will increasingly be online, the Internet portal will be the preferred point of access to the bank, and providers will be quick to expand their product range to include both competitors’ products and new, tailored value added products.
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6. In the future, the bank’s Internet portal will become the cornerstone of the customer relationship. This applies particularly for a large part of the high-revenue customers. Customers will not only be able to use their portals for transactions and as information sources, they will also be able to configure them to suit their own requirements. They will, thus, have a wide variety of up-to-
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date information constantly available. The bank will be able to use the central data management tool to make personalized information available to customers on the own “personal” portals. Customers will, thus, have an access to a wide range of improved options for managing their finances, as well as personally tailored product offers.
The more data a bank has on a customer, the better it can interpret it, the better it can support the customer in personalizing his or her portal. The first banks to be able to do this will capture a sustained competitive advantage.
So far, many banks have offered only their own products. This will soon change. The retail bank of the future will offer its customers a selection of the best available products in any product category — including complimentary services such as the ones offered by Standard Bank in comparison with the competitors’ products.
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Section C: Applied Theory
7. A database management system consists of interrelated data and a set of programs to access the data. A database is a collection of related data that is organized to make access easier. It could be any information. The primary goal of DBMS is to provide a convenient and efficient environment for storing and retrieving information in a database. The management of data involves the definition of structures for data storage and the provision for the manipulation of data. It also ensures system security preventing data loss due to system failure and unauthorized access.
Components of a database system
A database system has four major components namely data, hardware, software and users.
Data
The data stored in the system is partitioned into one or more databases. A database is a repository for stored data. Database can be either integrated or shared. An integrated database is a collection of related tables. While shared data in a table can be used by other tables in the database.
Hardware
This consists of the secondary storage devices (such as disks and drums) where the database resides. Other associated devices and control units also form a part of the hardware.
Software
Between the physical database, where the data is actually stored and the users there is a layer of software, called Database Management System (DBMS). All requests from users for accessing the database are handled by DBMS. The requests include adding and removing, retrieving and updating data in files or tables. DBMS serves as an interface between the users and hardware.
Users
Users can be classified into three broad groups. The first group consists of application programmers, who are responsible for writing application programs. The application programs are written in languages such as Cobol, C or Pascal. These programs retrieve existing information, insert new information and delete or change existing information in the database. The second group of users is the end users, who interact with the database system through computer terminals. An end user can access the database via online applications or can use an interface provided by the database system software. For example, end users use SQL, a database query language for interacting with the database system.
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8. OLAP designates a category of applications and technologies that allow the collection, storage and reproduction of multidimensional data. OLAP is useful to managers, analysts and executives. It helps them in data analysis by making data access easier and faster. Moreover, the ability to view data in different formats makes the system flexible. OLAP is becoming popular because many companies are migrating to relational databases. In a relational database, data is stored in the form of rows and columns. Data warehousing is confined to relational databases whereas OLAP provides multidimensional analysis.
Architecture for Online Analytical Processing
Functions of OLAP:
Drilling
Drilling essentially is breaking up data into smaller dimensions to facilitate analysis. For example, while performing quarterly sales analysis, the analyst may use information regarding monthly, weekly or daily sales in that quarter.
Slicing and dicing
Slicing and dicing refer to the process of changing the dimension of analysis to suit the analysts’ requirements. For example, the region-wise monthly sales report can be changed into monthly sales report.
Changing displays
Information may be available in tabular form but it can be transformed into charts and graphs if required.
OLAP is used across functional divisions. In the finance department, OLAP can be used for budgeting, activity based costing, financial performance analysis and financial modeling. Similarly, the marketing department can use OLAP for market research, customer analysis, sales forecasting, segmentation, etc. In the production department, OLAP can be used to track the material requirements, the number of units produced and inventory details.
Characteristics of OLAP :
Apart from facilitating multidimensional view of data, there are two more features that OLAP provides: complex modeling and time intelligence.
Multidimensional views
All business models have a minimum of three dimensions: time, location and product. These dimensions may vary according to the analysis. Managers should have the flexibility to use the data for analytical processing irrespective of the database design. Database design should not be a constraint for the access or use of information. Managers should be able to analyze data at any level with ease. The OLAP software should hide complex queries from the user. Managers with no knowledge of database concepts or programming should also be able to access data with ease. Moreover, the time taken by OLAP system to process user requests should be consistent.
Complex modeling
The most important use of OLAP is its ability to perform complex calculations. The key performance indicators of a business are derived using complex calculations. For example, sales analysis is done using trend algorithm. Competitor analysis also requires modeling complex relationships. The ability to model complex relationships is a cardinal feature of OLAP. The OLAP software should provide powerful but simple tools for complex calculations. The methods used for computation should be clear and non procedural so that users can use the system without help. Unless methods used for calculation are understood clearly, using them would be difficult and time consuming. OLAP systems are rated on the basis of their ability to create information from data.
Time intelligence
Time is also a very important factor in analytical processing. It is unique because it is the only dimension that follows a sequence. Generally, business analysis is done over a period of time, i.e. monthly, quarterly etc. An example for timeliness is calculation of moving average of the last five year sales. The use of time hierarchy differs from other hierarchies. For example, managers may seek breakup of sales in a week, a month or during weekends. But it is unlikely that they will ask for details regarding the first five shirts sold.
Benefits of OLAP:
OLAP software can be very useful to an organization especially with respect to data management. But many organizations are not familiar with the benefits of OLAP. Such organizations fail to capitalize on an opportunity to improve analytical processing capabilities. Some of the benefits provided by OLAP are
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• A well designed OLAP increases productivity.
• Complex modeling is made easy using OLAP.
• Software specifically designed for OLAP may be useful in developing applications quickly and providing better service.
• Faster application development will reduce application backlog.
• The query drag option helps in easing network traffic in transaction processing and Data Warehousing.
• Helps the organization respond quickly to market demand by modeling real business problems and using human resources efficiently.