ISM-01

Introduction
• Management, functions of management
• Levels of management
• Framework for information systems
• Stages of new information technology growth

Importance of information systems

• Information Technology supports every business function
• To be a successful manager, one should understand how information technology can provide
better products, enhance existing services and create new business opportunities

Management
• Management is the process of directing tasks and organizing resources to achieve organization
goals

Functions of Management
• Planning
• Organizing
• Leading
• Controlling
Levels of management
• Top management
• Middle management
• First line management
Top management
• Establishing the goals of the organization
• Interacting with representatives of the external environment, such as financial institutions,
political figures and important suppliers and customers
Middle management
• Allocating resources so that the objectives of top management are accomplished
First line management
– Supervising day-to-day operations
Activities of an organization
• Strategic planning (Long range plans)
• Tactical (Budgets tactical plans)
• Operational (Day-to-day transactions)

Framework for information systems

• Each level (Operational, tactical and strategic planning – requires specific information systems)
Comparison of Information System

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ISM-02 (System Concepts, Learning Organization)
Previous session
• Management, functions of management
• Levels of management
• Framework for information systems
• Stages of new information technology growth
Introduction
• Systems Concepts.
• Systems Characteristics
• Systems and their environment
• How a system works
• Systems approach to problem solving
• Transition to learning organization
Systems Concepts
• A system is an integrated set of components, or entities that interact to achieve a particular
function or goal.
Systems Characteristics
• System boundaries – Every system has a boundary that defines its scope of activities
• Systems and sub-systems – Systems may consist of numerous sub-systems which has elements,
interactions and objectives. E.g. In a business system, marketing, finance and HR are examples
of sub-systems
• Outputs and inputs – The inner workings of a system or sub-system are organized to produce
outputs from inputs
• Interfaces – An interface is a connection at system or sub-system boundaries. E.g two
independent systems can interact with each other using web services.
Systems and their environment :

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 • The system’s environment consists of people, organizations and other systems that supply data
to or that receive data from the system.
• Various kinds of systems may interact with the environment in different ways.
• Open systems - Open systems operate in an external environment and exchange information
and data with that environment.
• Closed systems - Closed system is relatively self contained. It doesn’t exchange information with
its environment.
• System feedback – Feedback is an indicator of current performance when compared to a set of
standards. With effective feedback, continuous adjustments in the activities of a system can be
made to assure that the system achieves its goals
• System Entropy – Entropy is a measure of disorder. Systems run down if they are not
maintained
• System stress and change – Systems change over time. Changes can occur because of identified
problems, new business opportunities and new management directives.
How a system works – 01
• System concepts in business – Systems approach is a way of analyzing business problems. It
views the business organization as a system of interrelated parts designed to accomplish goals.
Managers must understand the goals of the total system and design the functions of the sub-
system.
• Information system as a system – The major purpose of an information system is to convert
data into information – information is data with meaning
• Information system as a system – An information system contains elements such as hardware,
software, personnel, databases and procedures to accomplish its objectives. Hardware consists
of computer devices and communication equipment. Software consists of instructions that the
hardware uses. Software consists of application software and systems software
• Sub systems – Each sub-system performs a specialized task that supports the business
objectives. If one of the sub-systems breaks down, the overall business will feel the effect.
• Outputs and Inputs – An information system receives inputs of data and instructions, processes
the data according to instructions and produces outputs.
• Hierarchy of sub-systems – The sub-systems within an information system can be organized into
a hierarchy to represent their functions within the overall system. Each sub-system performs a
specialized function.
• System feedback – An information system provides system feedback to a manager about day-
to-day activities and about deviations from planned activities.
• Sub-system interfaces – Interfaces exist between the sub-systems of an information system.
Generally the sub-systems are loosely coupled.
• Internal controls – Input control ensures that data is processed accurately. Password security is
used to ensure unauthorized access.
• Structure of an enterprise – Based on the structure of an enterprise, the various sub-systems
are designed.

Systems approach to problem solving – 01

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Systems approach to problem solving involves the following steps
• Define the problem.
• Gather the data describing the problem
• Identify alternative solutions
• Evaluate these alternatives
• Select and implement the best alternative
• Follow up to determine whether the solution is working

• Define the problem – Defining the problem is one of the most important parts of the system
study, because if the wrong problem is identified, the entire effort to change the system will be
off track.
• Gather data describing the problem. The business owner may study the environment, current
standards, management, input resources and internal procedures to gain an understanding of
the problem and gather data
• Identify alternative solutions – The business owner needs to identify alternative responses to
address the problem. Each alternative may support a different strategy. E.g. Order to Cash vs
GCAP for Reuters
• Evaluate the alternatives – The business owner evaluates the extent to which each alternative
enables the organization to achieve its objective.
• Select and implement the best alternative – Use various parameters to evaluate and select the
best alternative
• Follow up to determine whether the solution is working – Every manager needs feedback to
determine if the goals of the system are being achieved
Transition to learning organization – 01
• The most successful organizations will be the learning organizations, and the ability to learn
faster than the competition will be the key to maintaining a sustainable competitive
organization.
• Corporations can use the systems approach to become learning organizations.
Five disciplines of the learning organization
• Personal Mastery
• Mental models
• Building shared vision
• Team learning
• Systems thinking
Learning disabilities that interfere with systems thinking
• Individuals focus on their own position
• Individuals blame someone else when problems arise
• Reactiveness instead of Proactiveness
• Individuals spend time on events rather than processes
• Functional hierarchies
Corporations can use the systems approach to analyze and understand the problems that occur in
business systems

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Feedback in the learning organization
• Balancing feedback is a type of feedback that tries to achieve stability. In balancing a system,
you make corrective adjustments to maintain some goal or to achieve some target. E.g. Training
need analysis based on 360 degree feedback
Summary
• Systems Concepts.
• Systems Characteristics
• Systems and their environment
• How a system works
• Systems approach to problem solving
• Transition to learning organization

ISM-04 (Business Process Reengineering)

Previous Session
• Domino’s case study
• Information systems for Pizza chain of stores
• How IT enabled improvement in sales and cutting down costs
Introduction
• Business Processes
• Impact of IT
• Reengineering of work
• IT and Business Process Redesign
• Management challenges in Business Process Redesign
Business Processes
• Business processes refer to the manner in which work is organized, coordinated and focused to
produce a valuable product or service.
• They are the collection of activities required to produce a product or service.
• Performance of a business firm depends on how well its business processes are designed and
coordinated.
Order Fulfillment Process

Cashless Claims Process

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Claims Process

How IT improves Business Processes

• Information systems automate many steps in business processes that were formally performed
manually. E.g. Leave management System
• Business processes can be improved by using information technology to achieve greater
efficiency, innovation and customer services. E.g. core banking system
Impact of IT – 01
• Efficiency
• Effectiveness
• Transformation
Efficiency
• Efficiency can be defined as doing things right

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 • Computer based information processing systems have supported efficiency by automating
routine paperwork processing tasks.
Effectiveness
• Effectiveness is defined as doing the right things
• E.g. An effective sales manager focuses on tasks that pay off in increased sales volumes
Transformation
• Transforming the way a functional unit or an organization does business using information
technology.
• E.g. Improvement of sales using a CRM package
How do applications that achieve the objectives of efficiency, effectiveness and transformation affect
the individual, functional unit and the organization?
Applications that have an impact on individual
Efficiency Task Mechanization Word processing.
Using a spreadsheet to do budget plan

Effectiveness Work improvement Using a prospect database to generate sales letters

Transformation Role expansion Using a portable PC to do “what-if” analysis for
investment clients

Applications that have an impact on functional unit

Efficiency Process Automation Order-entry; credit checking

Effectiveness Functional enhancement Computer aided design, computer aided

manufacturing
Transformation Functional redefinition CD-ROM disks for business search

Applications that have an impact on the organization

Efficiency Boundary extension Online order entry linking customers and suppliers

Effectiveness Service enhancement Online diagnostic database for electrical appliances

Transformation Product innovation Holiday Inn’s video conferencing

Framework for application of IT

Individual Functional Unit Organization

Efficiency Task Mechanization Process Automation Boundary extension

Effectiveness Work improvement Functional enhancement Service enhancement
Transformation Role expansion Functional redefinition Product innovation

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Reengineering of work
Process of reengineering of work
• Organize around outcomes, not around tasks
• Have those who use output of a process to actually perform the process
• Treat geographically dispersed units as if they are centralized
• Link parallel activities during the process, rather than at the end of the process
• Capture information once at the source
Business Process Reengineering and Business Process Redesign

IT and Business Process Redesign

Steps in business process redesign
– Develop business vision and process objectives
– Identify processes to be re-designed
– Understand and measure existing processes
– Identify IT levers
– Design and build prototype of the process
Role of IT in Business processes (re-design)
• Entities
– Inter-organizational processes
– Inter-functional processes
– Inter-personal processes
• Activities
– Operational activities
– Managerial activities
Management challenges in Business process re-design
• Guidelines to manage transition
– Create task force with people from cross functional groups
– Have re-design teams work closely with managers and staff
– Explain through the information systems group wrt power offered by technology

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 – Build a team of industrial engineers with strong interpersonal skills, understanding
of multiple functions, process measurement etc.
– Build IT technology platforms that support cross functional applications.
Summary
• Business Processes
• Impact of IT
• Reengineering of work
• IT and Business Process Redesign
• Management challenges in Business Process Redesign

ISM-06 (Global e-business and collaboration)

Global e-business and collaboration

Previous Session

• Meru Cabs case study

• Business process at Meru Cabs
• How IT enabled transformation of business
Introduction
• Types of information systems
• Systems for linking enterprise
• e-business, e-commerce, e-governance
• Collaboration
• Systems and tools for collaboration
• IS department and functions
Types of Information Systems
• Transaction Process Systems(TPS)
– For operational managers. e.g Payroll transaction processing system
• Business Intelligence Systems(BI)
– For middle level managers and will help in decision making
– It is normally in the form of reports and dashboards
– TPS supply summarized date to the BIS or MIS.
– E.g. Informatica
• Decision Support Systems(DSS)
– Support non-routine decision making

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 – DSS bring in information from external sources such as current stock prices or product
prices of competitors
– Systems use a variety of models to analyze data.
• Executive Support Systems(ESS)
– For senior level managers who use these along with BI
– Reports and dash boards in form of charts and graphs
– They are reviewed periodically( weekly ,monthly, quarterly etc.)
Transaction Processing System

A transaction processing system collects and stores data about transactions and sometimes controls
decisions made as part of a transaction. The transaction is the activity that changes stored data,
examples of such an activity would be using a credit card, making a reservation or making a cash
withdrawal at an ATM.

Business Intelligence System

Decision Support System

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A decision support system (DSS) is a computer application that analyzes business data and presents it so
that users can make business decisions more easily.

Executive Support System

Executive Support System (ESS) is a reporting tool (software) that allows you to turn your organization's
data into useful summarized reports.

An executive information system (EIS), also known as an executive support system (ESS), is a type of
management information system that facilitates and supports senior executive information and decision-
making needs. It provides easy access to internal and external information relevant to organizational
goals.

Systems for Linking Enterprise

• Specific to that organization

• ERP( Enterprise Resource Planning) systems
• Supply Chain Management (SCM) Systems
– Inter organizational system
• Customer Relationship Management(CRM) Systems
Used to optimize:

– Revenue and profits

– Customer satisfaction
– Customer retention
– Customer expansion
Enterprise Resource Planning (ERP

Supply Chain Management (SCM)

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Customer Relationship Management (CRM)

Systems for Linking Enterprise(contd.)

• Knowledge Management (KM) Systems

– Knowledge acquisition
– Knowledge retention
– Knowledge dispersion/distribution
– Proficiency building
– Continual improvement
– Customised knowledge building
• Intranet and Extranet for information sharing

Functional areas of processes

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E-business

• Use of digital technology and the internet to execute major business processes in the enterprise.
E.g. Alibaba.com

It includes
– Activities for the internal management
– Coordination with suppliers
– Coordination with customers and also
– E-commerce
E-commerce

• It is that part of the e-business that deals with buying and selling goods and services over the
internet. E.g. Flipkart, Amazon

It includes market transactions

 Advertising
 Marketing
 Customer support
 Security
 Delivery
 payment

E-governance

• Application of internet and networking technologies to digitally enable government and public
sector agencies’ relationship with citizens, business and other groups of government

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Collaboration
• In simple term it is team work
• It is working with others to achieve shared goals or/and explicit goals
• Ranging from “one to one” to “many to many”
• It is dovetailed in all processes
• The extent and magnitude varies depending on task
• Could be internal to organisation or external or mix of both
Relevance of Collaboration
• Changing nature of work
• Growth of Professional work
• Changing organization of the firm
• Changing scope of the firm
• Emphasis on innovation
• Changing culture of work and business
Business benefits
• Improved productivity
• Improved Quality
• Innovation
• Improved customer service
• Improved customer base
Requirements for effective collaboration
• Collaboration capability
– Open culture
– Decentralized structure

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 – Breadth of collaboration
• Collaboration Technology
– For implementation and operations
– For strategic planning
Other extreme of good collaboration is “command and control”
Tools and Technology for Collaboration
• e-mail
• Instant messaging
• Social network
• Blogs
• WiKi
• Virtual worlds
Internet based collaboration environment
• Virtual meeting systems(skype)
• Google apps and sites
• Microsoft sharepoint
• Lotus notes
Time Space Matrix

Evaluation of Collaboration Tools

• Requirement analysis
• Cost factor
• Feasibility analysis
• Time space matrix study
• Software requirement analysis wrt cost effectiveness
• Security considerations
Information Systems Department

• Also called IT department in some forms

– Programmers
– System analysts

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 – Information system managers
– Chief information officer
– Chief security( information) officer
– Chief Privacy officer
– Chief knowledge officer
There is no fixed organisation structure for IS.
Summary
• Types of information systems
• Systems for linking enterprise
• e-business, e-commerce, e-governance
• Collaboration
• Systems and tools for collaboration
• IS department and functions

ISM-08 (IT Infrastructure & emerging technologies)

IT Infrastructure and emerging technologies
Previous Session
• Ranbaxy case study about SAP ERP implementation
• Problems faced by legacy systems
• How SAP ERP linked the enterprise
Topics Covered
• IT Infrastructure
• Infrastructure components
• Current hardware trends
• Current software trends
• Open source software
• Cloud computing
Infrastructure
– The basic facilities, physical and organizational structures and facilities needed for the operation
of a society or organization or a function.
– Transportation, communication, sewage, water, electric systems etc. are examples of
infrastructure.
IT Infrastructure is the shared technology resources that provide the platform for the firm’s specific
information system applications. IT infrastructures include hardware, software and services.
IT Infrastructure
• Computing platforms
• Telecommunication services
• Data management services
• Application software services
• Physical installations/facilities
• IT management services
• IT standards services(compliance)

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 • IT education services
• IT research and development services
Evolution of IT Infrastructure
• General purpose mainframe (1959 to present)
• Minicomputer computing (1965 to present)
• Personal computers (1981 to present)
• Client server networks (1983 to present) – 2tier, 3tier, n tier, web server, application server
• Enterprise computing (1992 to present) – TCP/IP networking standard
• Cloud and mobile computing (2000 to present)
Mainframe

Minicomputer

Other Classification
• Based on capacity and size
– Super computers
– Mainframe computers
– Minicomputers
– Microcomputers
– Personal devices like laptop, notebook etc.
– Personal digital assistants
– Smart phones
Size varies from a large room/hall to palmtop
Technology Drivers

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 • Chip design to cater for large scale integration(VLSI)
– to increase computing power( MIPS)
– PCBs with populated transistors and circuits
– Nano technology
– Mass storage devices
• Efforts to reduce cost and size of computing and storage devices
• Efforts to reduce power consumption and peripherals
• Reduce communication costs and internet
Standards
• General purpose usage(OSI Layers, protocols etc.)
• Flexibility in choosing elements in a network
– (restrict monopoly)
• Following standards ensuring compatibility
• Scalability through integration ( different elements from different companies)
• Certifications and audits to ensure compliance
IT infrastructure Components/ Eco Systems
• Computer Hardware platforms
– Dell, IBM, Sun
• Operating systems platforms
– Unix, windows etc.
• Enterprise software applications
– SAP, MS Project
• Networking/Telecommunications
– AT&T, Nortel, CISCO
• Consultants and system integrators
– IBM, Infosys, TCS etc.
• Data Management and storage
– SQL Server, DB2, SAN (Storage area networks connect multiple storage devices on a
separate high speed network dedicated to storage)
• Internet platforms
– Java, .NET
Hardware Platform trends
• Mobile digital platform – smartphones have taken on many functionalities of PCs – surfing of
internet, email, messaging, exchanging data over extranets, kindle.
• Grid computing – connecting geographically remote computers into a single network to create a
virtual supercomputer by combining the computational power of all computers on the grid.
• Virtualization – is the process of presenting a set of computing resources so that they can all be
accessed in ways that are not restricted by physical configuration or geographical location.
• Cloud computing features
• on demand self service (individuals can get computing capabilities on their own)
• Network access from anywhere on internet
• Location independent resource pooling

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 • Rapid elasticity
• Measured services
• Green computing – minimize impact on the environment (reducing power consumption)
• Autonomous computing (develop systems that can heal themselves, optimize and tune
themselves, protect from intruders).
Software Trends
• Open source software – software produced by a community of several programmers which is
free. E.g. Linux, Apache web server, MySQL database, Mozilla firefox browser
• Software for the Web
– Java: OS independent object oriented programming language
– Ajax (Asynchronous javascript and XML): client and server exchange data without
reloading the entire page, HTMl for presentation, XML for data transfer
• Web services and service oriented architecture
• Enterprise applications
• Off the shelf applications
• Cloud based software services and tools (Mobile Apps)
Other features
• Multimedia
• Graphics
• Animation
• High resolution
• Customised applications
Input Output Devices or peripherals
• Keyboard
• Display screen (CRT, LCD, LED, etc)
• Printers( dot matrix, inkjet, laser, etc)
• Disk drives
• Voice and video ( mike, speaker, camera etc.)
Cloud Computing Services
• Infrastructure as service
• Platform as a service
• Software as a service
Components for decision making
• Demand in the market for the organization
– Need analysis
– Feasibility analysis (cost, time, utility etc.)
• Business strategy
• IT strategy and infrastructure strategy
• Information technology
• Competitor’s IT services
• Competitors IT infra investments
• Cost affordability and effectiveness

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Other considerations
• Compatibility
• Expandability
• Reliability
• Maintainability
• Timing of acquisition
• Rent/lease or buy decision
• Vendor selection
• Installation, training and maintenance
• Operating cost and associated costs
Summary
• IT Infrastructure
• Infrastructure components
• Current hardware trends
• Current software trends
• Open source software
• Cloud computing
• Components for decision making

EMERGING TRENDS, TECHNOLOGIES, AND APPLICATIONS

Trends in Software and Service Distribution
• Recent trends in software and service distribution include:
– Pull and push technologies
– Application service providers
Pull and Push Technologies
• Pull technology
– User states a need before getting information
– Entering a URL in a Web browser to go to a certain Web site
• Push technology (Webcasting)
– Web server delivers information to users who have signed up for this service
– Supported by many Web browsers
– Also available from vendors
– Delivers content to users automatically at set intervals or when a new event occurs
• Examples of push technology:
– “A newer version of Adobe Flash is available. Would you like to install it?”
– Research In Motion (RIM) offers a new BlackBerry push API
– Microsoft Direct Push from AT&T
Application Service Providers
• Application service providers (ASPs)
– Provide access to software or services for a fee
• Software as a service (SaaS), or on-demand software

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 – Model for ASPs to deliver software to users for a fee
– Software might be for temporary or long-term use
– Users don’t need to be concerned with new software versions and compatibility
problems
• Users can also save all application data on the ASP’s server
– Software and data are portable
• The SaaS model can take several forms:
– Software services for general use
– Offering a specific service
– Offering a service in a vertical market
• Advantages:
– Similar to outsourcing
• Less expensive
• Delivering information more quickly
• Other advantages and disadvantages
• Vendors:
– Google, NetSuite, Inc., and Salesforce.com
Virtual Reality
• Goal of virtual reality (VR):
– Create an environment in which users can interact and participate as they do in the real
world
• VR technology
– Uses computer-generated, three-dimensional images to create the illusion of interaction
in a real-world environment
• VR terms:
– Simulation
– Interaction
– Immersion
– Telepresence
– Full-body immersion
– Networked communication
• Egocentric environment
– User is totally immersed in the VR world
– Most common technology used with this environment is a head-mounted display (HMD)

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 • Exocentric environment
– Data is still rendered in 3-D
– Users can only view it onscreen
– Main technology used in this environment is 3-D graphics
Components of a Virtual Reality System
• Visual and aural systems
• Manual control for navigation
• Central coordinating processor and software system
• Walker
Cave automatic virtual environment (CAVE)
– Virtual environment consisting of a cube-shaped room in which the walls are rear-projection
screens
– CAVEs
– Holographic devices that create, capture, and display images in true 3-D form
– People can enter CAVEs in other locations
– No matter how far away they are geographically
– High-speed digital cameras capture one user’s presence and movements
– Then re-create and send these images to users in other CAVEs
– Used for research in many fields:
– Archaeology, architecture, engineering, geology, and physics

Virtual Reality Applications

• Military flight simulations
• Medicine for “bloodless” surgery
• Entertainment industry
• Will one day be used for user interfaces in information systems
• Current applications:
– Applications for the disabled
– Architectural design
– Education
– Flight simulation
– Videoconferencing
– Group support systems
Obstacles in Using VR Systems
• Not enough fiber-optic cables are currently available for a VR environment capable of re-
creating a conference
• Problems must be solved:
– Confusion between the VR environment and the real environment
– Mobility and other problems with HMDs
– Sound representation
– Additional computing power
Virtual Worlds
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 • Simulated environment designed for users to interact via avatars
• Avatar
– 2-D or 3-D graphical representation of a person in the virtual world
– Used in chat rooms and online games
• Gartner Group predicts that 80% of active Internet users will interact in virtual worlds by 2011
• With avatars, users can:
– Manipulate objects
– Experience a limited telepresence
– Communicate using text, graphical icons, and sound
• Widely used virtual worlds:
– Active Worlds
– Club Penguin
– EGO
– Entropia Universe
– Habbo
– Runescape
– Second Life
• Second Life
– Several million members from all over the world
– Some companies use Second Life to establish or enhance their image, generate sales
leads, and increase sales
• Some experts believe that groups work together better in virtual worlds than in face-to-face
meetings and teleconferences
Radio Frequency Identification: An Overview
• Radio frequency identification (RFID) tag
– Small electronic device consisting of a small chip and an antenna
– Provides a unique identification for the card or the object carrying the tag
– Don’t have to be in contact with the scanner to be read
– Can be read from a distance of about 20 feet
• Two types of RFID tags:
– Passive
• No battery
• Best ones have about 10 years of battery life
– Active
• Usually more reliable than passive tags
• Technical problems and issues of privacy and security
RFID Applications
Category & Examples
Tracking and identification – Railway cars and shipping containers, livestock and pets, supply-chain
management (tracking merchandise from manufacturers to retailers to customers), inventory control,
retail checkout and POS systems, recycling and waste disposal

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Payment and stored-value systems – Electronic toll systems, contactless credit cards (require no
swiping), subway and bus passes, casino tokens, concert tickets
Access control – Building access cards, ski-lift passes, car ignition systems
Anti-counter feiting – Casino tokens, high-denomination currency notes, luxury goods,
prescription drugs
Health care – Tracking medical tools and patients (particularly newborns and patients with Alzheimer’s),
process control, monitoring patient data
Biometrics: A Second Look
• Current and future applications of biometrics:
– ATM, credit, and debit cards
– Network and computer login security
– Web page security
– Voting
– Employee time clocks
– Airport security and fast check-in
– Passports and highly secured government ID cards
– Sporting events
– Cell phones and smart cards
Trends in Networking
• Recent trends in networking technologies
• Many are already used in many organizations
– Wireless technologies and grid computing
• Newer but attracting a lot of attention:
– WiMAX and cloud computing
Wi-Fi
• Wireless Fidelity (Wi-Fi)
– Broadband wireless technology
– Based on the 802.11a, 802.11b, 802.11g, and 802.11n standards
• Information can be transmitted over short distances
– In the form of radio waves
• Connect via:
– Computers, mobile phones and smart phones, MP3 players, PDAs, and game consoles
– Wi-Fi hotspots
WiMAX
• Worldwide Interoperability for Microwave Access (WiMAX)
– Broadband wireless technology
– Based on the IEEE 802.16 standards
• Designed for wireless metropolitan area networks
• Theoretically has faster data transfer rates and a longer range than Wi-Fi
• Disadvantages:

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 – Interference from other wireless devices, high costs, and interruptions from weather
conditions
Bluetooth
• Can be used to create a personal area network (PAN)
• Wireless technology for transferring data over short distances
• Specifications are developed and licensed by the Bluetooth Special Interest Group
• Uses a radio technology called Frequency Hopping Spread Spectrum (FHSS)
• Used to connect devices such as:
• Computers, global positioning systems (GPSs), mobile phones, laptops, printers, and
digital cameras
• No line-of-sight limitations
• Limited transfer rate
Grid Computing
• Connecting different computers to combine their processing power to solve a particular
problem
• “Node”
– Each participant in a grid
• Processing on overused nodes can be switched to idle servers and even desktop systems
• Advantages:
– Improved reliability
– Parallel processing nature
– Scalability
Utility (On-Demand) Computing
• Similar to the SaaS model
• Provides IT services on demand
• Users pay for computing or storage resources on an as-needed basis
• Main advantages
– Convenience and cost savings
• Drawbacks
– Privacy and security
Cloud Computing
• Platform incorporating many recent technologies under one platform, including:
– SaaS model, Web 2.0, grid computing, and utility computing
• Variety of resources can be provided to users over the Internet
• Example:
– Editing Word document on an iPhone
• Same advantages and disadvantages as distributed computing
• Services typically require a fee
• Some are free
• Google Apps
– Includes Gmail, Google Talk, and Google Docs,

25 Dr. C. Lakshmi Devasena, IBS Hyderabad

 – Provides commonly used applications accessed via a Web browser
Cloud Computing Categories and the Top Players
Categories Top Players

Foundations (tools and software that make it possible Vmware, Microsoft, Red Hat
to build cloud infrastructure)
Infrastructure Amazon, IBM

Network services (the communication components Level 3 Computing Services , Amazon, Cisco, Citrix
that combine with cloud foundation and
infrastructure to form cloud architecture)
Platforms Amazon, IBM

Applications Google, Salesforce.com, Oracle, DROPBOX

Security EMC/RSA, Symantec, IBM

Management IBM, Amazon

Cloud Computing in Action

• Amazon.com
– Established a computing platform that companies can use, regardless of their location
– Provides storage and processing power on demand
– Companies pay only for the resources they use
• Google Apps
– Introduced in February 2007
– Competing with Microsoft’s Office Suite
Nanotechnology
• Incorporates techniques that involve the structure and composition of materials on a nanoscale
• Nanometer is one billionth of a meter (10-9)
• Current technology for making transistors and other components might reach their
miniaturization limits in the next decade
• Some consumer goods incorporating nanotechnology are already on the market
– Nanomaterials
Summary
• New trends:
– Software as a service
– Virtual reality
– RFID
– Networking
– Grid, utility, and cloud computing
– Nanotechnology

26 Dr. C. Lakshmi Devasena, IBS Hyderabad

Excel
Functions:

Functions are predefined formulas that perform calculations based on specific values, called arguments,
provided in the required sequence.

The function begins with the function name, followed by an opening parenthesis, the arguments for the
function separated by commas and a closing parenthesis

Text Functions

• LEFT(text, k) returns first k characters in a text string.

• RIGHT(text, k) returns the last k characters in a text string.
• MID(text, k, m) begins at character k and returns next m characters.
• TRIM(text) removes all spaces from a text string except for single spaces. It also removes spaces
at the beginning and end of cell.
• LEN(text) returns the number of characters in a text string (including spaces)
• FIND(text to find, actual text,k) returns the starting position of one text string in another text
string. It is case sensitive
• SEARCH – same syntax as find but it is not case sensitive
• REPT(text, number of times) repeat a text string a specified number of times
• CONCATENATE(Text1, text2,…text30) can be used to join upto 30 text strings.
Can also use syntax such asA1&” “&B1
• REPLACE(old text, k, m, new text) begins at character k of old text and replaces the next m
characters with new text
• VALUE(text) converts a text string to a number. Text is left justified and number is right justified
• UPPER(text) changes text to uppercase
• LOWER(text) changes text to lower case
• CHAR(number) yields the ASCII character of the number( for a number between 1 to 255)

Date Functions
• (select the date format to be displayed) right click on a cell, select format cells, number,
category-date.
• TODAY() returns today’s date
• DATEVALUE(“date”) returns the serial format for the date which is number of days from 1-1-
1900.
• WORKDAY(start_date, #days,[holidays]) displays the date that is number of workdays indicated
by #days from a given start date
• WORKDAY.INTL(start_date, #days, weekend, [holidays]) displays the date that is number of
workdays indicated by #days from a given start date
• (weekend 1 or omitted Saturday, Sunday)
• (weekend 11 Sunday only)
Codes for weekend

27 Dr. C. Lakshmi Devasena, IBS Hyderabad

 1 or omitted: Saturday, Sunday
2: Sunday, Monday
3: Monday, Tuesday
4: Tuesday, Wednesday
5: Wednesday, Thursday
6: Thursday, Friday
7: Friday, Saturday
11 : Sunday only
12: Monday only
13: Tuesday only
14: Wednesday only
15: Thursday only
16: Friday only
17: Saturday only
• YEAR(date) returns year
• MONTH(date) returns month
• DAY(date) returns day
• DATE(year, month, day) returns date
• DATEDIF(start_date, end_date, time unit)
• Time unit “Y” returns number of completed years
• Time unit “M” returns number of completed months
• Time unit “D” returns number of completed days
Exercise 1
• Display current date
• Compute the age from a given date of birth
• Given the start date and end date for an employee,
– calculate the number of years that the employee has worked in the organization
– calculate the number of months that the employee has worked in the organization
Time Functions

• (select the time format to be displayed) right click on a cell, select format cells, number,
category-time.
• NOW() returns today’s date and current time
• NOW()-TODAY() returns current time (result displayed depends on format used in cell
• (3.00 am is 0.125 and 6.00 pm is 0.75, starting point is midnight)
• TIME(hour, minute, second) returns the time
• TIMEVALUE(“time”) returns the serial number format for the time which is a value between 0
and 1
• HOUR(time) returns the hours of time.
• MINUTE(time) returns the minutes of time.
• SECOND(time) returns the seconds of time.
Mathematical Functions

28 Dr. C. Lakshmi Devasena, IBS Hyderabad

 • Sum – add all numbers in a range of cells
• Power(x,y) – returns the number(x) raised to a power(y)
• Rand()- returns a random number between 0 and 1
• Sqrt(x) – return the square root of a number (x)
• Product – multiplies all numbers given as arguments
• Sumproduct- It takes 1 or more arrays of numbers and gets the sum of products of
corresponding numbers.
• Round- rounds a number to a specified number of digits
• Randbetween
• Int
Logical Functions

• AND – returns true of all arguments are true. e.g = AND(C6,D6)

• OR – returns false if all arguments are false

• IF – checks whether a condition is met, returns values depending on true or false. E.g
=IF(B18>0,"true","false")

• NOT – changes true to false and false to true

Statistical Functions

• Average – Returns the average of its arguments

• Count – counts the number of cells in a range that contain the number. E.g. count(B3:B7)
• Min – returns the smallest number in a set of values
• Max – returns the largest value in a set of values
• Large(array,k) – returns the kth largest value in a dataset
• Small(array,k) – returns the kth smallest value in a dataset
• Rank(number, ref, order) – returns the rank of a number in a list of numbers. E.g. =RANK(4,
B3:B7,0)
• Stdev- estimates standard deviation based on a sample

Conditional Functions

• Sumif(range, criterion) e.g. =SUMIF(B4:B8, ">3")

29 Dr. C. Lakshmi Devasena, IBS Hyderabad

 • Sumifs(sumrange,range1,criterion1,range2,criterion2,…range_n, criterion_n) e.g.
=SUMIFS(B4:B8,B4:B8, ">2", B4:B8, "<5")
• Countif(range, criterion) E.g. =COUNTIF(B4:B8, ">3")
• Countifs(range1, criterion1, range2, criterion2, … range_n, criterion_n) e.g =COUNTIFS(B4:B8,
">3", B4:B8, "<5")
• Averageif(range, criterion) e.g. =AVERAGEIF(B4:B8, ">3")
• Averageifs(sumrange,range1,criterion1,range2,criterion2,…range_n, criterion_n) e.g.
=AVERAGEIFS(B4:B8,B4:B8, ">2", B4:B8, "<5")
Exercise
• Given the names and marks for 5 students in the range of 1 to 10
• Calculate the minimum marks
• Calculate the maximum marks
• Calculate the average marks
• Calculate the average marks for students getting more than 4 / 10
• Calculate the average marks for students getting more than 4/10 and less than 9/10

Today’s Session
• Financial functions – PMT, NPV, IRR
• Lookup functions – VLOOKUP, HLOOKUP
• Index function
• Match function
Financial Functions
• PMT(rate, nper, pv, [fv], [type]) - calculates the constant periodic payment (EMI) required to pay
off a loan, with a constant interest rate, over a specified period
PMT:
rate – rate of interest
nper – no. of periodic payments (no. of months)
Pv – present value or prinncipal
Fv – future value default zero, not mandatory
Type – whether beginning of month or end of month, default end of month, not mandatory

• NPV(rate, value1, value2,) returns the net present value of an investment based on a discount
rate and a series of future payments (negative values) and income (positive values)
• IRR(values, guess) – returns the internal rate of return for a series of cash flows
Lookup Functions
• VLOOKUP(lookup_value, table_array, col_index_num, [range_lookup])
- looks for a value in the leftmost column of a table and then returns a value in the same row from a
column you specify. By default, the table must be sorted in an ascending order.
• HLOOKUP(lookup_value, table_array, row_index_num, [range_lookup])
- looks for a value in the top row of a table or array of values and returns the value in the same
column from a row you specify
• If range_lookup is FALSE

30 Dr. C. Lakshmi Devasena, IBS Hyderabad

 Looks for an exact match
• If range_lookup is TRUE
Looks for a closest match
(Leftmost column / Uppermost row should be in ascending order)

Index Function
• INDEX(Array, Row number, Column number) – returns an entry in any row and column within an
array of numbers
• If row number is 0, it references the listed column
• If column number is 0, it references the listed row
• INDEX(Reference, Row number, Column number, Area number) – returns an entry in any row
and column within a range of cells
• If row number is 0, it references the listed column
• If column number is 0, it references the listed row
Match Function
• MATCH(lookup_value, lookup_array,Match_type) – returns the relative position of an item in an
array that matches a specified value in a specified order
• Match_type is a number 1, 0 or -1 indicating which value to return
Match_type
• 1: if the function cannot find an exact match, it should use the closest match below the
lookup_value (if this option is used, the lookup_array must be in ascending order)
• 0: if the function cannot find an exact match, it should return an error (if this option is used, the
lookup_array does not need to be ordered)
• -1: : if the function cannot find an exact match, it should use the closest match above the
lookup_value (if this option is used, the lookup_array must be in descending order)

Features of Excel covered in class:

• Excel Basics (elements on screen of excel page( ribbon,tabs etc.), Insert, Delete, Clipboard, Font,
Alignment, Open and save files)
• Absolute and relative reference
• Name Manager
• Functions (Text, Date, Time, Math, Statistical, Logical, Conditional, Financial (PMT,NPV and IRR),
Lookup, Index, Match), Nested Functions
• Conditional Formatting
• Data Validation
• Sort, Filter, Evaluate Formula, Charts
• What-if Analysis (Scenario Manager, Goal Seek, Data Table)
• Pivot Table

31 Dr. C. Lakshmi Devasena, IBS Hyderabad