IM Complete Notes UNIT 1 2 3

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Different Functions of Management

Planning Function

Planning means looking ahead and chalking out future courses of action to be followed. It is a preparatory step. It is a systematic activity which determines when, how and who is going to perform a specific job. Planning is a detailed programme regarding future courses of action. It is rightly said “Well plan is half done”. Therefore planning takes into consideration available & prospective human and physical resources of the organization so as to get effective co-ordination, contribution & perfect adjustment. It is the basic management function which includes formulation of one or more detailed plans to achieve optimum balance of needs or demands with the available resources.

According to Urwick, “Planning is a mental predisposition to do things in orderly way, to think before acting and to act in the light of facts rather than guesses”. Planning is deciding best alternative among others to perform different managerial functions in order to achieve predetermined goals. According to Koontz & O’Donell, “Planning is deciding in advance what to do, how to do and who is to do it. Planning bridges the gap between where we are to, where we want to go. It makes possible things to occur which would not otherwise occur”.

Steps in Planning Function Planning function of management involves following steps:-

1. Establishment of objectives a. Planning requires a systematic approach. b. Planning starts with the setting of goals and objectives to be achieved. c. Objectives provide a rationale for undertaking various activities as well as indicate direction of efforts. d. Moreover objectives focus the attention of managers on the end results to be achieved. e. As a matter of fact, objectives provide nucleus to the planning process. Therefore, objectives should be stated in

a clear, precise and unambiguous language. Otherwise the activities undertaken are bound to be ineffective. f. As far as possible, objectives should be stated in quantitative terms. For example, Number of men working,

wages given, units produced, etc. But such an objective cannot be stated in quantitative terms like performance of quality control manager, effectiveness of personnel manager.

g. Such goals should be specified in qualitative terms. h. Hence objectives should be practical, acceptable, workable and achievable.

2. Establishment of Planning Premises a. Planning premises are the assumptions about the lively shape of events in future. b. They serve as a basis of planning. c. Establishment of planning premises is concerned with determining where one tends to deviate from the actual

plans and causes of such deviations. d. It is to find out what obstacles are there in the way of business during the course of operations. e. Establishment of planning premises is concerned to take such steps that avoids these obstacles to a great

extent. f. Planning premises may be internal or external. Internal includes capital investment policy, management labour

relations, philosophy of management, etc. Whereas external includes socio- economic, political and economical changes.

g. Internal premises are controllable whereas external are non- controllable. 3. Choice of alternative course of action

a. When forecast are available and premises are established, a number of alternative course of actions have to be considered.

b. For this purpose, each and every alternative will be evaluated by weighing its pros and cons in the light of resources available and requirements of the organization.

c. The merits, demerits as well as the consequences of each alternative must be examined before the choice is being made.

d. After objective and scientific evaluation, the best alternative is chosen. e. The planners should take help of various quantitative techniques to judge the stability of an alternative.

4. Formulation of derivative plans a. Derivative plans are the sub plans or secondary plans which help in the achievement of main plan. b. Secondary plans will flow from the basic plan. These are meant to support and expediate the achievement of

basic plans. c. These detail plans include policies, procedures, rules, programmes, budgets, schedules, etc. For example, if

profit maximization is the main aim of the enterprise, derivative plans will include sales maximization, production maximization, and cost minimization.

d. Derivative plans indicate time schedule and sequence of accomplishing various tasks. 5. Securing Co-operation

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a. After the plans have been determined, it is necessary rather advisable to take subordinates or those who have to implement these plans into confidence.

b. The purposes behind taking them into confidence are :- a. Subordinates may feel motivated since they are involved in decision making process. b. The organization may be able to get valuable suggestions and improvement in formulation as well as

implementation of plans. c. Also the employees will be more interested in the execution of these plans.

6. Follow up/Appraisal of plans a. After choosing a particular course of action, it is put into action. b. After the selected plan is implemented, it is important to appraise its effectiveness. c. This is done on the basis of feedback or information received from departments or persons concerned. d. This enables the management to correct deviations or modify the plan. e. This step establishes a link between planning and controlling function. f. The follow up must go side by side the implementation of plans so that in the light of observations made, future

plans can be made more realistic.

Organizing function

Organizing is the function of management which follows planning. It is a function in which the synchronization and combination of human, physical and financial resources takes place. All the three resources are important to get results. Therefore, organizational function helps in achievement of results which in fact is important for the functioning of a concern. According to Chester Barnard, “Organizing is a function by which the concern is able to define the role positions, the jobs related and the coordination between authority and responsibility. Hence, a manager always has to organize in order to get results.

A manager performs organizing function with the help of following steps:-

1. Identification of activities - All the activities which have to be performed in a concern have to be identified first. For example, preparation of accounts, making sales, record keeping, quality control, inventory control, etc. All these activities have to be grouped and classified into units.

2. Departmentally organizing the activities - In this step, the manager tries to combine and group similar and related activities into units or departments. This organization of dividing the whole concern into independent units and departments is called departmentation.

3. Classifying the authority - Once the departments are made, the manager likes to classify the powers and its extent to the managers. This activity of giving a rank in order to the managerial positions is called hierarchy. The top management is into formulation of policies, the middle level management into departmental supervision and lower level management into supervision of foremen. The clarification of authority help in bringing efficiency in the running of a concern. This helps in achieving efficiency in the running of a concern. This helps in avoiding wastage of time, money, effort, in avoidance of duplication or overlapping of efforts and this helps in bringing smoothness in a concern’s working.

4. Co-ordination between authority and responsibility - Relationships are established among various groups to enable smooth interaction toward the achievment of the organizational goal. Each individual is made aware of his authority and he/she knows whom they have to take orders from and to whom they are accountable and to whom they have to report. A clear organizational structure is drawn and all the employees are made aware of it.

Staffing Function of Management

The managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal and development of the personnels to fill the roles assigned to the employers/workforce.

According to Theo Haimann, “Staffing pertains to recruitment, selection, development and compensation of subordinates.”

Nature of Staffing Function

1. Staffing is an important managerial function- Staffing function is the most important mangerial act along with planning, organizing, directing and controlling. The operations of these four functions depend upon the manpower which is available through staffing function.

2. Staffing is a pervasive activity- As staffing function is carried out by all mangers and in all types of concerns where business activities are carried out.

3. Staffing is a continuous activity- This is because staffing function continues throughout the life of an organization due to the transfers and promotions that take place.

4. The basis of staffing function is efficient management of personnels- Human resources can be efficiently managed by a system or proper procedure, that is, recruitment, selection, placement, training and development, providing

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remuneration, etc. 5. Staffing helps in placing right men at the right job. It can be done effectively through proper recruitment procedures

and then finally selecting the most suitable candidate as per the job requirements. 6. Staffing is performed by all managers depending upon the nature of business, size of the company, qualifications and

skills of managers,etc. In small companies, the top management generally performs this function.In medium and small scale enterprise, it is performed especially by the personnel department of that concern.

DIRECTING Function of Management

DIRECTING is said to be a process in which the managers instruct, guide and oversee the performance of the workers to achieve predetermined goals. Directing is said to be the heart of management process. Planning, organizing, staffing have got no importance if direction function does not take place.

Directing initiates action and it is from here actual work starts. Direction is said to be consisting of human factors. In simple words, it can be described as providing guidance to workers is doing work. In field of management, direction is said to be all those activities which are designed to encourage the subordinates to work effectively and efficiently. According to Human, “Directing consists of process or technique by which instruction can be issued and operations can be carried out as originally planned” Therefore, Directing is the function of guiding, inspiring, overseeing and instructing people towards accomplishment of organizational goals.

Direction has got following characteristics:

1. Pervasive Function - Directing is required at all levels of organization. Every manager provides guidance and inspiration to his subordinates.

2. Continuous Activity - Direction is a continuous activity as it continuous throughout the life of organization. 3. Human Factor - Directing function is related to subordinates and therefore it is related to human factor. Since human

factor is complex and behaviour is unpredictable, direction function becomes important. 4. Creative Activity - Direction function helps in converting plans into performance. Without this function, people become

inactive and physical resources are meaningless. 5. Executive Function - Direction function is carried out by all managers and executives at all levels throughout the working

of an enterprise, a subordinate receives instructions from his superior only. 6. Delegate Function - Direction is supposed to be a function dealing with human beings. Human behaviour is unpredictable

by nature and conditioning the people’s behaviour towards the goals of the enterprise is what the executive does in this function. Therefore, it is termed as having delicacy in it to tackle human behaviour.

Controlling Function of Management

What is Controlling? Controlling consists of verifying whether everything occurs in confirmities with the plans adopted, instructions issued and principles established. Controlling ensures that there is effective and efficient utilization of organizational resources so as to achieve the planned goals. Controlling measures the deviation of actual performance from the standard performance, discovers the causes of such deviations and helps in taking corrective actions

According to Brech, “Controlling is a systematic exercise which is called as a process of checking actual performance against the standards or plans with a view to ensure adequate progress and also recording such experience as is gained as a contribution to possible future needs.”

According to Donnell, “Just as a navigator continually takes reading to ensure whether he is relative to a planned action, so should a business manager continually take reading to assure himself that his enterprise is on right course.” Controlling has got two basic purposes

1. It facilitates co-ordination 2. It helps in planning

Features of Controlling Function Following are the characteristics of controlling function of management-

1. Controlling is an end function- A function which comes once the performances are made in confirmities with plans. 2. Controlling is a pervasive function- which means it is performed by managers at all levels and in all type of concerns. 3. Controlling is forward looking- because effective control is not possible without past being controlled. Controlling always

look to future so that follow-up can be made whenever required. 4. Controlling is a dynamic process- since controlling requires taking reviewal methods, changes have to be made

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wherever possible. 5. Controlling is related with planning- Planning and Controlling are two inseperable functions of management. Without

planning, controlling is a meaningless exercise and without controlling, planning is useless. Planning presupposes controlling and controlling succeeds planning.

Leadership

Leadership is a process by which an executive can direct, guide and influence the behavior and work of others towards accomplishment of specific goals in a given situation. Leadership is the ability of a manager to induce the subordinates to work with confidence and zeal.

Leadership is the potential to influence behaviour of others. It is also defined as the capacity to influence a group towards the realization of a goal. Leaders are required to develop future visions, and to motivate the organizational members to want to achieve the visions.

According to Keith Davis, “Leadership is the ability to persuade others to seek defined objectives enthusiastically. It is the human factor which binds a group together and motivates it towards goals.”

Characteristics of Leadership

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

Leadership and management are the terms that are often considered synonymous. It is essential to understand that leadership is an essential part of effective management. As a crucial component of management, remarkable leadership behaviour stresses upon building an environment in which each and every employee develops and excels. Leadership is defined as the potential to influence and drive the group efforts towards the accomplishment of goals. This influence may originate from formal sources, such as that provided by acquisition of managerial position in an organization.

A manager must have traits of a leader, i.e., he must possess leadership qualities. Leaders develop and begin strategies that build and sustain competitive advantage. Organizations require robust leadership and robust management for optimal organizational efficiency.

Differences between Leadership and Management Leadership differs from management in a sense that:

1. While managers lay down the structure and delegates authority and responsibility, leaders provides direction by developing the organizational vision and communicating it to the employees and inspiring them to achieve it.

2. While management includes focus on planning, organizing, staffing, directing and controlling; leadership is mainly a part of directing function of management. Leaders focus on listening, building relationships, teamwork, inspiring, motivating and persuading the followers.

3. While a leader gets his authority from his followers, a manager gets his authority by virtue of his position in the organization.

4. While managers follow the organization’s policies and procedure, the leaders follow their own instinct. 5. Management is more of science as the managers are exact, planned, standard, logical and more of mind. Leadership, on

the other hand, is an art. In an organization, if the managers are required, then leaders are a must/essential. 6. While management deals with the technical dimension in an organization or the job content; leadership deals with the

people aspect in an organization. 7. While management measures/evaluates people by their name, past records, present performance; leadership sees and

evaluates individuals as having potential for things that can’t be measured, i.e., it deals with future and the performance of people if their potential is fully extracted.

8. If management is reactive, leadership is proactive. 9. Management is based more on written communication, while leadership is based more on verbal communication

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A leader has got multidimensional traits in him which makes him appealing and effective in behavior. The following are the requisites to be present in a good leader:

1. Physical appearance- A leader must have a pleasing appearance. Physique and health are very important for a good leader.

2. Vision and foresight- A leader cannot maintain influence unless he exhibits that he is forward looking. He has to visualize situations and thereby has to frame logical programmes.

3. Intelligence- A leader should be intelligent enough to examine problems and difficult situations. He should be analytical who weighs pros and cons and then summarizes the situation. Therefore, a positive bent of mind and mature outlook is very important.

4. Communicative skills- A leader must be able to communicate the policies and procedures clearly, precisely and effectively. This can be helpful in persuasion and stimulation.

5. Objective- A leader has to be having a fair outlook which is free from bias and which does not reflects his willingness towards a particular individual. He should develop his own opinion and should base his judgement on facts and logic.

6. Knowledge of work- A leader should be very precisely knowing the nature of work of his subordinates because it is then he can win the trust and confidence of his subordinates.

7. Sense of responsibility- Responsibility and accountability towards an individual’s work is very important to bring a sense of influence. A leader must have a sense of responsibility towards organizational goals because only then he can get maximum of capabilities exploited in a real sense. For this, he has to motivate himself and arouse and urge to give best of his abilities. Only then he can motivate the subordinates to the best.

8. Self-confidence and will-power- Confidence in himself is important to earn the confidence of the subordinates. He should be trustworthy and should handle the situations with full will power. (You can read more about Self-Confidence at : Self Confidence - Tips to be Confident and Eliminate Your Apprehensions).

9. Humanist-This trait to be present in a leader is essential because he deals with human beings and is in personal contact with them. He has to handle the personal problems of his subordinates with great care and attention. Therefore, treating the human beings on humanitarian grounds is essential for building a congenial environment.

10. Empathy- It is an old adage “Stepping into the shoes of others”. This is very important because fair judgement and objectivity comes only then. A leader should understand the problems and complaints of employees and should also have a complete view of the needs and aspirations of the employees. This helps in improving human relations and personal contacts with the employees.

From the above qualities present in a leader, one can understand the scope of leadership and it’s importance for scope of business. A leader cannot have all traits at one time. But a few of them helps in achieving effective results.

Coordination function

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

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Mutual Adjustment This mechanism is based on the simple process of informal communication. It is used in very small companies, such as a 5-person software shop, or for very, very complicated tasks, such as putting the first person on the moon. Mutual adjustment is the same mechanism used by furniture movers to manoeuvre through a house, or paddlers to take a canoe downriver, or jazz musicians playing a live engagement. It's especially useful when nobody really knows ahead of time how to do what they're doing.

Direct Supervision Achieves coordination by having one person take responsibility for the work of others, issuing instructions and monitoring their actions. An example is the offensive unit of a football team. Here, there is marked division of labor and specialization, and the efforts of the players are coordinating by a quarterback calling specific plays.

If the organization is large enough, one person cannot handle all the members, so multiple leaders or managers must be used, then the efforts of these people (the managers) are coordinated by a manager of managers, and so on.

Standardization A third mechanism of coordination is standardization. Here, the coordination is achieved "on the drawing board", so to speak, or "at compile-time" if you like, not during the action or "run-time". The coordination is pre-programmed in one of three ways:

Work Processes. An example is the set of assembly instructions that come with a child's toy. Here, the manufacturer standardizes the work process of the parent. Often, the machinery in a factory effectively standardizes work by automatically providing only, say, blue paint when blue paint is needed, and only red paint when red paint is needed.

Outputs. Standardized outputs means that there are specifications that the product or work output must meet, but aside from that the worker is free to do as they wish. Stereo equipment manufacturers have a lot of freedom in designing their products, but the interface portions of the product (the connections to other stereo devices like CD's, speakers, tape-recorders, etc.) must be the same as everyone else's, or else it would be hard to put together a complete system.

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

Cooperation function

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

Frederick W. Taylor: Management Theory

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

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

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

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

Fayol (1841-1925) Functions and Principles of Management Fayol's career began as a mining engineer. He then moved into research geology and in 1888 joined, Comambault as Director. Comambault was in difficulty but Fayol turned the operation round. On retirement he published his work - a comprehensive theory of administration - described and classified administrative management roles and processes then became recognised and referenced by others in the growing discourse about management. He is frequently seen as a key, early contributor to a classical or administrative management school of thought (even though he himself would never have recognised such a "school").

His theorising about administration was built on personal observation and experience of what worked well in terms of organisation. His aspiration for an "administrative science" sought a consistent set of principles that all organizations must apply in order to run properly.

F. W. Taylor published "The Principles of Scientific Management" in the USA in 1911, and Fayol in 1916 examined the nature of management and administration on the basis of his French mining organisation experiences..

Fayol synthesised various tenets or principles of organisation and management and Taylor on work methods, measurement and simplification to secure efficiencies. Both referenced functional specialisation.

Both Fayol and Taylor were arguing that principles existed which all organisations - in order to operate and be administered efficiently - could implement. This type of assertion typifies a "one best way" approach to management thinking. Fayol's five functions are still relevant to discussion today about management roles and action.

1. to forecast and plan ‐ prevoyance examine the future and draw up plans of action

2. to organise build up the structure, material and human of the undertaking

3. to command maintain activity among the personnel

4. to co‐ordinate bind together, unify and harmonise activity and effort

5. to control see that everything occurs in conformity with policy and practise

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Fayol also synthesised 14 principles for organisational design and effective administration. It is worthwhile reflecting on these are comparing the conclusions to contemporary utterances by Peters, Kanter and Handy to name but three management gurus. Fayol's 14 principles are:

specialisation/division of labour A principle of work allocation and specialisation in order to concentrate activities to enable specialisation of skills and understandings, more work focus and efficiency.

authority with corresponding responsibility If responsibilities are allocated then the post holder needs the requisite authority to carry these out including the right to require others in the area of responsibility to undertake duties. Authority stems from:

that ascribed from the delegation process (the job holder is assigned to act as the agent of the high authority to whom they report ‐ hierarchy)

allocation and permission to use the necessary resources needed (budgets, assets, staff) to carry out the responsibilities.

selection ‐ the person has the expertise to carry out the responsibilities and the personal qualities to win the support and confidence of others.

The R = A correspondence is important to understand. R = A enables accountability in the delegation process. Who do we cope with situations where R > A? Are there work situations where our R< A?

"judgement demands high moral character, therefore, a good leader should possess and infuse into those around him courage to accept responsibility. The best safeguard against abuse of authority and weakness on the part of a higher manager is personal integrity and particularly high moral character of such a manager ..... this integrity, is conferred neither by election nor ownership. " 1916

A manager should never be given authority without responsibility‐‐and also should never be given responsibility without the associated authority to get the work done.

discipline The generalisation about discipline is that discipline is essential for the smooth running of a business and without it ‐ standards, consistency of action, adherence to rules and values ‐ no enterprise could prosper.

"in an essence ‐ obedience, application, energy, behaviour and outward marks of respect observed in accordance with standing agreements between firms and its employees " 1916

unity of command The idea is that an employee should receive instructions from one superior only. This generalisation still holds ‐ even where we are involved with team and matrix structures which involve reporting to more than one boss ‐ or being accountable to several clients. The basic concern is that tensions and dilemmas arise where we report to two or more bosses. One boss may want X, the other Y and the subordinate is caught between the devil and the deep blue sea.

unity of direction The unity of command idea of having one head (chief executive, cabinet consensus) with agree purposes and objectives and one plan for a group of activities) is clear.

subordination of individual interest to the general interest Fayol's line was that one employee's interests or those of one group should not prevail over the organisation as a whole. This would spark a lively debate about who decides that the interests of the organisation as a whole are. Ethical dilemmas and matters of corporate risk and the behaviour of individual "chancers" are involved here. Fayol's work ‐ assumes a shared set of values by people in the organisation ‐ a unitarism where the reasons for organisational activities and decisions are in some way neutral and reasonable.

remuneration of staff

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" the price of services rendered. " 1916

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

centralisation Centralisation for HF is essential to the organisation and a natural consequence of organising. This issue does not go away even where flatter, devolved organisations occur. Decentralisation ‐ is frequently centralisaed‐decentralisation !!! The modes of control over the actions and results of devolved organisations are still matters requiring considerable attention.

scalar chain/line of authority The scalar chain of command of reporting relationships from top executive to the ordinary shop operative or driver needs to be sensible, clear and understood.

order The level of generalisation becomes difficult with this principle. Basically an organisation "should" provide an orderly place for each individual member ‐ who needs to see how their role fits into the organisation and be confident, able to predict the organisations behaviour towards them. Thus policies, rules, instructions and actions should be understandable and understood. Orderliness implies steady evolutionary movement rather than wild, anxiety provoking, unpredictable movement.

equity Equity, fairness and a sense of justice "should"pervade the organisation ‐ in principle and practice.

stability of tenure Time is needed for the employee to adapt to his/her work and perform it effectively. Stability of tenure promotes loyalty to the organisation, its purposes and values.

initiative At all levels of the organisational structure, zeal, enthusiasm and energy are enabled by people having the scope for personal initiative. (Note: Tom Peters recommendations in respect of employee empowerment)

esprit de corps Here Fayol emphasises the need for building and maintaining of harmony among the work force , team work and sound interpersonal relationships.

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

principles ‐ very much in line with Fayol's recommendations.

Juran's view of Quality

Quality trilogy

Juran's view is that, "Quality does not happen by accident it must be planned". Seeing quality planning as the three

elements of Quality Planning, Quality Control and Quality Improvement running parallel to budgeting, cost control

and cost reduction. Stating that planning's key elements required to implement a company‐wide strategy were to

identify customer needs, define quality goals, identify and implement quality metrics, planning process capability,

and continually monitor results to reduced manufacturing and non‐manufacturing errors. All this supports his theory

that quality is not free and there is a point where conformance is more costly than the value of the quality obtained.

Quality Planning Road Map

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1. Identify customers.

2. Determine customer needs.

3. Translate customer needs into specifications.

4. Develop product or service to meet customer needs.

5. Optimize product or service features and characteristics.

6. Develop process capabilities to produce product or service.

7. Prove process.

8. Productionise process.

Different Types of Management Info Systems

Management information systems are those systems that allow managers to make decisions for the successful

operation of businesses. Management information systems consist of computer resources, people, and

procedures used in the modern business enterprise. The term MIS stands for management information

systems. MIS also refers to the organization that develops and maintains most or all of the computer systems

in the enterprise so that managers can make decisions. The goal of the MIS organization is to deliver

information systems to the various levels of corporate managers. MIS professionals create and support the

computer system throughout the company. Trained and educated to work with corporate computer systems,

these professionals are responsible in some way for nearly all of the computers, from the largest mainframe to

the desktop and portable PCs.

Management information systems can be used as a support to managers to provide a competitive advantage.

The system must support the goals of the organization. Most organizations are structured along functional

lines, and the typical systems are identified as follows:

Accounting management information systems: All accounting reports are shared by all levels of accounting

managers.

Financial management information systems: The financial management information system provides financial

information to all financial managers within an organization including the chief financial officer. The chief

financial officer analyzes historical and current financial activity, projects future financial needs, and monitors

and controls the use of funds over time using the information developed by the MIS department.

Manufacturing management information systems: More than any functional area, operations have been

impacted by great advances in technology. As a result, manufacturing operations have changed. For instance,

inventories are provided just in time so that great amounts of money are not spent for warehousing huge

inventories. In some instances, raw materials are even processed on railroad cars waiting to be sent directly to

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the factory. Thus there is no need for warehousing.

Marketing management information systems: A marketing management information system supports

managerial activity in the area of product development, distribution, pricing decisions, promotional

effectiveness, and sales forecasting. More than any other functional area, marketing systems rely on external

sources of data. These sources include competition and customers, for example.

Human resources management information systems: Human resources management information systems are

concerned with activities related to workers, managers, and other individuals employed by the organization.

Because the personnel function relates to all other areas in business, the human resources management

information system plays a valuable role in ensuring organizational success. Activities performed by the human

resources management information systems include, work‐force analysis and planning, hiring, training, and job

assignments.

Relationship of MIS with other discipline

Definition: Management Information Systems (MIS) is the term given to the discipline focused on the integration of computer systems with the aims and objectives on an organisation. The development and management of information technology tools assists executives and the general workforce in performing any tasks related to the processing of information. MIS and business systems are especially useful in the collation of business data and the production of reports to be used as tools for decision making.

Applications of MIS

With computers being as ubiquitous as they are today, there's hardly any large business that does not rely extensively on their IT systems. However, there are several specific fields in which MIS has become invaluable. * Strategy Support While computers cannot create business strategies by themselves they can assist management in understanding the effects of their strategies, and help enable effective decision‐making. MIS systems can be used to transform data into information useful for decision making. Computers can provide financial statements and performance reports to assist in the planning, monitoring and implementation of strategy. MIS systems provide a valuable function in that they can collate into coherent reports unmanageable volumes of data that would otherwise be broadly useless to decision makers. By studying these reports decision‐makers can identify patterns and trends that would have remained unseen if the raw data were consulted manually. MIS systems can also use these raw data to run simulations – hypothetical scenarios that answer a range of ‘what if’ questions regarding alterations in strategy. For instance, MIS systems can provide predictions about the effect on sales that an alteration in price would have on a product. These Decision Support Systems (DSS) enable more informed decision making within an enterprise than would be possible without MIS systems. * Data Processing

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Not only do MIS systems allow for the collation of vast amounts of business data, but they also provide a valuable time saving benefit to the workforce. Where in the past business information had to be manually processed for filing and analysis it can now be entered quickly and easily onto a computer by a data processor, allowing for faster decision making and quicker reflexes for the enterprise as a whole. Management by Objectives While MIS systems are extremely useful in generating statistical reports and data analysis they can also be of use as a Management by Objectives (MBO) tool. MBO is a management process by which managers and subordinates agree upon a series of objectives for the subordinate to attempt to achieve within a set time frame. Objectives are set using the SMART ratio: that is, objectives should be Specific, Measurable, Agreed, Realistic and Time‐Specific. The aim of these objectives is to provide a set of key performance indicators by which an enterprise can judge the performance of an employee or project. The success of any MBO objective depends upon the continuous tracking of progress. In tracking this performance it can be extremely useful to make use of an MIS system. Since all SMART objectives are by definition measurable they can be tracked through the generation of management reports to be analysed by decision‐makers. Benefits of MIS The field of MIS can deliver a great many benefits to enterprises in every industry. Expert organisations such as the Institute of MIS along with peer reviewed journals such as MIS Quarterly continue to find and report new ways to use MIS to achieve business objectives. Core Competencies Every market leading enterprise will have at least one core competency – that is, a function they perform better than their competition. By building an exceptional management information system into the enterprise it is possible to push out ahead of the competition. MIS systems provide the tools necessary to gain a better understanding of the market as well as a better understanding of the enterprise itself.

Enhance Supply Chain Management Improved reporting of business processes leads inevitably to a more streamlined production process. With better information on the production process comes the ability to improve the management of the supply chain, including everything from the sourcing of materials to the manufacturing and distribution of the finished product. Quick Reflexes As a corollary to improved supply chain management comes an improved ability to react to changes in the market. Better MIS systems enable an enterprise to react more quickly to their environment, enabling them to push out ahead of the competition and produce a better service and a larger piece of the pie. Further information about MIS can be found at the Bentley College Journal of MIS and the US Treasury’s MIS

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handbook, and an example of an organisational MIS division can be found at the Department of Social Services for the state of Connecticut.

Data Communications

Data Communications is the transfer of data or information between a source and a receiver. The source transmits the data and the receiver receives it. The actual generation of the information is not part of Data Communications nor is the resulting action of the information at the receiver. Data Communication is interested in the transfer of data, the method of transfer and the preservation of the data during the transfer process.

In Local Area Networks, we are interested in "connectivity", connecting computers together to share resources. Even though the computers can have different disk operating systems, languages, cabling and locations, they still can communicate to one another and share resources.

The purpose of Data Communications is to provide the rules and regulations that allow computers with different disk operating systems, languages, cabling and locations to share resources. The rules and regulations are called

protocols and standards in Data Communications.

Types of data communications

Simplex

Data in a simplex channel is always one way. Simplex channels are not often used because it is not

possible to send back error or control signals to the transmit end. It's like a one way street. An

example of simplex is Television, or Radio. The simplex channel also corresponds directly to

Shannon's model of communication discussed earlier

Simplex transmission allows data to travel only in a single, pre specified direction. An example from everyday life is

doorbell the signal can go only from the button to the chime. Two other examples are television and radio

broadcasting. The simplex standard is relatively uncommon for most types of computer‐based telecommunications

applications; even devices that are designed primarily to receive information, such as printers must be able to

communicate acknowledgement signals back to the sender devices

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Halfduplex Note that this is one of two contradictory definitions for half‐duplex.

A simple illustration of a half‐duplex communication system.

A half‐duplex (HDX) system provides communication in both directions, but only one direction at a time (not simultaneously). Typically, once a party begins receiving a signal, it must wait for the transmitter to stop transmitting, before replying (antennas are of trans‐receiver type in these devices, so as to transmit and receive the signal as well).

An example of a half‐duplex system is a two‐party system such as a "walkie‐talkie" style two‐way radio, wherein one must use "Over" or another previously designated command to indicate the end of transmission, and ensure that only one party transmits at a time, because both parties transmit and receive on the same frequency.

A good analogy for a half‐duplex system would be a one‐lane road with traffic controllers at each end. Traffic can flow in both directions, but only one direction at a time, regulated by the traffic controllers.

In automatically run communications systems, such as two‐way data‐links, the time allocations for communications in a half‐duplex system can be firmly controlled by the hardware. Thus, there is no waste of the channel for switching. For example, station A on one end of the data link could be allowed to transmit for exactly one second, and then station B on the other end could be allowed to transmit for exactly one second. And then this cycle repeats over and over again.

Fullduplex

A simple illustration of a full‐duplex communication system, although full‐duplex is not common in shown handheld

radios due to the cost and complexity of common duplexing methods.

A full‐duplex (FDX), or sometimes double‐duplex system, allows communication in both directions, and, unlike half‐duplex, allows this to happen simultaneously. Land‐line telephone networks are full‐duplex, since they allow both

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callers to speak and be heard at the same time. A good analogy for a full‐duplex system would be a two‐lane road with one lane for each direction.

Examples: Telephone, Mobile Phone, etc.

Two‐way radios can be, for instance, designed as full‐duplex systems, which transmit on one frequency and receive on a different frequency. This is also called frequency‐division duplex. Frequency‐division duplex systems can be extended to farther distances using pairs of simple repeater stations, because the communications transmitted on any one frequency always travel in the same direction.

A local area network (LAN) Definition: A local area network (LAN) supplies networking capability to a group of computers in close proximity to each other such as in an office building, a school, or a home. A LAN is useful for sharing resources like files, printers, games or other applications. A LAN in turn often connects to other LANs, and to the Internet or other WAN.

Most local area networks are built with relatively inexpensive hardware such as Ethernet cables, network adapters, and hubs. Wireless LAN and other more advanced LAN hardware options also exist.

Specialized operating system software may be used to configure a local area network. For example, most flavors of Microsoft Windows provide a software package called Internet Connection Sharing (ICS) that supports controlled access to LAN resources.

The term LAN party refers to a multiplayer gaming event where participants bring their own computers and build a temporary LAN.

Also Known As: local area network Examples:

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The most common type of local area network is an Ethernet LAN. The smallest home LAN can have exactly

two computers; a large LAN can accommodate many thousands of computers. Many LANs are divided into

logical groups called subnets. An Internet Protocol (IP) "Class A" LAN can in theory accommodate more than

16 million devices organized into subnets.

A computer network that spans a relatively small area. Most LANs are confined to a single building or group of buildings. However, one LAN can be connected to other LANs over any distance via telephone lines and radio waves. A system of LANs connected in

this way is called a wide‐area network (WAN).

Most LANs connect workstations and personal computers. Each node (individual computer ) in a LAN has its own CPU with which

it executes programs, but it also is able to access data and devices anywhere on the LAN. This means that many users can share expensive devices, such as laser printers, as well as data. Users can also use the LAN to communicate with each other, by sending e-mail or engaging in chat sessions.

There are many different types of LANs Ethernets being the most common for PCs. Most Apple Macintosh networks are based on

Apple's AppleTalk network system, which is built into Macintosh computers.

The following characteristics differentiate one LAN from another:

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

straight line.

� protocols : The rules and encoding specifications for sending data. The protocols also determine whether the network uses a

peer-to-peer or client/server architecture.

� media : Devices can be connected by twisted-pair wire, coaxial cables, or fiber optic cables. Some networks do without

connecting media altogether, communicating instead via radio waves.

LANs are capable of transmitting data at very fast rates, much faster than data can be transmitted over a telephone line; but the distances are limited, and there is also a limit on the number of computers that can be attached to a single LAN.

Characteristics of a LAN include:

Limited geographic operation

High speed data transfer rates

Full time connectivity to local services

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Generally lower in cost than a WAN

Cabling is primary transmission medium

What is a WAN?

A wide area network (WAN) is a geographically dispersed telecommunications network. The term distinguishes a broader telecommunication structure from a local area network (LAN). A wide area network may be privately owned or rented, but the term usually connotes the inclusion of public (shared user) networks. An intermediate form of network in terms of geography is a metropolitan area network (MAN).

Characteristics of WAN

1.Connect Multiple LANs via an Ethernet Network

Connect multiple LANs using Ethernet technology. Build a network as a single overall LAN segment.

2.Wide‐Area LAN that utilizes a High‐Speed Layer 2 Switch

Layer 2 switch within each backbone houses a access line. Users have access to a full‐mesh WAN architecture

that does not rely on Layer 3 or other higher order layers.

3.Layer 2 Level Advanced Security

Virtual LAN technology (VLAN) is used to assign a user ID for each user, allowing network segmentation below

the IP layer.

4.Compatible with a Variety of Access Lines

Offers a number of network services compatible with bandwidths from 128kbps to 1Gbps, as well as Ether/

ATM/ DSL/ MDN, etc.

Metropolitan Area Network(MAN)

It is a computer networks usually spanning a campus or a city, which typically connect a few local area networks using high speed backbone technologies. A MAN often provides efficient connections to a wide area network (WAN). There are three important features which discriminate MANs from LANs or WANs:

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1. The network size falls intermediate between LANs and WANs. A MAN typically covers an area of between 5 and 50 km range. Many MANs cover an area the size of a city, although in some cases MANs may be as small as a group of buildings.

2. A MAN (like a WAN) is not generally owned by a single organisation. The MAN, its communications links and equipment are generally owned by either a consortium of users or by a network service provider who sells the service to the users.

3. A MAN often acts as a high speed network to allow sharing of regional resources. It is also frequently used to provide a shared connection to other networks using a link to a WAN.

MAN adopted technologies from both LAN and WAN to serve its purpose. Some legacy technologies used for MAN are ATM, FDDI, DQDB and SMDS. These older technologies are in the process of being displaced by Gigabit Ethernet and 10 Gigabit Ethernet. At the physical level, MAN links between LANs have been built on fibre optical cables or using wireless technologies such as microwave or radio.

Characteristics of a MAN

A MAN is a relatively new class of network, it serves a role similar to an ISP, but for corporate users with large

LANs.They typically use wireless infrastructure or Optical fiber connections to link their sites.

1.The network size falls intermediate between LANs and WANs. A MAN typically covers an area of between 5

and 50 km diameter. Many MANs cover an area the size of a city, although in some cases MANs may be as

small as a group of buildings or as large as the North of Scotland.

2.A MAN (like a WAN) is not generally owned by a single organisation. The MAN, its communications links and

equipment are generally owned by either a consortium of users or by a single network provider who sells the

service to the users. This level of service provided to each user must therefore be negotiated with the MAN

operator, and some performance guarantees are normally specified.

3.A MAN often acts as a high speed network to allow sharing of regional resources (similar to a large LAN). It is

also frequently used to provide a shared connection to other networks using a link to a WAN.

Typical MAN

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ROLE OF SATELLITE COMMUNICATIONS

In the context of a worldwide military communications network, satellite communications systems are very important. Satellite communications links add capacity to existing communications capabilities and provide additional alternate routings for communications traffic. Satellite links, as one of several kinds of long-distance links, interconnect switching centers located strategically around the world. They are part of the defence communication systems (DCS) network. One important aspect of the satellite communications network is that it continues in operation under conditions that sometimes render other methods of communications inoperable. Because of this, satellites make a significant contribution to improved reliability of Navy communications.

ADVANTAGES OF SATELLITE COMMUNICATIONS Satellite communications have unique advantages over conventional long distance transmissions. Satellite links are unaffected by the propagation variations that interfere with hf radio. They are also free from the high attenuation of wire or cable facilities and are capable of spanning long distances. The numerous repeater stations required for line-of-sight or troposcatter links are no longer needed. They furnish the reliability and flexibility of service that is needed to support a military operation.

Capacity

The present military communications satellite system is capable of communications between backpack, airborne, and shipboard terminals. The system is capable of handling thousands of communications channels.

Reliability

Communications satellite frequencies are not dependent upon reflection or refraction and are affected only slightly by atmospheric phenomena. The reliability of satellite communications systems is limited only by the equipment reliability and the skill of operating and maintenance personnel.

Vulnerability

Destruction of an orbiting vehicle by an enemy is possible. However, destruction of a single communications satellite would be quite difficult and expensive. The cost would be excessive compared to the tactical advantage gained. It would be particularly

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difficult to destroy an entire multiple-satellite system such as the twenty-six random-orbit satellite system currently in use. The earth terminals offer a more attractive target for physical destruction. These can be protected by the same measures that are taken to protect other vital installations. A high degree of freedom from jamming damage is provided by the highly directional antennas at the earth terminals. The wide bandwidth system that can accommodate sophisticated anti-jam modulation techniques also lessens vulnerability.

a. While it is possible to destroy an orbiting satellite by rocket fire, the present developments in rocketry suggest that this would be quite difficult. It would be particularly difficult to destroy an entire system employing random orbit satellites, primarily because of the number involved. b. The present state‐of‐the‐art indicates that satellite communications ground stations in certain instances will be vulnerable to jamming attacks. However, by judicious planning and systems design, the enemy could be forced to expend so much time, effort, and equipment to effectively jam our communications facilities that the attempt would be unwarranted from his point of view. c. A rocket or satellite‐based jammer with limited power must be positioned within the main beam of the ground station to be effective. This implies that the rocket or satellite jammer must be in approximately the same position and orbit as the communications satellite. Considerable effort on the part of the enemy would be required to achieve the precision of position necessary to establish.

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

Main Types of Physical Topologies The following sections discuss the physical topologies used in networks and other related topics. Linear Bus Star

Tree (Expanded Star)

Linear Bus A linear bus topology consists of a main run of cable with a terminator at each end (See fig. 1). All nodes (file server, workstations, and peripherals) are connected to the linear cable.

Fig. 1. Linear Bus topology

Advantages of a Linear Bus Topology

Easy to connect a computer or peripheral to a linear bus. Requires less cable length than a star topology.

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Disadvantages of a Linear Bus Topology

Entire network shuts down if there is a break in the main cable. Terminators are required at both ends of the backbone cable. Difficult to identify the problem if the entire network shuts down. Not meant to be used as a stand‐alone solution in a large building.

Star A star topology is designed with each node (file server, workstations, and peripherals) connected directly to a central network hub, switch, or concentrator (See fig. 2).

Data on a star network passes through the hub, switch, or concentrator before continuing to its destination. The hub, switch, or concentrator manages and controls all functions of the network. It also acts as a repeater for the data flow. This configuration is common with twisted pair cable; however, it can also be used with coaxial cable or fiber optic cable.

Fig. 2. Star topology

Advantages of a Star Topology

Easy to install and wire. No disruptions to the network when connecting or removing devices. Easy to detect faults and to remove parts.

Disadvantages of a Star Topology

Requires more cable length than a linear topology. If the hub, switch, or concentrator fails, nodes attached are disabled. More expensive than linear bus topologies because of the cost of the hubs, etc.

Tree or Expanded Star A tree topology combines characteristics of linear bus and star topologies. It consists of groups of star‐configured workstations connected to a linear bus backbone cable (See fig. 3). Tree topologies allow for the expansion of an existing network, and enable schools to configure a network to meet their needs.

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Fig. 3. Tree topology

Advantages of a Tree Topology

Point‐to‐point wiring for individual segments. Supported by several hardware and software venders.

Disadvantages of a Tree Topology

Overall length of each segment is limited by the type of cabling used. If the backbone line breaks, the entire segment goes down. More difficult to configure and wire than other topologies.

Mesh Topology

Mesh topology work on the concept of routes. In Mesh topology, message sent to the destination can take any possible shortest, easiest route to reach its destination. In the previous topologies star and bus, messages are usually broadcasted to every computer, especially in bus topology. Similarly in the Ring topology message can travel in only one direction i.e clockwise or anticlockwise. Internet employs the Mesh topology and the message finds its route for its destination. Router works in find the routes for the messages and in reaching them to their destinations. The topology in which every devices connects to every other device is called a full Mesh topology unlike in the partial mesh in which every device is indirectly connected to the other devices.

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The Impact of the Internet on Business

Current Uses of the Internet The Internet has a wide variety of uses. It provides an excellent means for disseminating information and

communicating with other people in all regions of the world. While the greatest use of the Internet has been sharing

information, other sources of use are rapidly developing. For instance, chat rooms, a space where people can go to

discuss an assortment of issues, and Internet Commerce, which connects buyers and sellers online. The following are

other examples of current Internet uses:

1. Technical Papers Originally, the Internet was only used by the government and universities. Research scientists used the Internet to

communicate with other scientists at different labs and to access powerful computer systems at distant computing

facilities. Scientists also shared the results of their work in technical papers stored locally on their computer system

in ftp sites. Researchers from other facilities used the Internet to access the ftp directory and obtain these technical

papers. Examples of research sites are NASA and NASA AMES.

2. Share Company Information Commercial companies are now using the Web for many purposes. One of the first ways that commercial companies

used the Web was to share information with their employees. Sterling Software's Web page informs employees

about such things as training schedules and C++ Guidelines. There is also some information which is company

private and access is restricted to company employees only. Another company example is Sun Microsystems which

similarily contains general information about the Sun Microsystems company.

3. Product Information One of the ways businesses share information is to present their product information on a Web page. Some

examples are: Cray Research, Sun Microsystems, Hewlet Packard, and GM's Pontiac Site. The Web provides

an easy and efficient way for companies to distribute product information to their current and potential customers.

4. Advertising Along these lines, companies are beginning to actually advertise online. Some examples of different ways to

advertise online are Netscape's Ad Page. Netscape has a list of advertising companies. They also use a banner for

advertisements on their Yahoo Web Page. Starware similarly uses banner advertisement. These advertisements are

created in the established advertising model where the advertising is positioned between rather than within

editorial items. Another type of advertising focuses on entertaining the customers and keeping them at the

companies' site for a longer time period.

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5. Business & Commerce on the Net Commercial use restrictions of the Internet were lifted in 1991. This has caused an explosion of commercial

use. More information about business on the Internet can be found at the Commerce Net. This site has

information such as the projected growth of advertising on the Internet and online services. Commercial

Services on the Net has a list of various businesses on the Internet. They are many unusual businesses

listed here such that you begin to wonder if they are legitimate businesses. This topic is discussed in more

detail in the section on risks and consumer confidence. Business and Commerce provides consumer

product information. The Federal Trade Commission is also quite concerned about legal business on the

Internet.

WWW users are clearly upscale, professional, and well educated compared with the population as a whole. For example, from Commerce Net’s Survey (Commerce Net is a not for‐profit 501c(6) mutual benefit corporation which is conducting the first large‐scale market trial of technologies and business processes to support electronic commerce via the Internet) as of 10/30/95 :

25% of WWW users earn household income of more than $80,000 whereas only 10% of the total US and Canadian population has that level of income.

50% of WWW users consider themselves to be in professional or managerial occupations. In contrast, 27% of the total US and Canadian population categorize themselves to have such positions.

64% of WWW users have at least college degrees while the US and Canadian national level is 29%.

Commerce Net's study also found that there is a sizable base of Internet Users in the US and Canada. With 24 million Internet users (16 years of age or older) and 18 million WWW users (16 years of age or older), WWW users are a key target for business applications. Approximately 2.5 million people have made purchases using the WWW. The Internet is, however, heavily skewed to males in terms of both usage and users. Access through work is also an important factor for both the Internet and online services such as America Online and CompuServe. For an example of the size of the market, the total Internet usage exceeds online services and is approximately equivalent to playback of rented videotapes.

6. Magazines Magazines are starting to realize that they can attract customers online. Examples of magazines now

published online are Outside, Economist, and Business Week. These magazines are still published in hard

copy, but they are now also available online. Many of these publications are available free sometimes

because of the time delay (i.e. publications online are past issues) or usually to draw in subscribers for a free

initial trial period. Some of these publications may remain free online if advertisers pay for the publications

with their advertisement banners.

7. Newspapers Some newspapers are beginning to publish online. The San Jose Mercury News is a full newspaper online,

while the Seattle Times offers just classified ads and educational information. The Dow Jones Wall Street

Journal publishes its front page online with highlighted links from the front page to complete stories. The

Journal also provides links to briefing books, which provide financial information on the company, stock

performance, and recent articles and press releases. For an example of a briefing book see, Netscape

Briefing Book. This is all free by the Wall Street Journal during the trial period which should last until mid

1996.

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8. Employment Ads Companies are also beginning to list their employment ads online to attract talented people who they might

not have been able to reach by the more tradition method of advertising in local papers. Sun Microsystems

provides a list of job openings on the Internet. Interested parties can submit a resume or call to schedule an

interview, which saves time for everyone involved. Universities can also help their students find jobs more

easily by using job listings on the Internet. The University of Washington has a job listing site. Local papers

can also make it easier for job searchers by creating a database search feature. The job searchers can select

the type of jobs that they are interested in and the search will return a list of all the matching job openings.

San Jose Mercury News is a good example of this approach.

9. Stock Quotes There are several time delayed (15 minutes) ways to track stock performance, and they are all are free. The

first to provide this service was PAWWS Financial Network, and now CNN also lets you track stocks.

These are commercial companies which provide stock quotes for free but charge for other services. A non‐

commercial site, MIT's Stock & Mutual Fund Charts, updates information daily and provides a history file

for a select number of stocks and mutual funds. Information in these history files can be graphically

displayed so that it is easier to see a stock's performance over time.

10. Country Investment Information Thinking about investing in a particular country? Information on countries can be found online. For example,

check out the graphical information (GDP, inflation, direct foreign investment, etc.) on Indonesia.

11. Order Pizza You can order a pizza online. This Web site is actually a joke, but you can easily imagine people working late

at their offices and ordering out for food online.

12. Software Distribution A very effective and efficient use of the Web is to order software online. This reduces the packaging and

shipping costs. Also documentation can now be provided online. A good example is Netscape Navigator.

Another example is Macromedia's Shockwave. What is Shockwave for Director? The description online is

as following:

"Shockwave for Director is the product name for the Macromedia Director‐on‐the‐Internet project.

Shockwave for Director includes two distinct pieces of functionality:

(1) Shockwave Plug‐In for Web browsers like Netscape Navigator 2.0 which allows movies to be played

seamlessly within the same window as the browser page.

(2) Afterburner is a post‐processor for Director movie source files. Multimedia developers use it to prepare

content for Internet distribution. Afterburner compresses movies and makes them ready for uploading to an

HTTP server, from which they'll be accessed by Internet users."

So by reading about the product online, you can decide if it sounds interesting. You can then immediately get the software by downloading it from Macromedia's computer to yours. Next, you install it on your system and you're all set. You didn't even have to leave your terminal, and there was no shipping cost to you or the company.

13. Traffic Information

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Ever wonder what the rush hour traffic was like before you head home and get stuck in it? Many different

cities are putting traffic information online. In Seattle, a graphical traffic report is available.

14. Tourism Plan a trip to Australia or New Zealand with information gathered off the Internet. These and other

countries are on the Internet. So you can plan your vacation from your computer.

15. Movie Previews Who needs Siskel and Ebert, when you can be your own movie critic? Buena Vista Movie Clips provides

movie clips from many of their new releases. For a sample movie clip preview "Unstrung Heroes".

16. Chat Rooms on AOL Chat rooms are a more interactive technology. America Online provides areas where people can "log on"

and converse with others with similar interests in real time. This is the first popular use of interactivity by the

general public. The other uses up until recently have been more static, one‐way distribution of information.

Interactivity is the future of the Internet (See the next section).

Forecast of How the Internet & WWW Might Be Used in the Future There are many ways that the Internet could be used in the next 3 to 5 years. The main aspect that they all

have in common is the increased use of interactivity on the Internet. This means that the Internet will shift

from being a one‐way distribution of information to a two‐way information stream. Scientists will continue

to lead the way in this area by watching the results from scientific experiments and exchanging ideas

through live audio and video feeds. Due to budget cuts, this collaboration should be expected to increase

even more to stretch what budget they do have. (For more information on this, check out Business Week

article on science and technology "Welcome To The World Wide Lab" 10/30/95.)

1. Interactive Computer Games One of the first areas where interactivity will increase on the Internet are computer games. People will no

longer have to take turns playing solitary or crowd around one machine. Instead they will join a computer

network game and compete against players located at distant sites. An example of this is Starwave's Fantasy

Sports Game. This game is still a more traditional approach of updating statistics on the computer and

players looking at their status. A more active game is Marathon Man, which portrays players on the screen

reacting to various situations. In the future, many of these games will also include virtual reality.

2. Real Estate Buying a home online will become possible. While very few people would want to buy a home without

seeing it in person, having house listings online will help reduce the time it takes to purchase a home. People

can narrow down which houses that they are actually interested in viewing by seeing their description and

picture online. An example is this list of house descriptions by region of the country. This will be improved

when database search capabilities are added. People can select the features that they are interested in and

then search the database. In response, they will receive a list of houses that meet their criteria. Also, having

several different images of the House as well as a short video clip of a walk through of the house, will help

buyers make their selection quicker. This area is growing quickly. For example, the following sites of interest

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to the West Coast were added online since the writing of this paper: Windermere Real Estate, Fractals,

and Listinglink.

3. Process Mortgages online After a house is chosen, potential buyers can apply for a mortgage online. No longer will buyers be restricted

to local lending institutions, since many lenders will be able to compete online for business. Visit an example

of an online mortgage computation. In the future, each lender will have a Web page which will process the

mortgage application. One of the main reasons this has not been implemented is security, which is discussed

further under the strategic risks and security section.

4. Buying stocks Stocks will soon be able to be purchased over the Internet without the assistance of a broker. Charles

Schwab has a prototype that is being tested currently in Florida. Once the security issues are ironed out, this

application will also be active.

5. Ordering products. Ordering products online is an important application. As mentioned above, the Pizza Page showed how easy

it could be done. Other companies are setting up Web pages to actually do this. An example is TSI Soccer.

Customers can actually order online if they choose to do so. They can even send their credit card number

over the network. Since this is non‐secure, most people probably still call the company to order any item.

6. Live Video Viewing live video clips will become more common in the future. CNN has files of video clips of news stories

at video vault which can be downloaded and viewed on a home computer. Seeing actual live video feed is

dependent on network speed, and most home users do not have fast enough connections to make this a

practical application yet. This is discussed in more detail under the section strategic risk and speed of

network access. Once the speed of network connection increases, more people will be interested in live

video clips.

7. "Chat" Internet Telephone While AOL users are currently accessing "Chat Rooms" to communicate with other people on the Internet,

they are restricted to text‐based communication or possibly an icon as their identity online. CUCME from

Carneige Mellon provides a means for people to actually see other people online. However, network speed

is once again a limiting factor. If a user is not directly connected to the Internet (most connections are via

modem), then the image is extremely slow. This application will become more popular with increased

network connections.

8. Video Conferencing On the other hand, businesses will begin using video to communicate with others. Andersen Consulting is

setting up training online. There should also be some applications that businesses can choose to help set up

video conferencing. IBM bought LOTUS Notes for this reason last summer. IBM needs to make it a more

flexible solution by interacting LOTUS Notes with the Internet. They currently are in the process of doing this.

Netscape also offers a solution based on the software company Collabora that they purchased last fall. These

possible solutions should encourage businesses to use video conferencing and online training. Additional

information on Video Conferencing is also available.

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Strategic Risks Associated with Business Uses of the Internet

1. Targeting right market segments. It is important for advertisers to spend their advertisement dollars wisely. They can achieve this by using

appropriate methods of advertising and targeting the right market segments. Two different types of

advertising are entertainment ads and traditional advertising. Entertainment ads focus on entertaining a

customer whereas traditional advertising is more direct and usually positioned between rather than within

editorial items. When the entertainment ads work well, they can be quite successful in drawing customers to

their site; however, it is very easy for this type of ad to flop resulting in no one returning to visit the

advertisement site after they see it once. Traditional advertising has better readership. It can also be used

well in targeting the right market segments. For instance, the ESPN Sports page would be a good site to

place ads by Gatorade and Nike. Sports minded people that might be interested in these products would be

likely to access these pages. A good reference for researching this topic further is at Advertising Age.

2. Security One of the main factors holding back businesses' progress on the Internet, is the issue of security. Customers

do not feel confident sending their credit card numbers over the Internet. Computer hackers can grab this

information off the Internet if it is not encrypted. Netscape and several other companies are working on

encryption methods. Strong encryption algorithms and public education in the use of the Internet should

increase the number of online transactions. After all, getting your credit card number stolen in every day

transactions is easier. In addition, securing private company information and enforcing copyright issues still

need to be resolved before the business community really takes advantage of Internet transactions. There

are, however, currently some methods within Netscape for placing the information online yet restricting it to

only certain people such as company employees.

3. Consumer confidence Consumer confidence is essential for conducting business online. Although related to security, consumer

confidence also deals with feeling confident about doing business online. For instance, can consumers

believe that a company is legitimate if it is on the Internet, or could it be some kind of boiler room

operation? Also, companies must be able to substantiate their advertising claims if they are published

online. These are some of the issues that concern the Federal Trade Commission, as well as the future of

Internet commerce. After all, if consumer confidence is low, businesses will not succeed.

4. Speed of network access The speed of network access is a risk for businesses. If businesses spend a lot of money for fast network

connections and design their sites with this in mind yet customers have lower speed connections, this may

result in less consumers accessing their site. Less consumers accessing their site most likely results in lower

profits which is in addition to the extra cost of the faster network connection. On the other hand, if the

company designed for slower access yet customers have faster access, they could still lose out in profits.

Currently, some of the options that home users have to choose from are traditional modems, ISDN, and

Cable Modems. Traditional modems are cheaper but the current speed is a maximum of 28.8 Kbps. ISDN is

faster at 56 Kbps, but more expensive. Cable modems are faster yet with a speed of 4 Mbps. However, two‐

way interaction with a cable modem needs some more testing to be sure that it works as well as ISDN.

5. Picking Wrong Industry Standards

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Along these lines of picking industry standards, companies must also be sure that the Web Browser that they

develop for is the standard. Otherwise, some of the features that they are using to highlight their site may

not work. Currently the defacto standard is Netscape. There also needs to be a standard language that adds

high quality features such as animation, so that software applications written for the Internet will run on all

the different types of architectures customers may have. Major computer industry players have backed JAVA

by Sun Microsystems. So while some areas are becoming standardized, companies must be alert to industry

changes to avoid becoming obsolete in hardware, software, and data communications.

6. Internet Community & Philosophy The Internet was originally developed with a philosophy for sharing information and assisting others in their

research. The original intent emphasised concern for others, technological advances, and not for profit

organizations.

With the lifting of commercial restrictions in 1991, businesses are now joining the Internet community. As with any small town that has a sudden increase in population, fast growth can cause problems. Old residents could create animosity if they feel that the new residents are taking over their community and causing congestion and prices to increase. Businesses need to be conscious of this phenomenon.

While businesses can expect help from Internet users, businesses will lose this help if they only use it to make a quick profit. As in a large city, people will start to feel less like helping others in need. Businesses will be more successful on the Internet if they can emphasize how they can help add value to the Internet rather than focusing on how to make a quick profit. For example, businesses can take advantage of the opportunity to provide additional Internet services (e.g., services discussed in the sections on current uses of the Internet and future uses) now that funding from the government is being reduced.

An example of a city that has grown rapidly, yet still considered very livable, is Seattle. One of the reasons attributed to Seattle's successful growth is, that despite it being a large city, there are numerous small communities within the city. These small communities retain such benefits as concern for others within the framework of services that a large city can provide. If businesses along with the Internet community follow this model, the Internet will have a chance to keep its successful small town atmosphere while adding increased services for more people.

The Impact of the Internet on culture

a. The Internet advocates western life‐styles. These websites display various aspects of western society and life, and the overwhelming majority of them have positive portrayals of the western life‐style. It makes people believe that the West seems to be countries of absolute freedom and paradise for individual achievement where private life is without obstacles and external inferences. Partial information such as this is particularly appealing to our youths whose life philosophy and worldview have yet to mature. Many of these youths aspire with great diligence to go abroad just to “change a way of living.” b. The Internet helps dominant cultures impact and homogenize cultures in an inferior position. Because the Internet overwhelmingly is a culture of the English language, it further strengthens throughout the globe the culture based upon the English language. In comparison, cultures based upon the Chinese, the French and other languages have been weakened. Because of the introduction of the Internet, some under‐developed countries have made themselves vulnerable to foreign dominant cultures, busy defending themselves. This situation has become so bad that scholars in some developing countries are concerned about their indigenous cultures being homogenized and have provided proposals to counter “cultural invasion” on different fronts. c. The Internet corrupts people’s minds, influences and changes people’s moral perspectives and ethical values. Driven by the profits in the numbers of hundreds of millions of dollars, the pornography merchants in Western

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countries have opened pornographic websites, massively producing various kinds of sex information. Nude males and females are everywhere, performances by “computer prostitutes” have also openly entered the Internet. This development has led the Commerce Committee of the U.S. Senate to propose the “1995

What is e-commerce? Electronic commerce or e‐commerce refers to a wide range of online business activities for products and services. It also pertains to “any form of business transaction in which the parties interact electronically rather than by physical exchanges or direct physical contact.” E‐commerce is usually associated with buying and selling over the Internet, or conducting any transaction involving the transfer of ownership or rights to use goods or services through a computer‐mediated network. Though popular, this definition is not comprehensive enough to capture recent developments in this new and revolutionary business phenomenon. A more complete definition is: E‐commerce is the use of electronic communications and digital information processing technology in business transactions to create, transform, and redefine relationships for value creation between or among organizations, and between organizations and individuals. Ecommerce (e‐commerce) or electronic commerce, a subset of ebusiness, is the purchasing, selling, and exchanging

of goods and services over computer networks (such as the Internet) through which transactions or terms of sale are

performed electronically. Contrary to popular belief, ecommerce is not just on the Web. In fact, ecommerce was

alive and well in business to business transactions before the Web back in the 70s via EDI (Electronic Data

Interchange) through VANs (Value‐Added Networks). Ecommerce can be broken into four main categories: B2B, B2C,

C2B, and C2C.

B2B (Business‐to‐Business) Companies doing business with each other such as manufacturers selling to distributors and wholesalers selling to retailers. Pricing is based on quantity of order and is often negotiable.

The volume of B2B (Business‐to‐Business) transactions is much higher than the volume of B2C transactions. The primary reason for this is that in a typical supply chain there will be many B2B transactions involving sub components or raw materials, and only one B2C transaction, specifically sale of the finished product to the end customer. For example, an automobile manufacturer makes several B2B transactions such as buying tires, glass for windscreens, and rubber hoses for its vehicles. The final transaction, a finished vehicle sold to the consumer, is a single (B2C) transaction.

B2B is also used in the context of communication and collaboration. Many businesses are now using social media to connect with their consumers (B2C); however, they are now using similar tools within the business so employees can connect with one another. When communication is taking place amongst employees, this can be referred to as "B2B" communication.

B2C (Business‐to‐Consumer) Businesses selling to the general public typically through catalogs utilizing shopping cart software. By dollar volume, B2B takes the prize, however B2C is really what the average Joe has in mind with regards to ecommerce as a whole. Having a hard time finding a book? Need to purchase a custom, high‐end computer system? How about a first class, all‐inclusive trip to a tropical island? With the advent ecommerce, all three things can be purchased literally in minutes without human interaction.

Business‐To‐Consumer. A transaction that occurs between a company and a consumer, as opposed to a transaction between companies (called B2B). The term may also describe a company that provides goods or services for consumers.

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Advantages

According to marketing terms "B2C businesses played a large role in the rapid development of the commercial Internet in the late 20th century. Large sums of venture capital flowed to consumers in the form of free online services and discounted shopping, spurring adoption of the new medium." Business to Consumer e‐consumer quickly developed as an alternative way for companies to sell more products to a larger market.B2C e‐commerce provided not only multiple advantages to a company but also to the consumers. The main advantages for both the business and consumer are that by opening their market up to B2C e‐commerce trade they are reducing transactions costs. Businesses usually ship their products to a number of stores to make them visible to the consumer. However, by using B2C commerce they can instead showcase all of their products on the internet which reduces the cost of transaction. B2C also allows their customers to better access information about different

C2B (Consumer‐to‐Business) A consumer posts his project with a set budget online and within hours companies review the consumer's requirements and bid on the project. The consumer reviews the bids and selects the company that will complete the project. Elance empowers consumers around the world by providing the meeting ground and platform for such transactions.

Consumer‐to‐business (C2B) is an electronic commerce business model in which consumers (individuals) offer products and services to companies and the companies pay them. This business model is a complete reversal of traditional business model where companies offer goods and services to consumers (business‐to‐consumer = B2C). We can see this example in blogs or internet forums where the author offers a link back to an online business facilitating the purchase of some product (like a book on Amazon.com), and the author might receive affiliate revenue from a successful sale.

This kind of economic relationship is qualified as an inverted business type. The advent of the C2B scheme is due to major changes:

Connecting a large group of people to a bidirectional network has made this sort of commercial relationship possible. The large traditional media outlets are one direction relationship whereas the internet is bidirectional one.

Decreased cost of technology : Individuals now have access to technologies that were once only available to large companies ( digital printing and acquisition technology, high performance computer, powerful software

C2C (Consumer‐to‐Consumer) There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell thanks to online payment systems like PayPal where people can send and receive money online with ease. eBay's auction service is a great example of where person‐to‐person transactions take place everyday since 1995.

Companies using internal networks to offer their employees products and services online‐‐not necessarily online on the Web‐‐are engaging in B2E (Business‐to‐Employee) ecommerce.

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Consumer‐to‐consumer (C2C) (or citizen‐to‐citizen) electronic commerce involves the electronically‐facilitated transactions between consumers through some third party. A common example is the online auction, in which a consumer posts an item for sale and other consumers bid to purchase it; the third party generally charges a flat fee or commission. The sites are only intermediaries, just there to match consumers. They do not have to check quality of the products being offered.

Consumer‐to‐consumer (C2C) marketing is the creation of a product or service with the specific promotional strategy being for consumers to share that product or service with others as brand advocates based on the value of the product. The investment into concepting and developing a top of the line product or service that consumers are actively looking for is equatable to a Business‐to‐consumer (B2C) pre launch product awareness marketing spend.

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E-Banking (Impact of technology on Banking)

Internet banking (or E-banking) means any user with a personal computer and a browser can get connected to his bank -s website to perform any of the virtual banking functions. In internet banking system the bank has a centralized database that is web-enabled. All the services that the bank has permitted on the internet are displayed in menu. Any service can be selected and further interaction is dictated by the nature of service. The traditional branch model of bank is now giving place to an alternative delivery channels with ATM network. Once the branch offices of bank are interconnected through terrestrial or satellite links, there would be no physical identity for any branch. It would a borderless entity permitting anytime, anywhere and anyhow banking. The network which connects the various locations and gives connectivity to the central office within the organization is called intranet. These networks are limited to organizations for which they are set up. SWIFT is a live example of intranet application. Internet banking in India The Reserve Bank of India constituted a working group on Internet Banking. The group divided the internet banking products in India into 3 types based on the levels of access granted. They are: i) Information Only System: General purpose information like interest rates, branch location, bank products and their features, loan and deposit calculations are provided in the banks website. There exist facilities for downloading various types of application forms. The communication is normally done through e-mail. There is no interaction between the customer and bank's application system. No identification of the customer is done. In this

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

ii) Electronic Information Transfer System: The system provides customer- specific information in the form of account balances, transaction details, and statement of accounts. The information is still largely of the 'read only' format. Identification and authentication of the customer is through password. The information is fetched from the bank's application system either in batch mode or off-line. The application systems cannot directly access through the internet. iii) Fully Electronic Transactional System: This system allows bi-directional capabilities. Transactions can be submitted by the customer for online update. This system requires high degree of security and control. In this environment, web server and application systems are linked over secure infrastructure. It comprises technology covering computerization, networking and security, inter-bank payment gateway and legal infrastructure. Automated Teller Machine (ATM): ATM is designed to perform the most important function of bank. It is operated by plastic card with its special features. The plastic card is replacing cheque, personal attendance of the customer, banking hours restrictions and paper based verification. There are debit cards. ATMs used as spring board for Electronic Fund Transfer. ATM itself can provide information about customers account and also receive instructions from customers - ATM cardholders. An ATM is an Electronic Fund Transfer terminal capable of handling cash deposits, transfer between accounts, balance enquiries, cash withdrawals and pay bills. It may be on-line or 0ff-line. The on-line ATN enables the customer to avail banking facilities from anywhere. In off-line the facilities are confined to that particular ATM assigned. Any customer possessing ATM card issued by the Shared Payment Network System can go to any ATM linked to Shared Payment Networks and perform his transactions. Credit Cards/Debit Cards: The Credit Card holder is empowered to spend wherever and whenever he wants with his Credit Card within the limits fixed by his bank. Credit Card is a post paid card. Debit Card, on the other hand, is a prepaid card with some stored value. Every time a person uses this card, the Internet Banking house gets money transferred to its account from the bank of the buyer. The buyers account is debited with the exact amount of purchases. An individual has to open an account with the issuing bank which gives debit card with a Personal Identification Number (PIN). When he makes a purchase, he enters his PIN on shops PIN pad. When the card is slurped through the electronic terminal, it dials the acquiring bank system - either Master Card or VISA that validates the PIN and finds out from the issuing bank whether to accept or decline the transactions. The customer can never overspend because the system rejects any transaction which exceeds the balance in his account. The bank never faces a default because the amount spent is debited immediately from the customers account. Smart Card: Banks are adding chips to their current magnetic stripe cards to enhance security and offer new service, called Smart Cards. Smart Cards allow thousands of times of information storable on magnetic stripe cards. In addition, these cards are highly secure, more reliable and perform multiple functions. They hold a large amount of personal information, from medical and health history to personal banking and personal preferences. You can avail the following services through E-Banking. Bill payment service You can facilitate payment of electricity and telephone bills, mobile phone, credit card and insurance premium bills as each bank has tie-ups with various utility companies, service providers and insurance companies, across the country. To pay your bills, all you need to do is complete a simple one-time registration for each biller. You can also set up standing instructions online to pay your recurring bills, automatically. Generally, the bank does not charge customers for online bill payment. Fund transfer You can transfer any amount from one account to another of the same or any another bank. Customers can send money anywhere in India. Once you login to your account, you need to mention the payees's account number, his bank and the branch. The transfer will take place in a day or so, whereas in a traditional method, it takes about three working days. ICICI Bank says that online bill payment service and fund transfer facility have been their most popular online services. Credit card customers With Internet banking, customers can not only pay their credit card bills online but also get a loan on their cards. If you lose your credit card, you can report lost card online. Railway pass This is something that would interest all the aam janta. Indian Railways has tied up with ICICI bank and you can now make your railway pass for local trains online. The pass will be delivered to you at your doorstep. But the facility is

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limited to Mumbai, Thane, Nashik, Surat and Pune. Investing through Internet banking You can now open an FD online through funds transfer.Now investors with interlinked demat account and bank account can easily trade in the stock market and the amount will be automatically debited from their respective bank accounts and the shares will be credited in their demat account. Moreover, some banks even give you the facility to purchase mutual funds directly from the online banking system. Nowadays, most leading banks offer both online banking and demat account. However if you have your demat account with independent share brokers, then you need to sign a special form, which will link your two accounts. Recharging your prepaid phone Now just top-up your prepaid mobile cards by logging in to Internet banking. By just selecting your operator's name, entering your mobile number and the amount for recharge, your phone is again back in action within few minutes. Shopping With a range of all kind of products, you can shop online and the payment is also made conveniently through your account. You can also buy railway and air tickets through Internet banking. Advantage of Internet banking As per the Internet and Mobile Association of India's report on online banking 2006, "There are many advantages of online banking. It is convenient, it isn't bound by operational timings, there are no geographical barriers and the services can be offered at a miniscule cost." Through Internet banking, you can check your transactions at any time of the day, and as many times as you want to. Where in a traditional method, you get quarterly statements from the bank. If the fund transfer has to be made outstation, where the bank does not have a branch, the bank would demand outstation charges. Whereas with the help of online banking, it will be absolutely free for you. Security Precautions Customers should never share personal information like PIN numbers, passwords etc with anyone, including employees of the bank. It is important that documents that contain confidential information are safeguarded. PIN or password mailers should not be stored, the PIN and/or passwords should be changed immediately and memorised before destroying the mailers. Customers are advised not to provide sensitive account-related information over unsecured e-mails or over the phone. Take simple precautions like changing the ATM PIN and online login and transaction passwords on a regular basis. Also ensure that the logged in session is properly signed out.

Advantages of Online Hotel Booking

The internet is one of the most useful tools invented by mankind in connection to the computers. There are various sectors which have adopted the use of the internet and the computers in carrying out their day to day activities. The hospitality industry is one of the sectors which has taken to the internet in the best possible manner. It has become extremely difficult for the different hotels to compete with the others without having a presence on the internet.

One of the facilities provided by the hotels include the online hotel booking. The advantages of online hotel booking are discussed below. Presence on the internet The internet is becoming extremely popular with the people as a preferred source of information on various travel related needs. Thus it is quite natural for the people to look for numerous details regarding hotel accommodation around the world on the internet. One of the advantages of online hotel booking is that it automatically creates a presence on the internet for the hotel. Many of the popular hotels of the world hava put up their own website on the internet. That also helps the hotels to generate a visible presence on the internet. More enquires for hotel room Another one of the advantages of online hotel booking which the people get is the generation of more enquiries about the hotel. It is only when enquiries are generated that more customers could be obtained. Many of the hotel websites provide an enquiry form for the people to fill up. The chances of an enquiry to lead to a room booking is quite high. Rise in occupancy rates The online presence of the hotels help in the matter of generating more room bookings through the internet. A great

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

Online Real Estate Marketing Ideas (Students are advised to write the following answer pointwise)

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

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

Supply chain management (SCM) It is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption (supply chain).

Another definition is provided by the APICS Dictionary when it defines SCM as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally."

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Supply chain management (SCM) is the systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole.

A customer focused definition is “Supply chain strategies require a total systems view of the linkages in the chain that work together efficiently to create customer satisfaction at the end point of delivery to the consumer. As a consequence costs must be lowered throughout the chain by driving out unnecessary costs and focusing attention on adding value. Throughput efficiency must be increased, bottlenecks removed and performance measurement must focus on total systems efficiency and equitable reward distribution to those in the supply chain adding value. The supply chain system must be responsive to customer requirements."

Advantages of SCM

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

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

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→ There are a number of key characteristics of supply chain management. One of the most important is that the firms involved see themselves as part of the channel and understand that their future depends to a large extent on the success of the whole channel. The relationships are viewed as long term, and the corporate cultures, philosophies, and missions are similar. There is joint planning of products, locations, and quantities of inventory to be kept in the system. There is also a great deal of information sharing between firms in order to coordinate the efficient flow of goods through the channel. Modern computing and communication technology, such as electronic data interchange, is used to rapidly provide information within the channel as needed. Cost advantages are exploited wherever possible. For example, the production of a product requiring a great deal of human labor would be produced by the member with the lowest labor costs.

→ Performance of a company's supply chain management can be analyzed in terms of cost control, customer service, and asset productivity. A study of leading supply chain management companies, conducted by William C. Copacino in association with the Massachusetts Institute of Technology, suggests there are several areas in which the leaders excel. These include functional excellence in such areas as procurement, manufacturing, transportation and distribution, and customer service, with a highly developed level of skills and integrated management. Leaders are also skilled at managing complexity, especially the management of surge and uncertainty in such areas as new product introductions, product-line complexity, and seasonal variations. Leading supply chain managers also employ the best information technology for applications, data management, decision support tools, and communications. They are able to leverage the distinctive capabilities of supply chain providers as well as to create an extended supply chainwith visibility and collaboration across the channel.

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

Just in time production (JIT)

Just in time is a ‘pull’ system of production, so actual orders provide a signal for when a product should be manufactured. Demand-pull enables a firm to produce only what is required, in the correct quantity and at the correct time.

This means that stock levels of raw materials, components, work in progress and finished goods can be kept to a minimum. This requires a carefully planned scheduling and flow of resources through the production process. Modern manufacturing firms use sophisticated production scheduling software to plan production for each period of time, which includes ordering the correct stock. Information is exchanged with suppliers and customers through EDI (Electronic Data Interchange) to help ensure that every detail is correct.

Supplies are delivered right to the production line only when they are needed. For example, a car manufacturing plant might receive exactly the right number and type of tyres for one day’s production, and the supplier would be expected to deliver them to the correct loading bay on the production line within a very narrow time slot.

Advantages of JIT

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

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

Disadvantages of JIT

There is little room for mistakes as minimal stock is kept for re-working faulty product Production is very reliant on suppliers and if stock is not delivered on time, the whole production schedule can

be delayed There is no spare finished product available to meet unexpected orders, because all product is made to meet

actual orders – however, JIT is a very responsive method of production.

INFORMATION SYSTEM DESIGN FOR INTERNETWORKED BUSINESS

(Students are advised to report carefully the following steps in this COURIER SYSTEM)

Example 1 of The Digitally Supported Movement of Things”-Federal Express (FedEx) as The Logistics Link between Customers and Merchants

•If organized chaos has a home, it is at the Federal express Super Hubin Memphis, Tennessee. There, in a frantic four-hour period that begins just before midnight, more than 100 airplanes wing in bearing 1.2 million packages for approximately 7000 employees to sort on 200 miles of conveyor belts.

–On the night in 1973 that FedEx was launched , the firm carried 19 items. Today its more than 108,000 employees and 35,000 trucks mean that FedEx has captured half of the overnight delivery market.

•“Federal Express is a series of networks, and it takes about 17 hours for a package to move from shipper to receiver”

“During that seventeen hours they do everything possible to keep this shipment from going astray as it moves from shipper to station, to airport, to one of the sorting hubs, and on to the destination customer. they have a flawless set of events happen for seventeen hours..”

–Every time that parcel changes status, information is recorded through sensors and entered into the COSMOS (customer, operations, management, and services) database. The database contains all the basic customer information-name, account number, address, package pickup location data-and it communicates with a number of other systems and devices to maintain a complete record of each shipment that FedEx handles, from the beginning to the end of the process.

–When a customer calls in to have a package picked up, that call is taken by a customer service agent at one of the forty-two (42) call-centers worldwide.

–The package pickup request is transmitted to the COSMOS system, and –relayed to the dispatch center in the city closest to the shipper. –Seconds later this pickup request is transmitted to a small computer (called DADS, or digitally assisted

dispatch system) located aboard a FedEx van. –The courier then drives to the customer’s location and picks up the package. It is at this point that service quality measurement begins. –The courier uses the Super tracker–a small, portable, battery-operated, menu-driven computer having bar

code scanner-to scan the smart bar code on the package. –As well, the courier keys in certain information such as the destination ZIP code. –The Super tracker device is very smart. It knows its own ZIP code, which route it is on, who the courier is,

and the time and date. –When the courier leaves the customer and returns to the van, the courier places the Super tracker into a port

located on the DADS computer. –The package information is automatically transmitted back to the dispatch center and to the COSMOS

database, making the data available to all customer-service personnel worldwide. –At that point, less than five minutes after the package is picked up, FedEx has all the information required for

the shipper and consignee about when the package was picked up, who picked it up, the location, the type of service, where the package is going, and the intended routing.

As the package moves through the system and is scanned, this information is continually updated. Before the night is over FedEx will have scanned 2.4 million shipments, up to nine times each, as they move through the network.

–All during this period FedEx is running comparison reports in all systems to determine if any shipments has gone astray.

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•The idea is to be proactive-to spot and correct a problem before there is a failure from the customer’s perspective.

–After the package arrives at the destination city, it is scanned and sorted. When it is placed on a courier’s van for delivery that morning, another scan is carried out so that the system knows which truck and driver has the package.

–Finally, when the van arrives at the customer’s destination a scan for proof of delivery is conducted by keying in the name of the person who signed for the package.

–The courier then returns to the van and places Super tracker in the DADS computer, and the final proof of delivery information is transmitted back to the main database in less than four minutes.

The result is that FedEx has complete package of information. “What is more important, is if that package was delivered five minutes late, if there was an exception, if it had been damaged or misrouted, we have been able to capture all that information on real time basis,” says CIO Dennis Jones.

–By the middle of the afternoon , FedEx will know how many packages in the cycle have been misdelievered, delivered late, damaged, or lost.

–The next morning the individual courier receives a quality feedback report giving details of all transactions that were not 100% correct. Other teams work to understand exactly why an error was made and follow up if if there is a dissatisfied customer.

The FedEx approach combines continuous learning and action. Information technology is no different from marketing. It is continuous and needs always to be taken into account. “It requires more expertise by people at lower level to understand information technology. They need to know where the information is and where it is coming from. When technology is so integral, one has got to know more than just what’s coming across your desk”

What this technology integration at FedEx has achieved is business process transformation though three levels leading to integrated enterprise. These three levels are:–

With technology integration business process transformation is achievable at five levels leading to an internetworked enterprise These five levels are:

–Level 1: The Effective Individual, –Level 2: The High-Performance Team, –Level 3: The Integrated Enterprise, –Level 4: The Extended Enterprise, •There is a shift from “value-added” enterprise to an enterprise that is a “value network”. –Level 5: The Internetworked Enterprise is this:

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

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

Core Banking Core Banking is normally defined as the business conducted by a banking institution with its retail and small business customers. Many banks treat the retail customers as their core banking customers, and have a separate line of business to manage small businesses. Larger businesses are managed via the Corporate Banking division of the institution. Core banking basically is depositing and lending of money.

Nowadays, most banks use core banking applications to support their operations where CORE stands for "Centralized Online Real-time Exchange". This basically means that all the bank's branches access applications from centralized datacenters. This means that the deposits made are reflected immediately on the bank's servers and the customer can withdraw the deposited money from any of the bank's branches throughout the world. These applications now also have the capability to address the needs of corporate customers, providing a comprehensive banking solution. A few decades ago it used to take at least a day for a transaction to reflect in the account because each branch had their local servers, and the data from the server in each branch was sent in a batch to the servers in the datacenter only at the end of the day (EoD).

Normal core banking functions will include deposit accounts, loans, mortgages and payments. Banks make these services available across multiple channels like ATMs, Internet banking, and branches.

Mobile Phones - Convergence

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The convergence of the telecommunications, media and information technology industries has generated massive

change in the creative industries field. This innovation is the process whereby communications technologies blend

together to facilitate wider, more integrated methods for the distribution of information.

Convergence has revolutionized and created many new technologies, but none are more apparent than the

mobile phone. Each new model released onto the market promises more features, more technology and more

possibilities than its predecessor. This capability of convergence has enabled the mobile phone to transcend from a

traditional voice communication piece to an instrument facilitating an interaction of the three major sectors of

telecommunications, media and information technology. This convergence is embodied in new mobile phone

technology enables the user to make video conference calls, check the world events in Hong Kong and surf the

internet all at the same time.

Central issues associated with this new technology are the rise and impact on the creative industries, opportunities

and threats and the social impact of mobile phone convergence. Furthering this is of importance as it is at the forefront

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of convergent mobile phone technologies.

Currently, this form of convergence is at the height of its technology and is strengthening with further

developments and innovations. Unlike traditional formats of technology, convergence has generated rapid growth, as

it is an improvement on an existing technology of the common mobile phone communications device. Presently, the

convergence of mobile phone technology is its third generation (3G) encompassing the telecommunications, media

and information technology industries. It has progressed in its design and value from an initial talking device to an

instrument whereby its applications fulfill industry, cultural, emotional and informative objectives. The future will see

the device performing more operations and comprising more technologies and information so as to intensify its

intrinsic link to how people function in their daily lives and business.

This form of convergence is relevant as it is a new media technology marking the transition towards an

informational mode of development and the rise of the network society. As such, like many other new media

technologies cited in the New Media Wikipedia, mobile phone convergence has changed the way in which we live and

operate.

The steadfast rise of convergence has revolutionized the creative industry and has posed many significant

issues, trends and developments directly affecting the sector. It has shaped the way the industries operate; allowing

them a more concentrated access point to the consumer, and with this intimate contact, convergence has posed many

ethical and moral issues.

Furthering this, the blending of technologies, although permitting the user the opportunity to access plentiful

amounts of information, has also posed various threats.

Convergence has enabled a basic device like a mobile phone, the capacity to become an all-in-one

telecommunications, media and computer handheld machine. This new media technology has generated massive

social change in the behaviours and lifestyle patterns of the consumer. The transforming mobile technology is

affecting people far more rapidly than what they realise.

The chosen case study of 3 Hutchinson Australia mobile phones is highly appropriate in proving the impact

that convergent technology has had on society. The newest example of convergent technology, the 3 mobile phone,

operating on the 3G network, utilises the three industries, revolutionizing the handset as a multi-function portable

office. This convergence allows the operator to download the latest financial review (media), send and receive emails

(information technology) and make a standard or video conference call (telecommunications) without the hindrance of

being chained to a computer or a desk.

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

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boundaries between what was once just a telecommunications device to what it is now- a catalyst comprising all three

sectors of the communications industry.

Although a relatively new technology and issue to emerge from the creative industries, convergence has

swiftly impacted the industry and society. This is for the reason that in its short time, it has managed to generate mass

change to the three major industries of telecommunications, media and information technology. This change, impelled

by consumer demand, has prompted the three industries to band together to prevail.

Mobile phone convergence is an imperative facet of convergence, as it is rooted in the lives of people who

find their sense of self and the social and cultural context in which they live embedded in their access to and use of

various media technologies. It is a relatively new technology and in a short amount of time, mobile phone convergence

has managed to impact the creative industries, and create many opportunities and threats as well as considerably

effect society

Impact on the Creative Industries

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

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

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

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

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

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

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

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

In this viewpoint, mobile phone will be able to send and receive various data at real-time, such as commercial transaction and personal schedule; even the mobile phone itself could be an identity item. Therefore, as a data storage and data

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transmission device, privacy and security issues are no less important than protecting information on computers.

Currently, Bluetooth wireless technology and Infrared transmission is used for short range data transmission, it can

replace the cable between devices, for instance, linking mobile phone and its wireless headset. However, some of the

Bluetooth enables phones have been discovered several security holes; an attacker can download the contact details

or phone book without leaving trace from a vulnerable phone. It could be a threat of privacy and information security

while using those vulnerable phones in public environment.

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

2.5G (GPRS)

2.5G is a stepping stone between 2G and 3G cellular wireless technologies. The term "second and a half generation is used to describe 2G-systems that have implemented a packet-switched domain in addition to the circuit-switched domain. It does not necessarily provide faster services because bundling of timeslots is used for circuit-switched data services (HSCSD) as well.

The first major step in the evolution of GSM networks to 3G occurred with the introduction of General Packet Radio Service (GPRS). CDMA2000 networks similarly evolved through the introduction of 1xRTT. The combination of these capabilities came to be known as 2.5G.

GPRS could provide data rates from 56 kbit/s up to 115 kbit/s. It can be used for services such as Wireless Application Protocol (WAP) access, Multimedia Messaging Service (MMS), and for Internet communication services such as email and World Wide Web access. GPRS data transfer is typically charged per megabyte of traffic transferred, while data communication via traditional circuit switching is billed per minute of connection time, independent of whether the user actually is utilizing the capacity or is in an idle state.

1xRTT supports bi-directional (up and downlink) peak data rates up to 153.6 kbit/s, delivering an average user data throughput of 80-100 kbit/s in commercial networks. It can also be used for WAP, SMS & MMS services, as well as Internet access.

Technological convergence Technological convergence is the tendency for different technological systems to evolve towards performing similar tasks.

Convergence can refer to previously separate technologies such as voice (and telephony features), data (and productivity applications), and video that now share resources and interact with each other, synergistically creating new efficiencies.

Today, we are surrounded by a multi-level convergent media world where all modes of communication and information are continually reforming to adapt to the enduring demands of technologies, "changing the way we create,

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consume, learn and interact with each other"

Convergence in this instance is defined as the interlinking of computing and other information technologies, media content, and communication networks that have arisen as the result of the evolution and popularization of the Internet as well as the activities, products and services that have emerged in the digital media space.

Many experts view this as simply being the tip of the iceberg, as all facets of institutional activity and social life such as business, government, art, journalism, health, and education are increasingly being carried out in these digital media spaces across a growing network of information and communication technology devices.

Also included in this topic is the basis of computer networks, wherein many different operating systems are able to communicate via different protocols. This could be a prelude to artificial intelligence networks on the Internet eventually leading to a powerful superintelligence via a technological singularity.

The rise of digital communication in the late 20th century made it possible for media organizations (or individuals) to deliver text, audio, and video material over the same wired, wireless, or fiber-optic connections. At the same time, it inspired some media organizations to explore multimedia delivery of information. This digital convergence of news media, in particular, was called "Mediamorphosis" by researcher Roger Fidler, in his 1997 book by that name.

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The Internet

The Internet The Internet is a globalized network and was officially launched in 1969. Over the past 40 years, its rapidly from its original use as a communication tool to provide easier and faster access to informatioand various other educational institutions. In today's world, it is an important tool used to reach varound the world. Its users have been constantly trying to create more uses for the Internet than theacademic information. The television, radio and newspapers are the world's main mediums for accentertainment. Now, all three mediums have converged into one, and people all over the world now cthe Internet. They can also watch videos, television shows, listen to music, and download and uploaand videos. One doesn't have to wait until the next day to hear the latest in news, fashion, and musiso easy to access that should anything happen, it would be displayed to the whole world within minute

Convergence of media occurs when multiple products come together to form one product with the adthem, also known as the black box. This idea of one technology, concocted by Henry Jenkins, hamore as a fallacy because of the inability to actually put all technical pieces into one. For example, have e-mail and Internet on their phone, they still want full computers with Internet and e-mail Concentration of media ownership for the similar sounding phrase of media convergence.

Convergence is a concept in which old and new media intersect; when grassroots and corporate msuch a way that the balance of power between media producers and media consumers shifts in unpJenkins states that convergence is,

"the flow of content across multiple media platforms, the cooperation between multiple media indmigratory behaviour of media audiences."

The Internet

The Internet

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The Internet is a globalized network and was officially launched in 1969. Over the past 40 years, its role has changed rapidly from its original use as a communication tool to provide easier and faster access to information for universities and various other educational institutions. In today's world, it is an important tool used to reach various audiences around the world. Its users have been constantly trying to create more uses for the Internet than the mere sharing of academic information. The television, radio and newspapers are the world's main mediums for accessing news and entertainment. Now, all three mediums have converged into one, and people all over the world now can read news on the Internet. They can also watch videos, television shows, listen to music, and download and upload pictures, music and videos. One doesn't have to wait until the next day to hear the latest in news, fashion, and music. The Internet is so easy to access that should anything happen, it would be displayed to the whole world within minutes.

Convergence of media occurs when multiple products come together to form one product with the advantages of all of them, also known as the black box. This idea of one technology, concocted by Henry Jenkins, has become knownmore as a fallacy because of the inability to actually put all technical pieces into one. For example, while people can have e-mail and Internet on their phone, they still want full computers with Internet and e-mail in addition. See Concentration of media ownership for the similar sounding phrase of media convergence.

Convergence is a concept in which old and new media intersect; when grassroots and corporate media intertwine in such a way that the balance of power between media producers and media consumers shifts in unpredictable ways. Jenkins states that convergence is,

"the flow of content across multiple media platforms, the cooperation between multiple media industries, and the migratory behaviour of media audiences."

Media convergence is not just a technological shift or a technological process, it also includes shifts within the industrial, cultural, and social paradigms that encourage the consumer to seek out new information. Convergence, simply put, is how individual consumers interact with others on a social level and use various media platforms to create new experiences, new forms of media and content that connect us socially, and not just to other consumers, but to the corporate producers of media in ways that have not been as readily accessible in the past.

For example, the Wii is not only a games console, but also a web browser and social networking tool. Mobile phones are another good example, in that they increasingly incorporate digital cameras, mp3 players, camcorders, voice recorders, and other devices.

This type of convergence is very popular. For the consumer, it means more features in less space, while for the media conglomerates it means remaining competitive in the struggle for market dominance. With the advance in technology comes the ability for technological convergence which Rheingold believes alters the "social-side effects" in that "the virtual, social and physical world are colliding, merging and coordinating"

However, convergence can have its downside. Particularly in their initial forms, converged devices are frequently less functional and reliable than their component parts (e.g. a DVD may perform better on a traditional DVD player than on a games console). As the amount of functions in a single device escalates, the ability of that device to serve its original function decreases. For example, the iPhone (which by its name implies that its primary function is that of a mobile phone) can perform many different tasks, but does not feature a traditional numerical pad to make phone calls. Instead, the phone features a touchpad, which some users have found more troublesome than a conventional phone numberpad.

As Rheingold asserts, technological convergence holds immense potential for the "improvement of life and liberty in some ways and (could) degrade it in others” He believes the same technology has the potential to be "used as both a weapon of social control and a means of resistance"Regardless, an ever-wider range of technologies are being converged into single multipurpose devices.

Since technology has evolved in the past ten years or so, companies are beginning to converge technologies to create demand for new products. This would include phone companies integrating 3G on their phones. In the mid 20th century, television converged the technologies of movies and radio, and television is now being converged with the mobile phone industry. Phone calls are also being made with the use of personal computers. Converging technologies seems to be squashing many types of demanded technologies into one. Mobile phones are becoming manufactured to not only carry out phone calls, text messages, but also hold images, videos, music, television, camera, and multimedia of all types. Manufacturers are now integrating more advanced features such as video recording, GPS

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receivers, data storage, and security mechanisms into the traditional cellphone.

These paradigm shifts are ongoing in the media, and often occur from time to time as the technology to create better devices evolves. It was predicted in the 1990s that a digital revolution would take place,and that old media would be pushed to one side by new media. Broadcasting is increasingly being replaced by the Internet, enabling consumers all over the world the freedom to access their preferred media content more easily and at a more available rate than ever before.

However, when the dot com bubble of the 1990s suddenly popped, that poured cold water over the talk of such a digital revolution. In today's society, the idea of media convergence has once again emerged as a key point of reference as newer as well as established media companies attempt to visualize the future of the entertainment industry. If this revolutionary digital paradigm shift presumed that old media would be increasingly replaced by new media, the convergence paradigm that is currently emerging suggests that new and old media would interact in more complex ways than previously predicted. The paradigm shift that followed the digital revolution assumed that new media was going to change everything. When the dot com market crashed, there was a tendency to imagine that nothing had changed. The real truth lay somewhere in between as there were so many aspects of the current media environment to take into consideration. Many industry leaders are increasingly reverting to media convergence as a way of making sense in an era of disorientating change. In that respect, media convergence in theory is essentially an old concept taking on a new meaning.

Media convergence in reality is more than just a shift in technology. It alters the relationship that already exists between industries, technologies, audiences, genres and markets. Media convergence changes the rationality in which media industries operate and also the way that media consumers process news and entertainment. Bearing in mind that media convergence in reality is essentially a process and not an outcome, there is no single black box that controls the flow of media into our homes and workplaces. With the proliferation of different media channels and the increasing portability of new telecommunications and computing technologies, we have entered into an era where the media is constantly surrounding us. Believe it or not, today's modern society is already existing within a convergence culture.

Media convergence requires companies operating within the scope of the media to rethink existing assumptions about media from the consumer's point of view, as these assumptions affect both marketing and programming decisions. Media producers have to respond to these newly empowered consumers in today's society to reinvent existing concepts to keep them up to date with emerging trends. Consumers these days do not just want to be on a one way transmission model where they simply receive information. They want to interact with it. They want to create it. They want to participate within it. Media convergence has allowed that to happen and as the proliferation of new communication technologies continues to occur, this trend is here to stay.

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

Messaging convergence Combinational services include those which integrate SMS with voice, such as voice SMS - providers include Bubble Motion, Jott, Kirusa, and SpinVox. Several operators have launched services that combine SMS with mobile instant messaging (MIM) and presence.

Text-to-landline services also exist, where subscribers can send text messages to any landline phone and are charged at standard rates. This service has been popular in America, where fixed and mobile numbers are similar.

Inbound SMS has been also converging to enable reception of different formats (SMS, voice, MMS, etc.). UK companies, including consumer goods companies and media giants, should soon be able to let consumers contact them via voice, SMS, MMS, IVR, or video using one five-digit number or long number. In April 2008, O2 UK launched

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voice-enabled shortcodes, adding voice functionality to the five-digit codes already used for SMS.

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

Multiplay Multi-play is a marketing term describing the provision of different telecommunication services, such as Broadband Internet access, television, telephone, and mobile phone service, by organisations that traditionally only offered one or two of these services. Multi-play is a catch-all phrase; usually, the terms triple play (voice, video and data) or quadruple play (voice, video, data and wireless) are used to describe a more specific meaning.

A dual play service is a marketing term for the provisioning of the two services: it can be high-speed Internet (ADSL) and telephone service over a single broadband connection in the case of phone companies, or high-speed Internet (cablemodem) and TV service over a single broadband connection in the case of cable TV companies.

The convergence can also concern the underlying communication infrastructure. An example of this is a triple play service, where communication services are packaged allowing consumers to purchase TV, Internet, and telephony in one subscription.

A quadruple play service combines the triple play service of broadband Internet access, television, and telephone with wireless service provisions. This service set is also sometimes humorously referred to as "The Fantastic Four" or "Grand Slam"

The broadband cable market is transforming as pay-TV providers move aggressively into what was once considered the telco space. Meanwhile, customer expectations have risen as consumer and business customers alike seek rich content, multi-use devices, networked products and converged services including on-demand video, digital TV, high speed Internet, VoIP, and wireless applications. It's uncharted territory for most broadband companies.

Incidentally, the "mobile service provisions" aspect refers not only to the ability of subscribers to be able to purchase mobile phone like services as is often seen in co-marketing efforts between providers of land-line services. Rather, it is one major ambition of wireless - the ability to have access to all of the above including voice, Internet, and content/video while on the go and requiring no tethering to the network via cables.

Given advancements in WiMAX and other leading edge technologies, the ability to transfer information over a wireless link with a variety of speeds, distances, and non-line-of-sight conditions is rapidly improving. It is possible that one could never need to be connected by a wire to anything, even while at home.

One fundamental aspect of the quadruple play is not only the long awaited broadband convergence but also the players involved. Many of them, from the largest global service providers to whom we connect today via wires and cables to the smallest of startup service providers are interested. The opportunities are attractive: the big three telecom services - telephony, cable television, and wireless - could combine the size of their respective industries.

The next level of service might be the integration of RFID into the quadruple play which will add the capability for home equipment to communicate to the outside world and schedule maintenance on its own.

In the UK, the recent merger of NTL:Telewest and Virgin Mobile resulted in a company offering a quadruple play of cable television, broadband Internet, home telephone, and mobile telephone services.

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

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

"Black box fallacy" �

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

�

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

The Internet

The Internet The Internet is a globalized network and was officially launched in 1969. Over the past 40 years, its role haschanged rapidly from its original use as a communication tool to provide easier and faster access to information foruniversities and various other educational institutions. In today's world, it is an important tool used to reach variousaudiences around the world. Its users have been constantly trying to create more uses for the Internet than the meresharing of academic information. The television, radio and newspapers are the world's main mediums for accessingnews and entertainment. Now, all three mediums have converged into one, and people all over the world now canread news on the Internet. They can also watch videos, television shows, listen to music, and download and uploadpictures, music and videos. One doesn't have to wait until the next day to hear the latest in news, fashion, andmusic. The Internet is so easy to access that should anything happen, it would be displayed to the whole worldwithin minutes.

Convergence of media occurs when multiple products come together to form one product with the advantages of allof them, also known as the black box. This idea of one technology, concocted by Henry Jenkins, has become knownmore as a fallacy because of the inability to actually put all technical pieces into one. For example, while people canhave e-mail and Internet on their phone, they still want full computers with Internet and e-mail in addition. SeeConcentration of media ownership for the similar sounding phrase of media convergence.

Convergence is a concept in which old and new media intersect; when grassroots and corporate media intertwine insuch a way that the balance of power between media producers and media consumers shifts in unpredictable ways.Jenkins states that convergence is,

The term supply chain management was coined by consultant Keith Oliver, of strategy consulting firm Booz Allen Hamilton in 1982.

The definition one America professional association put forward is that Supply Chain Management encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies.

Supply chain event management (abbreviated as SCEM) is a consideration of all possible occurring

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events and factors that can cause a disruption in a supply chain. With SCEM possible scenarios can be created and solutions can be planned. Our team of Supply Chain experts can work across a wide spectrum of vertical industries and help to optimize it.

UNCERTAINITIES CHARACTERIZING INFORMATION ENVELOPE

UNCERTAINTIES IN SETTING GOAL, IN IDENTIFYING MANY FACTORS AND MULTIPLE CRITERIA ARE CAUSED BY….

•Goal selection based on obviousness of a problem or competence to solve it, •Due to difficulty in taking a system’s view, recourse to an ad hoc “Repair-Service” approach, •Minimal capacity and inclination in dealing with time, •Need to preserve a sense of self competence amounting to self-protection tendency, •Difficulty in recognizing complex goals, •Not analyzing complex goals by breaking them into concrete, partial goals; risking activity at hand taking a

life of it’s own, •Clear Guidelines for applying criteria & for assessing if goals met not common in the real world, •Danger of Goal Degeneration through: (a)Effect of ‘Flow Experience’; (b) Adherence to safe option in the

wake of insecurity. This can lead to incorrect identification of multiple goals, which make implicit goals explicit,

•Malfunctions that emerge with delay,

UNCERTAINTIES IN SETTING OPERABLE GOAL STATEMENT ARE CAUSED

BY….

Difficulty to recognize that complex goals are characterized by inter-related criteria. This leads to incorrect identification of interdependent goals,

Goal inversion, conceptual integration, and conspiracy theories, leading to incorrect identification of conflicting goals, which are negatively linked,

UNCERTAINTIES IN DEVELOPING PROBLEM INFORMATION STRUCTURE ARE CAUSED BY….

•Uncertainties in developing problem information structure concern

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

UNCERTAINTIES IN DEVELOPING PROBLEM INFORMATION STRUCTURE DYNAMICS ARE CAUSED BY….

•Difficulty in perceiving –recognizing, dealing, arranging in time, •Tendency to treat successive steps in temporal development as individual steps, •Reliance on only few mechanisms of prognostication to gain insight in to the future, •Limited focus on the present, •Fixation with the characteristics of the moment brings with danger that too much significance ascribed to present circumstances, •Fixation on linear future development preventing from anticipating changes in direction and pace. Difficulty in dealing with non-linear configurations like “exponential growth,” •Tendency to interpret numbers solely on the basis of their size, •Tendency to rely on “feelings” or “intuition”-even professionals demonstrate this strait, •Reliance on magical hypothesis as a result of overgeneralization, •Misjudging non-linear growth, •Fallacy of “progressive conditionalizing” resulting in action completely devoid of reality,

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•Fallacy of meta hypotheses, •Absence of learning mechanisms in the form of continuity and constant correctives in respect of information, making prediction difficult, Other types of uncertainties: –Difficulty due to complexity –Information dynamics difficult to develop –Limited focus on a notable feature of the present –Extension of the perceived trend in a more or less linear and “monotone” fashion (that is, without allowing for any change in direction)

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

NEED FOR THEORY OF ERRORS

•Information with loss of integrity is insufficiently full and perfect information. This is the question of information error. •Any pursuit to do something about errors in any application (for example, in banking operations or say in medicine, etc.) would depend directly and strongly on some theory of what an error is, how an error is generated, what happens after an error comes into being, how it is that an error is detected, and what it is that causes damage (minor, acceptable or unacceptable). This is true for errors in physical systems as also in informational systems.

To cure error in any application sector (nuclear power plants, manufacturing industry, banking sector, telecommunications network, medical application, or kitchen), one must know something about faults/irregularities/deviations in that application sector. What is an error? Why do errors occur? •The causal mechanisms of errors in a given specific application sector of say nuclear power plant, if there are any, must be the same as those of errors in manufacturing sector, or in a medical application, or in the kitchen.

Although most people use the terms specifying errors from their application sectors, what they talk about are accidents. What is the difference between error and accident? What is required is to give answers to such and other questions?

From the viewpoint of an external observer, an error can be seen as a failure to ensure an optimum,

desired, or intended value (for a view, format, variable, or process, etc. as the case may be) that is correct given the circumstances (situation), the cause and form of error notwithstanding. An error can occur only if there is an appropriate identified source of value (standard) to ensure on the basis of a documented state of events.

An error must not be defined as an adverse or serious outcome. An adverse outcome or accident may

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happen with no antecedent error. This may occur if the intention (standard) was the proper one, the action was properly executed, and the outcome was not certain.

Examples are playing a game, deciding whether to carry an umbrella, administering a medicine, or performing an operation known to be risky.

WHAT IS AN ERROR IN APPLICATION SETTING THEN? •How is an Error defined in the context of a given application domain (sector)? •It is common to discuss errors in a given application setting in terms of their expressions, that is,

what went wrong or what was done wrong. It is common to report errors in an application sector (domain) only in terms of their adverse consequences, that is, what happened as a result (for example, in case of a medical setting, what happened to the patient).

•This has serious shortcomings. Only those consequences that result in irreversible damages get reported (in say a medical setting, irreversible damage/consequence may be injury or death).

Thus, in reality, what are reported are not errors in a given application domain (sector) but application

sector specific accidents consequent on errors for which a process or processor (for this purpose human is considered as a processor) might be held responsible. •What is not seen are those errors which occurred and were caught before they were completed. For example, in the medical sector, there is no good estimate of the probability of substitution errors on the night shifts, or by physicians, or by pharmacists. Similarly, a coding error in a software may not be located until the program in the course of its execution visits that code; thereby suggesting poor estimate of the probability of substitution errors. It is of great importance to know the modes of errors that are not harmful. The information could, for example, help in estimating the risk of introduction of a new product, a new package, or a new device in to the application domain under consideration. This calls for some kind of better data/information collection process. It is usually the case that if there is no adverse outcome-no accident-the error is not reported and dose not become part of the experience base of the practices in the application domain under consideration.

•However, to understand what accidents are likely to happen in the application domain under consideration, (feedback) information must be obtained about all errors: those that damage, and the near misses or those that have yet to come (detection, estimation and prediction). Then appropriate protective measures can be in place to wait for the error and interdict rather than to be put into place after the incident. Que: • What is I*I Risk? What are its components? List them. •Define components of I*I risk. •Explain why “Usability Risk” by itself is irrelevant with respect to determining which decision action to choose. • How is I*I Risk quantified? • “I*I risk aversion has requirement for additional information and is a costly activity”. Explain.

RISK AND UNCERTAINTY •Information processing is a decision process. For our purpose, decision-process is same as a decision-

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

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

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

ACCURACY (A) -1 •Within above framework then Accuracy attribute (A) is defined as the degree of agreement between a particular value and an identified source. •It can be assessed by identifying the relevant established source (standard) and by determining an acceptable tolerance. •Specifically, the identified source provides the correct value –preferably the value corresponding to the optimum Integrity. It can be an object or relationship in the real world; it can also be the same value in another database, or the result of a computational database. Given that value of data/information is expressed in a numerical, accuracy of the data/information can be quantified in a number of ways:

i)Difference between the actual value (i.e., value of the identified source) and the value processed by the information system.

ii)Error Ratio = Actual Error/Acceptable Error iii) Accuracy Index = Number of correct values/ Number of total values

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iv)Number of records examined: R Number of records with at least one defect of loss of Accuracy: D1 Percent Defective = [D1/ R ] ×100 Accuracy Index (A)= [ 1 -( D1/ R ) ]

Percent Defective is a quantifier used extensively in statistical quality control. v) Number of defects (cases of loss of accuracy detected: D, Number of records examined: R Defects/Losses of accuracy per record= D/R Accuracy Index (A)= [ 1 -( D1/ R ) ] It may be mentioned that defect denotes accuracy violation, i.e., presence of error, and hence the absence of accuracy. Ratios based on defects/errors can be converted into accuracy ratio by the transformation: Accuracy Ratio = 1 −Defect (i.e., Error) Ratio.

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

RELIABILITY (R) –1 IT’S DUAL INTERPRETAION

•Reliability, which traditionally is a large concern in the system development lifecycle model, is a little complex attribute to define as it has a dual meaning in modern technical usage. •Interpretation 1: In the broad sense, it refers to a wide range of issues relating to the design of large systems (complex computerized information system [CIS] included), which are required to work well for specified periods of time. In such a case, the term reliability includes descriptors such as “quality” (commonly understood from the traditional “standard’ product angle) and “dependability”(Reliability Analysis), and is interpreted as a qualitative measure of how a system matches the specifications and expectations of a user. •From this point of view for an IS the definition of reliability given as “accuracy with which information obtained represents data item in whatever respect the information system processed it” can be seen to define the reliability requirement for the IS as a whole; reliability index being amenable to quantification through techniques such as Analysis of Variance (AOV). Interpretation 2: Then, as mentioned in Lecture # 10, reliability is also seen as ‘completeness’ issue. Of course, the completeness requirement itself has two different aspects. One is that of “exactness”requirement. •This narrower requirement occurring due to the ever-present system “noise” is the main concern in communication theory and in security research as also in the “standard” product in high volume seeking business models under quality paradigm emphasizing “reduced defects” in system processing.

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Here, reliability is a measure denoting the probability of the operational success of an item under consideration. The notion of reliability, in this case, may be applied to a single component (e g., a diode or a light bulb); a complex system (e g., an aircraft, a computer or a network of computers); a computer program; a procedure (e g., conversation between a pilot and an air-traffic controller); an element of an IS; namely, data, i. e., IS input, or IS output which is “data processed”, i.e., information; or even a human. Specifically, reliability analysis is concerned with occurrences of undesirable or unanticipated events during the course of operation of a system or an item and the impact of these events on the system’s behaviour or the item’s use. And the undesirable events may be failures of components (and, for information systems, failures of resulting data and information in the form of data/information errors) caused by deterioration or wearing out of components due to age and usage or even design problems and inadequacies, etc. surfacing in the course of the use of the system. There is another aspect of “completeness” requirement, though. In the form of “observability”, it is to be found in system theory. •Specifically, the problem considered is that of state variables derived based on measured system outputs at several times and the knowledge of the system-forcing function (control) effort. It is conceivable that the structure of the system and/or measurements taken is such that the measurements do not contain all the information about the system states. The usual technique in systems engineering is to generate control efforts (strategies) based on measurements of system outputs. If the measurements are missing basic information on actual system response (that is, if there is information distortion), erroneous control efforts could be generated, which is not desirable; just as, if, in the IS, value of information element is missing from the information record, the desired information use (IU) value is not achievable, however high may be the information usability factor. In other words, when concerned with reliability factor under correctness requirement of information, there are incompleteness issues due to “noise” and “distortion”. For the purpose of the investigation at hand, whether “inexactness” due to the ‘noise’ factor or “incorrectness” due to ‘distortion’ factor, both result in information item exhibiting error and therefore loss of integrity. As a result, reliability attribute of “correctness” aspect of information requirement in considering ‘completeness’ must account for both these possibilities. It is within this framework then the reliability (R) can be heuristically defined as follows: Reliability(R) refers to completeness, currency and audit ability of data/information. Specifically, data/information is complete when all component elements are present (effects both of distortion and noise are counted). Information is current when it represents the most recent value. And, information is auditable if there is a record of how it was derived and that record allows one to trace information back to its source. Information Integrity: Need for Economic Framework for Information Integrity Information requirements of usefulness, usability, and integrity are determinants of information value. Integrity attributes of accuracy, consistency and reliability are fundamental or basic to the information requirements of usefulness and usability and, therefore, to the value of information; and as a result a critical requirement of an IS. Trivial as it may look, this observation is not that obvious as to be found from the difficulty that researchers from the fields of EDP, auditing, data quality, computer science and information systems have in convincing the business managers to put their dollar on improving integrity of their information systems and of information there from. This is because much of the research efforts in defining integrity have invariably been addressed without reference to developing a scientific structure for costs and benefits associated with Information Integrity. Briefly, the integrity research in computer science has its origin in study of secured computer systems and of confidentiality of information. Here, security has normally been taken to mean confidentiality, integrity and availability. Researchers involved with

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information security issue are at ease with this terminology except that the meaning of the word "integrity" is not adequately resolved, the word being frequently used to describe a range of attributes (or requirements) such as: validity of information in a computer system; correctness and protection of Trusted Computing Base and Procedures; reliability, accuracy, faithfulness, non corruptibility and credibility of information transmitted; internal consistency of a system (a correctness aspect) and external consistency (correspondence with reality– an appropriateness aspect). In other words, the integrity research effort has been either very pragmatic, and/or technological, or almost semantic and in any case there is no reference to the cost benefit framework for Information Integrity – an aspect so crucial to business decisions . In accounting/auditing research there seems to have been no corresponding debate concerning the exact meaning of “integrity”. Specifically, the auditor assesses control risk, according to Statement of Auditing Standard: SAS 55, as determined by the relevant parts of the entity’ s (Auditee’ s) internal control structure. With respect to accounting information, relevant part of the internal control structure is thus made up of three parts (categorizations): the control environment, the accounting system, and the control procedures. This certainly offers a way of structuring the analysis of different possible control mechanisms. However, there is a problem in that there is no explicit coupling to cost and benefits, in the sense that items in different categories can be compared. The categorization in three parts is essentially adhoc. Then there is the COSO report that provides an extended framework, but it is qualitative in nature. It sees internal control, from the management point of view, as consisting of five interlocking factors: monitoring, information and communication, control activities, risk assessment, and control environment. However, the same line of inadequacy that is levelled at SAS 55 above, that is, lack of explicit cost benefit links between the components of model, applies here. This points to the need to develop an economic framework for Information Integrity facilitating cost benefit analysis of Information Integrity so as to scientifically arrive at Integrity attributes and establish Information Integrity as a critical requirement for competitive advantage in business decisions at strategy, control and operational levels. Development of such an economic framework is a separate research study and does not form part of the current investigation. However, it is submitted that IS based visualization of data and information when modelled as decision process (as discussed earlier) is amenable to developing such an economic framework. Cost Benefit Analysis of Information Integrity: Outlining the Approach Briefly, a generic business process covers entire supply chain from concept to delivery. A competitive business strategy calls for a good understanding of business process, which in turn requires choice of a good business model. With advances in computer integrated Systems and in data and information driven technologies, it has become possible to obtain process data and information on current basis and to manipulate it ‘smarter’ for strategic advantage. What this leads to is modelling the entire supply chain emphasizing ‘information’ as against material, flow, energy, etc. as has been the practice when, constrained by non-integrated technologies, businesses were mainly concerned with only ‘standard’ product in high volume syndrome for strategic advantages. And, specifically, what this leads to is a closed loop information and control system based model of a business process IS view of which generic business process is an integral part. It is by systematically controlling the information processing under this business process IS view that competitive advantage can be achieved in complex and changing business environments of today. As mentioned earlier, core IS model can be represented as a decision process model. Traditionally, within the system engineering framework, decision process is viewed to comprise of stages of forecasting (prediction), evaluation of alternatives and selection (for control or any other type of use as the case may be). However, what one has now is an information and control system based model of a business process and this IS is a complex, open system in that, at all levels, the information it processes is accompanied by respective objective and is impacted by and impacts its environment. As a result, for it, the more workable, extended model of a decision process spans multiple stages. They are: initial problem recognition (goal setting); identifying information variables for a complex problem system (goal); constructing problem solving opportunity and constraining spaces; developing information structure, and information structure dynamics models; and undertaking customized planning & design for development of alternatives for the evaluation of final choice for delivery of flexible information decision (itself an information), and the

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control implementation, i. e., the information use part . What is significant is that all of the above stages{Si}, from goal setting to final choice of information for use and control implementation, by themselves arecomplex information processing stages and, therefore, involve information gathering and processingactivities with reference to their respective information bases. And of still greater implication is the realitythat at each stage (Si), these information gathering and processing activities are affected by uncertainties;resulting in errors in information processed from stage to stage . The cost benefit analysis of Information Integrity then needs to be carried out with reference to thisinformation processing reality between and within the subsystems/ components of the complex, open systemthat the business process IS view is. As indicated earlier, development of cost benefit analysis methodologyis outside the scope of the present investigation. But in the rest of this subsection, for the purpose ofanalytical explanation to the criticality of Integrity objective for competitive advantage (as againstdefinitional approaches normally reported in the literature; for example computer security research), aneffort is made to outline an approach to the cost benefit analysis of Information Integrity . Consider any information processing stage (Si) of the information and control system representing thebusiness process IS view. Such IS can be viewed as formed by a number of core IS models connected inseries and parallel. It is recalled that core IS model to which data and information are integral is modelled asa decision process. To outline the cost benefit analysis methodology of Information Integrity, one canconsider such decision process. The decision purpose can be taken to process/transform/convert data as incore IS to deliver information decision (by itself an information) which can be seen as a decision outcome soas to achieve better information use (for example better control). Thus the purpose of processingdata/information through the core IS can be taken as “improvement in information use”, which in turn thencan be considered as the strategic or competitive advantage. It is understood that this “improvement” (shownas “ D”) will be a function of the information (I) being processed under the stage {Si} and, accordingly, itcan be represented by [DIU(I)], where IU(I) denotes the variable giving the upper bound of information useas function of “ I” (given that such function can be defined). Let “a(I)” denote Usefulness factor and “ b(I)”Usability factor. Both factors, functions of “I”, may take values between (0,1] and, accordingly, can be seenas appropriately defined proportionality variables. Then, the improvement in information use at stage ( Si )is given by Equation (1).

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Systems Thinking for Education and Research

Education and research are most exciting when they move out of the lecture hall and library and provide opportunity to create, experience, and see. STELLA® offers a practical way to dynamically visualize and communicate how complex systems and ideas really work.

Whether they are first-time or experienced modelers, teachers, students, and researchers use STELLA to explore and answer endless questions like:

How does climate change influence an ecosystem over time? Would Hamlet’s fate have changed if he’d killed Claudius earlier? How do oil prices respond to shocks in supply and/or demand? What will happen when the ozone layer is gone? How do basic macroeconomic principles affect income and consumption?

The Gold Standard Easy-to-use, STELLA models provide endless opportunities to explore by asking "what if," and

watching what happens, inspiring the exciting ah-ha moments of learning.

Thousands of educators and researchers have made STELLA the gold standard; using it to study everything from economics to physics, literature to calculus, chemistry to public policy. K-12,

college, and research communities have all recognized STELLA’s unique ability to stimulate learning.

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

Use STELLA to:

Simulate a system over time

Jump the gap between theory and the real world

Enable students to creatively change systems

Teach students to look for relationships – see the Big Picture

Clearly communicate system inputs and outputs and demonstrate outcomes

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• Simulations "run" systems over time • Sensitivity analysis reveals key leverage points and optimal conditions

• Partial model simulations focus analysis on specific sectors or modules of the model

• Results presented as graphs, tables, animations, QuickTime movies, and files

Communication

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STELLA is a commercial software package that facilitates the creation of both simple and complex numerical models. It has a friendly graphical interface that aids in laying out, constructing, and utilizing a model. Models can be configured to run independently with set inputs (either numerically or graphically specified) or in an interactive "flight simulator" mode. Model output can be observed via numerical readouts, tables, and graphs. The STELLA software also provides a variety of tools that facilitate documentation and presentation of the model as a structured "learning environment".

Using STELLA™ Model Simulations STELLA™ Modeling software is a powerful tool for constructing mathematical models of physical/chemical systems. After constructing a model, simulations can be run by changing the input variables and following the response of a model on a graph or in a table of output variables or results.

Studying Graphs We are going to take the graphical approach to studying variables. Here are some items we are going to investigate on graphs in a number of models in kinetics, equilibria, and radioactive decay:

independent versus dependent variables direct versus indirect relationships linear versus non-linear behaviour equation of a line - y = mx +b slope (m) and its variation y-intercepts (b) transformation of variables such as log plots translation of a curve/line

You may want to consult an algebra textbook to review some of these simple mathematical concepts. Investigating Changing Variables When we change a variable using a slider, we want to see how the graph responds. A good approach to this is to change a variable from low to high at 3 or 4 different values. Try to explore the total

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range of the variable. Then investigate another variable if required. Before starting another variable, set the previous variable at mid-range on the slider. Discover the trend in a variable and then move on to the next one. Many of the graphs will show multiple runs to allow easy comparison of changes. If a graph becomes to busy, press the clear button. Sketching and labelling graphs are highly recommended.

IM Complete Notes UNIT 1 2 3

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Transcript of IM Complete Notes UNIT 1 2 3