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DEPARTMENT OF INFORMATION TECHNOLOGYJCET

TRANSACTION PROCESSING SYSTEMS

Transaction processing systems (TPS) are the basic business systems that serve the operational

level of the organization. A transaction processing system is a computerized system that performs

and records the daily routine transactions necessary to conduct business. Examples are sales

order entry hotel reservation systems payroll employee record !eeping and shipping.

At the operational level tas!s resources and goals are predefined and highly structured. The

decision to grant credit to a customer for instance is made by a lo"er level supervisor according

to predefined criteria. All that must be determined is "hether the customer meets the criteria.

#igure $%& depicts a payroll TPS "hich is a typical accounting transaction processing system

found in most firms. A payroll system !eeps trac! of the money paid to employees. The master

file is composed of discrete pieces of information (such as a name address or employee

number) called data elements. 'ata are !eyed into the system updating the data elements. The

elements on the master file are combined in different "ays to ma!e up reports of interest to

management and government agencies to send paychec!s to employees. These TPS can generateother report combinations of existing data elements.

FIGURE 2-3 A symbolic represen!ion "or ! p!yroll TPS

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A payroll system is a typical accounting TPS that processes transactions such as employee time

cards and changes in employee salaries and deductions. t !eeps trac! of money paid to

employees "ithholding tax and paychec!s.

FIGURE 2-# Typic!l !pplic!ions o" TPS

There are five functional categories of TPS sales*mar!eting manufacturing*production finance*

accounting human resources and other types of systems specific to a particular industry. +ithin

each of these ma,or functions are sub functions. #or each of these sub functions (e.g. sales

management) there is a ma,or application system.

Transaction processing systems are often so central to a business that TPS failure for a fe" hours

can lead to a firm-s demise and perhaps that of other firms lin!ed to it. magine "hat "ould

happen to PS if its pac!age trac!ing system "ere not "or!ing/ +hat "ould the airlines do

"ithout their computerized reservation systems0

1anagers need TPS to monitor the status of internal operations and the firm-s relations "ith the

external environment. TPS are also ma,or producers of information for the other types of

systems. (#or example the payroll system illustrated here along "ith other accounting TPS

supplies data to the company-s general ledger system "hich is responsible for maintaining

records of the firm-s income and expenses and for producing reports such as income statements

and balance sheets.)


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TRANSACTION PROCESSING

T$e Problem

A b%siness r!ns!cionis an interaction in the real "orld usually bet"een an enterprise and a

person or another enterprise "here something is exchanged. #or example it could involve

exchanging money products information or service re2uests. sually some boo!!eeping is

re2uired to record "hat happened. 3ften this boo!!eeping is done by a computer for better

scalability reliability and cost. 4ommunications bet"een the parties involved in the business

transaction is often done over a computer net"or! such as the nternet. This is r!ns!cion

processin& 'TP(5 the processing of business transactions by computers connected by computer

net"or!s. There are many re2uirements on computer%based transaction processing such as the

follo"ing

A business transaction re2uires the execution of multiple operations. #or example

consider the purchase of an item from an on%line catalog. 3ne operation records the

payment and another operation records the commitment to ship the item to the customer.t is easy to imagine a simple program that "ould do this "or!. 6o"ever "hen

scalability reliability and cost enter the picture things can 2uic!ly get very complicated.

Transaction volume and database size adds complexity and undermines efficiency. +e7ve

all had the experience of being delayed because a sales person is "aiting for a cash

register terminal to respond or because it ta!es too long to do"nload a "eb page. 8et

companies "ant to serve their customers 2uic!ly and "ith the least cost.

To scale up a system for high performance transactions must execute concurrently.

ncontrolled concurrent transactions can generate "rong ans"ers. At a roc! concert

"hen dozens of operations are competing to reserve the same remaining seats it7s

important that only one customer is assigned to each seat. #airness is also an issue. #or

example Amazon.com spent considerable effort to ensure that "hen its first thousand

9boxes "ent on sale each of the :;;;; customers "ho "ere vying for an 9box had a

fair chance to get one.

f a transaction runs it must run in its entirety. n a retail sale the item should either be

exchanged for money or not sold at all. +hen failures occur as they inevitably do it7s

important to avoid partially completed "or! such as accepting payment and not shipping

the item or vice versa. This "ould ma!e the customer or the business very unhappy.

Each transaction should either return an ac!no"ledgment that it executed or return a

negative ac!no"ledgment that it did not execute. Those ac!no"ledgments are important.

f no ac!no"ledgment arrives the user doesn7t !no" "hether to resubmit a re2uest to run

the transaction again.

The system should be incrementally scalable. +hen a business gro"s it must increase its

capacity for running transactions preferably by ma!ing an incremental purchase 5 not


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by replacing its current machine by a bigger one or "orse yet by rebuilding the

application to handle the increased "or!load.

+hen an electronic commerce (e%commerce) "eb site stops "or!ing the retail enterprise

is closed for business. Systems that run transactions are often < mission critical < to the

business activity they support. They should hardly ever be do"n.

=ecords of transactions once completed must be permanent and authoritative. This is

often a legal re2uirement as in financial transactions. Transactions must never be lost.

The system must be able to operate "ell in a geographically distributed environment.

3ften this implies that the system itself is distributed "ith machines at multiple

locations. Sometimes this is due to a legal re2uirement that the system must operate in

the country "here the business is performed. 3ther times distributed processing is used

to meet technical re2uirements such as efficiency incremental scalability and resistance

to failures (using bac!up systems).

The system should be able to personalize each user7s on%line experience based on past

usage patterns. #or a retail customer it should identify relevant discounts and

advertisements and offer products customized to that user.

The system must be able to scale up predictably and inexpensively to handle nternet

loads of millions of potential users. There is no "ay to control ho" many users log in at

the same time or "hich transactions they may choose to access.

The system should be easy to manage. 3ther"ise the system management staff re2uired

to operate a large%scale system can become too large and hence too costly. 4omplex

system management also increases the chance of errors and hence do"ntime "hich inturn causes human costs such as increased stress and unscheduled nighttime "or!.

n summary transaction processing systems have to handle high volumes efficiently avoid errors

due to concurrent operation avoid producing partial results gro" incrementally avoid

do"ntime never lose results offer geographical distribution be customizable scale up

gracefully and be easy to manage. t7s a tall order. This boo! describes ho" it7s done. t explains

the underlying principles of automating business transactions both for traditional businesses and

over the nternet> explores the complexities of fundamental technologies such as logging and

loc!ing> and surveys today7s commercial transactional middle"are products that provide features

necessary for building TP applications.

)$! Is ! Tr!ns!cion*

An on-line r!ns!cionis the execution of a program that performs an administrative function

by accessing a shared database usually on behalf of an on%line user. ?i!e many system

definitions this one is impressionistic and not meant to be exact in all its details. 3ne detail is

important A transaction is al"ays the executionof a program. The program contains the steps


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involved in the business transaction 5 for example recording the sale of a boo! and reserving

the item from inventory.

+e7ll use the "ords r!ns!cion pro&r!m to mean the program "hose execution is the

transaction. Sometimes the "ord

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applications both to reduce the cost of administration and to generate revenue as a service to

customers.

n its early years the TP application mar!et "as driven primarily by large companies needing to

support administrative functions for large numbers of customers. Such systems often involve

thousands of terminals dozens of dis! drives and many large processors and can run hundreds

of thousands of transactions per day. ?arge TP systems are becoming even more important due to

the popularity of on%line services on the nternet. 6o"ever "ith the do"nsizing of systems has

come the need for small TP applications too ones "ith ,ust a fe" bro"sers connected to a small

server machine to handle orders for a small catalog business course registrations for a school or

patient visits to a dental office. All these applications 5 large and small 5 rely on the same

underlying system structure and soft"are abstractions.

FIGURE ,, Tr!ns!cion Processin& Applic!ionsTransaction processing covers most sectors

of the economy.

Applic!ion E.!mple o" Tr!ns!cion

@an!ing +ithdra" money from an account

Securities trading Purchase ;; shares of stoc!

nsurance Pay an insurance premium

nventory control =ecord the fulfillment of an order

1anufacturing ?og a step of an assembly process

=etail point%of%sale =ecord a sale

Dovernment =egister an automobile

3nline shopping Place an order using an on%line catalog

Transportation Trac! a shipment

Telecommunications 4onnect a telephone call

1ilitary 4ommand and 4ontrol #ire a missile

1edia Drant permission to do"nload a video

TP systems also are being offered as services to other companies. #or example Amazon.com

hosts other companies7 "eb storefronts. Some airlines develop and operate reservation services

for other airlines. Some vendors of pac!aged applications are no" offering their application as a

service that can be invo!ed by a third party7s application over the nternet "hich in turn helps

the third party offer other TP services to their customers. Diven the expense expertise and


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management attention re2uired to build and run a high%2uality TP system this trend to"ard out%

sourcing TP applications is li!ely to gro".

A Tr!ns!cion Pro&r!m/s M!in F%ncionsA transaction program generally does three things

. Dets input from a "eb bro"ser or other !ind of device such as a bar%code reader or robotsensor.

$. 'oes the real "or! being re2uested.

&. Produces a response and possibly sends it bac! to the bro"ser or device that provided

the input.

Each invocation of the transaction program results in an independent unit of "or! that executes

exactly once and produces permanent results. +e7ll have more to say about these properties of a

transaction program shortly.

1ost TP applications include some code that does not execute as a transaction. This other codeexecutes as an ordinary program not necessarily as an independent unit of "or! that executes

exactly once and produces permanent results. +e use the term TP application in this larger sense.

t includes transaction programs programs that gather input for transactions and maintenance

functions such as deleting obsolete inventory records reconfiguring the runtime system and

updating validation tables used for error%chec!ing.

FIGURE ,2 Tr!ns!cion Applic!ion P!rsA transaction application gathers input routes the

input to a program that can execute the re2uest and then executes the appropriate transaction

program.

Fin!nce !n0 Acco%nin& Sysems

The finance function is responsible for managing the firm-s financial assets such as cash stoc!s

bonds and other investments to maximize the return on these financial assets. The finance

function is also in charge of managing the capitalization of the firm (finding ne" financial assets

in stoc!s bonds or other forms of debt). To determine "hether the firm is getting the best return

on its investments the finance function must obtain a considerable amount of information from


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sources external to the firm. The accounting function is responsible for maintaining and

managing the firm-s financial records5receipts disbursements depreciation payroll5to

account for the flo" of funds in a firm. #inance and accounting share related problems5ho" to

!eep trac! of a firm-s financial assets and fund flo"s. They provide ans"ers to 2uestions such as

these +hat is the current inventory of financial assets0 +hat records exist for disbursementsreceipts payroll and other fund flo"s0 Table $% sho"s some of the typical finance and

accounting information systems found in large organizations. Strategic%level systems for the

finance and accounting function establish long%term investment goals for the firm and provide

long%range forecasts of the firm-s financial performance. At the management level information

systems help managers oversee and control the firm-s financial resources. 3perational systems in

finance and accounting trac! the flo" of funds in the firm through transactions such as

paychec!s payments to vendors securities reports and receipts.

TA1E 2-# E.!mples o" Fin!nce !n0 Acco%nin& In"orm!ion Sysems


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TA1E 2- E.!mples o" F%ncion!l 1%siness Processes

FIGURE 2-,2 T$e or0er "%l"illmen process

Denerating and fulfilling an order is a multistep process involving activities performed by thesales manufacturing and production and accounting

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functions.

FIGURE 2-,3 Enerprise !pplic!ion !rc$iec%re

Enterprise applications automate processes that span multiple business functions and

organizational levels and may extend outside the organization.

Enterprise systems create an integrated organization%"ide platform to coordinate !ey internalprocesses of the firm. nformation systems for supply chain management (S41) and customer

relationship management (4=1) help coordinate processes for managing the firm-s relationship

"ith its suppliers and customers.

Fno"ledge management systems enable organizations to better manage processes for capturing

and applying !no"ledge and expertise. 4ollectively these four systems represent the areas in

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"hich corporations are digitally integrating their information flo"s and ma!ing ma,or

information system investments.

A large organization typically has many different !inds of information systems that supportdifferent functions organizational levels and business processes. 1ost of these systems "ere

built around different functions business units and business processes that do not Gtal!H to each

other and thus cannot automatically exchange information. 1anagers might have a hard time

assembling the data they need for a comprehensive overall picture of the organization-s

operations. #or instance sales personnel might not be able to tell at the time they place an order

"hether the items that "ere ordered "ere in inventory> customers could not trac! their orders>

and manufacturing could not communicate easily "ith finance to plan for ne" production. This

fragmentation of data in hundreds of separate systems could thus have a negative impact on

organizational efficiency and business performance.

#igure $% illustrates the traditional arrangement of information systems.

FIGURE 2-,# Tr!0iion!l 4ie5 o" sysems

n most organizations today separate systems built over a long period of time support discrete

business processes and discrete segments of the business value chain. The organization-s systems

rarely include vendors and customers.

Enterprise systems also !no"n as enterprise resource planning (E=P) systems solve this

problem by providing a single information system for organization%"ide coordination and

integration of !ey business processes. nformation that "as previously fragmented in different


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systems can seamlessly flo" throughout the firm so that it can be shared by business processes in

manufacturing accounting human resources and other areas. 'iscrete business processes from

sales production finance and logistics can be integrated into company%"ide business processes

that flo" across organizational levels and functions. #igure $%: illustrates ho" enterprise

systems "or!.

FIGURE 2-,6 Enerprise sysems

Enterprise systems integrate the !ey business processes of an entire firm into a single soft"are

system that enables information to flo" seamlessly throughout the organization. These systems

focus primarily on internal processes but may include transactions "ith customers and vendors.

The enterprise system collects data from various !ey business processes in manufacturing and

production finance and accounting sales and mar!eting and human resources and stores the

data in a single comprehensive data repository "here they can be used by other parts of the

business. 1anagers emerge "ith more precise and timely information for coordinating the daily

operations of the business and a firm "ide vie" of business processes and information flo"s.

RESUTS OF T7E CAPITA 1U8GETING ANAYSIS

Sr!e&ic Consi0er!ions

3ther methods of selecting and evaluating information systems investments involve strategic

considerations that are not addressed by traditional capital budgeting methods. +hen the firm

has several alternative investments from "hich to select it can employ portfolio analysis and

scoring models. t can apply real options pricing models to T investments that are highly

uncertain or use a !no"ledge value%added approach to measure the benefits of changes to

business processes. Several of these methods can be used in combination.


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Tr!0iion!l C!pi!l 1%0&ein& Mo0els

4apital budgeting models are one of several techni2ues used to measure the value of investing in

long%term capital investment pro,ects. The process of analyzing and selecting various proposals

for capital expenditures is called capital budgeting. #irms invest in capital pro,ects to expand

production to meet anticipated demand or to modernize production e2uipment to reduce costs.

#irms also invest in capital pro,ects for many noneconomic reasons such as installing pollution

control e2uipment converting to a human resources database to meet some government

regulations or satisfying nonmar!et public demands. nformation systems are considered long%

term capital investment pro,ects.

Six capital budgeting models are used to evaluate capital pro,ects

The paybac! method

The accounting rate of return on investment (=3)

The net present value

The cost%benefit ratio

The profitability index

The internal rate of return (==)

4apital budgeting methods rely on measures of cash flo"s into and out of the firm. 4apital

pro,ects generate cash flo"s into and out of the firm. The investment cost is an immediate cash

outflo" caused by the purchase of the capital e2uipment. n subse2uent years the investment

may cause additional cash outflo"s that "ill be balanced by cash inflo"s resulting from the

investment. 4ash inflo"s ta!e the form of increased sales of more products (for reasons such as

ne" products higher 2uality or increasing mar!et share) or reduced costs in production and

operations. The difference bet"een cash outflo"s and cash inflo"s is used for calculating the

financial "orth of an investment. 3nce the cash flo"s have been established several alternative

methods are available for comparing different pro,ects and deciding about the investment.

#inancial models assume that all relevant alternatives have been examined that all costs and

benefits are !no"n and that these costs and benefits can be expressed in a common metric

specifically money. +hen one has to choose among many complex alternatives these


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assumptions are rarely met in the real "orld although they may be approximated. Table :%

lists some of the more common costs and benefits of systems.

Tangible benefits can be 2uantified and assigned a monetary value. ntangible benefits such as

more efficient customer service or enhanced employee good"ill cannot be immediately

2uantified but may lead to 2uantifiable gains in the long run.

T7E PAY1AC9 MET7O8

The paybac! method is 2uite simple t is a measure of the time re2uired to pay bac! the initial

investment of a pro,ect. The paybac! period is computed as follo"s

n the case of 6eartland Stores it "ill ta!e more than t"o years to pay bac! the initial

investment. (@ecause cash flo"s are uneven annual cash inflo"s are summed until they e2ualthe original investment to arrive at this number.) The paybac! method is a popular method

because of its simplicity and po"er as an initial screening method. t is especially good for high%

ris! pro,ects in "hich the useful life of a pro,ect is difficult to determine. f a pro,ect pays for

itself in t"o years then it matters less ho" long after t"o years the system lasts. The "ea!ness

of this measure is its virtue The method ignores the time value of money the amount of cash

flo" after the paybac! period the disposal value (usually zero "ith computer systems) and the

profitability of the investment.

ACCOUNTING RATE OF RETURN ON IN:ESTMENT 'ROI(

#irms ma!e capital investments to earn a satisfactory rate of return. 'etermining a satisfactory

rate of return depends on the cost of borro"ing money but other factors can enter into the

e2uation. Such factors include the historic rates of return expected by the firm. n the long run

the desired rate of return must e2ual or exceed the cost of capital in the mar!etplace. 3ther"ise

no one "ill lend the firm money.

The accounting rate of return on investment (=3) calculates the rate of return from an

investment by ad,usting the cash inflo"s produced by the investment for depreciation. t gives an

approximation of the accounting income earned by the pro,ect.

To find the =3 first calculate the average net benefit. The formula for the average net benefit is

as follo"s


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This net benefit is divided by the total initial investment to arrive at =3. The formula is asfollo"s

n the case of 6eartland Stores the average rate of return on the investment is

$.B& percent. The "ea!ness of =3 is that it can ignore the time value of money. #uture savings

are simply not "orth as much in today-s dollars as are current savings. 6o"ever =3 can be

modified (and usually is) so that future benefits and costs are calculated in today-s dollars. (The

present value function on most spreadsheets can perform this conversion.)

ENTERPRISE ANAYSIS '1USINESS SYSTEMS PANNING(

Enterprise analysis (also called business systems planning) argues that the firm-s

information re2uirements can be understood only by examining the entire organization in terms

of organizational units functions processes and data elements. Enterprise analysis can help

identify the !ey entities and attributes of the organization-s data.

The central method used in the enterprise analysis approach is to ta!e a large sample of managers

and as! them ho" they use information "here they get their information "hat their ob,ectivesare ho" they ma!e decisions and "hat their data needs are. The results of this large survey of

managers are aggregated into subunits functions processes and data matrices. 'ata elements

are organized into logical application groups5groups of data elements that support related sets

of organizational processes.

#igure % is an output of enterprise analysis conducted by the Social Security

Administration as part of a massive systems redevelopment effort. t sho"s "hat information is

re2uired to support a particular process "hich processes create the data and "hich use them.

The shaded boxes in the figure indicate a logical application group.

n this case actuarial estimates agency plans and budget data are created in the planningprocess suggesting that an information system should be built to support planning.

The "ea!ness of enterprise analysis is that it produces an enormous amount of data that is

expensive to collect and difficult to analyze. The 2uestions fre2uently focus not on

management-s critical ob,ectives and "here information is needed but rather on "hat existing

information is used. The result is a tendency to automate "hatever exists.


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@ut in many instances entirely ne" approaches to ho" business is conducted are needed and

these needs are not addressed.


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The plan contains a statement of corporate goals and specifies ho" information technology "ill

support the attainment of those goals. The report sho"s ho" general goals "ill be achieved by

specific systems pro,ects. t identifies specific target dates and milestones that can be used later

to evaluate the plan-s progress in terms of ho" many ob,ectives "ere actually attained in the time

frame specified in the plan. The plan indicates the !ey management decisions concerninghard"are ac2uisition> telecommunications> centralization*decentralization of authority data and

hard"are> and re2uired organizational change. 3rganizational changes are also usually described

including management and employee training re2uirements> recruiting efforts> changes in

business processes> and changes in authority structure or management practice.

STRATEGIC ANAYSIS OR CRITICA SUCCESS FACTORS

The strategic analysis or critical success factors approach argues that an organization-s

information re2uirements are determined by a small number of critical success factors (4S#s) of

managers. f these goals can be attained success of the firm or organization is assured (=oc!art

BIB> =oc!art and Treacy BJ$). 4S#s are shaped by the industry the firm the manager and the

broader environment. Ke" information systems should focus on providing information that helps

the firm meet these goals.

The principal method used in 4S# analysis is personal intervie"s three or four5 "ith a number

of top managers identifying their goals and the resulting 4S#s. These personal 4S#s are

aggregated to develop a picture of the firm-s 4S#s. Then systems are built to deliver information

on these 4S#s. (See Table %$ for an example of 4S#s. #or the method of developing 4S#s in

an organization see #igure %$.)

TA1E ,#-2 Criic!l S%ccess F!cors !n0 Or&!ni;!ion!l Go!ls


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AUTOMATION TECHNOLOGY

Automation is the use of control systems and information technologies to reduce the need for

human "or! in the production of goods and services. n the scope of industrialization

automation is a step beyond mechanization. +hereas mechanization provided human operators"ith machinery to assist them "ith the muscular re2uirements of "or! automation greatly

decreases the need for human sensory and mental re2uirements as "ell. Automation plays an

increasingly important role in the "orld economy and in daily experience. Automation has had a

notable impact in a "ide range of industries beyond manufacturing.

3nce%ubi2uitous telephone operators have been replaced largely by automated telephone

s"itchboards and ans"ering machines. 1edical processes such as primary screening in

electrocardiography or radiography and laboratory analysis of human genes sera cells and

tissues are carried out at much greater speed and accuracy by automated systems. Automated

teller machines have reduced the need for ban! visits to obtain cash and carry out transactions. n

general automation has been responsible for the shift in the "orld economy from industrial ,obs

to service ,obs in the $;th and $st centuries.

A04!n!&es !n0 0is!04!n!&es

The main advantages of automation are

=eplacing human operators in tas!s that involve hard physical or monotonous "or!.L$M

=eplacing humans in tas!s done in dangerous environments (i.e. fire space volcanoes

nuclear facilities under"ater etc.)

Performing tas!s that are beyond human capabilities of size "eight speed enduranceetc.

Economy improvement Automation may improve in economy of enterprises society or

most of humanity. #or example "hen an enterprise invests in automation technology

recovers its investment> or "hen a state or country increases its income due to automation

li!e Dermanyor Napanin the $;th 4entury.

=educes operation time and "or! handling time significantly.

#rees up "or!ers to ta!e on other roles.

Provides higher level ,obs in the development deployment maintenance and running ofthe automated processes.

The main disadvantages of automation are

Security Threats*Oulnerability An automated system may have a limited level of

intelligence and is therefore more susceptible to committing an error.

http://www.information-and-technology.com/types-of-technology/automation-technology.htmlhttp://en.wikipedia.org/wiki/Automation#cite_note-1http://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Japanhttp://vivociti.com/component/option,com_remository/Itemid,40/func,select/id,9/http://www.information-and-technology.com/types-of-technology/automation-technology.htmlhttp://en.wikipedia.org/wiki/Automation#cite_note-1http://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Japan

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npredictable development costs The research and developmentcost of automating a

process may exceed the cost saved by the automation itself.

6igh initial cost The automation of a ne" productor plantre2uires a huge initial

investment in comparison "ith the unit cost of the product although the cost of

automation is spread among many products.

n manufacturing the purpose of automation has shifted to issues broader than productivity cost

and time.

Reli!biliy !n0 precision

The old focus on using automation simply to increase productivity and reduce costs "as seen to

be short%sighted because it is also necessary to provide a s!illed "or!force "ho can ma!e

repairs and manage the machinery. 1oreover the initial costs of automation "ere high and often

could not be recovered by the time entirely ne" manufacturing processes replaced the old.

(Napan7s

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'iscrete manufacturing plants adopted these technologies fast. The more conservative process

industries "ith their longer plant life cycles have been slo"er to adopt and analogue%based

measurement and control still dominates. The gro"ing use of ndustrial Etherneton the factory

floor is pushing these trends still further enabling manufacturing plants to be integrated more

tightly "ithin the enterprise via the internet if necessary. Dlobal competition has also increaseddemand for =econfigurable 1anufacturing Systems.

Automation tools

Engineers no" can have numerical controlover automated devices. The result has been a rapidly

expanding range of applications and human activities. 4omputer%aided technologies(or 4Ax)

no" serve the basis for mathematical and organizational tools used to create complex systems.

Kotable examples of 4Ax include 4omputer%aided design(4A' soft"are) and 4omputer%aided

manufacturing(4A1 soft"are). The improved design analysis and manufacture of products

enabled by 4Ax has been beneficial for industry.L&M

nformation technology together "ith industrial machinery and processes can assist in the

design implementation and monitoring of control systems. 3ne example of an industrial control

system is a programmable logic controller (P?4). P?4s are specialized hardened computers

"hich are fre2uently used to synchronize the flo" of inputs from (physical) sensors and events

"ith the flo" of outputs to actuators and events.

An automated online assistant on a "ebsite "ith an avatar for enhanced humanQcomputer

interaction.

7%m!n-m!c$ine iner"!ces '7MI( or computer human interfaces(46) formerly !no"n as

man-machine interfaces are usually employed to communicate "ith P?4s and other computers.Service personnel "ho monitor and control through 61s can be called by different names. n

industrial process and manufacturing environments they are called operators or something

similar. n boiler houses and central utilities departments they are called stationary engineers.L:M

'ifferent types of automation tools exist

AKK % Artificial neural net"or!

'4S % 'istributed 4ontrol System

61 % 6uman 1achine nterface

S4A'A % Supervisory 4ontrol and 'ata Ac2uisition

P?4 % Programmable ?ogic 4ontroller

PA4 % Programmable automation controller

nstrumentation

1otion control

http://en.wikipedia.org/wiki/Industrial_Ethernethttp://en.wikipedia.org/wiki/Reconfigurable_Manufacturing_Systemhttp://en.wikipedia.org/wiki/Numerical_controlhttp://en.wikipedia.org/wiki/Computer-aided_technologieshttp://en.wikipedia.org/wiki/Computer-aided_designhttp://en.wikipedia.org/wiki/Computer-aided_manufacturinghttp://en.wikipedia.org/wiki/Computer-aided_manufacturinghttp://en.wikipedia.org/wiki/Automation#cite_note-2http://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Machineryhttp://en.wikipedia.org/wiki/Industrial_processhttp://en.wikipedia.org/wiki/Industrial_control_systemshttp://en.wikipedia.org/wiki/Industrial_control_systemshttp://en.wikipedia.org/wiki/Programmable_logic_controllerhttp://en.wikipedia.org/wiki/Sensorhttp://en.wikipedia.org/wiki/Automated_online_assistanthttp://en.wikipedia.org/wiki/Avatar_(computing)http://en.wikipedia.org/wiki/Human%E2%80%93computer_interactionhttp://en.wikipedia.org/wiki/Human%E2%80%93computer_interactionhttp://en.wikipedia.org/wiki/Human-computer_interactionhttp://en.wikipedia.org/wiki/Human%E2%80%93computer_interactionhttp://en.wikipedia.org/wiki/Automation#cite_note-4http://en.wikipedia.org/wiki/Artificial_neural_networkhttp://en.wikipedia.org/wiki/Distributed_Control_Systemhttp://en.wikipedia.org/wiki/Human_Machine_Interfacehttp://en.wikipedia.org/wiki/Supervisory_Control_and_Data_Acquisitionhttp://en.wikipedia.org/wiki/Programmable_Logic_Controllerhttp://en.wikipedia.org/wiki/Programmable_automation_controllerhttp://en.wikipedia.org/wiki/Instrumentationhttp://en.wikipedia.org/wiki/Motion_controlhttp://en.wikipedia.org/wiki/Industrial_Ethernethttp://en.wikipedia.org/wiki/Reconfigurable_Manufacturing_Systemhttp://en.wikipedia.org/wiki/Numerical_controlhttp://en.wikipedia.org/wiki/Computer-aided_technologieshttp://en.wikipedia.org/wiki/Computer-aided_designhttp://en.wikipedia.org/wiki/Computer-aided_manufacturinghttp://en.wikipedia.org/wiki/Computer-aided_manufacturinghttp://en.wikipedia.org/wiki/Automation#cite_note-2http://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Machineryhttp://en.wikipedia.org/wiki/Industrial_processhttp://en.wikipedia.org/wiki/Industrial_control_systemshttp://en.wikipedia.org/wiki/Industrial_control_systemshttp://en.wikipedia.org/wiki/Programmable_logic_controllerhttp://en.wikipedia.org/wiki/Sensorhttp://en.wikipedia.org/wiki/Automated_online_assistanthttp://en.wikipedia.org/wiki/Avatar_(computing)http://en.wikipedia.org/wiki/Human%E2%80%93computer_interactionhttp://en.wikipedia.org/wiki/Human%E2%80%93computer_interactionhttp://en.wikipedia.org/wiki/Human-computer_interactionhttp://en.wikipedia.org/wiki/Human%E2%80%93computer_interactionhttp://en.wikipedia.org/wiki/Automation#cite_note-4http://en.wikipedia.org/wiki/Artificial_neural_networkhttp://en.wikipedia.org/wiki/Distributed_Control_Systemhttp://en.wikipedia.org/wiki/Human_Machine_Interfacehttp://en.wikipedia.org/wiki/Supervisory_Control_and_Data_Acquisitionhttp://en.wikipedia.org/wiki/Programmable_Logic_Controllerhttp://en.wikipedia.org/wiki/Programmable_automation_controllerhttp://en.wikipedia.org/wiki/Instrumentationhttp://en.wikipedia.org/wiki/Motion_control

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=obotics

imi!ions o !%om!ion

4urrent technology is unable to automate all the desired tas!s.

As a process becomes increasingly automated there is less and less labor to be saved or

2uality improvement to be gained. This is an example of both diminishing returnsand the

logistic function.

Similar to the above as more and more processes become automated there are fe"er

remaining non%automated processes. This is an example of exhaustion of opportunities.

C%rren limi!ions

1any roles for humans in industrial processes presently lie beyond the scope of automation.

6uman%level pattern recognition language comprehension and language production ability are

"ell beyond the capabilities of modern mechanical and computer systems. Tas!s re2uiringsub,ective assessment or synthesis of complex sensory data such as scents and sounds as "ell as

high%level tas!s such as strategic planning currently re2uire human expertise. n many cases the

use of humans is more cost%effective than mechanical approaches even "here automation of

industrial tas!s is possible. 3vercoming these obstacles is a theorized path to post%scarcity

economics.

Applications

The 'efense Advanced =esearch Pro,ects Agency ('A=PA) started the research and

development of automated visual surveillance and monitoring (OSA1) program bet"een BBI

and BBB and airborne video surveillance (AOS) programs from BBJ to $;;$. 4urrently thereis a ma,or effort under"ay in the vision community to develop a fully automated trac!ing

surveillancesystem. Automated video surveillance monitors people and vehicle in real time

"ithin a busy environment. Existing automated surveillance systems are based on the

environment they are primarily designed to observe i.e. indoor outdoor or airborne the amount

of sensors that the automated system can handle and the mobility of sensor i.e. stationary

camera vs. mobile camera. The purpose of a surveillance system is to record properties and

tra,ectories of ob,ects in a given area generate "arnings or notify designated authority in case of

occurrence of particular events.LCM

A%om!e0 $i&$5!y sysemsAs demands for safety and mobility have gro"n and technological possibilities have multiplied

interest in automation have gro"n. See!ing to accelerate the development and introduction of

fully automated vehicles and high"ays The nited States 4ongressauthorized more than RC:;

million over C years for intelligent transport systems (TS) and demonstration pro,ects in the

BB ntermodal Surface Transportation Efficiency Act (STEA). 4ongress legislated in STEA

that Gthe Secretary of Transportationshall develop an automated high"ay and vehicle prototype

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from "hich future fully automated intelligent vehicle%high"ay systems can be developed. Such

development shall include research in human factors to ensure the success of the man%machine

relationship. The goal of this program is to have the first fully automated high"ay road"ay or an

automated test trac! in operation by BBI. This system shall accommodate installation of

e2uipment in ne" and existing motor vehicles.< LSTEA BB part @ Section C;:(b)M.

#ull automation commonly defined as re2uiring no control or very limited control by the driver>

such automation "ould be accomplished through a combination of sensor computer and

communications systems in vehicles and along the road"ay. #ully automated driving "ould in

theory allo" closer vehicle spacing and higher speeds "hich could enhance traffic capacity in

places "here additional road building is physically impossible politically unacceptable or

prohibitively expensive. Automated controls also might enhance road safety by reducing the

opportunity for driver error "hich causes a large share of motor vehicle crashes. 3ther potential

benefits include improved air 2uality (as a result of more%efficient traffic flo"s) increased fuel

economy and spin%off technologies generated during research and development related toautomated high"ay systems.LIM

Automated manufacturing

Automated manufacturing refers to the application of automation to produce things in the factory

"ay. 1ost of the advantages of the automation technology has its influence in the manufacture

processes.

The main advantages of automated manufacturingare higher consistency and 2uality reduced

lead times simplified production reduced handling improved "or! flo" and increased "or!er

morale "hen a good implementation of the automation is made.

7ome !%om!ion

6ome automation (also called domotics) designates an emerging practice of increased

automation of household appliances and features in residential d"ellings particularly through

electronic means that allo" for things impracticable overly expensive or simply not possible in

recent past decades.

ndustrial automation ndustrial automation deals "ith the optimization of energy%efficient drive

systems by precise measurement and control technologies. Ko"adays energy efficiency in

industrial processes are becoming more and more relevant. Semiconductor companies li!e

nfineon Technologiesare offering J%bit microcontroller applications for example found in motorcontrols general purpose pumps fans and ebi!es to reduce energy consumption and thus

increase efficiency. 3ne of nfineons J%bit product line found in industrial automation is the

94J;; family.

Agent%assisted Automation refers to automation used by call center agents to handle customer

in2uiries. There are t"o basic types des!top automation and automated voice solutions. 'es!top

automation refers to soft"are programming that ma!es it easier for the call center agent to "or!

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across multiple des!top tools. The automation "ould ta!e the information entered into one tool

and populate it across the others so it did not have to be entered more than once for example.

Automated voice solutions allo" the agents to remain on the line "hile disclosures and other

important information is provided to customers in the form of pre%recorded audio files.

Specialized applications of these automated voice solutions enable the agents to process creditcards "ithout ever seeing or hearing the credit card numbers or 4OO codes LJM

The !ey benefit of agent%assisted automation is compliance and error%proofing. Agents are

sometimes not fully trained or they forget or ignore !ey steps in the process. The use of

automation ensures that "hat is supposed to happen on the call actually does every time.

T$e E""ec o" A%om!ion on Or&!ni;!ion

+hat changes can "e expect in organizational structure as a result of advancements in automatic dataprocessing0 +ill the changes evolve slo"ly or can "e expect abrupt shift and compliance as a result of

the rapid progress of A'P technology0 +ill there be any dilution of middle management functions or

responsibilities as a result of these advancements0 These 2uestions are prompted by recent achievement in

A'Ptechnology and its effect on the development of information systems.

Sophisticated computer%communication lin!s capable of transferring data (or summaries and analyses

thereof) on a real%time or near real%time basis may "ell change our thin!ing concerning organizational

structure. T"o factors are basically responsible for this change. 3ne is the total systems concept (input or

data%base oriented) as opposed to the single information flo" concept (output or report oriented). The

other is the improvement in computer%communication lin!s. The input%oriented systems incorporate a

broad all%inclusive data base relevant to the system and allo" for extraction of these data as usableinformation "ith varied output formats. The output or report%oriented systems are less flexible because

the input is limited to that "hich appears in the output or report format. The improved computer%

communication lin!s facilitate the processing and transfer of data on a real%time or near real%time basis.

This allo"s for the movement of information from source or input to the successive management levels

thereby facilitating timely management action.

There are several approaches to the sub,ect of automation and its effect on organization. 3ne of the more

elementary approaches concerns the assignment of programmers and systems analysts. Should they be

assigned to the functional agencies generating the re2uirements for information or should they be under

the control of the agency responsible for data processing0 Another approach concerns management of the

data%processing functions. Should management be the responsibility of a separate agency reporting

directly to the commander or should the data%processing functions he decentralized to several user

agencies0 n the event of decentralization data processing including computers supporting single

functions "ould be placed under the control of several functional agencies. 3ther considerations bearing

on the management of data processing include the degree of responsiveness re2uired as "ell as other

customer needs computer capacity cost of hard"are and soft"are size and location of computers. Also

to be considered are t"o different parochial interests on one hand those supporting computers serving a

single function> and on the other those favoring large%scale central processors that support integrated

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information systems and feature time%sharing multiprocessing etc. Still another approach concerns the

possible change in organizational structure resulting from advancements in the design and development of

information systems and the speed "ith "hich information is becoming available to any given level of

management. This is primarily the area on "hich "ish to d"ell but in order to establish a common point

of departure some discussion is necessary concerning present alignment of A'P systems.

automatic data processing

#or management and control purposes A'P systems are categorized as operations supporting

management supporting or research and development supporting. 3perations%supporting systems include

command and control intelligence "eather etc. 1anagement%supporting systems include personnel

maintenance and supply financial etc.

Systems integration. Presently "e have both horizontal and vertical alignment of data%processing

functions "ithin the Air #orce. An example of horizontal alignment is the ma,or air command computerstandardization program "hereby li!e computers are located at each ma,or air command in support of the

management data systems> another is the automated base supply system in "hich li!e computers serve the

inventory management re2uirements at base level. Oertical alignment is typified by the intelligence data%

handling system and the command and control systems both categorized as operations%supporting data

systems. These systems use computers that serve the intelligence and command and control functions at

selected levels of command. 6orizontal and vertical alignment applies to both the dedicated A'P systems

and the mutually supporting or shared A'P systems. +ith the advent of the third%generation computers

and as "e progress in our use of time%sharing multiprocessing and integrated data systems "e can

foresee a possible merging of the horizontally and vertically aligned systems at the various management

levels. The extent of this merger "ill depend largely on the considerations previously mentioned onconstraints due to the security classification of data being processed and on the amount of systems

integration obtainable.

@efore any integration of command and control systems intelligence data%handling systems and

management%supporting data systems ta!es place its feasibility must be demonstrated through detailed

systems analysis and design. n this instance "e must establish the degree of systems integration

obtainable and demonstrate its usefulness. The hard"are technology and soft"are capability are available>

the problem is to determine the degree of integration obtainable "ithout any systems degradation.

'ata systems integration bet"een the operations%supporting systems and the management%supporting

systems appears to have some practical aspects. #or example the personnel system-s combat cre"

subsystem and the maintenance system-s aerospace vehicle and e2uipment status subsystems both part ofthe management%supporting systems and the command and control systems "ithin the operations%

supporting systems utilize certain source data common to both the ma,or systems.

Systems integration "ithin the t"o supporting data systems is in%being to a limited extent. +ithin the

management%supporting systems the procurement supply and financial accounting systems are integrated

at base level on the supply computer. Also studies have been made by the 62 SA4 'ata Systems

=e2uirements Panel to determine the practicality of greater integration of the intelligence data%handling


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system and the SA4 operations system both identified "ithin the frame"or! of operations%supporting

systems. n this instance certain data are common to both the intelligence function and the operations

plans (S3P*E+3) function.

CentraliationSystems integration may or may not prove to be practical> ho"ever this should not deter

efforts to study the feasibility of a single large%scale central processor "ith multiprocessing and time%staring features versus t"o or three central processors depending upon the interrelationship of such

systems as command and control and intelligence. 3ne must also consider that several smaller%scale

central processors might be as economical as a single large%scale processor and in addition might offer a

degree of flexibility and bac!up not readily available "ith a single processor.

4entralization of data processing should result in a separate staff agency "ith responsibility for systems

design programming and computer operations. This staff agency "ould not be a prime user of automated

products and should operate as a director of information systems. 6o"ever if "e retain the current

alignment of management%supporting data systems operations%supporting systems and =U'%supporting

systems the present role for data%processing functions appears proper. 3ne method of insuring a greater

degree of control over the decentralized operation is through the use of a data systems re2uirements panelsuch as the one at 62 SA4. The panel is composed of senior officers representing the operators of the

data%processing e2uipment and the ma,or users of automated products. The panel does not infringe upon

command or staff management prerogatives but complements normal staff action by exercising collective

,udgment and expertise on command%"ide data%processing problems associated "ith ne" systems

development ma,or system modifications and hard"are re2uirements.

E""ecs on or&!ni;!ion

ntegrated data systems and large%scale central processors are changing the ma!eup and complexity of

information systems. The real issue is the effect of the changing information systems upon organization. tis not so much "ho controls the systems analysts and programmers or "ho operates the data%processing

center but "hat is happening or "ill happen to the structure of organization as a result of having

information readily available at all levels of management. This article addresses itself more specifically to

information systems incorporating "herever practical integrated data%processing and real%time features

as "ell as data base orientation and in2uiry techni2ues and their effect on organizational structure. t is

apparent that most if not all routine functions of sorting consolidating and summarizing can be

effectively and efficiently. accomplished by the computer or its peripheral hard"are. 3ptimum computer

utilization ho"ever comes through the use of higher%level programming languages in performing the

more sophisticated mathematical and analytical functions. This information is usually the result of

advanced A'P systems design based on the desires and needs of management. +e are already "itnessing

the effects of this advanced state of computer output. +e are a"are of the talent re2uired to design the

more sophisticated systems "herein the mass of detail data is processed into meaningful information.

This in turnre2uires the exercise of exceptional talents in the portrayal and interpretation of meaningful

management information.

+e are observing a change in the mix of s!ills re2uired to function effectively in this ne" and challenging

A'P environment. +e are "itnessing more effective audit techni2ues and systems of chec!s and

balances resulting in more efficient and timely administrative action and executive control. t appears that


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more decisions can and "ill be made at higher management levels. t is at these levels that longer%range

plans are formulated and that essential information is or "ill soon become readily available. n essence

the decision level appears to be moving up the chain of command.

3f primary concern is the development of senior executives at top management levels. The shape of the

so%called top manager-s Glearning curve G is to a considerable extent affected by his vital middlemanagement experience. 1iddle management for the most part is staying in step "ith advances in

computer technology and in so doing it is able to render valuable assistance to senior executives by

defining their needs and by designing and implementing meaningful information systems.

The good or bad effect of real%time systems on middle management "ill depend on the resourcefulness

and responsiveness of middle management itself. =eal%time systems "ill not eliminate this level of

management but may dilute its prerogatives if it fails to ta!e timely management actions. +ith detail data

available to all management levels subordinate levels must be especially alert to their responsibilities lest

they forfeit control to higher management. The mix of s!ills at the middle management level "ill change.

This change "ill result in fe"er lo"er%grade personnel offset by an increase in higher%grade personnel.

The higher s!ills are necessary for exploiting computer capabilities and developing more sophisticatedinformation systems as "ell as for programming in the higher%level languages re2uired to support these

systems.

The change in middle management may "ell be one of structure and composition not dilution. #unctional

agencies that are involved in A'P systems development or the processing of data or that are the ma,or

users of the output of information systems "ill experience an accelerated change in the mix of s!ills

re2uired in support of these functions. +ith greater centralization of data%processing functions "e can

expect a shift in responsibility for these functions. The greater impact "ill come ho"ever "hen and there

is a material change in the traditional line and staff organization. Such change may not be dynamic but

instead may 2uite possibly be reflected by an evolutionary change in the middle management structure as

a result of ever improving computer%communication lin!s and information systems.

E-MAI< C7AT< INSTANT MESSAGING< AN8 EECTRONIC 8ISCUSSIONS

E%mail enables messages to be exchanged from computer to computer eliminating costly long%

distance telephone charges "hile expediting communication bet"een different parts of the

organization. n addition to providing electronic messaging e%mail soft"are has capabilities for

routing messages to multiple recipients for"arding messages and attaching text documents or

multimedia files to messages. Although some organizations operate their o"n internal electronic

mail systems a great deal of email today is sent through the nternet.

C7ATTING AN8 INSTANT MESSAGING

3ver J; percent of employees in .S. companies no" communicate interactively using chat or

instant messaging tools. 4hatting enables t"o or more people "ho are simultaneously connected

to the nternet to hold live interactive conversations. 4hat groups are divided into channels and

each is assigned its o"n topic of conversation. The first generation of chat tools "as for "ritten


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conversations in "hich participants typed their remar!s using their !eyboard and read responses

on their computer screen. 4hat systems no" feature voice and even video chat capabilities.

nstant messaging is a type of chat service that enables participants to create their o"n private

chat channels. The instant messaging system alerts the user "henever someone on his or her

private list is online so that the user can initiate a chat session "ith other individuals. A numberof competing instant messaging systems exist for consumers including 8ahoo/ 1essenger 1SK

1essenger and A3? nstant 1essenger.

Some of these systems can provide voice%based instant messages so that a user can clic! a Tal!

button and have an online conversation "ith another person. 4ompanies concerned "ith security

are building proprietary instant messaging systems using tools such as ?otus Sametime. 1any

online retail businesses offer chat services on their +eb sites to attract visitors to encourage

repeat purchases and to improve customer service.

EECTRONIC 8ISCUSSION GROUPS

senet ne"sgroups are "orld"ide discussion groups posted on nternet electronic bulletin

boards on "hich people share information and ideas on a defined topic such as radiology or roc!

bands. Anyone can post messages on these bulletin boards for others to read. 1any thousands of

groups exist that discuss almost all conceivable topics.

The ?.?.@ean +eb site provides on%line chat capabilities to ans"er visitors- 2uestions and to

help them find items for "hich they are loo!ing. Another type of forum ?STSE=O enables

discussions to be conducted through predefined groups but uses e%mail mailing list servers

instead of bulletin boards for communications. f you find a ?STSE=O topic you are interested

in you can subscribe.

#rom then on through e%mail you "ill receive all messages sent by other subscribers concerning

that topic. 8ou can in turn send a message to your ?STSE=O and it "ill automatically be

broadcast to the other subscribers.


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Gro%p5!re< Te!m5!re< !n0 Elecronic Con"erencin&

Droup"are provides capabilities for supporting enterprise%"ide communication and

collaborative "or!. ndividuals teams and "or!groups at different locations in the organization

can use group"are for "riting and commenting on group pro,ects sharing ideas and documents

conducting electronic meetings trac!ing the status of tas!s and pro,ects scheduling and sending

e%mail. Any group member can revie" the ideas of other group members at any time and add to

them or individuals can post a document for others to comment on or edit. 4ommercial

group"are products such as ?otus Kotes and 3penText-s ?ive?in! "hich "ere originally basedon proprietary net"or!s have been enhanced to integrate "ith the nternet or private intranets.

Droove is a ne" group"are tool based on peer%to%peer technology "hich enables people to "or!

directly "ith other people over the nternet "ithout going through a central server. Team"are is

similar to group"are but features simpler nternet tools for building and managing "or! teams.

Although team"are application development capabilities are not as po"erful as those provided

by sophisticated group"are products team"are enables companies to implement collaboration


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applications easily that can be accessed using +eb bro"ser soft"are. 'ocumentum e=oom and

?otus Team +or!place are examples of commercial team"are products.

EECTRONIC CONFERENCING TOOSA gro"ing number of companies are using nternet conferencing tools to stage meetings

conferences and presentations online. +eb conferencing and collaboration soft"are provides a

virtual conference table "here participants can vie" and modify documents and slides or share

their thoughts and comments using chat audio or video. The current generation of such tools

from ?otus 1icrosoft and +ebEx "or! through a standard +eb bro"ser. These forms of

electronic conferencing are gro"ing in popularity because they reduce the need for face%to%face

meetings saving travel time and cost.

Inerne Connecion

The nternet 4onnection for this chapter "ill direct you to a series of +eb sites "here you can

complete an exercise to evaluate various nternet conferencing systems.

Inerne Telep$ony

6ard"are and soft"are have been developed for nternet telephony enabling companies to use

nternet technology for telephone voice transmission over the nternet or private net"or!s.

(nternet telephony products sometimes are called P telephony products.)

Ooice over P (OoP) technology uses the nternet Protocol (P) to deliver voice information in

digital form using pac!et s"itching avoiding the tolls charged by local and long%distance

telephone net"or!s (see #igure J%&). 4alls that "ould ordinarily be transmitted over publictelephone net"or!s "ould travel over the corporate net"or! based on the nternet Protocol or the

public nternet. P telephony calls can be made and received "ith a des!top computer e2uipped

"ith a microphone and spea!ers or "ith a OoP%enabled telephone.


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FIGURE =-,3 7o5 IP elep$ony 5or>s

An P phone call digitizes and brea!s up a voice message into data pac!ets that may travel along

different routes before being reassembled at their final destination. A processor nearest the call-s

destination called a gate"ay arranges the pac!ets in the proper order and directs them to the

telephone number of the receiver or the P address of the receiving computer.

Remote Conferencing

=emote conferencing5including teleconferencing (a conference telephone call) videoconferencing (a conference "ith audio and video images carried over telco circuits or the

internet) and +eb conferencing (conferencing using +eb bro"sers to hear audio> vie" video

po"er point presentations and "hiteboards> and to share files and applications5has exploded in

the past four years. The primary reasons for its gro"th are the savings in time and money and

increased productivity by people "ho do not need to leave their place of "or! to attend a

meeting or a training session.

@y mid%$;; remote conferencing had become a R&.I billion a year industry "ith t"o%thirds

consisting of teleconferencing and one third e2ually divided bet"een video and +eb

conferencing. 6o"ever +eb conferencing is gro"ing by ; percent or more annually "hileteleconferencing is gro"ing at one%eighth that rate and video conferencing at one%fourth that rate.

A ma,ority of the industry-s revenue no" comes from remote conferencing services that provide

the e2uipment soft"are and circuits at an hourly rate or on a subscription basis rather than from

the sale of hard"are and soft"are.

?ibraries have been using teleconferencing and video conferencing for meetings and training for

more than $; years but the technology supporting the activities has changed dramatically in the


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past fe" years "ith the use of the internet to connect sites. Kot only is the cost of connecting

sites via the internet less than "ith conventional telco circuits the e2uipment and soft"are are

also less expensive.

Teleconferencing

Teleconferencing continues to be the most popular form of remote conferencing because it is the

least expensive. 1any telephones and telephone systems have conferencing features that ma!e it

possible to set up a teleconference by merely dialing the numbers of the participants that are to

be connected. There are also a number of teleconferencing services including all telcos that

provide a conference bridge (a toll%free number) into "hich the participants may call. pon the

prompt a participant "ho can be an individual or a group at a spea!er phone enters a passcode

that has been provided by the chair. 'epending on the number of participating sites the cost can

be as little as R$: per hour. A typical four%"ay connection costs less than R;; per hour.

Teleconferencing "or!s best for meetings among people "ho already !no" one another becauseit is difficult to gauge the reactions of strangers "hen one cannot see their body language.

+hen visuals are to be shared they have to be sent prior to the conference.

Video Conferencing

Oideo conferencing technology allo"s people at t"o or more sites to see and hear each other at

the same time provided that each has video conferencing e2uipment. S'K circuits rather than

conventional voice%grade circuits are used because of the band"idth re2uirements of video. f

telco circuits are used it is a simply a matter of dialing another unit-s phone number "hen t"o

sites are to be connected. f more sites are to be connected additional e2uipment is re2uired.

3rganizations that "ish to minimize capital expenditures can use a service that offers a video

conference bridge into "hich all of the sites dial.

n addition to person%to%person teleconferencing (t"o sites) and group teleconferencing (three or

more sites that can all see and hear one another) there is also one%"ay broadcast video

conferencing. t involves a one%"ay transmission to multiple sites "ith only audio response

available to those at the sites to "hich the broadcast is fed.

?ittle video conferencing is no" done over telco circuits because the cost of using the nternet is

so much less. n fact much video conferencing is +eb%based because it adds a more user%

friendly interface for controlling the adding and dropping of sites "ho is on the screen "ho can

be heard "hat peripherals can be employed .and "hen the video conference ends. 6o"ever the

use of the +eb does not change the technology to that "hich is called

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appears on the unassigned s2uare. The other sites typically see only that "hich the chair chooses

to send to all of the sites. The more sophisticated systems allo" participants to signal the chair so

that s*he can decide "ho "ill spea! next.

There are three ma,or types of video conferencing products des!top room and enterprise. The

first consists of a small camera microphone spea!er display screen a control box for

videoconference over S'K or the nternet and soft"are. The pac!age may cost as little as

R$;;;. the components are available from video conferencing companies in most cities and

from some computer stores.

=oom video conferencing re2uires a camera that can capture the entire group pan the group or

zoom in on a single person. t also may re2uire multiple microphones. spea!ers and a large

display screen. The control box is far more complex than that for des!top video conferencing.

The cost for the components is typically R;;;; or more. The components are available from

video conferencing companies in most cities. The 8ello" Pages listing is generally

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brainstorm on "hiteboard presentations and share files and applications "ithout advance

distribution of materials. +hen a "hiteboard is available participants "ith tablet P4s or tablet

input devices can dra" diagrams and share them "ith all of the participants. There can be

multiple presenters.

A basic des!top +eb conference re2uires only a +eb cam and soft"are on a des!top computer. f

the des!top computer is robust enough (Pentium .; D6z or higher "ith at least $J 1@

=A1 C 1@ =A1 video card Sound@laster%compatible audio interface &; 1@ available hard

dis! space +in $;;; or 9P E :.; or above 1icrosoft Oirtual 1achine for Nava and one

available S@ port for the +eb cam) and the connection offers a minimum band"idth of $J

Fbps upload and &J Fbps do"nload the cost of the +eb cam and soft"are adds only a fe"

hundred dollars to an existing des!top computer. The components are available from most

computer stores.

+hen multiple sites are to be connected each "ith several people a +eb conferencing server is

needed. t features a +eb%based administrative console to manage the conference. The controlsthe server therefore s*he can decide "ho spea!s "ho appears on screen "ho can ma!e a

presentation and "ho is to be dropped. The chair can provide access to the server by peripherals

such as "hiteboards and can facilitate file and applications sharing among the participants.

+eb conferences may bring many people together each of "hom is at his or her o"n des!top

computer or it may tie groups together. f the latter cameras are re2uired. These should be

capable of changing angles zooming in and out panning the group and other common functions

under the control of the conference chair or someone in each group.

Some companies among them +ired=ed ("""."iredred.com) and 1eetrix

(""".meetrix.com) offer +eb conference soft"are on a subscription basis. The soft"are must

be mounted on a server "ith its size depending on the number of concurrent users to be

accommodated. The server can be purchased from a computer store or online from a company

such as 'ell. +ired=ed and 1eetrix "ill assist "ith specifications.

The soft"are license fee for up to five concurrent users is as little as R$BB: per year t increases

to at least RB;; a year for up to ; and at least RBC;; per year for up to $:. Price 2uotations

are available for a larger number of concurrent users. This approach is very cost effective if +eb

conferencing is underta!en on a regular basis. +ired=ed includes on%site training in the use of its

e*pop +eb conferencing service to ne" subscribers at no additional charge.

+ebEx ("""."ebex.com) the largest company in the +eb conferencing service business offers

a subscription service that uses its servers. The company claims to have over J:;; customers

and a CI percent share of the +eb conferencing service mar!et. The cost is higher than for a

soft"are only subscription but it avoids a capital investment in a server by the subscriber. #or

example for five or fe"er concurrent users it is R:;; a year half again as much as using an in%

house server. +ebEx-s ma,or competitor is Place+are (""".place"are.com). a company that

"as ac2uired by 1icrosoft in $;;&.


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#or occasional +eb conferences it usually is more cost effective to use a pay%per%use service

from +ebEx or Place+are. The typical rate is R.&& to R.:& per minute per user. The charges are

billed to a credit card at the end of the +eb conference.

Libraries Use of Remote Conferencing

3f $; public libraries selected at random and called by telephone I have underta!en

teleconferences. All have used it for meetings "ith staff at other locations or "ith other libraries>

: have used it for contract negotiation and have used it for training. They "ere satisfied "ith

it for meetings and contract negotiation but not for training. Those "ho also had used video

conferencing and*or +eb conferencing plan not to use teleconferencing for future training.

Eleven have used video conferencing. T"o of the libraries have their o"n e2uipment> the rest

have used facilities at a nearby college the state library agency or a commercial video

conferencing studio. They "ere satisfied "ith video conferencing technology but those "ho o"n

their o"n e2uipment expressed concern about the cost and those "ho had to use someone else-sfacilities did not li!e the inconvenience of going to a nearby college or the state library or the

cost and inconvenience of renting a video conference studio. 3ne of the libraries that o"n its

o"n e2uipment made it available to the public for several months but it discontinued the

practice because too much staff time "as re2uired to assist the users. 3f those "ho have used

+eb conferencing all but one prefers it over video conferencing.

Eight have used +eb conferencing. All have participated in one "ith a vendor of an automated

library system. +eb conferencing has apparently become a popular sales and mar!eting tool.

Seven have used it for meetings. 3nly t"o have used it for training. Almost all of the experience

has been des!top%based. 3nly t"o of the libraries have their o"n +eb server. 3ne has a +ebEx

subscription and t"o have used +ebEx-s pay%per%use service. All of the intervie"ees expressed

satisfaction "ith +eb conferencing for meetings and training and intend to use it in the future.

3nly those "ho had used +eb conferencing solely for audio and video expressed concern about

the cost. The three "ho had used Po"erPoint "hiteboard and fire sharing rated cost as a minor

issue in light of the value.

K#3=1AT31 D=AP64S

In"orm!ion &r!p$icsor in"o&r!p$icsare graphic visual representations of information dataor

!no"ledge. These graphicspresent complex information 2uic!ly and clearlyLMsuch as in signs

maps ,ournalism technical "riting and education. +ith an information graphic computerscientists mathematicians and statisticiansdevelop and communicate concepts using a single

symbol to process information.

Today information graphics surround us in the media in published "or!s both pedestrian and

scientific in road signs and manuals. They illustrate information that "ould be un"ieldy in text

form and act as a visual shorthand for everyday concepts such as stopand go.

http://en.wikipedia.org/wiki/Informationhttp://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Knowledgehttp://en.wikipedia.org/wiki/Graphicshttp://en.wikipedia.org/wiki/Graphicshttp://en.wikipedia.org/wiki/Information_graphics#cite_note-DN04-0http://en.wikipedia.org/wiki/Information_signhttp://en.wikipedia.org/wiki/Mapshttp://en.wikipedia.org/wiki/Journalismhttp://en.wikipedia.org/wiki/Journalismhttp://en.wikipedia.org/wiki/Technical_writinghttp://en.wikipedia.org/wiki/Educationhttp://en.wikipedia.org/wiki/Computer_sciencehttp://en.wikipedia.org/wiki/Computer_sciencehttp://en.wikipedia.org/wiki/Mathematicianhttp://en.wikipedia.org/wiki/List_of_statisticianshttp://en.wikipedia.org/wiki/Stop_signhttp://en.wikipedia.org/wiki/Arrow_(symbol)http://en.wikipedia.org/wiki/Arrow_(symbol)http://en.wikipedia.org/wiki/Informationhttp://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Knowledgehttp://en.wikipedia.org/wiki/Graphicshttp://en.wikipedia.org/wiki/Information_graphics#cite_note-DN04-0http://en.wikipedia.org/wiki/Information_signhttp://en.wikipedia.org/wiki/Mapshttp://en.wikipedia.org/wiki/Journalismhttp://en.wikipedia.org/wiki/Technical_writinghttp://en.wikipedia.org/wiki/Educationhttp://en.wikipedia.org/wiki/Computer_sciencehttp://en.wikipedia.org/wiki/Computer_sciencehttp://en.wikipedia.org/wiki/Mathematicianhttp://en.wikipedia.org/wiki/List_of_statisticianshttp://en.wikipedia.org/wiki/Stop_signhttp://en.wikipedia.org/wiki/Arrow_(symbol)

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n ne"spapers infographics are commonly used to sho" the "eather as "ell as maps and site

plans for ne"s"orthy events and graphs for statistical data. Some boo!s are almost entirely

made up of information graphics such as 'avid 1acaulay7s The +ay Things +or!. Although

they are used heavily in children7s boo!s they are also common in scientific literature "here

they illustrate physical systems especially ones that cannot be photographed (such as cuta"aydiagrams astronomical diagrams and images of microscopic or sub%microscopic systems).

1odern maps especially route maps for transit systems use infographic techni2ues to integrate a

variety of information such as the conceptual layout of the transit net"or! transfer points and

local landmar!s.

Traffic signsand other public signs rely heavily on information graphics such as stylized human

figures (the ubi2uitous stic! figure) icons and emblems to represent concepts such as yield

caution and the direction of traffic. Public places such as transit terminals usually have some sort

of integrated

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Pie chartfrom Playfair7sStatistical Breviary(J;)

n C$C 4hristopher Scheiner published the Rosa Ursina sive Sol"hich used a variety of

graphics to reveal his astronomical research on the sun. 6e used a series of images to explain therotation of the sun over time (by trac!ing sunspots).

n IJC +illiam Playfair published the first data graphs in his boo! The Commercial and

Political Atlas. The boo! is filled "ith statistical graphs bar chartsline graphsand histograms

that represent the economy of Jth century England. n J; Playfair introduced the first area

chartand pie chartin Statistical Breviary.L$M

n J:I English nurse #lorence Kightingale used information graphics persuading Yueen

Oictoria to improve conditions in military hospitals principally the 4oxcomb chart a

combination of stac!ed bar and pie charts depicting the number and causes of deaths during

each month of the 4rimean +ar.

JC sa" the release of a seminal information graphic on the sub,ect of Kapoleon7s disastrous

march on 1osco".

4harles 1inard7sinformation graphic of Kapoleon7s invasion of =ussiaThe creator 4harles Noseph 1inard captured four different changing variables that contributed

to the failure in a single t"o%dimensional image the army7s direction as they traveled the

location the troops passed through the size of the army as troops died from hunger and "ounds

and the freezing temperatures they experienced.

Names Noseph Sylvesterintroduced the term

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'iagramscan be used to sho" ho" a system "or!s and may be an organizational chart that

sho"s lines of authority or a systems flo"chart that sho"s se2uential movement. llustrated

graphicsuse images to related data. The snapshots features used every day by USA Today are

good examples of this techni2ue. Tablesare commonly used and may contain lots of numbers.

1odern interactive maps and bulleted numbers are also infographic devices.LM

Elemens o" in"orm!ion &r!p$ics

The basic material of an information graphic is the data information or !no"ledge that the

graphic presents. n the case of data the creator may ma!e use of automated tools such as

graphing soft"are to represent the data in the form of lines boxes arro"s and various symbols

and pictograms. The information graphic might also feature a !ey "hich defines the visual

elements in plain English. A scaleand l

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