draft prasath mis

7/25/2019 Draft Prasath Mis

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QUESTION 1

evaluate the role of information system in your organization/work/life.

1 name one system an! !o "resentation sli!e#ma$ % "age only sli!e

a name one system an! &rie'y e$"lain its role/fun(tions)an!

& !is(uss its a!vantages an! !isa!vantages.

Question *

!is(uss + ma,or (hallenges that managers ty"i(ally fa(e in &uil!ingan!/or using information system an! ela&orate the way to over(omethose (hallenges.

instru(tion-you are re uire! to write a minimum of 1% "ages#ma$imumof + "ages

a) Name one system and briefly explain its role/functions

THE IMPLEMENTATION OF SYSTEM INTEGRATION ACTIVITIES INBANKING.


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INTRODUCTION

Banking as such has undergone a sea of change in the past couple of decades, the

hassles of obtaining a Demand Draft/Tra ellers che!ue, the infinite "ait to get interbank

che!ues cleared, "aiting in long !ueues to deposit and "ithdra" mone#, ha ing to pa#e$orbitant amounts as fee for "ired transfer bet"een different branches of the same bank,

all these ha e changed drasticall# for the better, gi ing the customers and the bankers

more fle$ibilit# and speed% It has also opened up online banking, mobile banking, "hat

"e no" refer to as plastic mone# for shopping "hich has made life a lot easier% It has

enabled us to book tickets on trains/buses/airplanes on the click of a mouse &not literall#

so though'% (one are the da#s one recei ed a salar# in an en elope or a che!ue, no" it)s

all about "ired transfer% *ll these ha e been made possible because of the e$tensi e use

of Information Technolog#% In this report I "ill be e$ploring on ho" IT and +#stem

Integration has changed the banking landscape for good%

Banking in ala#sia

In ala#sia essentiall# after the deregulation, man# foreign banks and pri ate

banks got a foothold in ala#sia, bringing "ith them the latest technolog# "hich ga e

them a competiti e edge o er the public sector banks, "hich pushed the till then

inefficient public sector banks to embrace Information Technolog# or fade intoobsolescence ignoring it% *lso the RBI had taken up a lot of initiati e to ensure that banks

adopted Information technolog# "hich essentiall# made the "hole business more

transparent, and easier to regulate%

Banking has essentiall# been using IT for t"o purposes for communication and for

business processes% -e recei e automatic updates of an# transaction on our accounts

through mobiles% -hen "e s"ipe our card, make a "ithdra"al in an *T or s"ipe our

card in a shop, "e get instant updates on our mobiles thus ensuring safet#, minimi.ing

our losses in case "e lose our cards, or che!uebooks etc% Information is a ailable an#time

an#"here, IT has facilitated the Intra bank and Inter bank integration, eased the flo" of

information in a safe and secure manner% Initiall# customers "ere able to transact onl#


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"ith one branch, as the account information "as not stored in a centrali.ed location,

"hich "as not an option as long as paper based accounting procedures "ere used, as

storage and duplication "ere deterrent factors% -ith the ad ent of IT centrali.ed storage

of information "as an option and "ith the fast paced changes in related fields "hich

makes storage, retrie al and duplication not onl# faster but also cheaper% Thus b# using

IT producti it# "as impro ed manifold and costs "ere dri en do"n% No" data can be

easil# access and anal#.ed foregoing the earlier time consuming processes% IT has

impro ed operational efficienc# and facilitated !uicker and more accurate decision

making, accurate decisions are facilitated b# b#passing the intermediaries "hich could

input errors in the information&in the form of reports' passed to the decision makers%

One of the solutions is 0 pa#% 0 pa# banking solutions are e$perts in adding enhancedfunctionalit# to e$isting bank hard"are% 0 pa# pro ides solutions for some of the biggest

banks in ala#sia and all o er the "orld% Our soft"are solutions ensure secure, fla"less,

integration of 0 pa#)s popular product suite into e$isting 01T2O+ and banking 2oints

of +ale &2O+'%


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Ne" 2roduct/+er ices enabled b# use of Information Technolog# and s#stem Integration

Net Banking Credit Card Online obile Banking Net+afe 2hone banking Online Bill 2a#ment Online pa#ment of Income Ta$, 0$cise Dut# and +er ice Ta$ +hopping Ticket Booking Card to Card Transfers +mart one# order Bank34ome eChe!ues 2repaid obile Recharge

Electronic Clearing Ser ice !ECS Cre"it#

0C+ Credit is an electronic clearing s#stem that facilitates paperless transaction through

an offline s#stem% Bank facilitates 0C+ Credit at all 0C+ designated locations% -e accept

the electronic file and arrange obtention of settlement date &date of credit to benefiar#

account' from RBI/+BI/5ocal Clearing 4ouse as the case ma# be% The funds gets debited

from a centrali.ed account and credit is accorded to the respecti e beneficiaries as per

settlement c#cle% * detailed I+ about the transactions is pro ided to the customer%

NEFT

To establish an 0lectronic 1unds Transfer +#stem to facilitate an efficient, secure,

economical, reliable and e$peditious s#stem of funds transfer and clearing in the banking


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sector throughout ala#sia% The customer "illing to a ail the N01T facilit# offered b# us

shall submit an 6N01T *pplication 1orm6 authorising the sending bank to debit the

sender7s account and transfer funds to the beneficiar# specified in the N01T *pplication

1orm% The Beneficiar#7s account "ill be credited on the same da# b# crediting the

specified account of the beneficiar# or other"ise placing funds at the disposal of the

beneficiar#%

ORGANISATION TRANSACTION PROCESSING SYSTEM

-eb Commerce or 0commerce has "itnessed a significant increase in re enue #ear on

#ear% 8ou can no" integrate this option to #our "ebsite in the arious +ecured 2a#ment

(ate"a# Options "e ha e to offer% Technologies are the authori.ed reseller for &i%e

a#bank' Bank 2a#ment (ate"a# +er ices in the state%

Manage$ent In%or$ation S&'te$ !MIS# in Ban(ing In'tit)tion

9 The term is not ne" to the banking sector% +ince the earl# :;s, banks ha e been using

this terminolog# to refer to the process of generating arious reports and anal#ses at the

Corporate/4ead offices for their decision making for o"n use as "ell as for con e#ance

to authorities in charge of regulation

9 I+ in the present conte$t of high a ailabilit# of oluminous data on electronic media

at di erse locations and on di erse platforms, has become more pertinent to banks)

decision making process, thanks to the a ailabilit# of ne" tools of technolog# such as

data "arehousing, data mining

9 anagement Information +#stem "ould thus be the end product of both the processes

data "arehousing and data mining%


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Rele ance o% *ata +are,o)'ing an" *ata Mining %or -an(' inMala&'ia

Banking being an information intensi e industr#, building a anagement

Information +#stem "ithin a bank or an industr# is a gigantic task% It is more so for the

public sector banks "hich ha e a "ide net"ork of bank branches spread all o er the

countr#

*t present, banks generate I+ reports largel# from periodic paper reports/

statements submitted b# the branches and regional/.onal offices% 0$cept for a fe" banks

"hich ha e been using technolog# in a big "a#, I+ reports are a ailable "ith a

substantial time lag% Reports so generated ha e also a high margin of error due to data

entr# being done at arious le els and the likelihood of ar#ing interpretations at different

le els Though computeri.ation of bank branches has been going on at a good pace,

I+ re!uirements ha e not been full# addressed to% It is on account of the fact that most

of the Total Branch Computeri.ation &TBC' soft"are packages are transaction processing

oriented% The# ha e been designed primaril# for da# to da# operations at the branch le eland da# end balancing of books%

A lication o% "ata /are,o)'ing an" "ata $ining tec,ni0)e'

Implication of adopting such technolog# in a bank "ould be asunder


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% B# "a# of data mining techni!ues, data a ailable at arious computer s#stems

can be accessed and b# a combination of techni!ues like classification,

clustering, segmentation, association rules, se!uencing, decision tree &described

in detail at Anne1)re234 ', arious *5 reports such as +tatement of +tructural

5i!uidit#, +tatement of Interest Rate +ensiti it# etc% or accounting reports like

Balance +heet and 2rofit ? 5oss *ccount can be generated instantaneousl# for

an# desired period/date%

F5T5RE *EVELOPEMENT IN BANKING SYSTEM

Ne/ $o-ile a&$ent $et,o"


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Bank is in ad anced stages of beta testing a ne" method of using mobile phones

to make pa#ments% If this mobile pa#ment method is implemented, users can

s"ipe their mobile phone and conduct arious transactions, "hich "ere earlier

possible using the credit cards%

Organization transa(tion "ro(essing system

Transaction Processing System:

* Transaction 2rocessing +#stem &T2+' is a t#pe of information s#stem %

T2+s collect, store, modif#, and retrie e the transactions of an organi.ation% * transaction

is an e ent that generates or modifies data that is e entuall# stored in an information

s#stem% 1rom a technical perspecti e, a Transaction 2rocessing +#stem &or Transaction

2rocessing onitor' monitors transaction programs, a special kind of programs% The

essence of a transaction program is that it manages data that must be left in a consistent

state%

TPS in Stan"ar" c,artere" -an(6

0ffecti e transaction processing s#stem is "orking in +tandard chartered

bank that offer enterprise the means to rapidl# process transactions to ensure the smooth

flo" of data and the progression of processes throughout the enterprise%

Payroll TPS

In +tandard Chartered pa#roll T2+ is designed to get information and record

of the emplo# and then to calculate his/her annual earning%It get information about the emplo#ee from the emplo#ee)s department and

from general ledger and send it to pa#roll T2+ from "here it links that information "ith
http://en.wikipedia.org/wiki/Management_information_systemhttp://en.wikipedia.org/wiki/Transactionhttp://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Transactionhttp://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Management_information_system


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Employee Data

General Ledger0

Payroll TPS

Payroll Master File (HUB)

Management eports !"ec# Passes $y Manager

!"ec# %ss&ed to Employee

General Ledger0

the pre ious record and prepare a report "hich is for"arded to management%

anagement takes notice the @5NA record of the emplo#ee)s efficienc# to "ork and ma#

declare added bonus or other incenti e% This report is checked and appro ed b# the

branch manager after "hich check is issued to the emplo#ee% *nd "hen that check is

cashed, the record is updated in the general ledger as "ell as the master pa#roll &4UB'%

elations"ip o' M%S it" TPS:I+ reports and summari.es the organi.ation)s basic operations and these reports come

from the basic transition processing s#stems% In case of our organi.ation the T2+)s of

*T Cards, 2a#roll and Customer identification etc% pro ide the basic information about

the organi.ation)s acti ities% These acti ities are then summari.ed in the form of reports


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for the manager so that the# can check "hether the firm is "orking properl# or not% If

there are some fla"s then the# take control measures to fi$ those fla"s%

G*+%S*T% + T *+S*!T% + P !ESS%+G S,STEM

-eb Commerce or 0commerce has "itnessed a significant increase in re enue #ear on

#ear% 8ou can no" integrate this option to #our "ebsite in the arious +ecured 2a#ment

(ate"a# Options "e ha e to offer% Technologies are the authori.ed reseller for a#bank

Bank 2a#ment (ate"a# +er ices in the state%

4o" it -orks


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b) Discuss its advantages and disadvantages.

A transaction processing system is a computer database system that

balances and controls purchases of goods and services within a business

network. A common example may be a consumer purchasing a product onan online store. The transaction processing system coordinates the

warehousing and distribution of the item, the credit and bank transaction

from the consumer's payment account, and the business's management of

inventory, sales, profits and payroll. This complex system has many

advantages and disadvantages.

ADVANTAGE

Database tability

The Advantage TPS maintains database stability in the event of workstation or

network failure. Should a workstation or the network fail during a transaction, a

transaction that is being committed will finish to completion, and an uncommitted

transaction will automatically be rolled back. f the file server crashes during atransaction, the Advantage TPS log files are used when the Advantage !atabase

Server is reloaded to return the database to a known state.

Data !iding "#ead $ommitted %solation &evel)

The Advantage TPS uses the "ead #ommitted solation $evel to build

robustness into database applications by only allowing visibility of committed

data. %hile updates are being made within a transaction, the Advantage TPShides those updates from other users until that data is committed. The

uncommitted data is visible only to the application performing the transaction.

The other applications view the data as it was before the transaction began. f the

transaction is rolled back, the uncommitted data is never seen by any users other


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than the one who was performing the transaction. f the transaction is committed,

the updated data becomes visible to all users at one time.

#ecovery from ystem 'ailures

Automatic recovery of your database to a known state after a system failure is a

key feature of the Advantage TPS. System failures in this context are server

failures, such as operating system read or write errors. &ow the Advantage TPS

handles system failures depends on what phase the transaction was in when the

system failure occurred.

A transaction can be in one of three phases the (uild Phase, the #ommit Phase,

or the "ollback Phase. The (uild Phase is active as insert, update, and deleteoperations are being issued by the application. These operations are logged to

the transaction log file by the Advantage TPS during this phase. The #ommit

Phase occurs after the Advantage application issues a commit transaction

statement. This signals the Advantage TPS to begin writing the database updates

that are stored in the transaction log file to the tables and index files. The

"ollback Phase occurs after the Advantage application issues a rollback

transaction statement. This signals the Advantage TPS to abort all databaseupdates that are stored in the transaction log file. The database is left exactly as

it was before the transaction began.

f a system failure occurs during the (uild Phase, the Advantage TPS aborts only

the insert, update, or delete operation that was in progress. The database is left

as it was before the individual operation occurred and the transaction remains in

the (uild Phase. An error is returned to the application indicating that the insert,

update, or delete operation failed.

f a system failure occurs during the #ommit Phase, the Advantage TPS puts the

transaction into the "ollback Phase. The entire transaction is aborted )rolled

back*. The database is left as it was before the transaction began and the


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transaction is complete. An error is returned to the application indicating the

transaction was rolled back.

f a system failure occurs during the "ollback Phase, a failed transaction results.

The tables and index files associated with the transaction will be left in a

temporarily unstable state. An error is returned to the application indicating the

transaction failed. The application needs to recogni+e this error and attempt a

failed transaction recovery. %hile the Advantage !atabase Server is

loaded started, a failed transaction can be recovered from by calling the

applicable Advantage client -failed transaction recovery- or -TPS cleanup- AP .

After the failed transaction recovery is completed, the database will be as it was

before the transaction began. See your Advantage client specific documentationfor more information about the failed transaction recovery AP s.

#ecovery from erver $ras(es

Should a server crash due to a power outage, abend, or other critical errors while

one or more applications are in the midst of a transaction, a failed transaction)s*

will result. The tables and index files associated with the transaction)s* will be left

in a temporarily unstable state. The Advantage TPS can recover from the failedtransactions and return the tables and index files to a known state. After bringing

the file server back up, reload restart the Advantage !atabase Server.

$oading starting the Advantage !atabase Server automatically triggers failed

transaction recovery. Any transactions that were in the (uild Phase when the

server crashed will be rolled back. Any transactions that were in the #ommit

Phase will continue with the commit. Any transactions that were in the "ollback

Phase will continue with the rollback.

Always view the Advantage !atabase Server error log, A!S/0"".A!T or

A!S/0"".!(1, to determine if the 1ailed Transaction "ecovery was successful.

f a 1ailed Transaction "ecovery error is encountered, contact Advantage


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Technical Support . t is recommended that periodic server backups be a part of

any disaster recovery plan.

D% ADVANTAGE

The disadvatages is that there is a chance of double booking. Also,

transaction processing systems need to use direct acess files, serial acess

media such as magnetic tape cannot be used.

0rrors corrected after processing the data

Time delay in gathering the data

2perational costs mat increase

!is(uss + ma,or (hallenges that managers ty"i(ally fa(e in &uil!ingan!/or using information system an! ela&orate the way to over(omethose (hallenges.

ntroduction

As already stated, the value of information derives from the actions

management takes as a result of using the information. t follows that

information specialists need to know what types of task and functions

management have to perform so that they are able to produce relevant 3

therefore usable 3 information.
http://devzone.advantagedatabase.com/dz/webhelp/advantage9.1/troubleshooting_and_technical_support/technical_support/technical_support_u_s__and_canada.htmhttp://devzone.advantagedatabase.com/dz/webhelp/advantage9.1/troubleshooting_and_technical_support/technical_support/technical_support_u_s__and_canada.htm


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The tasks and functions management have to perform vary greatly in detail

according to the type and si+e of organisation and the way responsibilities are

arranged. &owever, there are many common elements and managerial tasks

can conveniently be grouped into five areas planning, decision making,

organising and coordinating, leadership and motivation, and control.

2bviously the emphasis given to each area varies from manager to

manager and is especially dependent upon the level of the manager in the

organisation.

n broad terms, three levels of management can be seen in all

organisations. Top or strategic management, middle or tactical managementand 4unior or operational management.

There are clear differences in information re5uirements between a manager

at the operational or transactional level such as, say, a transport supervisor

and a manager at the strategic or top level such as, for example, the

marketing director. At the highest level, structured, formal 6 S may actually be

counterproductive for, at these levels, informal 6 S and external influences

become increasingly important.

Another factor which affects the tasks managers have to perform, and

hence their information re5uirements, is the extent of functional

authority within the organisation. 1unctional authority is that which is exercised

by specialist managers and staff throughout the various departments and

units of the organisation. Possibly the most common example of this is the

Personnel or &uman "esources department which has functionalresponsibility for many personnel and industrial relation activities throughout

the whole organisation.


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%hilst each of the five functional areas, which in total constitute the task of

management, needs relevant information, three particular areas 3 planning,

decision making and control.

$(allenges f T*

Taking into account the high workload of re5uired transactions per second )TPS*

problems to TP systems can arise and be addressed in the areas of the TP1, and

the !!6S. The TP1 is considered as a system to manage terminals and disk

and does not provide a database management system with high power

transaction processing. The task to manage files and resources is thus in chargeof the application programmers or designers. &ence TP1 of the TP system is not

able to manage the high volume of transactions and stands therefore for a

performance constraint to transaction processing

The !!6S on first sight seems to be a practical instrument to handle the

re5uired transaction processing power. &owever, it creates problems regardingits huge si+e, its 7communication overheads8, its reliability, and the possible

expanding of its organi+ation. t is very difficult to manage and operate the

!!6S9s large number of terminals and disks, which take up a lot of floor space

and likely can fail anytime. This means that the organi+ations have to spend

more time and money on the system9s maintenance, thus affecting the system

availability. The distributed system can only operate appropriately when the

message communication between the nodes is efficient. This is expensive in

terms of money and time e.g. especially for wide area network messages, thus

reducing the performance of the system 1or the organi+ations it is difficult to

provide constantly high reliability in a !!6S i.e. that the system is not able to

recover immediately :;;< from a failure. 2rgani+ations with large transaction

volume cannot tolerate long system downtime . The last difficulty towards the


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!!6S is the expanding problem of the organi+ations. The enhancement and

thus the maintenance of the system9s transaction processing performance on the

current level means to amplify floor space, hardware, terminals, communication

ports, and finally to add much more software Summari+ing these paragraphs,

the ma4or problem to transaction processing systems consists of 2 ctonstrains

addressed to the TP1 and !!(6S of the organi+ations.

olutions to Transaction *rocessing ystems

"egarding the mentioned problems to transaction processing systems of

organi+ations there is a need to find ade5uate solutions for them. According to

the system must be

+Manageable: %.e. that the system must provide good development and

operations tools Available: Means that the system at most can have an outage

of five minutes per year Centralized/Distributed: The system should allow a

centrali+ed or decentrali+ed commitment without application change

+Granular: The system has to be composed of small units such as design,

control, performance, and failure

+Growable: Possible growth of the system has to guaranteed without problems

Changeable: #hanges of devices should not disrupt service of the system

Cheap: The cost TPS must be competitive


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&ence to enhance the TP1 the organi+ations should improve its the power an

capability including a data management system )to have transaction logging and

media recovery*, a network management system, a transaction management

system, and so on . TP1 can afterwards be used as a basis for a high volume

transaction processor front end using Information Management System ) 6S* as

the back end system . 1urthermore the organi+ations should implement a

message based architecture to the TP1, which can be the basis for distribution .

The pros are that this solution would at least fulfill the re5uirement of distribution,

granularity, and cheapness. #ons are the uncertainty about the manageability,

the availability, and the changeability. &owever, this possibility of improving the

TP architecture will support to manage and process a high volume of

transactions.

A''E$T ' ,ANAGE,ENT %N' #,AT% N - TE, %N AN #GAN% AT% N

2ver the last few years, the information systems have greatly changed the

2"=A> SAT 2>A$ 0#2>26 #S A>! >#"0AS0! T&0 P2SS ( $ T? 212"=A> @ >= %2" .

E$ N ,%$ %,*A$T

9 T changes both the relative costs of capital and the costs of information.

9 nformation systems technology is a factor of production, like capital and

labor.

9 Transaction cost theory 1irms seek to economi+e on the cost of

participating in markets )transaction costs*.


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9 T lowers market transaction costs for firm, making it worthwhile for firms

to transact with other firms rather than grow the number of employees.

9 Agency theory 1irm is nexus of contracts among self interested parties

re5uiring supervision.

9 1irms experience agency costs )the cost of managing and supervising*.

9 T can reduce agency costs, making it possible for firms to grow without

adding to the costs of supervising, and without adding employees.

#GAN% AT% NA& AND E!AV% # %,*A$T

T 1$ATT0>S T&0 2"=A> SAT 2>

9 1acilitates flattening of hierarchies

9 (roadens the distribution of timely information

9 ncreases the speed of decision making

9 0mpowers lower level employees to make decisions without supervision

and increase management efficiency

9 6anagement span of control )the number of employees supervised by

each manager* will also grow

P2ST >!BST" A$ 2"=A> @AT 2>S


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9 Authority increasingly relies on knowledge and competence.

9 nformation technology encourages task force networked organi+ations.

Cirtual firms

9 Bse networks to link people, assets, and ideas

9 #an ally with suppliers, customers to create and distribute new products

and services.

9 >ot limited to traditional organi+ational boundaries or physical locations.

%N$#EA %NG '&E % %&%T- ' #GAN%0AT% N

9 nformation systems give both large and small organi+ations additional

flexibility to overcome the limitations posed by their si+e.

9 Small organi+ations use information systems to ac5uire some of the

muscle and reach of larger organi+ations .

9 $arge organi+ations use information technology to achieve some of the

agility and responsiveness of small organi+ations.

9 #ustomi+ation and personali+ation T makes it possible to tailor products

and services to individuals.

1NDE# TAND%NG #GAN%0AT% NA& #E % TAN$E T $!ANGE


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9 nformation systems become bound up in organi+ational politics because

they influence access to a key resource.

9 nformation systems potentially change an organi+ation9s structure,

culture, politics, and work.

9 6ost common reason for failure of large pro4ects is due to organi+ational

and political resistance to change.

draft prasath mis

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