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ADL 06 Computers in Management V2

1. Explain information system? Discuss arious information systems aaila!le in any organi"ation.
A.1 #n a ery !roa$ sense% t&e term information system is fre'uently use$ to refer to t&e interaction !et(een people%
processes% $ata an$ tec&nology. #n t&is sense% t&e term is use$ to refer not only to t&e information an$ communication
tec&nology )#C*+ an organi"ation uses% !ut also to t&e (ay in (&ic& people interact (it& t&is tec&nology in support of
!usiness processes.
,ome ma-e a clear $istinction !et(een information systems% #C* an$ !usiness processes. #nformation systems are $istinct
from information tec&nology in t&at an information system is typically seen as &aing an #C* component. #nformation
systems are also $ifferent from !usiness processes. #nformation systems &elp to control t&e performance of !usiness
processes.
Alter argues for an information system as a special type of (or- system. A (or- system is a system in (&ic& &umans
an$.or mac&ines perform (or- using resources )inclu$ing #C*+ to pro$uce specific pro$ucts an$.or serices for customers.
An information system is a (or- system (&ose actiities are $eote$ to processing )capturing% transmitting% storing%
retrieing% manipulating an$ $isplaying+information
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0art of t&e $ifficulty in $efining t&e term information system is $ue to agueness in t&e $efinition of relate$ terms suc& as
system an$ information. 1eynon2Daies argues for a clearer terminology !ase$ in systemics an$ semiotics. 3e $efines an
information system as an example of a system concerne$ (it& t&e manipulation of signs. An information system is a type
of socio2tec&nical system. An information system is a me$iating construct !et(een actions an$ tec&nology.
As suc&% information systems inter2relate (it& $ata systems on t&e one &an$ an$ actiity systems on t&e ot&er. An
information system is a form of communication system in (&ic& $ata represent an$ are processe$ as a form of social
memory. An information system can also !e consi$ere$ a semi2formal language (&ic& supports &uman $ecision ma-ing
an$ action.
#nformation systems are t&e primary focus of stu$y for t&e information systems $iscipline an$ for organisational
informatics.
3o(eer% as ne( information tec&nologies &ae !een $eelope$% ne( categories of information systems &ae emerge$%
some of (&ic& no longer fit easily into t&e original pyrami$ mo$el. ,ome examples of suc& systems are4
Various Information system in an organistaion:
Data (are&ouses 4 Data warehouse is a repository of an organi"ation5s electronically store$ $ata. Data (are&ouses are
$esigne$ to facilitate reporting an$ analysis.
A $ata (are&ouse &ouses a stan$ar$i"e$% consistent% clean an$ integrate$ form of $ata source$ from arious operational
systems in use in t&e organi"ation% structure$ in a (ay to specifically a$$ress t&e reporting an$ analytic re'uirements.
Enterprise Resource Planning )ERP+ is a term usually use$ in con6unction (it& E70 soft(are or an E70 system (&ic& is
inten$e$ to manage all t&e information an$ functions of a !usiness or company from s&are$ $ata stores.
An E70 system typically &as mo$ular &ar$(are an$ soft(are units an$ 8serices8 t&at communicate on a local area
net(or-. *&e mo$ular $esign allo(s a !usiness to a$$ or reconfigure mo$ules )per&aps from $ifferent en$ors+ (&ile
presering $ata integrity in one s&are$ $ata!ase t&at may !e centrali"e$ or $istri!ute$
Enterprise systems )ES+ are large2scale% integrate$ application2soft(are pac-ages t&at use t&e computational% $ata storage%
an$ $ata transmission po(er of mo$ern information tec&nology )#*+ to support processes% information flo(s% reporting% an$
$ata analytics (it&in an$ !et(een complex organi"ations. #n s&ort% E, are pac-age$ enterprise application soft(are
)0EA,+ systems% (&ere all t&ree a$6ecties% 8pac-age$8% 8enterprise8% an$ 8application8% in com!ination% restrict t&e set of
t&ings t&at can !e calle$ E,
An expert system is soft(are t&at attempts to proi$e an ans(er to a pro!lem% or clarify uncertainties (&ere normally one
or more &uman experts (oul$ nee$ to !e consulte$. Expert systems are most common in a specific pro!lem $omain% an$ is
a tra$itional application an$.or su!fiel$ of artificial intelligence. A (i$e ariety of met&o$s can !e use$ to simulate t&e
performance of t&e expert &o(eer common to most or all are 1+ t&e creation of a so2calle$ 8-no(le$ge!ase8 (&ic& uses
some -no(le$ge representation formalism to capture t&e ,u!6ect Matter Expert5s ),ME+ -no(le$ge an$ 2+ a process of
gat&ering t&at -no(le$ge from t&e ,ME an$ co$ifying it accor$ing to t&e formalism% (&ic& is calle$ -no(le$ge
engineering.
*&ere is a ariety of $efinitions an$ un$erstan$ings of a 9lo!al #nformation ,ystem )9#,% 9L#,+% suc& as
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A global information system (!IS" is an information system (&ic& is $eelope$ an$ . or use$ in a glo!al
context.
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A global information system )9L#,+ is any information system (&ic& attempts to $elier t&e totality of
measura!le $ata (orl$(i$e (it&in a $efine$ context. );,<+
*&e term 9lo!al #nformation ,ystem &as t&e same acronym is t&e same% t&e meaning is $ifferent from t&e term 9eograp&ic
#nformation ,ystems.
#ffice automation refers to t&e arie$ computer mac&inery an$ soft(are use$ to $igitally create% collect% store%
manipulate% an$ relay office information nee$e$ for accomplis&ing !asic tas-s an$ goals. 7a( $ata storage% electronic
transfer% an$ t&e management of electronic !usiness information comprise t&e !asic actiities of an office automation
system.
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=ffice automation &elps in optimi"ing or automating existing office proce$ures.
*&e !ac-!one of office automation is a LA>% (&ic& allo(s users to transmit $ata% mail an$ een oice across t&e net(or-.
All office functions% inclu$ing $ictation% typing% filing% copying% fax% *elex% microfilm an$ recor$s management% telep&one
an$ telep&one s(itc&!oar$ operations% fall into t&is category. =ffice automation (as a popular term in t&e 1?@0s an$ 1?A0s
as t&e $es-top computer explo$e$ onto t&e scene.
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2. Explain t&e concept !e&in$ 1atc& processing an$ transaction processing system.
A.2 1atc& processing is execution of a series of programs )86o!s8+ on a computer (it&out manual interention.
1atc& 6o!s are set up so t&ey can !e run to completion (it&out manual interention% so all input $ata is preselecte$ t&roug&
scripts or comman$2line parameters. *&is is in contrast to 8online8 or interactie programs (&ic& prompt t&e user for suc&
input. A program ta-es a set of $ata files as input% process t&e $ata% an$ pro$uces a set of output $ata files. *&is operating
enironment is terme$ as 8!atc& processing8 !ecause t&e input $ata are collecte$ into !atc&es on files an$ are processe$ in
!atc&es !y t&e program.
1atc& processing &as t&ese !enefits4
#t allo(s s&aring of computer resources among many users an$ programs%
#t s&ifts t&e time of 6o! processing to (&en t&e computing resources are less !usy%
#t aoi$s i$ling t&e computing resources (it& minute2!y2minute mannual interention an$ superision%
1y -eeping &ig& oerall rate of utili"ation% it !etter amorti"es t&e cost of a computer% especially an expensie one.
#n computer science% transaction processing is information processing t&at is $ii$e$ into in$ii$ual% in$iisi!le operations%
calle$ transactions. Eac& transaction must succee$ or fail as a complete unitB it cannot remain in an interme$iate state.
*ransaction processing is $esigne$ to maintain a computer system )typically% !ut not limite$ to% a $ata!ase or some mo$ern
filesystems+ in a -no(n% consistent state% !y ensuring t&at any operations carrie$ out on t&e system t&at are inter$epen$ent
are eit&er all complete$ successfully or all cancele$ successfully.
<or example% consi$er a typical !an-ing transaction t&at inoles moing C@00 from a customer5s saings account to a
customer5s c&ec-ing account. *&is transaction is a single operation in t&e eyes of t&e !an-% !ut it inoles at least t(o
separate operations in computer terms4 $e!iting t&e saings account !y C@00% an$ cre$iting t&e c&ec-ing account !y C@00.
#f t&e $e!it operation succee$s !ut t&e cre$it $oes not )or vice versa), t&e !oo-s of t&e !an- (ill not !alance at t&e en$ of
t&e $ay. *&ere must t&erefore !e a (ay to ensure t&at eit&er !ot& operations succee$ or !ot& fail% so t&at t&ere is neer any
inconsistency in t&e !an-5s $ata!ase as a (&ole. *ransaction processing is $esigne$ to proi$e t&is.
*ransaction processing guar$s against &ar$(are an$ soft(are errors t&at mig&t leae a transaction partially complete$% (it&
t&e system left in an un-no(n% inconsistent state. #f t&e computer system cras&es in t&e mi$$le of a transaction% t&e
transaction processing system guarantees t&at all operations in any uncommitted )i.e., not completely processe$+
transactions are cancelle$.
*ransactions are processe$ in a strict c&ronological or$er. #f transaction n+1 intends to touc& t&e same portion of t&e
$ata!ase as transaction n, transaction n+1 $oes not !egin until transaction n is committe$. 1efore any transaction is
committe$% all ot&er transactions affecting t&e same part of t&e system must also !e committe$B t&ere can !e no D&olesE in
t&e se'uence of prece$ing transactions
F. ,&o( (it& reference !loc- $iagram t&e arious components of a computer systems in $etail.
F
A$% &loc' Diagram of (omputer:
GH
A computer can process $ata% pictures% soun$ an$ grap&ics. *&ey can sole &ig&ly complicate$ pro!lems 'uic-ly an$
accurately.
Input )nit:
Computers nee$ to receie $ata an$ instruction in or$er to sole any pro!lem. *&erefore (e nee$ to input t&e $ata an$
instructions into t&e computers. *&e input unit consists of one or more input $eices. Iey!oar$ is t&e one of t&e most
commonly use$ input $eice. =t&er commonly use$ input $eices are t&e mouse% floppy $is- $rie% magnetic tape% etc. All
t&e input $eices perform t&e follo(ing functions.
Accept t&e $ata an$ instructions from t&e outsi$e (orl$.
Conert it to a form t&at t&e computer can un$erstan$.
,upply t&e conerte$ $ata to t&e computer system for furt&er processing.
Storage )nit:
*&e storage unit of t&e computer &ol$s $ata an$ instructions t&at are entere$ t&roug& t&e input unit% !efore t&ey are
processe$. #t preseres t&e interme$iate an$ final results !efore t&ese are sent to t&e output $eices. #t also saes t&e $ata
for t&e later use. *&e arious storage $eices of a computer system are $ii$e$ into t(o categories.
1. 0rimary ,torage4 ,tores an$ proi$es ery fast. *&is memory is generally use$ to &ol$ t&e program !eing currently
execute$ in t&e computer% t&e $ata !eing receie$ from t&e input unit% t&e interme$iate an$ final results of t&e program. *&e
primary memory is temporary in nature. *&e $ata is lost% (&en t&e computer is s(itc&e$ off. #n or$er to store t&e $ata
permanently% t&e $ata &as to !e transferre$ to t&e secon$ary memory.
*&e cost of t&e primary storage is more compare$ to t&e secon$ary storage. *&erefore most computers &ae limite$
primary storage capacity.
2. ,econ$ary ,torage4 ,econ$ary storage is use$ li-e an arc&ie. #t stores seeral programs% $ocuments% $ata !ases etc. *&e
programs t&at you run on t&e computer are first transferre$ to t&e primary memory !efore it is actually run. J&eneer t&e
results are sae$% again t&ey get store$ in t&e secon$ary memory. *&e secon$ary memory is slo(er an$ c&eaper t&an t&e
primary memory. ,ome of t&e commonly use$ secon$ary memory $eices are 3ar$ $is-% CD% etc.%
*emory Si+e:
All $igital computers use t&e !inary system% i.e. 0Ks an$ 1Ks. Eac& c&aracter or a num!er is represente$ !y an A !it co$e.
*&e set of A !its is calle$ a !yte.
A c&aracter occupies 1 !yte space.
A numeric occupies 2 !yte space.
1yte is t&e space occupie$ in t&e memory.
*&e si"e of t&e primary storage is specifie$ in I1 )Iilo!ytes+ or M1 )Mega!yte+. =ne I1 is e'ual to 102L !ytes an$ one
M1 is e'ual to 1000I1. *&e si"e of t&e primary storage in a typical 0C usually starts at 16M1. 0Cs &aing F2 M1% LAM1%
12A M1% 2M6M1 memory are 'uite common.
#utput )nit:
*&e output unit of a computer proi$es t&e information an$ results of a computation to outsi$e (orl$. 0rinters% Visual
Display ;nit )VD;+ are t&e commonly use$ output $eices. =t&er commonly use$ output $eices are floppy $is- $rie%
&ar$ $is- $rie% an$ magnetic tape $rie.
Arithmetic !ogical )nit:
All calculations are performe$ in t&e Arit&metic Logic ;nit )AL;+ of t&e computer. #t also $oes comparison an$ ta-es
$ecision. *&e AL; can perform !asic operations suc& as a$$ition% su!traction% multiplication% $iision% etc an$ $oes logic
operations i"% N% H% O% Petc. J&eneer calculations are re'uire$% t&e control unit transfers t&e $ata from storage unit to
AL; once t&e computations are $one% t&e results are transferre$ to t&e storage unit !y t&e control unit an$ t&en it is sen$ to
t&e output unit for $isplaying results.
(ontrol )nit:
#t controls all ot&er units in t&e computer. *&e control unit instructs t&e input unit% (&ere to store t&e $ata after receiing it
from t&e user. #t controls t&e flo( of $ata an$ instructions from t&e storage unit to AL;. #t also controls t&e flo( of results
from t&e AL; to t&e storage unit. *&e control unit is generally referre$ as t&e central nerous system of t&e computer t&at
control an$ sync&roni"es its (or-ing.
L
(entral Processing )nit:
*&e control unit an$ AL; of t&e computer are toget&er -no(n as t&e Central 0rocessing ;nit )C0;+. *&e C0; is li-e !rain
performs t&e follo(ing functions4
Q #t performs all calculations.
Q #t ta-es all $ecisions.
Q #t controls all units of t&e computer.
A 0C may &ae C0;2#C suc& as #ntel A0AA% A02A6% A0FA6% A0LA6% Celeron% 0entium% 0entium 0ro% 0entium ##% 0entium ###%
0entium #V% Dual Core% an$ AMD etc.
L. J&at $o you un$erstan$ !y classification of computers? Descri!e (it& example.
A$, Computers are aaila!le in $ifferent s&apes% si"es an$ (eig&ts% $ue to t&ese $ifferent s&apes an$ si"es t&ey perform
$ifferent sorts of 6o!s from one anot&er.
*&ey can also !e classifie$ in $ifferent (ays. All t&e computers are $esigne$ !y t&e 'ualifie$ computer arc&itectures t&at
$esign t&ese mac&ines as t&eir re'uirements.
A computer t&at is use$ in a &ome $iffers in si"e an$ s&ape from t&e computer !eing use$ in a &ospital. Computers act as a
serer in large !uil$ings% (&ile t&e computer also $iffers in si"e an$ s&ape performing its 6o! as a (eat&er forecaster.
A stu$ent carrying a laptop (it& &im to &is college is $ifferent in s&ape an$ si"e from all t&e computers mentione$ a!oe.
3ere (e are going to intro$uce $ifferent classifications of computers one !y one. Je (ill $iscuss (&at are in classifications
an$ (&at 6o! t&ey perform.
,uper computer
*&e !iggest in si"e% t&e most expensie in price t&an any ot&er is classifie$ an$ -no(n as super computer. #t can process
trillions of instructions in secon$s. *&is computer is not use$ as a 0C in a &ome neit&er !y a stu$ent in a college.
9oernments specially use t&is type of computer for t&eir $ifferent calculations an$ &eay 6o!s. Different in$ustries also
use t&is &uge computer for $esigning t&eir pro$ucts.
#n most of t&e 3olly(oo$Ks moies it is use$ for animation purposes. *&is -in$ of computer is also &elpful for forecasting
(eat&er reports (orl$(i$e.
Mainframes
Anot&er giant in computers after t&e super computer is Mainframe% (&ic& can also process millions of instruction per
secon$ an$ capa!le of accessing !illions of $ata.
*&is computer is commonly use$ in !ig &ospitals% air line reserations companies% an$ many ot&er &uge companies prefer
mainframe !ecause of its capa!ility of retrieing $ata on a &uge !asis.
*&is is normally to expensie an$ out of reac& from a salary2!ase$ person (&o (ants a computer for &is &ome.
*&is -in$ of computer can cost up to t&ousan$s of $ollars.
Minicomputer
*&is computer is next in &e line !ut less offers less t&an mainframe in (or- an$ performance. *&ese are t&e computers%
(&ic& are mostly preferre$ !y t&e small type of !usiness personals% colleges% etc.
0ersonal computers
Almost all t&e computer users are familiar (it& t&e personal computers. *&ey normally -no( (&at t&e personal computer
is an$ (&at its functions are.
*&is is t&e computer mostly preferre$ !y t&e &ome users. *&ese computers are lesser in cost t&an t&e computers gien
a!oe an$ also% small in si"eB t&ey are also calle$ 0Cs in s&ort for 0ersonal computers.
*&is computer is small in si"e an$ you can easily arrange it to fit in your single !e$room (it& its all accommo$ation. *o$ay
t&is is t&oug&t to !e t&e most popular computer in all.
>ote!oo- computers
3aing a small si"e an$ lo( (eig&t t&e note!oo- is easy to carry to any(&ere. A stu$ent can ta-e it (it& &im.&er to &is.&er
M
sc&ool in &is.&er !ag (it& &is.&er !oo-.
*&is is easy to carry aroun$ an$ preferc.2re$ !y stu$ents an$ !usiness people to meet t&eir assignments an$ ot&er necessary
tas-s.
*&e approac& of t&is computer is also t&e same as t&e 0ersonal computer. #t can store t&e same amount of $ata an$ &aing a
memory of t&e same si"e as t&at of a personal computer. =ne can say t&at it is t&e replacement of personal $es-top
computer.
M. J&at $o you mean !y D1M, along (it& t&e facilities aaila!le? Also mention t&e role of $ata!ase
a$ministrator.
A.M (omputer memory refers to $eices t&at are use$ to store $ata or programs )se'uences of instructions+ on a
temporary or permanent !asis for use in an electronic $igital computer. Computers represent information in !inary co$e%
(ritten as se'uences of 0s an$ 1s. Eac& !inary $igit )or 8!it8+ may !e store$ !y any p&ysical system t&at can !e in eit&er of
t(o sta!le states% to represent 0 an$ 1. ,uc& a system is calle$ !ista!le. *&is coul$ !e an on2off s(itc&% an electrical
capacitor t&at can store or lose a c&arge% a magnet (it& its polarity up or $o(n% or a surface t&at can &ae a pit or not.
*o$ay% capacitors an$ transistors% functioning as tiny electrical s(itc&es% are use$ for temporary storage% an$ eit&er $is-s or
tape (it& a magnetic coating% or plastic $iscs (it& patterns of pits are use$ for long2term storage.
Computer memory is usually meant to refer to t&e semicon$uctor tec&nology t&at is use$ to store information in electronic
$eices. Current primary computer memory ma-es use of integrate$ circuits consisting of silicon2!ase$ transistors. *&ere
are t(o main types of memory4 olatile an$ non2olatile.
A.6 A Database *anagement System )D&*S+ is a set of computer programs t&at controls t&e creation% maintenance% an$
t&e use of t&e $ata!ase in a computer platform or of an organi"ation an$ its en$ users. #t allo(s organi"ations to place
control of organi"ation2(i$e $ata!ase $eelopment in t&e &an$s of $ata!ase a$ministrators )D1As+ an$ ot&er specialists. A
D1M, is a system soft(are pac-age t&at &elps t&e use of integrate$ collection of $ata recor$s an$ files -no(n as
$ata!ases. #t allo(s $ifferent user application programs to easily access t&e same $ata!ase. D1M,s may use any of a
ariety of $ata!ase mo$els% suc& as t&e net(or- mo$el or relational mo$el. #n large systems% a D1M, allo(s users an$
ot&er soft(are to store an$ retriee $ata in a structure$ (ay. #nstea$ of &aing to (rite computer programs to extract
information% user can as- simple 'uestions in a 'uery language. *&us% many D1M, pac-ages proi$e <ourt&2generation
programming language )L9Ls+ an$ ot&er application $eelopment features. #t &elps to specify t&e logical organi"ation for a
$ata!ase an$ access an$ use t&e information (it&in a $ata!ase. #t proi$es facilities for controlling $ata access% enforcing
$ata integrity% managing concurrency controlle$% restoring $ata!ase.
-atabase a-ministrator )D&A+ is a person responsi!le for t&e $esign% implementation% maintenance an$ repair of an
organi"ation5s $ata!ase. *&ey are also -no(n !y t&e titles Database Coordinator or Database Programmer% an$ is closely
relate$ to t&e Database Analyst% Database Modeler% Programmer Analyst% an$ Systems Manager
*&e $uties of a $ata!ase a$ministrator ary $epen$ing on 6o! $escription% corporate an$ #nformation *ec&nology )#*+
policies an$ t&e tec&nical features an$ capa!ilities of t&e D1M, !eing a$ministere$. *&ey inclu$e $isaster recoery
)!ac-ups an$ testing of !ac-ups+% performance analysis an$ tuning% $ata $ictionary maintenance% an$ $ata!ase $esign.
7oles of t&e D1A inclu$e4
#nstallation of ne( soft(are R #t is t&e 6o! of t&e D1A to install ne( ersions of D1M, soft(are% application
soft(are% an$ ot&er soft(are relate$ to D1M, a$ministration. #t is important t&at t&e D1A or ot&er #, staff
mem!ers test ne( soft(are !efore it is moe$ into a pro$uction enironment.
Configuration of &ar$(are an$ soft(are (it& t&e system a$ministrator R #n many cases t&e system soft(are can
only !e accesse$ !y t&e system a$ministrator. #n t&is case% t&e D1A (or-s closely (it& t&e system a$ministrator
to perform soft(are installations% an$ to configure &ar$(are an$ soft(are so t&at it functions optimally (it& t&e
D1M,.
,ecurity a$ministration R =ne of t&e main $uties of t&e D1A is to monitor an$ a$minister D1M, security. *&is
inoles a$$ing an$ remoing users% a$ministering 'uotas% au$iting% an$ c&ec-ing for security pro!lems.
Data analysis R *&e D1A analy"es $ata store$ in t&e $ata!ase an$ ma-es recommen$ations relating to
performance an$ efficiency of t&at $ata storage. *&is inclu$es t&e effectie use of in$exes% ena!ling 80arallel
Suery8 execution% or ot&er D1M, specific features.
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Data!ase $esign )preliminary+ R *&e D1A can !e inole$ at t&e preliminary $ata!ase2$esign stages% eliminating
many pro!lems t&at mig&t occur. *&e D1A -no(s t&e D1M, an$ system% can point out potential pro!lems% an$
can &elp t&e $eelopment team (it& special performance consi$erations.
Data mo$eling an$ optimi"ation R 1y mo$eling t&e $ata% it is possi!le to optimi"e t&e system layouts to ta-e t&e
most a$antage of t&e #.= su!system.
Assignment &
S1. J&at is meant !y >et(or- topology along (it& $ifferent net(or- mo$els?
A.1 .etwor' topology is t&e p&ysical interconnections of t&e elements )lin-s% no$es% etc.+ of a computer net(or-. A local
area net(or- )LA>+ is one example of a net(or- t&at ex&i!its !ot& a p&ysical topology an$ a logical topology. Any gien
no$e in t&e LA> &as one or more lin-s to one or more ot&er no$es in t&e net(or- an$ t&e mapping of t&ese lin-s an$ no$es
in a grap& results in a geometrical s&ape t&at may !e use$ to $escri!e t&e p&ysical topology of t&e net(or-. Li-e(ise% t&e
mapping of t&e $ata flo(s !et(een t&e no$es in t&e net(or- $etermines t&e logical topology of t&e net(or-. *&e p&ysical
an$ logical topologies may or may not !e i$entical in any particular net(or-.
Any particular net(or- topology is $etermine$ only !y t&e grap&ical mapping of t&e configuration of p&ysical an$.or
logical connections !et(een no$es. *&e stu$y of net(or- topology uses grap& t&eory. Distances !et(een no$es% p&ysical
interconnections% transmission rates% an$.or signal types may $iffer in t(o net(or-s an$ yet t&eir topologies may !e
i$entical.
*&e stu$y of net(or- topology recogni"es four !asic topologies4
1us topology
,tar topology
7ing topology
*ree topology
*&ere are also t&ree !asic categories of net(or- topologies4
p&ysical topologies
signal topologies
logical topologies
*&e terms signal topology an$ logical topology are often use$ interc&angea!ly% t&oug& t&ere is a su!tle $ifference !et(een
t&e t(o
Bus
1us net(or- topology
#n local area net(or-s (&ere !us tec&nology is use$% eac& mac&ine is
connecte$ to a single ca!le. Eac& computer or serer is connecte$ to t&e single
!us ca!le t&roug& some -in$ of connector. A terminator is re'uire$ at eac&
en$ of t&e !us ca!le to preent t&e signal from !ouncing !ac- an$ fort& on t&e
!us ca!le. A signal from t&e source traels in !ot& $irections to all mac&ines connecte$ on t&e !us ca!le until it
fin$s t&e MAC a$$ress or #0 a$$ress on t&e net(or- t&at is t&e inten$e$ recipient. #f t&e mac&ine a$$ress $oes not
matc& t&e inten$e$ a$$ress for t&e $ata% t&e mac&ine ignores t&e $ata. Alternatiely% if t&e $ata $oes matc& t&e
mac&ine a$$ress% t&e $ata is accepte$. ,ince t&e !us topology consists of only one (ire% it is rat&er inexpensie to
@
implement (&en compare$ to ot&er topologies. 3o(eer% t&e lo( cost of implementing t&e tec&nology is offset !y
t&e &ig& cost of managing t&e net(or-. A$$itionally% since only one ca!le is utili"e$% it can !e t&e single point of
failure. #f t&e net(or- ca!le !rea-s% t&e entire net(or- (ill !e $o(n
Star
,tar net(or- topology
#n local area net(or-s (&ere t&e star topology is use$% eac& mac&ine is connecte$ to a
central &u!. #n contrast to t&e !us topology% t&e star topology allo(s eac& mac&ine on
t&e net(or- to &ae a point to point connection to t&e central &u!. All of t&e traffic
(&ic& transerses t&e net(or- passes t&roug& t&e central &u!. *&e &u! acts as a signal
!ooster or repeater (&ic& in turn allo(s t&e signal to trael greater $istances. As a
result of eac& mac&ine connecting $irectly to t&e &u!% t&e star topology is consi$ere$
t&e easiest topology to $esign an$ implement. An a$antage of t&e star topology is t&e
simplicity of a$$ing ot&er mac&ines. *&e primary $isa$antage of t&e star topology is
t&e &u! is a single point of failure. #f t&e &u! (ere to fail t&e entire net(or- (oul$ fail as a result of t&e &u! !eing
connecte$ to eery mac&ine on t&e net(or-.
Ring
7ing net(or- topology
#n local area net(or-s (&ere t&e ring topology is use$% eac& computer is
connecte$ to t&e net(or- in a close$ loop or ring. Eac& mac&ine or computer
&as a uni'ue a$$ress t&at is use$ for i$entification purposes. *&e signal passes
t&roug& eac& mac&ine or computer connecte$ to t&e ring in one $irection.
7ing topologies typically utili"e a to-en passing sc&eme% use$ to control
access to t&e net(or-. 1y utili"ing t&is sc&eme% only one mac&ine can
transmit on t&e net(or- at a time. *&e mac&ines or computers connecte$ to
t&e ring act as signal !oosters or repeaters (&ic& strengt&en t&e signals t&at
transerse t&e net(or-. *&e primary $isa$antage of ring topology is t&e failure of one mac&ine (ill cause t&e
entire net(or- to fail.
Tree
*ree net(or- topology
Also -no(n as a hierarchical networ'.
*&e type of net(or- topology in (&ic& a central 5root5 no$e )t&e top leel of t&e
&ierarc&y+ is connecte$ to one or more ot&er no$es t&at are one leel lo(er in t&e
&ierarc&y )i.e.% t&e secon$ leel+ (it& a point2to2point lin- !et(een eac& of t&e secon$
leel no$es an$ t&e top leel central 5root5 no$e% (&ile eac& of t&e secon$ leel no$es t&at are connecte$ to t&e top leel
central 5root5 no$e (ill also &ae one or more ot&er no$es t&at are one leel lo(er in t&e &ierarc&y )i.e.% t&e t&ir$ leel+
connecte$ to it% also (it& a point2to2point lin-% t&e top leel central 5root5 no$e !eing t&e only no$e t&at &as no ot&er no$e
a!oe it in t&e &ierarc&y )*&e &ierarc&y of t&e tree is symmetrical.+ Eac& no$e in t&e net(or- &aing a specific fixe$
num!er% of no$es connecte$ to it at t&e next lo(er leel in t&e &ierarc&y% t&e num!er% !eing referre$ to as t&e 5!ranc&ing
factor5 of t&e &ierarc&ical tree.
A
A.2 Data transmission% is t&e p&ysical transfer of $ata )a $igital !it stream+ oer a point2to2point or point2to2multipoint
transmission me$ium. Examples of suc& me$ia are copper (ires% optical fi!ers% (ireless communication me$ia% an$
storage me$ia. *&e $ata is often represente$ as an electro2magnetic signal% suc& as an electrical oltage signal% a ra$io(ae
or micro(ae signal or an infra2re$ signal.
J&ile analog communications represents a continuously arying signal% a $igital transmission can !e !ro-en $o(n into
$iscrete messages. *&e messages are eit&er represente$ !y a se'uence of pulses !y means of a line co$e )baseband
transmission+% or !y a limite$ set of analogue (ae forms )passband transmission+% using a $igital mo$ulation met&o$.
Accor$ing to t&e most common $efinition of $igital signal% !ot& !ase!an$ an$ pass!an$ signals representing !it2streams
are consi$ere$ as $igital transmission% (&ile an alternatie $efinition only consi$ers t&e !ase!an$ signal as $igital% an$ t&e
pass!an$ transmission as a form of $igital2to2analog conersion.
ransmission media are t&e p&ysical pat&(ays t&at connect computers% ot&er $eices% an$ people on a net(or-Rt&e
&ig&(ays an$ !y(ays t&at comprise t&e information super&ig&(ay. Eac& transmission me$ium re'uires speciali"e$
net(or- &ar$(are t&at &as to !e compati!le (it& t&at me$ium. Tou &ae pro!a!ly &ear$ terms suc& as Layer 1% Layer 2%
an$ so on. *&ese refer to t&e =,# reference mo$el% (&ic& $efines net(or- &ar$(are an$ serices in terms of t&e functions
t&ey perform. )*&e =,# reference mo$el is $iscusse$ in $etail in C&apter M% 8Data Communications 1asics.8+ *ransmission
me$ia operate at Layer 1 of t&e =,# mo$el4 *&ey encompass t&e p&ysical entity an$ $escri!e t&e types of &ig&(ays on
(&ic& oice an$ $ata can trael.
#t (oul$ !e conenient to construct a net(or- of only one me$ium. 1ut t&at is impractical for anyt&ing !ut an extremely
small net(or-. #n general% net(or-s use com!inations of me$ia types. *&ere are t&ree main categories of me$ia types4
(opper cable/*ypes of ca!le inclu$e uns&iel$e$ t(iste$2pair );*0+% s&iel$e$ t(iste$2pair ),*0+% an$ coaxial ca!le.
Copper2!ase$ ca!les are inexpensie an$ easy to (or- (it& compare$ to fi!er2optic ca!les% !ut as you5ll learn (&en
(e get into t&e specifics% a ma6or $isa$antage of ca!le is t&at it offers a rat&er limite$ spectrum t&at cannot &an$le t&e
a$ance$ applications of t&e future% suc& as teleimmersion an$ irtual reality.
0ireless/Jireless me$ia inclu$e ra$io fre'uencies% micro(ae% satellite% an$ infrare$. Deployment of (ireless
me$ia is faster an$ less costly t&an $eployment of ca!le% particularly (&ere t&ere is little or no existing infrastructure
)e.g.% Africa% Asia20acific% Latin America% eastern an$ central Europe+. Jireless is also useful (&ere enironmental
circumstances ma-e it impossi!le or cost2pro&i!itie to use ca!le )e.g.% in t&e Ama"on% in t&e Empty Suarter in ,au$i
Ara!ia% on oil rigs+.
*&ere are a fe( $isa$antages associate$ (it& (ireless% &o(eer. 3istorically% (ireless solutions support muc& lo(er
$ata rates t&an $o (ire$ solutions% alt&oug& (it& ne( $eelopments in (ireless !roa$!an$% t&at is !ecoming less of an
issue )see 0art #V% 8Jireless Communications8+. Jireless is also greatly affecte$ !y external impairments% suc& as t&e
impact of a$erse (eat&er% so relia!ility can !e $ifficult to guarantee. 3o(eer% ne( $eelopments in laser2!ase$
communicationsRsuc& as irtual fi!erRcan improe t&is situation. )Virtual fi!er is $iscusse$ in C&apter 1M%
8JMA>s% JLA>s% an$ J0A>s.8+ =f course% one of t&e !iggest concerns (it& (ireless is security4 Data must !e
secure$ in or$er to ensure priacy.
?
1iber optics/<i!er offers enormous !an$(i$t&% immunity to many types of interference an$ noise% an$ improe$
security. *&erefore% fi!er proi$es ery clear communications an$ a relatiely noise2free enironment. *&e $o(nsi$e
of fi!er is t&at it is costly to purc&ase an$ $eploy !ecause it re'uires speciali"e$ e'uipment an$ tec&ni'ues.
A.F #n computing% a )niform Resource !ocator ))R!+ is a su!set of t&e ;niform 7esource #$entifier );7#+ t&at specifies
(&ere an i$entifie$ resource is aaila!le an$ t&e mec&anism for retrieing it. #n popular usage an$ in many tec&nical
$ocuments an$ er!al $iscussions it is often incorrectly use$ as a synonym for ;7#.
/1:
#n popular language% a ;7# is also
referre$ to as a !eb address.
The components of a URL
A ;7L );niform 7esource Locator+ is a specific type of ;7# );niersal 7esource #$entifier+. A ;7L normally locates an
existing resource on t&e #nternet. A ;7L is use$ (&en a Je! client ma-es a re'uest to a serer for a resource.
*&e concepts of t&e ;7# an$ t&e ;7L are $efine$ !y t&e #nternet ,ociety an$ #E*< )#nternet Engineering *as- <orce+
7e'uest for Comments $ocument 7<C 2F?6% "niform #esource $dentifiers %"#$)& 'eneric Synta(
)&ttp4..(((.ietf.org.rfc.rfc2F?6.txt+. 1riefly% a ;7# is $efine$ as any c&aracter string t&at i$entifies a resource. A ;7L is
$efine$ as t&ose ;7#s t&at i$entify a resource !y its location or !y t&e means use$ to access it% rat&er t&an !y a name or
ot&er attri!ute of t&e resource.
A ;7L for 3**0 )or 3**0,+ is normally ma$e up of t&ree or four components4
1. A scheme$ *&e sc&eme i$entifies t&e protocol to !e use$ to access t&e resource on t&e #nternet. #t can !e 3**0
)(it&out ,,L+ or 3**0, )(it& ,,L+.
2. A host$ *&e &ost name i$entifies t&e &ost t&at &ol$s t&e resource. <or example% (((.example.com. A serer
proi$es serices in t&e name of t&e &ost% !ut t&ere is not a one2to2one mapping !et(een &osts an$ serers. 3ost
names explains more a!out &ost names.
3ost names can also !e follo(e$ !y a port number. 0ort num!ers explains more a!out t&ese. Jell2-no(n port
num!ers for a serice are normally omitte$ from t&e ;7L. Most serers use t&e (ell2-no(n port num!ers for
3**0 an$ 3**0,% so most 3**0 ;7Ls omit t&e port num!er.
F. A path$ *&e pat& i$entifies t&e specific resource (it&in t&e &ost t&at t&e Je! client (ants to access. <or example%
.soft(are.&tp.cics.in$ex.&tml.
L. A 2uery string$ #f a 'uery string is use$% it follo(s t&e pat& component% an$ proi$es a string of information t&at
t&e resource can use for some purpose )for example% as parameters for a searc& or as $ata to !e processe$+. *&e
'uery string is usually a string of name an$ alue pairs% for example% 'O!lue!ir$.
*&e sc&eme an$ &ost components of a ;7L are not $efine$ as case2sensitie% !ut t&e pat& an$ 'uery string are case2
sensitie. ;sually% t&e (&ole ;7L is specifie$ in lo(er case.
*&e components of t&e ;7L are com!ine$ an$ $elimite$ as follo(s4
sc&eme4..&ost4port.pat&?'uery
*&e sc&eme is follo(e$ !y a colon an$ t(o for(ar$ slas&es.
#f a port num!er is specifie$% t&at num!er follo(s t&e &ost name% separate$ !y a colon.
*&e pat& name !egins (it& a single for(ar$ slas&.
Ja#f a 'uery string is specifie$% it is prece$e$ !y a 'uestion mar-.
Synta( of an )P "#*
.24A022222.
NN2&ttp4..22U2+ost name22U22U222222222U22.22pat+ component222222N
52$P address25 52422port25
N22U22222222222222222U22222222222222222222222222222222222222222NH
10
52?22,uery string25
'r
*&is is an example of an 3**0 ;7L4
&ttp4..(((.researc&.i!m.com.soft(are.&tp.cics.in$ex.&tml
#f a port num!er (as specifie$% t&e ;7L (oul$ !e4
&ttp4..(((.researc&.i!m.com410F0.soft(are.&tp.cics.in$ex.&tml
A.4 Threats to Computer Security
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a'Ja'S's'a'S(A'rS9'AuA'A An $ntroduction to Computer Security& +e -$S )andboo.
>ational #nstitute of ,tan$ar$s an$ *ec&nology
*ec&nology A$ministration
;.,. Department of Commerce
,pecial 0u!lication A00212
Computer systems are ulnera!le to many t&reats t&at can inflict arious types of $amage resulting in significant losses.
*&is $amage can range from errors &arming $ata!ase integrity to fires $estroying entire computer centers. Losses can stem%
for example% from t&e actions of suppose$ly truste$ employees $efrau$ing a system% from outsi$e &ac-ers% or from careless
$ata entry cler-s. 0recision in estimating computer security2relate$ losses is not possi!le !ecause many losses are neer
$iscoere$% an$ ot&ers are 8s(ept un$er t&e carpet8 to aoi$ unfaora!le pu!licity. *&e effects of arious t&reats aries
consi$era!ly4 some affect t&e confi$entiality or integrity of $ata (&ile ot&ers affect t&e aaila!ility of a system.
1. Errors and Omissions
Errors an$ omissions are an important t&reat to $ata an$ system integrity. *&ese errors are cause$ not only !y $ata entry
cler-s processing &un$re$s of transactions per $ay% !ut also !y all types of users (&o create an$ e$it $ata. Many programs%
especially t&ose $esigne$ !y users for personal computers% lac- 'uality control measures. 3o(eer% een t&e most
sop&isticate$ programs cannot $etect all types of input errors or omissions. A soun$ a(areness an$ training program can
&elp an organi"ation re$uce t&e num!er an$ seerity of errors an$ omissions.
;sers% $ata entry cler-s% system operators% an$ programmers fre'uently ma-e errors t&at contri!ute $irectly or in$irectly to
security pro!lems. #n some cases% t&e error is t&e t&reat% suc& as a $ata entry error or a programming error t&at cras&es a
system. #n ot&er cases% t&e errors create ulnera!ilities. Errors can occur $uring all p&ases of t&e systems life cycle.
2. Fraud and Theft
Computer systems can !e exploite$ for !ot& frau$ an$ t&eft !ot& !y 8automating8 tra$itional met&o$s of frau$ an$ !y using
ne( met&o$s. <or example% in$ii$uals may use a computer to s-im small amounts of money from a large num!er of
financial accounts% assuming t&at small $iscrepancies may not !e inestigate$. <inancial systems are not t&e only ones at
ris-. ,ystems t&at control access to any resource are targets )e.g.% time an$ atten$ance systems% inentory systems% sc&ool
gra$ing systems% an$ long2$istance telep&one systems+. Computer frau$ an$ t&eft can !e committe$ !y insi$ers or
outsi$ers. #nsi$ers )i.e.% aut&ori"e$ users of a system+ are responsi!le for t&e ma6ority of frau$.
,ince insi$ers &ae !ot& access to an$ familiarity (it& t&e ictim computer system )inclu$ing (&at resources it controls
an$ its fla(s+% aut&ori"e$ system users are in a !etter position to commit crimes. #nsi$ers can !e !ot& general users )suc& as
cler-s+ or tec&nical staff mem!ers. An organi"ation5s former employees% (it& t&eir -no(le$ge of an organi"ation5s
operations% may also pose a t&reat% particularly if t&eir access is not terminate$ promptly.
11
. Emp!oyee Sa"ota#e
Employees are most familiar (it& t&eir employer5s computers an$ applications% inclu$ing -no(ing (&at actions mig&t
cause t&e most $amage% misc&ief% or sa!otage. *&e $o(nsi"ing of organi"ations in !ot& t&e pu!lic an$ priate sectors &as
create$ a group of in$ii$uals (it& organi"ational -no(le$ge% (&o may retain potential system access )e.g.% if system
accounts are not $elete$ in a timely manner+. *&e num!er of inci$ents of employee sa!otage is !eliee$ to !e muc& smaller
t&an t&e instances of t&eft% !ut t&e cost of suc& inci$ents can !e 'uite &ig&.
Common e$amp!es of computer%re!ated emp!oyee sa"ota#e inc!ude&
$estroying &ar$(are or facilities%
planting logic !om!s t&at $estroy
programs or $ata%
entering $ata incorrectly%
8cras&ing8 systems%
$eleting $ata%
&ol$ing $ata &ostage% an$
c&anging $ata.
4. Loss of 'hysica! and (nfrastructure Support
*&e loss of supporting infrastructure inclu$es po(er failures )outages% spi-es% an$ !ro(nouts+% loss of communications%
(ater outages an$ lea-s% se(er pro!lems% lac- of transportation serices% fire% floo$% ciil unrest% an$ stri-es.
). *a!icious +ac,ers
*&e term malicious &ac-ers% sometimes calle$ crac-ers% refers to t&ose (&o !rea- into computers (it&out aut&ori"ation.
*&ey can inclu$e !ot& outsi$ers an$ insi$ers. Muc& of t&e rise of &ac-er actiity is often attri!ute$ to increases in
connectiity in !ot& goernment an$ in$ustry. =ne 1??2 stu$y of a particular #nternet site )i.e.% one computer system+
foun$ t&at &ac-ers attempte$ to !rea- in at least once eery ot&er $ay. *&e &ac-er t&reat s&oul$ !e consi$ere$ in terms of
past an$ potential future $amage. Alt&oug& current losses $ue to &ac-er attac-s are significantly smaller t&an losses $ue to
insi$er t&eft an$ sa!otage% t&e &ac-er pro!lem is (i$esprea$ an$ serious.
-. (ndustria! Espiona#e
#n$ustrial espionage is t&e act of gat&ering proprietary $ata from priate companies or t&e goernment for t&e purpose of
ai$ing anot&er company)ies+. #n$ustrial espionage can !e perpetrate$ eit&er !y companies see-ing to improe t&eir
competitie a$antage or !y goernments see-ing to ai$ t&eir $omestic in$ustries. <oreign in$ustrial espionage carrie$ out
!y a goernment is often referre$ to as economic espionage. ,ince information is processe$ an$ store$ on computer
systems% computer security can &elp protect against suc& t&reatsB it can $o little% &o(eer% to re$uce t&e t&reat of aut&ori"e$
employees selling t&at information.
.. *a!icious Code
Malicious co$e refers to iruses% (orms% *ro6an &orses% logic !om!s% an$ ot&er 8uninite$8 soft(are. ,ometimes
mista-enly associate$ only (it& personal computers% malicious co$e can attac- ot&er platforms. Actual costs attri!ute$ to
t&e presence of malicious co$e &ae resulte$ primarily from system outages an$ staff time inole$ in repairing t&e
systems. >onet&eless% t&ese costs can !e significant.
*a!icious Soft/are& A Fe/ 0ey Terms
Virus4 A co$e segment t&at replicates !y attac&ing copies of itself to existing executa!les. *&e ne( copy of t&e irus is
execute$ (&en a user executes t&e ne( &ost program. *&e irus may inclu$e an a$$itional 8payloa$8 t&at triggers (&en
specific con$itions are met. <or example% some iruses $isplay a text string on a particular $ate. *&ere are many types of
iruses% inclu$ing ariants% oer(riting% resi$ent% stealt&% an$ polymorp&ic.
3ro4an 5orse4 A program t&at performs a $esire$ tas-% !ut t&at also inclu$es unexpecte$ )an$ un$esira!le+ functions.
Consi$er as an example an e$iting program for a multiuser system. *&is program coul$ !e mo$ifie$ to ran$omly $elete one
of t&e users5 files eac& time t&ey perform a useful function )e$iting+% !ut t&e $eletions are unexpecte$ an$ $efinitely
un$esire$X
12
0orm4 A self2replicating program t&at is self2containe$ an$ $oes not re'uire a &ost program. *&e program creates a copy
of itself an$ causes it to executeB no user interention is re'uire$. Jorms commonly use net(or- serices to propagate to
ot&er &ost systems.
1. Threats to 'ersona! 'ri2acy
*&e accumulation of ast amounts of electronic information a!out in$ii$uals !y goernments% cre$it !ureaus% an$ priate
companies% com!ine$ (it& t&e a!ility of computers to monitor% process% an$ aggregate large amounts of information a!out
in$ii$uals &ae create$ a t&reat to in$ii$ual priacy. *&e possi!ility t&at all of t&is information an$ tec&nology may !e
a!le to !e lin-e$ toget&er &as arisen as a specter of t&e mo$ern information age.
Fire/a!!s Ad2anta#es
1. A feeling of increase$ security t&at your 0C an$ contents are !eing protecte$.
2. 7elatiely inexpensie or free for personal use.
F. >e( releases are !ecoming user frien$ly.
L. Tou can monitor incoming an$ outgoing security alerts an$ t&e fire(all company (ill recor$ an$ trac- $o(n an
intrusion attempt $epen$ing on t&e seerity.
M. ,ome fire(alls !ut not all can $etect iruses% (orms% *ro6an &orses% or $ata collectors.
6. All fire(alls can !e teste$ for effectieness !y using pro$ucts t&at test for lea-s or pro!e for open ports.
A.M Electronic Data Interchange )EDI+ refers to t&e structure$ transmission of $ata !et(een organi"ations !y electronic
means. #t is use$ to transfer electronic $ocuments from one computer system to anot&er% i.e. from one tra$ing partner to
anot&er tra$ing partner. #t is more t&an mere E2mailB for instance% organi"ations mig&t replace !ills of la$ing an$ een
c&ec-s (it& appropriate ED# messages. #t also refers specifically to a family of stan$ar$s% inclu$ing t&e Y12 series.
3o(eer% ED# also ex&i!its its pre2#nternet roots% an$ t&e stan$ar$s ten$ to focus on A,C## )American ,tan$ar$ Co$e for
#nformation #nterc&ange+2formatte$ single messages rat&er t&an t&e (&ole se'uence of con$itions an$ exc&anges t&at ma-e
up an inter2organi"ation !usiness process.
ADVA.3AES #1 EDI
Companies use ED# to exc&ange information for a ariety of $ifferent reasons% mainly increase$ efficiency an$ cost
saings. <or example% ED# allo(s !usiness transactions to occur in less time an$ (it& fe(er errors t&an $o tra$itional%
paper2!ase$ means. #t re$uces t&e amount of inentory companies must inest in !y closely tying manufacturing to actual
$eman$% allo(ing for 6ust2in2time $eliery. 1y $oing a(ay (it& paper forms% ED# also re$uces postage costs an$ t&e
expenses an$ space consi$erations inole$ in paper2!ase$ recor$ storage. ,ome companies &ae seen $ramatic
improements in t&eir !usiness processes% suc& as t&e s&ortening of $eliery times from $ays to &ours. 3o(eer% ot&er ED#
users &ae continue$ to experience snags. #n Planet $, 0rocter Z 9am!le% a lea$ing pac-age$ goo$s manufacturer%
reporte$ t&at it foun$ errors in more t&an F0 percent of its electronic or$ers% alt&oug& t&ese (ere mainly $ue to &uman
mista-es.
Alt&oug& many companies $on5t ie( ED# as a strategic (eapon% it certainly can !e use$ as one. 3aing t&e capa!ility to
engage in ED# is a mar-eting tool% !ecause it ma-es suppliers attractie to retailers an$ ot&er companies (&o !uy goo$s
an$ serices. #n a situation (&ere seeral suppliers offer similar pro$ucts% !eing ED#2ena!le$ can !e an important
$ifferential. ED# also can !e use$ to form alliances !et(een companies t&at proi$e a$antages oer competitors in seeral
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(ays% inclu$ing t&e a!ility to offer t&e lo(est mar-et prices an$ t&e !est customer serice. ,uc& alliances also can lea$ to
ne(er or more innoatie serices.
Disadvantages:
*&ere are a fe( !arriers to a$opting electronic $ata interc&ange. =ne of t&e most significant !arriers is t&e accompanying
!usiness process c&ange. Existing !usiness processes !uilt aroun$ slo( paper &an$ling may not !e suite$ for ED# an$
(oul$ re'uire c&anges to accommo$ate automate$ processing of !usiness $ocuments. <or example% a !usiness may receie
t&e !ul- of t&eir goo$s !y 1 or 2 $ay s&ipping an$ all of t&eir inoices !y mail. *&e existing process may t&erefore assume
t&at goo$s are typically receie$ !efore t&e inoice. Jit& ED#% t&e inoice (ill typically !e sent (&en t&e goo$s s&ip an$
(ill t&erefore re'uire a process t&at &an$les large num!ers of inoices (&ose correspon$ing goo$s &ae not yet !een
receie$.
Anot&er significant !arrier is t&e cost in time an$ money in t&e initial set2up. *&e preliminary expenses an$ time t&at arise
from t&e implementation% customi"ation an$ training can !e costly an$ t&erefore may $iscourage some !usinesses. *&e -ey
is to $etermine (&at met&o$ of integration is rig&t for your company (&ic& (ill $etermine t&e cost of implementation. <or
a !usiness t&at only receies one 0.=. per year from a client% fully integrate$ ED# may not ma-e economic sense. #n t&is
case% !usinesses may implement inexpensie 8rip an$ rea$8 solutions or use outsource$ ED# solutions proi$e$ !y ED#
8,erice 1ureaus8. <or ot&er !usinesses% t&e implementation of an integrate$ ED# solution may !e necessary as increases
in tra$ing olumes !roug&t on !y ED# force t&em to re2implement t&eir or$er processing !usiness processes.
*&e -ey &in$rance to a successful implementation of ED# is t&e perception many !usinesses &ae of t&e nature of ED#.
Many ie( ED# from t&e tec&nical perspectie t&at ED# is a $ata formatB it (oul$ !e more accurate to ta-e t&e !usiness
ie( t&at ED# is a system for exc&anging !usiness $ocuments (it& external entities% an$ integrating t&e $ata from t&ose
$ocuments into t&e company5s internal systems. ,uccessful implementations of ED# ta-e into account t&e effect externally
generate$ information (ill &ae on t&eir internal systems an$ ali$ate t&e !usiness information receie$. <or example%
allo(ing a supplier to up$ate a retailer5s Accounts 0aya!les system (it&out appropriate.
c&ec-s an$ !alances (oul$ !e a recipe for $isaster. 1usinesses ne( to t&e implementation of ED# s&oul$ ta-e pains to
aoi$ suc& pitfalls.
#ncrease$ efficiency an$ cost saings $rie t&e a$option of ED# for most tra$ing partners. 1ut een if a company (oul$ not
c&oose to use ED# on t&eir o(n% pressures from larger tra$ing partners )calle$ &u!s+ often force smaller tra$ing partners to
use ED#. An example of t&is is Jal2Mart[s insistence on using ED# (it& all of its tra$ing partnersB any partner not (illing
to use ED# (it& Jal2Mart (ill not !e a!le to $o !usiness (it& t&e company.
Components of EDI
*&e follo(ing components an$ tools are necessary for performing ED#.
rade Agreement 2 a legally !in$ing tra$e agreement !et(een you an$ your tra$ing partner.
Standard Document /ormat 2 t&e stan$ar$ agree$ upon format for t&e $ocument to !e electronically transmitte$.
0D$ ranslation Management Soft1are 2 soft(are use$ to conert t&e $ocument your application5s format into t&e
agree$ upon stan$ar$ format. <or optimum performance t&e translation soft(are s&oul$ !e on t&e same platform
as your !usiness application.
Communications Soft1are 2 a programming tool t&at ena!les you to (rite communications protocols% or a separate
application. #t can !e a mo$ule to t&e translator or a separate soft(are application.
Modem 2 a &ar$(are $eice use$ to transmit electronic information !et(een computer systems. *&e &ig&er t&e
!au$ rate% t&e faster t&e communications (ill !e.
2A- 2 stan$s for Value A$$e$ >et(or-. A net(or- to (&ic& you can connect to transmit $ata from one computer
systems to anot&er. =ne net(or- can act as a gate(ay to anot&er.
Point3to3Point 2 a $irect communication lin- from one computer to anot&er. ,ome tra$ing partners offer a $irect
connection to t&eir ED# computer. *ra$ing partners may opt for t&is met&o$ of communication instea$ of using a
VA>
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Case stu$y
A.1 t&ere are certain steps t&at company can ta-e to re$uce t&e cost. Company can use more internet facility for
conferencing an$ getting $etails on t&e net !ecause it is c&eaper t&en t&e telep&one cost (&ic& is coming out C 1M0%000 per
year. *&ey can $eploy some main employees at t&e sig&t only to re$uce t&e ot&er cost li-e counseling p&otocopies an$
telep&one cost. <rom FM oerseas at least 20 can !e place$ to t&e sites to re$uce t&e cost.
A.2 *&e !est (ay to sen$ing t&e $ata is t&roug& t&e internet as $iscusse$ in earlier 'uestion as it is c&eaper t&en t&e
telep&one. #t is !est as it can use for recor$s an$ ei$ence in future. *&ere (ill !e no fear of $ata loss an$ (rong
information. Company can use s-ype connection (&ic& gies free call as (ell as $ata transfer in t&is (ay t&ey can sae lots
of money.
A.F t&ey can use scanning mac&ine to re$uce t&e p&otocopy cost. *&ey can scan t&e $ocument an$ sen$ it num!er of
people t&roug& mail. #n t&is (ay t&ey can re$uce p&otocopy cost.
1M
0art C
1. 1
2. A
F. C
L. C
M. 1
6. A
@. A
A. C
?. A
10. D
11. A
12. C
1F. D
1L. A
1M. 1
16. C
1@. D
1A. D
1?. A
20. A
21. 1
22. A
2F. 1
2L. D
2M. 1
26. A
2@. D
2A. D
2?. A
F0. D
F1. A
F2. 1
FF. 1
FL. 1
FM. D
F6. C
F@. D
16
FA. C
F?. 1
L0. D