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Presentation on theme: "MANAGEMENT INFORMATION SYSTEM By Kishor Deshmukh."— Presentation transcript:


2 Management Information System UNIT-I

3 MIS: DEFINATION The system which provides information for decision making in an organization. It is also known as Information System, Information & decision system, Computer based information system. The system which support decision making function in org. In every org. time goes in data collection, processing, documenting & communicating the people. MIS plays a role of information generation, communication.

4 DATA, INFORMATION & SYSTEM Generating Information: Computer-based ISs take data as raw material, process it, and produce information as output.

5 Examples: Data : Thermometer readings of temperature taken every hour: 16.0, 17.0, 16.0, 18.5, 17.0,15.5…. Information – todays high: 18.5 todays low: 15.5 DATA, INFORMATION & SYSTEM

6 What Is a System? System: A set of components that work together to achieve a common goal Subsystem: One part of a system where the products of more than one system are combined to reach an ultimate goal Closed system: Stand-alone system that has no contact with other systems Open system: System that interfaces with other systems DATA, INFORMATION & SYSTEM

7 System Elements Goal Inputs Processing elements Outputs Movie Actors, director, staff, sets, equipment Filming, editing, special effects, distribution Finished film delivered to movie studio Entertaining movie, film awards, profits

8 DATA, INFORMATION & SYSTEM Input Processing Output Organisation Environment Feedback

9 DATA, INFORMATION & SYSTEM Information System People Organisation Technology External Environment

10 Role of MIS can be compared to the role of heart in the body. MIS satisfies the needs through variety of systems such as Query system, Analysis system, Modelling Systems, & Decision Support System. MIS plays a role of information generation, communication. It helps in the process of decision making. It is supported by the use of mgt. tools of planning & control Role Of MIS

11 MIS plays very important role. It creates impact on organizations functions, performance, & product. with good MIS support, the mgt. of marketing, finance, production becomes more efficient. Time required is very less. The tracking & monitoring of functional targets becomes easy. Impact Of MIS

12 Every person in organization is user of MIS. The people in organization operate at all levels in the hierarchy. A typical user is a clerk, an assistant, an officer, an executive or a manager. Each of them has specific task & a role to play in the mgt of business. MIS has to satisfy the needs of all the person. MIS & The User

13 MIS is necessity of all the organization. To process data from org. & present it in the form of reports. The information is a product of analysis of data. System should present information in such a form & format that it creates an impact on its user. Some modifications & sort of selective approach is necessary. The norm for an exception is necessary. MIS: Concept

14 MIS Business Goals & Mission Application of Pure & Social Science Application of Principles & Practices of Management Use of Database & Knowledge Base Information Tech. & Enterprise Software Support Structure To MIS Conceptual View of MIS

15 MIS: Concept EIS Business Information System Mission Critical Applications Functional Information Applications Databases & Knowledge Base Data Processing & Analysis Systems OLTP, Data & Validation System Integrated Information System Structure Physical View of MIS

16 Mgt process is executed through a variety of decision taken at each step of planning, organizing, staffing, directing, coordinating and control. MIS aids decision making. Objective of MIS is to provide information for decision support. Business goals are achieved in most efficient manner. Decision making is not restricted to a particular level. A Support To The Management

17 Steps in mgt.Decision PlanningSelection from various alternatives OrganizationSelection of goals, people, resources, method & authority. StaffingProviding proper manpower DirectingChoosing methods of directing the efforts in the organization. CoordinatingChoice of the tools & techniques for optimum result. ControllingSelection of exception conditions & providing the decision guidance. A Support To The Management

18 Accurate, Complete, Economical, Flexible, Reliable, Relevant, Simple, Timely Verifiable, Accessible, Secure. Characteristics Of Valuable Information

19 Management Information System UNIT-II

20 Basics of MIS : Decision making. Decision methods. Behavioral concepts. Organizational decision making. MIS and decision making concepts. Information concepts and classification. Methods of data and information collection. Value of information, organization and information. Human as an information processor. Development of MIS and choice of IT. Unit-II

21 Decision: a reasoned choice among alternatives. Examples: Where to advertise a new product What stock to buy What movie to see Where to go for dinner Decision Making:-- a process of choosing among alternative courses of action for the purpose of attaining a goal or goals Decision-Making Concepts

22 a)Sequential in nature. b)Exceedingly complex due to risks & trade offs. c)Influenced by personal values. d)Made in institutional setting & business environment. Characteristics of Business Decision Making

23 Ensures the achievement of the goal. If it is raining it is rational to look for a cover. The rationality of decision made is not the same in every situation. It will vary with the organization. Any business decision if review by a share holder, a customer, an employee will result in different criticism due to difference individuals rationality Rational Decision Making


25 Define the problem Identify the decision criteria Allocate weights to the criteria Develop the alternatives Evaluate the alternatives Select the best alternatives Steps in Rational Decision Making

26 Making a Decision Define the problem Identify the criteria Develop alternatives Allocate weights to the criteria Evaluate the alternatives Select the best alternative

27 Ascertaining the problem Insufficient knowledge Not enough time to be rational The environment may not cooperate Other limitations The Problems in Making Rational Decisions

28 Decision making is a process which the decision maker uses to arrive at a decision. The process is described by Herbert Simon in a model. Decision Making Process

29 Herbert Simons decision making model Simple Decision process modeled as a flow of events Decision Making Process This gentleman won a Nobel Prize!

30 Intelligence Phase Collect raw material Process & examine Identify the problem calling for decision Decision Making Process

31 Design Phase Identify the key variables Create model to aid decision making. Identify the alternative solutions. Decision Making Process

32 Example of Statistical Model-Factory Decision Making Process The model sounds good Should we be concerned about model?

33 Choice Phase Select one alternative as a decision, based on the selection criteria. Selection criteria such as max profit, least cost, least time. Decision Making Process

34 Implementation Phase Implement the decision Monitor Make adjustments Decision Making Process

35 There are two types of systems based on the managers knowledge about the environment. Closed decision making system Open decision making system Types of Decision Making System

36 Closed decision making system Known set of decision alternatives. Outcomes are known. The manager has model or rule. Based on some goal manager can choose one of them. Eg: examination system to declare pass or fail, fixed deposits. Types of Decision Making System

37 Open decision making system Manager does not Know all the decision alternatives. Outcome of decision is not known fully. No method, rule or model is available to study. It is difficult to decide an objective or goal. Eg: Pricing of a new product, plant location Types of Decision Making System

38 MIS tries to convert every open system into closed system by providing information support. MIS gives information support so that manager knows more & more about environment. Goal of MIS

39 Decision making is a complex situation. To resolve the complexity, the decisions are classified as programmed & non programmed decisions. Nature of Decision

40 Programmed Decision Decision can be based on a rule, method or even guidelines. If such rules can be developed then MIS can be designed to make a decision. The system in such case plays a role of decision maker based on a given rule or method. Nature of Decision

41 Non-programmed Decision Decision which can not be made by using rule or method. Such decisions are infrequent. MIS can help to some extent in identifying the problem. MIS can develop support system in the non- programmed decision making situation. Nature of Decision

42 1) Discuss the various activities performed through an MIS in any business organization. 2) What are different types of strategies. Explain it in brief. 3) State the differences between MIS & the computer system. 4) What are the different methods to avoid misuse of information. Assignment

43 One manager may not the same as that of other managers. They differs on the behavioural platform. The manager differ in their approach towards decision making in the organization. They can be classified into two categories Achievement Oriented Task Oriented Behavioural Concepts in Decision-Making

44 Achievement Oriented Looking for excellence Always opt for the best. He will be scientific & therefore more rational. Behavioural Concepts in Decision-Making

45 Task Oriented Looking of completion of the task somehow. Achievement doesnt matter. Behavioural Concepts in Decision-Making

46 The managers personal values will influenced. Behaviour is influenced by position he holds. Behaviour is also influenced by fear & an anxiety. Behavioural Concepts in Decision-Making

47 Methods for Deciding Decision Alternatives There are different methods to help the manager decide among the alternatives. There are methods for selection of decision alternatives with the goals. 1)Optimization Techniques. 2)Payoff Analysis. 3)Decision Tree Analysis.

48 Methods for Deciding Decision Alternatives Optimization Techniques. Linear Programming, Integer Programming, Dynamic Programming, Queuing Models & so on are examples of optimization techniques. Computer algorithms and programs are readily available to handle many problems of this class. The major problem is to construct the model correctly.

49 Statistical Decision Theory Decision Theory provides a rational framework for choosing between the different alternatives when the choices are imperfectly known. The theory provides techniques for mathematically evaluating the outcomes of alternative action in a given situation. In all cases decision maker has an objectives (eg. Maximize profit) Two methods: Payoff Matrix & Decision Tree

50 Methods for Deciding Decision Alternatives Payoff Analysis When all the alternatives & their outcomes are not known with certainty. The payoff matrix consists of rows for the alternatives or strategies available and columns for the conditions that affect the outcomes. Each cell contains the payoff (the consequences) in dollars if that strategy is chosen and that state occurs.

51 Methods for Deciding Decision Alternatives Payoff Matrix S3 S2 S1 States of Nature Strategies n1n2 n3 n4

52 Methods for Deciding Decision Alternatives Payoff Analysis Example 1: The Anniversary Problem You are suddenly driving home from work in the evening when you suddenly recall that your wedding anniversary comes about this time of year. In fact, it seems quite probable, (but not certain), that it is today. You can still stop at the local florist and buy a dozen roses, or you may go home empty-handed and hope the anniversary lies in the future. What do you do?

53 Anniversary Problem Payoff Matrix Possible Outcomes (States of Nature) Decision Alternatives (Strategies) Buy Flowers Do Not Buy Flowers It IS Your Anniversary It IS NOT Your Anniversary DOMESTIC BLISS SPOUSE SUSPICIOUS AND YOU ARE OUT $50 SPOUSE IN TEARS AND YOU IN DOGHOUSE STATUS QUO

54 Decision Tree for Anniversary Problem Buy Flowers Do Not Buy Flowers Anniversary NOT Anniversary NOT Anniversary Decision Point Resolution of Uncertainty DOMESTIC BLISS $50 LOSS AND SUSPICIOUS WIFE DOGHOUSE STATUS QUO

55 Planning Models A planning model is a method for structuring, manipulating & communicating the future plans. Simple Profit Model: Sales = input variable Cost of Sales = 0.4 x sales Gross Margin = sales - cost of sales Operating expenses = input variable Profit before taxes = gross margin - operating expenses Taxes = 0.48 x profit before taxes Net Profit = profit before taxes - taxes

56 The Role of Models in Decision Making A major characteristic of decision-making is the use of models. A model is a simplified representation or abstraction of reality. It is usually simplified because reality is too complex to copy. Basis idea is that analysis is performed on a model rather than on reality itself.

57 Organizational Decision Making An organization is an arrangement of individuals having different goals. Each individual having different powers & rights. Hierarchy of goals which may be conflicting, self defeating & inconsistent. In case of inconsistent goals, the conflict in the organization increases. The organizational decision making should help in the resolution of such conflicts.

58 Organizational Decision Making Dealing with Uncertainty. The organizations perform in an environment of uncertainty. Ex. Market uncertainty, the price fluctuation, the changes in govt policy, technology changes are some factors which make the business envt uncertainty. Org. behaviour towards minimizing the risk in decision making.

59 Organizational Decision Making Organizational Learning Learning provides a strength to review the goals. Learning provides to set goals more correctly. As the time progresses, the org. may have new set of goals & objectives. Org. may take a fresh look at the alternatives, outcomes, methods. Adopting such methods the org builds skills & capabilities in mgt.

60 MIS & Decision Making Simon Model Programmed Decision Non programmed decision Closed & Open Decision Making system Organizational & Behavioural aspects.

61 Information Concepts Information is equivalent to the finished goods produced after processing raw material. The information has a value in decision making. Information brings clarity & create intelligent human response in the mind

62 Information Concepts Information has following characteristics. Improves representation of an entity. Updates the level of knowledge. Has a surprise value. Reduces uncertainty. Aids in decision making.

63 Information Concepts Information Presentation Presentation of information is an art The data can be collected in best possible manner & processed analytically. Method of improving communication is message routing. Knowledge is a power & an intelligent person can misuse this power.

64 Information: A Quality Product Information is a product of data processing. The manager will determine the quality of information. The quality of information can be measured on the four dimensions Utility Satisfaction Error Bias

65 Information: A Quality Product Utility: The utility dimension has four facets: The form, The time The access The possession

66 Information: A Quality Product Parameters Impacting Quality Impartiality Validity Reliability Consistency Age

67 Classification of Information Action Versus No-action Information Recurring Versus Non-recurring Information Internal Versus External Information Planning Information Control Information Knowledge

68 Methods of Data & Information Collection Observation Experiment Survey Subjective Estimation Transaction Processing Purchased from outside Publication Government agencies

69 Value of Information

70 General Model of a Human as an Information Processor A decision maker uses his sensory receptors.

71 Management Information System UNIT-III

72 Applications of MIS : Applications in manufacturing sector, Applications in service sector, Introduction to service, sector, Creating a destructive services, MIS applications in service industries Role of MIS in source industries. DSS: Concepts and philosophy, Deterministic systems and knowledge based expert systems. MIS and role of DSS. MIS in Enterprise Management System. Unit-III

73 Decision support systems are an application of Herbert Simon Model. DSS is an organized collection of people, procedures, software, databases, and devices used to help make decisions that solve problems Focus of a DSS is on decision-making effectiveness when faced with unstructured or semistructured business problems Decision Support System

74 Components of Decision Support System Model base: provides decision makers access to a variety of models and assists them in decision making Financial models Spreadsheets often used Statistical analysis models Graphical models Charts, Maps Project management models Timeline tracking of resources and tasks

75 Components of Decision Support System Database External database access Access to the Internet and corporate intranet, networks, and other computer systems Dialogue manager: allows decision makers to easily access and manipulate the DSS and to use common business terms and phrases.

76 Components of Decision Support System Fig. Conceptual Model of DSS

77 Types of DSS Status Inquiry System It does not call for any elaborate computation, analysis, choice etc. If the status is known the decision is automatic. Data Analysis System DSS based on comparative analysis, use of formula or algorithm. Information Analysis System In this system, data is analysed & information reports are generated.

78 Types of DSS Accounting System Desirable to keep track of major aspects of business or function. Model Based System These systems are simulation models or optimization models for decision making. The product mix decision, the material mix, the job scheduling rules & resources are examples.

79 DSS: Deterministic Systems There are number of situation where the management has to make the decision based on the business statistics.

80 DSS: Deterministic Systems SystemInput Source SystemHardwareUser InquiryDatabase, Conventional files Query System PC, Servers, Clients Clerk, Assistant Data Analysis Database & System PCsMainframe or managers Operations Information Analysis Processed Data files Analysis Programs Mainframe, Mini Middle Level Manager AccountingTransactions, Master files Transaction Processing System Mini, Mainframe, Client/Server Middle & Top Mgt. Model Based Control Inventory DB & External Data Development of OR & Business Models Mainframe, Mini, Client/Server Middle & top Mgt.

81 If the management can design such models duly tested, they can be used by decision makers. All such tools & models acts as a support system for decision making. Number of computer based software tools & packages are available. DSS: Deterministic Systems

82 Typical DSS

83 DSS Designed to support organizational decision making What-if analysis Example of a DSS tool: Microsoft Excel Text and graphs Models for each of the functional areas Accounting, finance, personnel, etc.

84 Characteristics of Decision Support System DSS is design specifically to facilitate decision process. DSS should able to respond quickly to the changing needs of decision makers. DSS use sophisticated data analysis & modeling tools. DSS has ability to present knowledge. DSS can interact directly with decision maker. DSS offers flexibility, adaptability & quick response.

85 Introduction to Expert System(ES) ES are knowledge based systems. Replicates the thought processes of Human Experts. Follow a structured set of rules. My computer wont turn on… Did you press the power button? If no, press it and start again. If yes, is it plugged in? If no, plug it in and try again. If yes, is the monitor on? ………………and so on.

86 D. Introduction to Expert Systems (ES) Expert Systems tend to use branching logic, like this one. bare

87 Introduction to Expert System(ES) An expert system can replace the expert ex. Identify the whale species An expert system can support the expert ex. Paper machine diagnostic system.

88 Expert System(ES) Notice that the recommendations still leave the human expert some options.

89 Introduction to Expert System(ES) How is an ES different from a DSS?? DSS Allows decision maker a platform for exploring and evaluating the options ES Delivers advice/recommendations based on answers to a set of questions Business examples of ES??.

90 Knowledge Based Expert System(KBES) In unstructured situation, two methods of problem solving, generalised or the knowledge based expert system. Generalised problem solving approach considers the generally applicable constraints, examines all possible alternatives. The Knowledge based problem solving approach considers specific constraints within a domain, examines limited alternatives within knowledge domain.

91 Knowledge Based Expert System(KBES) Considers knowledge as a base. To build knowledge based system, then A person with ability to solve the problem with knowledge based reasoning. Expert should be able to articulate the knowledge.

92 KBES Model User Control Mechanism Inference MechanismKnowledge Base Fig. KBES Model

93 KBES Model KBES has three basic components which are necessary to build a system. Knowledge Base It is database of knowledge consisting of facts, rules formulae, experience. Inference Mechanism It is a tool to interpret the knowledge available. User Control Mechanism It is a tool applied to the inference mechanism to select, interpret.

94 Comparison of DSS & MIS

95 MISDSS SupportInfo about performance Info and modeling to analyze problems Report Form Periodic reports or On Demand Interactive Inquiries FormatPre-specified Fixed format Flexible and Adaptable ProcessingExtract and manipulate data Analytical modeling of data DSS Vs MIS

96 Information System

97 MIS: Management Information System DSS: Decision Support System EIS: Executive Information System.

98 Types of Information System Transaction Processing Systems Systems designed to handle large volumes of routine transactions. Were the first computer-based information systems handling billing, payroll, and supplier payments.

99 Types of Information System Operations Information Systems Systems that gather, organize, and summarize comprehensive data in a form of value to managers. Can help managers with non-routine decisions such as customer service and productivity.

100 Types of Information System Decision Support Systems Provides computer-built models that help managers make better nonprogrammed decisions. New productive capacity, new product development, launch a new promotional campaign, enter a new market or expand internationally

101 Types of Information System Executive Support System Sophisticated version of a decision support system designed to meet the needs of top managers Group Decision Support System An executive support system that links top managers so that they can function as a team.

102 Management Information System UNIT-IV

103 Technology in MIS : Data processing Transaction processing Application processing Information System processing TQM of IS. DBMS: Object Oriented Technologies Client Server Arch. And MIS. Unit-IV

104 Data Processing Data is smallest automic entity in the information system If the data is proper, its usage will ensure quality output. Data processing is handling raw material in systematic manner. The automic data entity is define as a value attached to an attribute which has character, meaning & presentation for understanding to user. Eg. Date :cha, meaning & presentation.

105 Data Processing Data processing means following steps to be implemented before the data is accepted. Confirming the character, structure & presentation. Checking the value of the data. Eg. Data value specification such as single specific value, range of value. If non conformance is seen, point out the error before the processing.

106 Transaction Processing After the data has been process the next step is transaction processing. A transaction is processed with reference to business rules. The rules may be directly related to transaction or it may have some relation & association with other transaction. In case, if transaction does not conform to the set of specified conditions governed by the rules, the error is displayed for user to take corrective action.

107 Transaction Processing Computerized systems that perform and record the daily routine transactions

108 Transaction Processing Let us take an example of the goods receipt as a transaction. The business rules in case of this transaction are: The purchase order must be present & open, the receipt as per the scheduled date. The supplier has sent the necessary documents such as Exercise Gate Pass, Challan, Sales Tax Form, etc. Such other conditions that may be applicable.

109 Transaction Processing Examples : Payroll. Sales & Ordering. Inventory. Purchasing, receiving. Account payable & receivable

110 Application Processing Application processing is designed to process more than one type of transaction. This processing is carried out once the transaction is processed for its validity. Ex. If the stock level is below reorder level, it would raise purchase requisition. The application can be design for status updation. Ex:If the number of work orders are on hold for no material to process, then on receipt of the material the affected work order will be released for processing.

111 Information System Processing The system processing is at a higher level, over the application processing. The system is define as the product made up of several applications set in orderly manner to produce a higher level information output. Ex. Financial system is a product of finance, sales, & purchase accounting applications. The nature role & type of system is such that its design is very complex & sensitive to the business needs.

112 TQM of IS Objective is to assure quality of information. This can be done by ensuring, verifying & maintaining software integrity. Quality ensuring the processes & methodologies are correctly choosen.

113 TQM of IS The quality of information assures : A precise and an accurate information. A high level response in an interactive processing. User friendly operations. Reliability of information. An ease of maintenance.

114 Database Management System File organization concepts Computer system uses hierarchies Field: Group of characters Record: Group of related fields File: Group of records of same type Database: Group of related files Record: Describes an entity Entity: Person, place, thing on which we store information Attribute: Each characteristic, or quality, describing entity E.g. Attributes Date or Grade belong to entity COURSE

115 Database Management System The Data Hierarchy

116 Database Management System Problems with the traditional file processing Data redundancy and inconsistency Data redundancy: Presence of duplicate data in multiple files Data inconsistency: Same attribute has different values Program-data dependence: When changes in program requires changes to data accessed by program Lack of flexibility Poor security Lack of data sharing and availability

117 Database Management System Database Collection of Interrelated data is called as database.

118 Database Management System Relational DBMS Represent data as two-dimensional tables called relations or files Each table contains data on entity and attributes Table: Grid of columns and rows Rows (tuples): Records for different entities Fields (columns): Represents attribute for entity Key field: Field used to uniquely identify each record Primary key: Field in table used for key fields Foreign key: Primary key used in second table as look- up field to identify records from original table

119 Database Management System Relational Database Tables

120 Database Management System Hierarchical and Network DBMS: Older systems Hierarchical DBMS: Models one-to-many relationships Network DBMS: Models many-to-many relationships Both less flexible than relational DBMS and do not support ad hoc, natural language

121 Database Management System Object-Oriented DBMS (OODBMS) Stores data and procedures as objects Capable of managing graphics, multimedia, Java applets Relatively slow compared with relational DBMS for processing large numbers of transactions Hybrid object-relational DBMS: Provide capabilities of both OODBMS and relational DBMS

122 Inheritance Declaring subclasses class B extends A {... } means class B is a specialization of class A the "is a" relationship exists a B object is an A object A A B B "is a" Superclass Subclass

123 Inheritance Other names: superclass also called "parent class" subclass also called "child class" These names help understand concept of inheritance Child class inherits characteristics of parent class attributes methods

124 Inheritance When we say … class TalkingParrot extends Parrot { … } then a TalkingParrot object inherits all Parrot attributes (which, in turn, inherits both FlyingBird and Bird attributes) In general, descendant classes inherit the attributes of ancestor classes

125 O-O Design Identify the problem's objects if an object cannot be represented by an existing type, design a class to do so if two or more classes share common attributes, design a hierarchy Identify the operations If an operation cannot be performed with an existing operator or method define a method to do so store the method within a class hierarchy to enable inheritance Organize the objects and operations into an algorithm

126 O-O Design Using the extends relationship: A class B should extend another class A if and only if B "is a" specialized version of A and … All messages that can be sent to A can be appropriately sent to B A A B B

127 Client Server Architecture The client/Server architecture is based upon hardware and software components that interact to form a system. Front-end application(Client): Any computer process that requests services from the server. Back-end application(Server): Any computer processing providing services to the clients. Communications middleware(Middleware): Any computer process through which clients and servers communicate.

128 Client Server Architecture Client process Communications middleware network Database server SQL Data SQL Clients process sends SQL request through communications middleware. Middleware routes SQL request to database server process. Database server process receives request, validates it, and executes it. How components interact?

129 Client Server Architecture A network architecture in which each computer or process on the network is either a client or a server.

130 Client Server Architecture Components: Clients Servers Communication Networks Server Client

131 Client Server Architecture Clients Applications that run on computers Rely on servers for Files Devices Processing power Example: client An application that enables you to send and receive e- mail

132 Client Server Architecture Servers Computers or processes that manage network resources Disk drives (file servers) Printers (print servers) Network traffic (network servers) Example: Database Server A computer system that processes database queries

133 Client Server Architecture Communication Network Networks Connect Clients and Servers

134 Management Information System UNIT-V

135 MIS and Networks : Network Topology LAN Data Communication ATM Technology Business Process Reengineering: Introduction BP Process Model of organization Value stream model Delays in BP Relevance of IT MIS and BPR Unit-V

136 Networking What is Network?? What is Wifi?? What is IP?? IP Address & Classes??

137 Local Area Network(LAN) A LAN (Local Area Network) is a Transmission system intended primarily for linking computers and associated devices within a restricted geographical area. It covers an area of moderate size, such as an office block, factory or campus. In practice, its size may range from a few meters to, in rare cases, tens of kilometers.

138 Local Area Network(LAN) The raw transmission rate of LANs are high, typically being in the Mbps range. On LANs, network errors are expected to be relatively few when compared with larger networks. LANs are relatively inexpensive when compared to the cost of the equipment that connects to it.

139 Wide Area Network(WAN) A WAN (Wide Area Network) is a network that is spread over multiple sites (>30Km). WANs are not limited in size (they can even cross the world). Public facilities (such as the public switched telephone network) are extensively used. However, this means that the rate at which data is sent is limited by the bandwidth of these facilities.

140 WAN vs. LAN When comparing WANs with LANs, the main difference is in the data transmission rates. Delay and error rate parameters are also relevant to some applications. We can view the technical facilities offered by a WAN as a subset of those offered by a LAN. What a WAN offers is long distance connectivity.

141 Network Topology The term topology refers to the way in which the nodes of a network are connected. The topology of a network will effect its performance (in terms of speed) and its cost (both short and long term). Cost/resource considerations and the environment in which the network is to be used often determines the choice of topology.

142 Network Topology A network topology is the way in which a network is connected up. The simplest network topology you can have is a single link (i.e. cable, optical fibre, radio or any other means of transmitting data) between two computers. It may not be a very big network, but technically it is still a network. The computers can exchange data and they are autonomous.

143 Network Topology Some common topologies include: MESH STAR BUS TREE RING BACKBONE

144 Data Communication Data communication- Defined as a subset of telecommunication involving the transmission of data to and from computers and components of computer systems. More specifically data communication is transmitted via mediums such as wires, coaxial cables, fiber optics, or radiated electromagnetic waves such as broadcast radio, infrared light, microwaves, and satellites.

145 Features of Communication Four things required Sender, receiver, medium, and message Types of messages File Request Response Status Control Correspondence Understandability Error Detection

146 Features of Communication

147 Data Communication Frameworks Two major data communication frameworks have been developed to help ensure that networks meet business and communication requirements: Open Systems Interconnection (OSI) reference model developed by the International Standards Organization (ISO) Transmission Control Protocol/Internet Protocol (TCP/IP) suite

148 Features of Communication Four things required Sender, receiver, medium, and message Types of messages File Request Response Status Control Correspondence Understandability Error Detection

149 Features of Communication Four things required Sender, receiver, medium, and message Types of messages File Request Response Status Control Correspondence Understandability Error Detection

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