1. MIS REPORT
ON
“TECHNOLOGY ISSUE AND GLOBAL VALUE CHANGE ”
Submitted to
PUNJAB TECHNICAL UNIVERSITY
JALANDHAR
In partial fulfilment of the requirement for the
award of degree of
Master of Business Administration (MBA)
Submitted by : Submitted to:
Rahul Upadhyay(3191) Mr. Amanpratap Singh
Rajinder Kumar Duggal(3193) Asst. Professor
Session (2011-2013)
APEEJAY INSTITUTE OF MANAGEMENT TECHNICAL CAMPUS
JALANDHAR

2. PREFACE
We feel delighted and honored to present our project report on “TECHNOLOGY
ISSUE AND GLOBAL VALUE CHANGE “The first task for us was to know about
the concept on which our project was based and the criteria on which the study was
based. The factors, on which the research has been done, analyzed, evaluated and then
presented.
As the time was limited, so there is possibility that some matters might not be taken
into consideration, but every effort has been done from our side to include every
necessary parameter and include every information. I got information from various
sources i.e. websites, newspapers, magazines, e-journal & various books.

3. ACKNOWLEDGEMENT
To test the student’s academic knowledge in practical knowledge of life, the mis
project has been included in MBA. I take this opportunity to acknowledge my hearty
thanks to all those who have been instrumental in making this project on “Technology
issue and global value change”
I am hearty grateful to our project guide, Mr.Amanpratap Singh(Assistant
Professor) my friends and my family for continuous and invaluable guidance
throughout the project. As project is never a sole outcome, so I remain indebted to all
who helped us directly or indirectly during the project work.
Finally our thanks are due to the parents who with their endless love and affection
have molded me in a manner that I can stride gracefully in this world with our head
held high.
Unfortunately it is difficult to list all the people who have helped us in this project but
I wish to express my gratitude to those who have contributed to this work even though
anonymously and indirectly.
Date : (Rahul Upadhyay )
(Rajinder Duggal)

4. TABLE OF CONTENTS
Preface i
Acknowledgements ii
Title Page No.
Introduction 1-22
Conclusion 23-24
References 25-26

5. LIST OF FIGURES
FIGURE NO FIGURE TITLE PAGE NO
1.1 World Population Growth 19
1.2 World Poverty Growth 20
1.3 Population and Poverty Growth in Africa 20
1.4 Donation Growth in the top U.S. Charities 21
1.5 Orders of Technology Impact 22

6. INTRODUCTION
In nearly every corner of the world, from Mumbai to Madrid, one cannot enter a café
or walk down the street without seeing someone talking, texting, or surfing the
Internet on their cell phones, laptops or tablet PC. Information Technology (IT) has
become ubiquitous and is changing every aspect of how people live their lives. Recent
advances in our ability to communicate and process information in
digital form— a series of developments sometimes described as an "IT revolution"—
are reshaping the economies and societies of many countries around the world.
INFORMATION TECHNOLOGY
IT is a driving factor in the process of globalization. Improvements in the early 1990s
in computer hardware, software, and telecommunications greatly increased people’s
ability to access information and economic potential. While advancements in Internet-
based tools, such as social networking websites, twitter, and other Web2.0
applications are changing the way people use and share information for personal,
political, and commercial purposes. These developments have facilitated efficiency
gains in all sectors of the economy. IT drives the innovative use of resources to
promote new products and ideas across nations and cultures, regardless of geographic
location. Creating efficient and effective channels to exchange information, IT has
been the catalyst for global integration. Products based upon, or enhanced by,
information technology are used in nearly every aspect of life in contemporary
industrial societies. The spread of IT and its applications has been extraordinarily
rapid. Just 30 years ago, for example, the use of desktop personal computers was still
limited to a fairly small number of technologically advanced people. The
overwhelming majority of people still produced documents with typewriters, which
permitted no manipulation of text and offered no storage. Twenty years ago, large and
bulky mobile telephones were carried only by a small number of users in just a few
U.S. cities. According to the Cellular Telecommunications Industry Association,
302.9 million Americans were subscribers to cell phone plan in 2010,1 and in some
developing countries, mobile phones are used by more people than the fixed line
telephone network. But perhaps most dramatically, just fifteen years ago, only
scientists were using (or had even heard about) the Internet; the World Wide Web was

7. not up and running, and the browsers that help users navigate the Web had not even
been invented yet. Today, of course, the Internet and the Web have transformed
commerce, creating entirely new ways for retailers and their customers to make
transactions, for businesses to manage the flow of production inputs and market
products, and for job seekers and job recruiters to find one another.
The news industry has also been dramatically transformed by the emergence of
numerous Internet-enabled newsgathering and dissemination outlets. Websites, blogs,
instant messaging systems, e-mail, social networking websites.
TECHNOLOGY AND GLOBALIZATION
Other Internet-based communication systems have made it much easier for people
with common interests to connect, exchange information, and collaborate with each
other. Education at all levels is continually transforming thanks to innovations in
communication, education, and presentation software. Websites now serve as a
primary source of information and analysis for the masses.
ADVANCES IN INFORMATION TECHNOLOGY
The IT revolution has been driven by the extraordinarily rapid decline in the cost and
rapid increase in the processing power of digital technologies. The digital device
whose technological advance has perhaps been most crucial to the IT revolution is the
microprocessor, the collections of millions of tiny circuits that serve as the "brains" of
personal computers and that are embedded in an ever-expanding number of products,
from video games, to cars, to refrigerators. Over the past two decades, the processing
power of microprocessors has doubled roughly every six months. Rapid
advancements in fiber optic technologies have also been critical to the IT revolution.
Fiber optics technology enables data, including voices captured in digital form, to be
converted into tiny pulses of light and then transmitted at high speeds through glass
fibers wrapped into large capacity telecommunication cables. Hundreds of thousands
of miles of these cables were installed over the past ten years, boosting the speed and
capacity of telecommunications networks. YouTube video on fiber optics:
Advances in microprocessors, fiber optics, and a number of other complementary
technologies, such as telecommunications switching devices and memory chips, have

8. dramatically increased the speed, processing capacity, and storage space of computers
and of telecommunications networks themselves.
DRIVING DOWN THE COST OF INFORMATION
TRANSACTIONS
A key reason why these advances in IT have spread so quickly is that they have
progressively reduced the unit cost of computing power or the transmission of a
message. For less than $400, Americans without any advanced technical training can
purchase and use a desktop computer whose data processing power far exceeds the
room-sized computers that powered the spacecraft that carried astronauts to the moon
and back in the late 1960s and early 1970s. Companies such as Microsoft have even
sold $100 computers to consumers in emerging countries as a way of helping
developing countries use more advanced technological resources.
The decline in computing prices is a factor in spurning the growth of computers in the
developing world Countries such as Zimbabwe, India, Brazil and China experienced
tremendous growth in the number of personal computers. From 2000 to 2005, the
growth rate of personal computers per capita exceeded 200 percent for most of these
nations, with developing countries like Zimbabwe increasing almost 600 percent. By
the end of 2008, there were reportedly more than one billion PCs in use, and by 2015,
two billion are expected to be in use.2 The spread of digital technologies has also
been spurred by several unique attributes of information, which serves as the principal
input and product of many IT industries. In contrast to more tangible products, like
consumer goods, one person's "consumption" of a piece of information does not
necessarily reduce or eliminate the possibility that another person might benefit from
the same piece of information. Furthermore, networks built upon the exchange of
information, like the Internet, tend to become more valuable to existing participants as
new participants link up with them. Finally, the cost of using digital technologies,
such as Internet service providers, decreases as the number of users increases. All of
these factors have worked together to promote rapid growth in the demand for, and
supply of, IT products and services. During the second half of the 1990s, as more
people bought computers and went online, the average cost of the equipment and
services necessary to access the Internet declined.

9. Today, individuals go beyond the conventional desktop computer to stay connected:
laptops, smart phones and tablet PCs utilize Wi-Fi networks to make the Internet an
integral—and necessary—part of everyday life. 2
THE IMPACT OF INFORMATION TECHNOLOGY
The next three sections of this Technology and Globalization Issue Brief will examine
the impact of the IT revolution in
several critical areas:
Industrial structure and jobs
Workforce
Financial markets
In each of these areas, we will identify ways in which the application of new
information technologies promotes prosperity and enhances lives. But developments
in IT are also causing some problems and raising some concerns in both areas, and the
sections that follow will also look at some of those problems and concerns.
INDUSTRIAL STRUCTURE AND JOBS
Developments in computing and telecommunications technology are changing
America's industrial landscape and its workforce. The application of new digital
technologies to management, manufacturing, distribution, and services has produced
significant and lasting increases in productivity. The new technologies have also
created new industries (e.g., Internet access providers) and entirely new kinds of work
(e.g., website designers) and boosted other industries. But the new technologies have
also shrunk or even eliminated other industries and the jobs associated with them
(e.g., electric typewriters).
IT is fundamentally restructuring business practices. IT innovations have increased
the efficiency of business operations. New IT-based inventory systems allow
businesses to cut costs by delivering or receiving parts for "just-in-time" assembly. By
reducing delivery times and inventories, "just-in-time" assembly allows businesses to
meet consumer demand more quickly and cheaply. IT and the use of the Internet have
also dramatically transformed exchanges between buyers and sellers. Some Web
based businesses, such as Amazon.com, are using the Internet to sell and arrange for
the delivery of large quantities of goods without buyers themselves having to access a

10. network of wholesalers and retail stores. "Business-to-business" (“B2B”) commerce
over the Internet helps many companies streamline their sourcing of production inputs
and allows them to sell products or services to other companies. Similarly, companies
are using the Internet to find other businesses that might want to buy their products or
services or sell them products or services. The value of B2B e-commerce exceeds the
value of e-commerce between Internet retailers and individual consumers. Over the
past decade, there has also been a proliferation of online employment marketplaces,
which offer new tools for buyers and sellers of labor to link up with each other.
Internet-based recruitment services, such as Monster.com, enable employers to post
job announcements on the Internet and prospective employees to search job listings or
post their resumes. Global e-commerce is growing steadily; past growth shows a
gradual upward trend. (See Figure 2). 3 While the absolute numbers declined in 2009
as a result of the recession, they have bounced back in 2010. The U.S. online retail
sales are expected to grow from $152.1 billion in 2010 to $223.9 billion in 2014.4
Because of the growth of e-commerce.
SOME EXAMPLES OF TECHNOLOGICAL ISSUES WHICH
HELPS IN GLOBAL VALUE CHANGE
Internet stability, security and cybercrime
Lack of multilateral mechanisms to ensure the network stability and security of
Internet infrastructure services and applications. Lack of efficient tools and
mechanisms to be used by countries to prevent and prosecute crimes committed
in other jurisdictions, using technological means that might be located within or
outside the territory where the crime had a negative effect.
Spam
No unified, coordinated approach. There is no global consensus on a definition
of spam and no global arrangement to address this matter or enable national
anti-spam laws to be effective. However, there is an increasing number of
bilateral and plurilateral agreements between countries to enforce national anti-
spam laws, share best practices and cooperate on solutions.

11. Meaningful participation in global policy development
There are significant barriers to multi-stakeholder participation in governance
mechanisms. There is often a lack of transparency, openness and participatory
processes. Participation in some intergovernmental organizations and other
international organizations is often limited and expensive, especially for
developing countries, indigenous peoples, civil society organizations, and small
and medium-sized enterprises (SMEs). The content produced by some
intergovernmental organizations and other international organizations is often
restricted to members only or is available at a prohibitive cost. Frequency and
location of venues for global policy meetings causes some stakeholders from
more remote areas to limit their participation. There is a lack of a global
mechanism for participation by Governments, especially from developing
countries, in addressing multisectoral issues related to global Internet policy
development.
Capacity-building
Adequate resources have not been available to build capacity in a range of areas
relevant to Internet management at the national level and to ensure effective
participation in global Internet governance, particularly for developing
countries.
Allocation of domain names
Need for further development of policies and procedures for generic top-level
domain names (gTLDs). The need for further development of policies for the
management and further development of the domain name space, though also
due to the inherent complexity of the matter, has a significant impact on key
issues, such as the equitable distribution of resources, access for all and
multilingualism.

12. IP addressing
Concerns over allocation policies for IP addresses. For historical reasons, there
is an imbalance in the distribution of IPv4 addresses.1 This issue has already
been addressed by the regional Internet registries (RIRs). In the light of the
transition to IPv6,2 some countries feel that allocation policies for IP addresses
should ensure balanced access to resources on a geographical basis.
Intellectual property rights (IPR)
Application of intellectual property rights to cyberspace. While there is
agreement on the need for balance between the rights of holders and the rights
of users, there are different views on the precise nature of the balance that will
be most beneficial to all stakeholders, and whether the current IPR system is
adequate to address the new issues posed by cyberspace. On the one hand,
intellectual property rights holders are concerned about the high number of
infringements, such as digital piracy, and the technologies developed to
circumvent protective measures to prevent such infringements; on the other
hand, users are concerned about market oligopolies, the impediments to access
and use of digital content and the perceived unbalanced nature of current IPR
rules.
Freedom of expression
Restrictions on freedom of expression. Measures taken in relation to the Internet
on grounds of security or to fight crime can lead to violations of the provisions
for freedom of expression as contained in the Universal Declaration of Human
Rights and in the WSIS Declaration of Principles.
Data protection and privacy rights
Lack of existence or inconsistent application of privacy and data-protection
rights. There is a lack of national legislation and enforceable global standards
for privacy and data-protection rights over the Internet; as a result, users have
few if any means to enforce their privacy and personal data-protection rights,
even when recognized by legislation. An example of this is the apparent lack of
personal data protection in some of the WHOIS3 databases.
Consumer rights
.

13. There is a lack of global standards for consumer rights over the Internet, for
example in the international purchase of goods through e-commerce; as such,
users have few if any means to enforce their rights, even when these rights are
recognized by legislation. In the case of digital goods and online services, there
are problems for the practical and full application of traditional consumer rights.
Multilingualism
Insufficient progress has been made towards multilingualization. Unresolved
issues include standards for multilingual TLDs, e-mail addresses and keyword
lookup, as well as insufficient multilingual local content. There is a lack of
international coordination.
CLOUD COMPUTING
Cloud computing is an umbrella term used to refer to Internet based development and
services. The cloud is a metaphor for the Internet. A number of characteristics define
cloud data, applications services and infrastructure:
 Remotely hosted: Services or data are hosted on someone else’s infrastructure.
 Ubiquitous: Services or data are available from anywhere.
 Commodified: The result is a utility computing model similar to traditional that of
traditional utilities, like gas and electricity. You pay for what you would like.
SOFTWARE AS A SERVICE (SAAS)
SaaS is a model of software deployment where an application is hosted as a service
provided to customers across the Internet. SaaS is generally used to refer to business
software rather than consumer software, which falls under Web 2.0. By removing the
need to install and run an application on a user’s own computer it is seen as a way for
businesses to get the same benefits as commercial software with smaller cost outlay.
Saas also alleviates the burden of software maintenance and support but users
relinquish control over software versions and requirements. They other terms that are
used in this sphere include Platform as a Service (PaaS) and Infrastructure as a
Service (IaaS).

14. CLOUD STORAGE
Over time many big Internet based companies (Amazon, Google…) have come to
realise that only a small amount of their data storage capacity is being used. This has
led to the renting out of space and the storage of information on remote servers or
"clouds". Information is then temporarily cached on desktop computers, mobile
phones or other internet-linked devices. Amazon’s Amazon Elastic Compute Cloud
(EC2) and Simple Storage Solution (S3) are the current best known facilities.
DATA CLOUD
Cloud Services can also be used to hold structured data. There has been some
discussion of this being a potentially useful notion possibly aligned with the Semantic
Web [2], though concerns, such as this resulting in data becoming undifferentiated
[3], have been raised.
OPPORTUNITIES AND CHALLENGES
The use of the cloud provides a number of opportunities:
 It enables services to be used without any understanding of their infrastructure.
 Cloud computing works using economies of scale. It lowers the outlay expense
for start up companies, as they would no longer need to buy their own software or
servers. Cost would be by on-demand pricing. Vendors and Service providers claim
costs by establishing an ongoing revenue stream.
 Data and services are stored remotely but accessible from ‘anywhere’.
In parallel there has been backlash against cloud computing:
 Use of cloud computing means dependence on others and that could possibly
limit flexibility and innovation. The ‘others’ are likely become the bigger Internet
companies like Google and IBM who may monopolise the market. Some argue that
this use of supercomputers is a return to the time of mainframe computing that the PC
was a reaction against.
 Security could prove to be a big issue. It is still unclear how safe outsourced data
is and when using these services ownership of data is not always clear.
 There are also issues relating to policy and access. If your data is stored abroad
whose FOI policy do you adhere to? What happens if the remote server goes down?
How will you then access files? There have been cases of users being locked out of
accounts and losing access to data.

15. THE FUTURE
Many of the activities loosely grouped together under cloud computing have already
been happening and centralised computing activity is not a new phenomena: Grid
Computing was the last research-led centralised approach. However there are
concerns that the mainstream adoption of cloud computing could cause many
problems for users. Whether these worries are grounded or not has yet to be seen.
The use of the cloud provides a number of opportunities:
 It enables services to be used without any understanding of their infrastructure.
 Cloud computing works using economies of scale. It lowers the outlay expense
for start up companies, as they would no longer need to buy their own software or
servers. Cost would be by on-demand pricing. Vendors and Service providers claim
costs by establishing an ongoing revenue stream.
 Data and services are stored remotely but accessible from ‘anywhere’.
In parallel there has been backlash against cloud computing:
 Use of cloud computing means dependence on others and that could possibly
limit flexibility and innovation. The ‘others’ are likely become the bigger Internet
companies like Google and IBM who may monopolise the market. Some argue that
this use of supercomputers is a return to the time of mainframe computing that the PC
was a reaction against.
 Security could prove to be a big issue. It is still unclear how safe outsourced data
is and when using these services ownership of data is not always clear.
 There are also issues relating to policy and access. If your data is stored abroad
whose FOI policy do you adhere to? What happens if the remote server goes down?
How will you then access files? There have been cases of users being locked out of
accounts and losing access to data.

16. ERP
ERP (enterprise resource planning) is an industry term for the broad set of activities
supported by multi-module application software that help a manufacturer or other
business manage the important parts of its business, including product planning, parts
purchasing, maintaining inventories, interacting with suppliers, providing customer
service, and tracking orders. ERP can also include application modules for the finance
and human resources aspects of a business. Typically, an ERP system uses or is
integrated with a relational database system. The deployment of an ERP system can
involve considerable business process analysis, employee retraining, and new work
procedures. he Internet and negotiate for them interactively.
ERP SYSTEMS -- USING IT TO GAIN A COMPETITIVE
ADVANTAGE
In the past decade the business environment has changed dramatically. The world has
become a small and very dynamic marketplace. Organizations today confront new
markets, new competition and increasing customer expectations. This has put a
tremendous demand on manufacturers to; 1) Lower total costs in the complete supply
chain 2) Shorten throughput times 3) Reduce stock to a minimum 4) Enlarge product
assortment 5) Improve Product quality 6) Provide more reliable delivery dates and
higher service to the customer 7) Efficiently coordinate global demand, supply and
production. Thus today's organization have to constantly re-engineer their business
practices and procedures to be more and more responsive to customers and
competition. In the 1990's Information technology and Business Process re-
engineering, used in conjunction with each other, have emerged as important tools
which give organizations the leading edge.
ERP SYSTEMS – EVOLUTION
The focus of manufacturing systems in the 1960's was on Inventory control. Most of
the software packages then (usually customized) were designed to handle inventory
based on traditional inventory concepts. In the 1970's the focus shifted to MRP
(Material Requirement Planning) systems which translated the Master Schedule built
for the end items into time-phased net requirements for the sub-assemblies,
components and raw materials planning and procurement.

17. In the 1980's the concept of MRP-II (Manufacturing Resources Planning) evolved
which was an extension of MRP to shop floor and Distribution management activities.
In the early 1990's, MRP-II was further extended to cover areas like Engineering,
Finance, Human Resources, Projects Management etc i.e. the complete gamut of
activities within any business enterprise. Hence, the term ERP (Enterprise Resource
Planning) was coined.
In addition to system requirements, ERP addresses technology aspects like
client/server distributed architecture, RDBMS, object oriented programming etc. ERP
Systems - Bandwidth ERP solutions address broad areas within any business like
Manufacturing, Distribution, Finance, Project Management. Service and Maintenance,
Transportation etc. A seamless integration is essential to provide visibility and
consistency across the enterprise.
An ERP system should be sufficiently versatile to support different manufacturing
environments like make-to-stock, assemble-to-order and engineer-to-order. The
customer order decoupling point (CODP) should be flexible enough to allow the co-
existence of these manufacturing environments within the same system. A typical
example here could be Godrej & Boyce Mfg.Co., which has businesses spread over
all these manufacturing environments. It is also very likely that the same product may
migrate from one manufacturing environment to another during its produce life cycle.
The system should be complete enough to support both Discrete as well as Process
manufacturing scenario's. The efficiency of an enterprise depends on the quick flow
of information across the complete supply chain i.e. from the customer to
manufacturers to supplier. This places demands on the ERP system to have rich
functionality across all areas like sales, accounts receivable, engineering, planning,
Inventory Management, Production, Purchase, accounts payable, quality management,
production, distribution planning and external transportation. EDI (Electronic Data
Interchange) is an important tool in speeding up communications with trading
partners.
More and more companies are becoming global and focusing on down-sizing and
decentralizing their business. ABB and Northern Telecom are examples of companies
which have business spread around the globe. For these companies to manage their
business efficiently, ERP systems need to have extensive multi-site management
capabilities. The complete financial accounting and management accounting
requirements of theorganization should be addressed. It is necessary to have

18. centralized or de-centralized accounting functions with complete flexibility to
consolidate corporate information.
For companies undertaking large scale and complex EPC projects, tools should be
available for cost-effective project management, project planning and project control.
After-sales service should be streamlined and managed efficiently. A strong EIS
(Enterprise Information System) with extensive drill down capabilities should be
available for the top management to get a birds eye view of the health of their
organisation and help them to analyze performance in key areas.
EVALUATION CRITERIA
Some important points to be kept in mind while evaluating an ERP software include:
1) Functional fit with the Company's business processes
2) Degree of integration between the various components of the ERP system
3) Flexibility and scalability
4) Complexity; user friendliness
5) Quick implementation; shortened ROI period
6) Ability to support multi-site planning and control
7) Technology; client/server capabilities, database independence, security
8) Availability of regular upgrades
9) Amount of customization required
10) Local support infrastructure
11) Availability of reference sites
12) Total costs, including cost of license, training, implementation, maintenance,
customization and hardware requirements.

19. ERP SYSTEMS – IMPLEMENTATION
The success of an ERP solution depends on how quick the benefits can be reaped
from it. This necessitates rapid implementations which lead to shortened ROI periods.
Traditional approach to implementation has been to carry out a Business Process Re-
engineering exercise and define a ``TO BE'' model before the ERP system
implementation. This led to mismatches between the proposed model and the ERP
functionality, the consequence of which was customizations, extended
implementation time frames, higher costs and loss of user confidence.
The BAAN approach is to conduct a concurrent Business Process Re-engineering
during the ERP implementation and aim to shorten the total implementation time
frame. Two scenario's can be distinguished:
1) Comprehensive Implementation Scenario: Here the focus is more on business
improvement than on technical improvement during the implementation. This
approach is suitable when: Improvements in business processes are required.
Customizations are necessary Different alternative strategies need to be evaluated
High level of integration with other systems are required Multiple Sites have to be
implemented.
2) Compact Implementation Scenario: Here the focus is on technical migration during
the implementation with enhanced business improvements coming at a later stage.
This approach is suitable when; Improvements in business processes are not required
immediately Change-minded organization with firm decision making process
Company operating according to common business practices. Single site has to be
implemented.
ERP SYSTEMS - THE FUTURE
The Internet represents the next major technology enabler which allows rapid supply
chain management between multiple operations and trading partners. Most ERP
systems are enhancing their products to become ``Internet Enabled'' so that customers
worldwide can have direct to the supplier's ERP system. ERP systems are building in
the Workflow Management functionally which provides a mechanism to manage and
control the flow of work by monitoring logistic aspects like workload, capacity,
throughout times, work queue lengths and processing times.

20. Recognizing the need to go beyond the MRP-II and ERP vendors are busy adding to
their product portfolio. BAAN for example has already introduced concepts like IRP
(Intelligence Resource Planning), MRP-III (Money Resources Planning) and has
acquired companies for strategic technologies like Visual Product configuration,
Product Data Management and Finite Scheduling.
RELATIONAL DATABASE
A relational database is a collection of data items organized as a set of formally-
described tables from which data can be accessed or reassembled in many different
ways without having to reorganize the database tables. The relational database was
invented by E. F. Codd at IBM in 1970.
The standard user and application progam interface to a relational database is the
structured query language (SQL). SQL statements are used both for interactive
queries for information from a relational database and for gathering data for reports.
In addition to being relatively easy to create and access, a relational database has the
important advantage of being easy to extend. After the original database creation, a
new data category can be added without requiring that all existing applications be
modified.
A relational database is a set of tables containing data fitted into predefined
categories. Each table (which is sometimes called a relation) contains one or more
data categories in columns. Each row contains a unique instance of data for the
categories defined by the columns. For example, a typical business order entry
database would include a table that described a customer with columns for name,
address, phone number, and so forth. Another table would describe an order: product,
customer, date, sales price, and so forth. A user of the database could obtain a view of
the database that fitted the user's needs. For example, a branch office manager might
like a view or report on all customers that had bought products after a certain date. A
financial services manager in the same company could, from the same tables, obtain a
report on accounts that needed to be paid.
When creating a relational database, you can define the domain of possible values in a
data column and further constraints that may apply to that data value. For example, a
domain of possible customers could allow up to ten possible customer names but be

21. constrained in one table to allowing only three of these customer names to be
specifiable.
The definition of a relational database results in a table of metadata or formal
descriptions of the tables, columns, domains, and constraints.
SAP
SAP, started in 1972 by five former IBM employees in Mannheim, Germany, states
that it is the world's market and technology leader in business application software.
The original SAP idea was to provide customers the ability to interact with a common
corporate database for a comprehensive range of applications. Gradually, the
applications have been assembled and today many corporations, including IBM and
Microsoft, are using SAP products to run their own businesses.
SAP applications, built around their latest R/3 system, provide the capability to
manage financial, asset, and cost accounting, production operations and materials,
personnel, plants, and archived documents. The R/3 system runs on a number of
platforms including Windows NT and uses the client/server model. The latest version
of R/3 includes a comprehensive Internet-enabled package.
In May 1998, SAP, a publicly traded company, had 15,000 employees in over 50
countries, and more than 15,000 R/3 installations. SAP is turning its attention to
small- and-medium sized businesses. A recent R/3 version was provided for IBM's
AS/400 platform.
R/3
R/3 is the comprehensive set of integrated business applications from SAP, the
German company that states it is the market and technology leader in business
application software. R/3 replaced an earlier system, R/2, which is still in use. R/3
uses the client-server model and provides the ability to store, retrieve, analyze, and
process in many ways corporate data for financial analysis, production operation,
human resource management, and most other business processes.
A recent release, R/3 3.1, makes it possible to get to the R/3 database and applications
through Internet access and Web browsers. A sales representative can initiate the
workflow for a sales order by filling out an electronic form on a laptop that will be
"translated" into input for the R/3 system. Other interfaces such as Lotus Notes can
also be used. The Web implementation adheres to the Workflow Client API standard
of the Workflow Management Coalition (WfMC).

22. A more recent version of R/3 adds features designed to speed product delivery by
helping to manage the supply chain.

23. CLIENT/SERVER
Client/server describes the relationship between two computer programs in which one
program, the client, makes a service request from another program, the server, which
fulfills the request. Although the client/server idea can be used by programs within a
single computer, it is a more important idea in a network. In a network, the
client/server model provides a convenient way to interconnect programs that are
distributed efficiently across different locations. Computer transactions using the
client/server model are very common. For example, to check your bank account from
your computer, a client program in your computer forwards your request to a server
program at the bank. That program may in turn forward the request to its own client
program that sends a request to a database server at another bank computer to retrieve
your account balance. The balance is returned back to the bank data client, which in
turn serves it back to the client in your personal computer, which displays the
information for you.
The client/server model has become one of the central ideas of network computing.
Most business applications being written today use the client/server model. So does
the Internet's main program, TCP/IP. In marketing, the term has been used to
distinguish distributed computing by smaller dispersed computers from the
"monolithic" centralized computing of mainframe computers. But this distinction has
largely disappeared as mainframes and their applications have also turned to the
client/server model and become part of network computing.
In the usual client/server model, one server, sometimes called a daemon, is activated
and awaits client requests. Typically, multiple client programs share the services of a
common server program. Both client programs and server programs are often part of a
larger program or application. Relative to the Internet, your Web browser is a client
program that requests services (the sending of Web pages or files) from a Web server
(which technically is called a Hypertext Transport Protocol or HTTP server) in
another computer somewhere on the Internet. Similarly, your computer with TCP/IP
installed allows you to make client requests for files from File Transfer Protocol
(FTP) servers in other computers on the Internet.
Other program relationship models included master/slave, with one program being in
charge of all other programs, and peer-to-peer, with either of two programs able to
initiate a transaction.

25. TECHNOLICAL CAPACITY INVLOVED IN GLOBALIZATION
Technology is a key capacity building service for effective communications,
operations and strategic impact on poverty in the world as it moves from
organization-facing to beneficiary-facing applications. Capacity building is a much
used term in nonprofit organizations. It can mean training, adding headcount and the
ability to scale up programs. But these are often linear growth opportunities.
Increasing the impact of scarce resources requires the productivity enhancing
capabilities that only technology can offer. In short, technology helps the same
people get more done. And this means reaching more of the disadvantaged in the
world for the same donor dollar.
Why is technology such a critical need in addressing world problems such as poverty?
First, we need to look on the global level for the broader context; then we will look at
some on-the-ground program results where technology is making a difference at Save
the Children.
Here are some sobering global statistics: First, the world population continues to grow
at a rate of 1.3% per year (Figure 1).
Figure 1.1: World Population Growth
World Population - 1990-2010
Average Growth Rate Per Year: 1.3%
0
1,000,000,000
2,000,000,000
3,000,000,000
4,000,000,000
5,000,000,000
6,000,000,000
7,000,000,000
1
9
9
0
1
9
9
2
1
9
9
4
1
9
9
6
1
9
9
8
2
0
0
0
2
0
0
2
2
0
0
4
2
0
0
6
2
0
0
8
2
0
1
0

26. Second, world poverty is growing even faster, at a rate of 4.5% per year (Figure 2).
The situation is even worse in sub-Sahara Africa where the poverty growth rate is
8.7% annually (Figure 3).
Figure 1.2: World Poverty Growth
Figure 1.3: Population and Poverty Growth in Africa
Third, this is happening despite a 7.3% growth in donor giving (Figure 4).
Figure 1.4: Donation Growth in the top U.S. Charities
The bottom line is that we are not having the impact needed to stem this rising
problem and begin to reverse it. There is a strong and compelling need for greater
People Living on Less than $2/day (millions)
Average Growth Rate Per Three Years (Excluding China): 4.5%
0
500
1,000
1,500
2,000
2,500
3,000
1981 1984 1987 1990 1993 1996 1999 2001
Total Excluding China Linear ( Excluding China )
Sub-Saharan Africa-Population vs. Poverty (living
on less than $2/day) (in millions)
Average Population Growth Per Three Years: 10.7%
Average Growth in Poverty Rate Per Three Years: 8.7%
0
200
400
600
800
1981 1984 1987 1990 1993 1996 1999 2001
Population Poverty Linear (Population) Linear (Poverty)
Total $$ Raised by the Philanthropy 400 Charities
(in billions)
Average Growth Rate Per Year: 7.3%
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
1997 1998 1999 2000 2001 2002 2003 2004 2005
$$
in
billions

27. effectiveness, efficiency, and yes, capacity building. We need a quantum leap in
impact that requires doing things in radically different ways.
One of the questions technology leaders (and non-technology leaders!) of nonprofits
need to ask is to whom does the application face? Much of the capacity building to-
date has been internal to charitable organizations—bringing knowledge and
information-based work up to current standards. The focus initially has been on
infrastructure building, providing the basic foundations required for technology
applications to be effective, especially in a far-flung international non-government
organization (INGO). It is clear to those of us on the front lines of INGO technology
that we could spend all our time and budget building infrastructure. But that would
mean missing the strategic opportunities that are possible.
Among the beneficiary-facing applications, we can see four orders of technology
(Figure 5.) The first order applications are those used directly by beneficiaries. In the
case of Save the Children (SC), beneficiaries are the children and more often mothers
in our programs. Technology applications that are used directly by beneficiaries are
the most strategic use of technology for an INGO.
Figure 1.5: Orders of Technology Impact
For SC, one example is the literacy training program in our U.S. rural education
programs. Children use the Accelerated Reader application on PCs to take practice
reading exercises and tests. Scores are rolled up to the school and district levels for
review, and nationally for program managers (and potentially for major donors) who
can logon with their browsers and see how many more children are reading at grade
level per donation dollar in support of this program. This is SC’s first end-to-end
technology driven program, and it’s growing at 95% per year in children reached.
More importantly, 5% more children are reading at grade level each year.
1.
Strategic
Applications
2. Program Delivery:
Work Flow Applications
SCM, GMS, GetActive, New RE, etc.
4. Infrastructure:
“Keeping the Lights On”
Desktop PC’s, Email, Internet, Servers, Communications, NetHope
Used by
Beneficiaries
USP Literacy
Program; Bolivia
Education Program
3. Revenue/Donation Delivery:
Work Flow Applications II
GMS, GetActive, DMS, etc.
More
Strategic

28. CONCLUSION
Advances in technology are producing many changes in our society at speeds that are
hard to measure and quantify. The shifts within the job market, the rise of open source
material, and the rethinking of firms will bring about new trends in business. More
efficient ways to handle health care and education material will provide more access,
flexibility, and coverage to all parties. Web 2.0 and the Internet Revolution will
continue to lead the way so social networking, peer production projects and
comprehensive news coverage will be streamlined to become an integral part of the
expansion of communication across cultures. However, the rapid expansion of
information and computer technology also bears certain costs. Workers in sectors
such as agriculture and manufacturing are losing their jobs as innovations in IT create
a greater demand for high-tech workers and introduce efficiencies that make manual
labor obsolete. Furthermore, governmental programs do not provide the assistance
needed to help these workers transition to the technological age, further wedging the
gap between rural and urban America. This disparity is also magnified within the
stratification of international systems: The digital divide that exists among developed
and developing countries is obvious and the high cost of bringing broadband and
technology to third-world countries is an issue that needs to be solved. As individuals
become more engaged with the possibilities that Web 2.0 brings, censorship and the
imprisonment of journalists in autocratic nations will become a larger and larger issue
that should be addressed by the international community. Although information
technology and increased knowledge can empower everyone on an individual level,
the limitations of the existing structures within the job market, socioeconomics, and
governmental sovereignty are hard to cast away; an underlying irony has yet to be
eliminated. If the new technologies are to fulfill their promise, it is necessary to direct
attention towards the costs and concerns that come with the globalization of
technology. Experience with previous technologies suggests that prudent policies can
help us effectively manage the risks associated with new technologies without harm to
their benefits. History also advises that the measures taken must be developed through
close consultation between governments, private sector experts, and stakeholders and
citizens. We can partake in the ongoing debate by staying informed on current events,
and technology facilitates the process in a vital way.

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