Basic Computing Concepts

Part 1: Basic Computing Concepts

• An overview of fundamental concepts related to computers and information technology
• Covers computer software, operating systems, data communication, wired and wireless technologies

Computer Definition

• A computer is a machine that can take instructions and perform computations based on those instructions
• It's a programmable machine designed to sequentially and automatically carry out arithmetic or logical operations

Hardware Components

• Memory enables computers to store data and programs, at least temporarily
• Mass storage devices allow computers to permanently retain data
• Common mass storage devices include disk drives and tape drives
• Input devices, like keyboards and mice, are the means of entering data and instructions
• Output devices, like display screens and printers, allow the user to see the results
• The Central Processing Unit (CPU) is the computer's heart and executes instructions

Types of Computers

• Personal computers are small, single-user computers based on a microprocessor, useful for individuals
• Workstations are high-end microcomputers designed for technical and scientific applications, used by one person at a time
• Minicomputers are multi-user computers capable of supporting from tens to hundreds of users simultaneously
• Mainframes are powerful multi-user computers that can support many hundreds or thousands of concurrent users
• Supercomputers are extremely fast computers used for highly intensive calculation tasks
• Embedded computers are computers with a fixed function

Computer Software

• Software is a generic term for computer programs, procedures, and documentation
• It is an ordered sequence of instructions for changing the computer hardware in a certain predefined sequence
• Application software is designed to help the user perform specific tasks
• System software is designed to operate the computer hardware and provide a platform for application software
• Commercial Off-The-Shelf (COTS) application programs are intended to be used "as is", and users can perform tasks such as word processing, sending and receiving electronic mail, and analyzing statistical data

Operating Systems (OS)

• An operating system (OS) is the most important program that runs on a computer
• It performs basic tasks such as recognizing input from the keyboard, sending output to the display screen, managing files, and controlling peripheral devices

Functions of Operating Systems

• Provide Interface: Operating systems provide an interface to communicate with the user (CLI or GUI).
• Process Management: Operating systems manage and switch between processes for efficient execution
• Memory Management: Operating systems coordinate the use of memory to optimize performance
• Input/output management involves co-ordination and assignment of different output and input devices for effective execution.
• File management manages logical units of storage, allowing users to create, open, transfer, and delete files
• Establishment and enforcement of a priority system
• Establishes data security and integrity
• Network Management: Enables systems to use networking protocols

Classification of Operating Systems

• Single-user operating systems allow only one user at a time
• Multi-user operating systems allow multiple users to run programs simultaneously
• Single-tasking operating systems are designed to manage the computer so that one user can effectively do one thing at a time
• Multi-tasking operating systems allow more than one program to run concurrently
• Time-sharing operating system use algorithms to share CPU time with more than one process
• Real-time operating system responds to input instantly (used in machinery, scientific instruments, and industrial systems)

Data Communication

• The transmission of digital messages to devices external to the message source
• It involves special measures to prevent data distortion, especially when transferred to devices outside the computer's circuitry

Data Communication Model

• It shows data traveling from a Source (telephone, personal computer) to a Destination
• Transmitter transforms data into a transmittable form
• Receiver accepts transmitted signals and converts them
• Transmission media channel is the path the data follows to reach the destination device
• Noise is unwanted signals that can distort the signal

Data Network Benefits

• Facilitating communications: Facilitates communication via email, instant messaging etc.
• Sharing hardware: In a networked environment, computers can share hardware resources
• Sharing files, data, and information: Allows users to access data/information stored on other computers in the network
• Sharing software: Users can run application programs on remote computers
• Improved Security: Centralized collection of data and software resources enhances security

Wired and Wireless Technologies

• Data Communication Media provides a physical entity for the conveyance of signals
• Guided media use a solid medium, such as copper wire, and is called wired transmission
• Twisted pair cable use two wires twisted together
• Coaxial cable consists of copper wire wrapped with an insulating layer
• Optical fiber cable consists of glass fiber wrapped in protective layers to transmit light
• Unguided media transmit electromagnetic signals through the atmosphere or outer space and is called wireless transmission
• Terrestrial microwaves use earth-based transmitter and receiver
• Communications satellites use microwave radio as their telecommunications medium
• Wireless LANs enable communication between multiple devices in a limited area.
• Infrared communication can transmit signals between devices within small distances

Data Communication Networks

• Communication networks are classified into two major categories
• Local Area Network (LAN) has a small scope, it's used to connect computers and other devices in a single location
• While Wide Area Network (WAN) has a large geographical area

Part 2: Information Technology in banking sector

• An overview of IT systems in banking and their development processes.
• Includes IT Systems, Evolution of IT Systems in Banks, Desktop Systems, IT policies, and Security Risks among others.

IT Systems Overview

• To remain competitive, banks must continuously innovate and invest in information technology
• Support banking and financial operations using off-the-shelf packages, or develop in-house or through outsourcing banking systems

Core Banking Packages

• Oracle Financial Services Software is an IT solution provider to the banking industry
• Temenos T24, BankFusion Universal Banking, CSB, Misys Equation, and Misys Midas Plus

Success Factors in Core Banking Package Selection

• Ease of use by end-users
• Training requirements & costs involved
• Alignment with business goals and objectives
• Budget constraints
• Compatibility with existing systems/hardware
• Availability of consultants, skilled staff, and support
• Other political/social reasons

Tememos T24 Features

• The most technically advanced banking system available today
• Built on open architecture offers low cost of ownership, uses HTTP, XML, and J2EE
• Supports the full Microsoft stack, achieving high scalability through an efficient and scalable architecture
• Permits local programming in Java to further extend the functionality and flexibility

Banking Services offered by T24

• Retail banking offerings: CRM, Cash transactions, Payments, Credit and Deposit
• Corporate Banking offers Payments, Cash management, Commercial Lending and Syndicated Lending, Trade finance, and Internet banking
• Treasury Operations offerings are: FOREX, Money market, Securities and repos, FRAS and swaps and Futures and options

Islamic Banking functionality in T24

• Murabaha
• Musharaka
• Bei Bithaman Ajil
• Ijara
• Bei Salam
• Istisnaa
• Wakala

Evolution of IT Systems in Banks (Pakistan)

• Automation/computerization was almost non-existent 2.5 decades ago
• MCB was first to adopt technology as a policy
• In 1996, UBL developed Unibank, that received reasonable Popularity
• Prior to 2000 no bank had ERP, but after 2002 banks reserved huge budgets for computerization

Desktop Systems for Word-processing

• Word processing needs a computer, a special program called a word processor, and optionally a printer
• Electronic text can be moved around, misspelled terms can be corrected, and spelling/grammar checkers
• Word processors vary, but support basic features

Basic features of all word processors

• Insert text
• Delete text
• Cut and paste
• Copy
• Page size and margins

Additional features that are supported by Advanced word processors

• File management
• Font Specifications
• Footnotes and cross-references
• Graphics
• Headers, footers and page numbering
• Layout
• Macros

Spreadsheets

• The invention of electronic spreadsheets was a major factor in convincing people of the worth of microcomputers in the early year