Tag: University of Mumbai BMS Notes

Economic System

Any system that involves the mechanism for production, distribution, and exchange of goods apart from consumption of the goods and services within the different entities can be classified as an Economic System. The various kinds of economic systems and their classifications broadly follow the methods by which means of ownership are established. Thus, the mode of ownership of capital leads to the different kinds of economic systems in vogue.

Types of Economic systems

The different kinds of economic systems are Market Economy, Planned Economy, Centrally Planned Economy, Socialist, and Communist Economies. All these are characterized by the ownership of the economics resources and the allocation of the same.

For instance, in a Capitalist Economy, the capital is privately owned and distributed with governmental oversight and regulation. On the other hand, in a Communist Economy, the state itself takes on the task of allocation of resources according to the needs of the different sectors. In a mixed economy, the state looks after some sectors whereas it frees up the other sectors for private participation.

Apart from this, the extent of governmental or state intervention determines the kinds of economic systems that are classified accordingly. In many ways, each of these systems has their own pros and cons when it comes to the welfare of the citizens.

1. Capitalist System

This is the predominant economic system in the world today. In this system, the capital is privately owned and distributed. The distribution mechanism is left to the market to allocate the resources with the emphasis being on efficient allocation of capital. Going by the “Invisible Hand” of Adam Smith that guides the allocation of resources, it is deemed that the market does a good job of determining which sectors receive the capital and how much.

Thus, perfect knowledge and perfect competition are assumed to be given and the market mechanism is taken to determine the beneficiaries and the recipients. In the modern context, this kind of system has come to be associated with the laissez faire mode of capitalism where the state has minimal responsibility and is seen as a “hands off” player rather than being interventionist.

Of course, the state is expected to have regulatory mechanisms in place and ensure that the market corrections are supervised and the state steps in whenever there is a crisis of liquidity or other market failures.

As we are currently witnessing the different kinds of state interventions arising out of the credit crunch, it becomes apparent that this kind of economic system may not be the ideal one as was being propounded over the last few decades.

In this economic system, the four kinds of land, labor, capital, and entrepreneurship are the types of production that make up the mechanism for production and distribution of resources.

The capitalist system of production and distribution has proved to be highly successful in western countries and it has spawned several clones in the east as well.

2. Communist System

In this kind of economic system, the state takes upon itself the allocation and production functions as well as distribution of the goods and services. In this system, capital cannot be privately held and there is communal ownership or what is known as “Communism”. The workers are paid uniform wages and what Marx called the “participation of the workers in the collective bargaining” is a feature of the system.

This model was pursued in the erstwhile USSR before it broke up and has been considered a failure though there is debate whether it was an ideological failure or an implementation failure. Like capitalism, communism also had several takers in the newly independent economies of the east. Thus, the Cold war was fought as much between two blocs as between two competing ideologies.

3. Socialist and Mixed Economic Systems

In these forms of economic systems, the state has control over some areas which it deems to be of primary importance as regards national security and importance to the welfare of the citizens. Thus, the state does not allow private participation in sectors such as defense and essential goods and services whereas the entrepreneurs are provided incentives to contribute in other sectors that the state thinks fit.

This kind of economic system was followed in countries like India till the 1990’s when the economies were liberalized and full private sector participation allowed. This parallels the demise of the centrally planned economy where the command and control of the economy is top down rather than bottom up. This has often led to several imbalances in the distribution and allocation of resources.

Benefits to Society and Individuals in Economic Systems

An economic system, in whatever form is necessary for the society to prosper and function as a cohesive unit. From the primitive societies of barter and the hunter gatherers to the new technocratic ages, there always has been some form of economic systems. The economic systems make up the whole system that comprised the political system, the legal system, and the like.

Some of the benefits are self-evident in the sense that the individuals in a society get paid for their work and in return can buy and exchange goods and services. In other ways, the material well being of the individuals is guaranteed with promise of wages and other inducements. On the other hand, the individuals contribute to the collective pool of wealth by paying taxes that in turn make up a portion of the social security nets.

As can be seen from the prosperity of the western world, the economic systems contribute in a major way towards the sense of well being and security of the citizens. The state guarantees the rights of the citizens and in turn expects duties from them. There are instances of breakdown of economic systems in Sub-Saharan Africa that has resulted in chaos and civil war.

Need for a Social Contract

Thus, one of the pre-requisites of the economic systems is that of a “social contract” between the individual and the state along with the legal and other forms of enforceable contracts. As can be seen, an effective economic and social system not only takes care of the constituents but also enforces the mode of behavior through a set of laws and regulations to be followed. Thus this is a kind of win-win situation for all the players concerned.

In communist societies, the state had an additional responsibility to ensure that the material well being of the citizens is taken care under the auspices of the state. Thus, one of the conditions for communal ownership was the co-ordination of the services and the goods.

The society as a whole gains from the distribution of wealth and its effects on the economy are as real as the whole structure of production and distribution of services are concerned. Society participates by providing services and gets paid in return. On the other hand the political economy enforces the contracts of the participants and the players concerned. Overall, society stands to gain from the methods of production and distribution of goods and services.

Individuals perform duties as per the market rules for participation and are guaranteed their share of the profits according to the norms of the wages prescribed.

Current trends

With the advent of the Internet and the rise of the “dot com” companies, a new kind of Economic system based on the “virtual” exchange of goods and services is arising that leads to dramatic shifts of wealth around the world.

However, there is also a need to refine the current market economies for them to have proper regulation and oversight. Unfettered capitalism is as risky as an absence of economic system. The whole edifice of an economic system can come down if not properly regulated and enforced.

As far as the current market crises are concerned, it is imperative that some kind of “paradigm shifts” occur within the systems and these are taken care by the regulatory authorities.

TCapitalism and socialism are two different political, economic, and social systems blended together by countries around the world. Sweden is often considered a strong example of a socialist society, while the United States is usually considered a prime example of a capitalist country. In practice, however, Sweden is not strictly socialist, and the United States is not strictly capitalist. Most countries have mixed economies with economic elements of both capitalism and socialism.

Capitalism

Capitalism is an economic system where the means of production are owned by private individuals. “Means of production” refers to resources including money and other forms of capital. Under a capitalist economy, the economy runs through individuals who own and operate private companies. Decisions over the use of resources are made by the individual or individuals who own the company.

In a theoretical capitalist society, companies that incorporate are treated by the same laws as individuals. Corporations can sue and be sued; they can buy and sell property, and perform many of the same actions as individuals.

Under capitalism, companies live by the motivation for profit. They exist to make money. All companies have owners and managers. In small businesses, the owners and managers are generally the same people, but as the business gets larger, the owners may hire managers who may or may not have any ownership stake in the firm. In this case, the managers are called the owner’s agents.

The job of the management is more complex than just making a profit. In a capitalist society, the goal of the corporation is maximizing shareholder wealth.

Under capitalism, it’s the government’s job to enforce laws and regulations to make sure there is a level playing field for privately-run companies. The amount of governing laws and regulations in a particular industry generally depends on the potential for abuse in that industry.

Socialism

Socialism is an economic system where the means of production, such as money and other forms of capital, are owned to some degree by the public (via the state.). Under a socialist system, everyone works for wealth that is in turn distributed to everyone. A socialist economic system operates on the premise that what is good for one is good for all, and vise versa. Everyone works for their own good and for the good of everyone else. The government decides how wealth is distributed among public institutions.

In a theoretical socialist economy, there is a more limited free market than in an archetypal capitalist economy, and thus the taxes are usually higher than in a capitalist system. There are government-run health care and educational systems for tax payers. Socialist systems emphasize more equal distribution of wealth among the people.

Comparison between the Capitalist and Socialist Economies

The main difference between capitalism and socialism is the extent of government intervention in the economy.

A capitalist economic system is characterized by private ownership of assets and business. A capitalist economy relies on free-markets to determine, price, incomes, wealth and distribution of goods.

A socialist economic system is characterized by greater government intervention to re-allocate resources in a more egalitarian way.

There are also different aims of the economic systems.

Equality

• Capitalism is unconcerned about equity. It is argued that inequality is essential to encourage innovation and economic development.
• Socialism is concerned with redistributing resources from the rich to the poor. This is to ensure everyone has both equal opportunities and in some forms of socialism – equal outcomes.

Ownership

• Capitalism: Private businesses will be owned by private individuals/companies
• Socialism: The state will own and control the main means of production. In some models of socialism, ownership would not be by the government but worker co-operatives.

Efficiency

• Capitalism: It is argued that the profit incentive encourages firms to be more efficient, cut costs and innovate new products that people want. If firms fail to keep up, they will go out of business. But, this business failure allows resources to flow to new more efficient areas of the economy. Something known as ‘creative destruction’
• Socialism: It is argued that state ownership often leads to inefficiency because workers and managers lack any real incentive to cut costs. One joke under Soviet Communism was ‘They pretend to pay us. We pretend to work.’

Unemployment

• In capitalist economic systems, the state doesn’t directly provide jobs. Therefore in times of recession, unemployment in capitalist economic systems can rise to very high levels, e.g. 20% + in Great Depression
• Employment is often directed by the state. Therefore, the state can provide full employment even if workers are not doing anything particularly essential. Socialism is sometimes associated with Keynesian demand-management attempts to stimulate the economy in times of slump. Keynes himself was not a socialist.

Price controls

Prices are determined by market forces. Firms with monopoly power may be able to exploit their position and charge much higher prices.

In a state-managed economy, prices are usually set by the government this can lead to shortages and surpluses.

Evaluation

There are many different forms of ‘socialism’ from totalitarian ‘Communist regimes’ To democratic socialist parties in Western Europe, who pursue a pragmatic form of redistribution aiming for equality of opportunity rather than equality of outcome.

Pragmatic socialism

Some forms of socialism, adopt a more pragmatic approach. Many industries are left in private hands a recognition free-markets are more efficient in producing goods. However, the socialist society attempts to use progressive taxation and social spending to provide a minimum safety net. Important public services are run directly by the government.

Responsible capitalism

Many ‘advanced capitalist societies’ have considerable government intervention. The government may provide unemployment benefits and public spending on infrastructure, healthcare and education.

Industrial Policy Act 1951

After Independence, the Government of India adopted an approach to develop Industrial sector of India. India adopted several Industrial Policy resolution to develop the Industrial sector.

The Industries (Development and Regulation) Act, (IDRA), came into force from 8th May 1952 under a notification of the Central Government published in the Gazette of India.

The Act extends to whole of India including the state of Jammu & Kashmir with a view to being under Central and regulation of a number of important industries, the activities of which affect the country as a whole and the development of which must be governed by economic factors of all India importance.

Objectives of the Act

The Important objectives are,

1. To Implement the Industrial Policy

The Act provides the necessary means to the Central Government in order to implement its industrial policy.

2. Regulation and Development of Important Industries

The Act brings under the control of the Central Government the development and regulation of a number of important industries listed m the first schedule attached to the Act as the activities of such industries will affect the country as a w о e and, therefore, the development of such important industries must be governed by the economic factors of all India importance.

3. Planning and Future Development of New Undertakings

A system of licensing is introduced under the Act to regulate planning and future development of new undertaking on sound and balance lines and may be deemed expedient in the opinion of the Central Government.

The Act confers on the Central Government power to make rules for the registration of existing undertakings for regulating he production and development of the industries specified in the schedule attached to the Act The Ac a so provided for the constitution of the Central Advisory Council and Development Council.

Scope of the Act

This Act applies to the whole of India including the State of Jammu & Kashmir, The provision of the Act apply to industrial undertaking, manufacturing any of the articles mentioned in the first schedule. An industrial undertaking (also called a factory) for the purpose of the Act is the one where manufacturing process is being carried on:

(a) With the aid of power provided that fifty or more workers are working or were working on any day of the preceding twelve months; or

(b) Without the aid of power provided that one hundred or more workers are working or were working on any day of the preceding twelve months.

(c) The Act applies only on industrial undertakings. Trading houses and financial institutions are outside the purview of the Act.

Industrial Policy Act 1991

The New Industrial Policy of 1991 comes at the center of economic reforms that launched during the early 1990s. All the later reform measures were derived out of the new industrial policy. The Policy has brought comprehensive changes in economic regulation in the country. As the name suggests, these reform measures were made in different areas related to the industrial sector.

As part of the policy, the role of public sector has been redefined. A dedicated reform policy for the public sector including the disinvestment programme were launched under the NIP 1991. Private sector has given welcome in major industries that were previously reserved for the public sector.

Similarly, foreign investment has given welcome under the policy. But the most important reform measure of the new industrial policy was that it ended the practice of industrial licensing in India. Industrial licensing represented red tapism.

Because of the large scale changes, the Industrial Policy of 1991 or the new industrial policy represents a major change from the early policy of 1956.

The new policy contained policy directions for reforms and thus for LPG (Liberalization, Privatization and Globalization). It enlarged the scope of private sector participation to almost all industrial sectors except three (modified). Simultaneously, the policy has given welcome to foreign investment and foreign technology. Since 1991, the country’s policy on foreign investment is gradually evolving through the introduction of liberalization measures in a phasewise manner.

Perhaps, the most welcome change under the new industrial policy was the abolition of the practice of industrial licensing. The1991 policy has limited industrial licensing to less than fifteen sectors. It means that to start an industry, one has to go for license and waiting only in the case of these few selected industries. This has ended the era of license raj or red tapism in the country. The 1991 industrial policy contained the root of the liberalization, privatization and globalization drive made in the country in the later period.

The policy has brought changes in the following aspects of industrial regulation:

1. Industrial delicensing policy or the end of red tapism

The most important part of the new industrial policy of 1991 was the end of the industrial licensing or the license raj or red tapism. Under the industrial licensing policies, private sector firms have to secure licenses to start an industry. This has created long delays in the start up of industries. The industrial policy of 1991 has almost abandoned the industrial licensing system. It has reduced industrial licensing to fifteen sectors. Now only 13 sector need license for starting an industrial operation.

2. Dereservation of the industrial sector

Previously, the public sector has given reservation especially in the capital goods and key industries. Under industrial deregulation, most of the industrial sectors was opened to the private sector as well. Previously, most of the industrial sectors were reserved to the public sector. Under the new industrial policy, only three sectors- atomic energy, mining and railways will continue as reserved for public sector. All other sectors have been opened for private sector participation.

3. Reforms related to the Public sector enterprises

Reforms in the public sector were aimed at enhancing efficiency and competitiveness of the sector. The government identified strategic and priority areas for the public sector to concentrate. Similarly, loss making PSUs were sold to the private sector. The government has adopted disinvestment policy for the restructuring of the public sector in the country. at the same time autonomy has been given to PSU boards for efficient functioning.

4. Foreign investment policy

Another major feature of the economic reform measure was it has given welcome to foreign investment and foreign technology. This measure has enhanced the industrial competition and improved business environment in the country. Foreign investment including FDI and FPI were allowed. Similarly, loan capital has also introduced in the country to attract foreign capital.

5. Abolition of MRTP Act

The New Industrial Policy of 1991 has abolished the Monopoly and Restricted Trade Practice Act. In 2010, the Competition Commission has emerged as the watchdog in monitoring competitive practices in the economy.

The industrial policy of 1991 is the big reform introduced in Indian economy since independence. The policy caused big changes including emergence of a strong and competitive private sector and a sizable number of foreign companies in India.

Computers play a role in every field of life. They are used in homes, business, educational institutions, research organizations, medical field, government offices, entertainment, etc.

Home

Computers are used at homes for several purposes like online bill payment, watching movies or shows at home, home tutoring, social media access, playing games, internet access, etc. They provide communication through electronic mail. They help to avail work from home facility for corporate employees. Computers help the student community to avail online educational support.

Medical Field

Computers are used in hospitals to maintain a database of patients’ history, diagnosis, X-rays, live monitoring of patients, etc. Surgeons nowadays use robotic surgical devices to perform delicate operations, and conduct surgeries remotely. Virtual reality technologies are also used for training purposes. It also helps to monitor the fetus inside the mother’s womb.

Entertainment

Computers help to watch movies online, play games online; act as a virtual entertainer in playing games, listening to music, etc. MIDI instruments greatly help people in the entertainment industry in recording music with artificial instruments. Videos can be fed from computers to full screen televisions. Photo editors are available with fabulous features.

Industry

Computers are used to perform several tasks in industries like managing inventory, designing purpose, creating virtual sample products, interior designing, video conferencing, etc. Online marketing has seen a great revolution in its ability to sell various products to inaccessible corners like interior or rural areas. Stock markets have seen phenomenal participation from different levels of people through the use of computers.

Education

Computers are used in education sector through online classes, online examinations, referring e-books, online tutoring, etc. They help in increased use of audio-visual aids in the education field.

Government

In government sectors, computers are used in data processing, maintaining a database of citizens and supporting a paperless environment. The country’s defense organizations have greatly benefitted from computers in their use for missile development, satellites, rocket launches, etc.

Banking

In the banking sector, computers are used to store details of customers and conduct transactions, such as withdrawal and deposit of money through ATMs. Banks have reduced manual errors and expenses to a great extent through extensive use of computers.

Business

Nowadays, computers are totally integrated into business. The main objective of business is transaction processing, which involves transactions with suppliers, employees or customers. Computers can make these transactions easy and accurate. People can analyze investments, sales, expenses, markets and other aspects of business using computers.

Training

Many organizations use computer-based training to train their employees, to save money and improve performance. Video conferencing through computers allows saving of time and travelling costs by being able to connect people in various locations.

Arts

Computers are extensively used in dance, photography, arts and culture. The fluid movement of dance can be shown live via animation. Photos can be digitized using computers.

Science and Engineering

Computers with high performance are used to stimulate dynamic process in Science and Engineering. Supercomputers have numerous applications in area of Research and Development (R&D). Topographic images can be created through computers. Scientists use computers to plot and analyze data to have a better understanding of earthquakes.

As you know decimal, binary, octal and hexadecimal number systems are positional value number systems. To convert binary, octal and hexadecimal to decimal number, we just need to add the product of each digit with its positional value. Here we are going to learn other conversion among these number systems.

Decimal to Binary

Decimal numbers can be converted to binary by repeated division of the number by 2 while recording the remainder. Let’s take an example to see how this happens.

The remainders are to be read from bottom to top to obtain the binary equivalent.

43₁₀ = 101011₂

Decimal to Octal

Decimal numbers can be converted to octal by repeated division of the number by 8 while recording the remainder. Let’s take an example to see how this happens.

Reading the remainders from bottom to top,

473₁₀ = 731₈

Decimal to Hexadecimal

Decimal numbers can be converted to octal by repeated division of the number by 16 while recording the remainder. Let’s take an example to see how this happens.

Reading the remainders from bottom to top we get,

423₁₀ = 1A7₁₆

Binary to Octal and Vice Versa

To convert a binary number to octal number, these steps are followed:

• Starting from the least significant bit, make groups of three bits.
• If there are one or two bits less in making the groups, 0s can be added after the most significant bit
• Convert each group into its equivalent octal number

Let’s take an example to understand this.

1011001010₁₂ = 2625₈

To convert an octal number to binary, each octal digit is converted to its 3-bit binary equivalent according to this table.

54673₈ = 101100110111011₂

Binary to Hexadecimal

To convert a binary number to hexadecimal number, these steps are followed:

• Starting from the least significant bit, make groups of four bits.
• If there are one or two bits less in making the groups, 0s can be added after the most significant bit.
• Convert each group into its equivalent octal number.

Let’s take an example to understand this.

10110110101₂ = DB5₁₆

To convert an octal number to binary, each octal digit is converted to its 3-bit binary equivalent.

Cache Memory is a special very high-speed memory. It is used to speed up and synchronizing with high-speed CPU. Cache memory is costlier than main memory or disk memory but economical than CPU registers. Cache memory is an extremely fast memory type that acts as a buffer between RAM and the CPU. It holds frequently requested data and instructions so that they are immediately available to the CPU when needed.

Cache memory is used to reduce the average time to access data from the Main memory. The cache is a smaller and faster memory which stores copies of the data from frequently used main memory locations. There are various different independent caches in a CPU, which store instructions and data.

Levels of memory:

• Level 1 or Register
  It is a type of memory in which data is stored and accepted that are immediately stored in CPU. Most commonly used register is accumulator, Program counter, address register etc.
• Level 2 or Cache memory
  It is the fastest memory which has faster access time where data is temporarily stored for faster access.
• Level 3 or Main Memory
  It is memory on which computer works currently. It is small in size and once power is off data no longer stays in this memory.
• Level 4 or Secondary Memory
  It is external memory which is not as fast as main memory but data stays permanently in this memory.

Cache Performance:

When the processor needs to read or write a location in main memory, it first checks for a corresponding entry in the cache.

• If the processor finds that the memory location is in the cache, a cache hit has occurred and data is read from cache
• If the processor does not find the memory location in the cache, a cache miss has occurred. For a cache miss, the cache allocates a new entry and copies in data from main memory, then the request is fulfilled from the contents of the cache.

The performance of cache memory is frequently measured in terms of a quantity called Hit ratio.

Hit ratio = hit / (hit + miss) =  no. of hits/total accesses

We can improve Cache performance using higher cache block size, higher associativity, reduce miss rate, reduce miss penalty, and reduce Reduce the time to hit in the cache.

Cache Mapping:

There are three different types of mapping used for the purpose of cache memory which are as follows: Direct mapping, Associative mapping, and Set-Associative mapping. These are explained below.

1. Direct Mapping
   The simplest technique, known as direct mapping, maps each block of main memory into only one possible cache line. or
   In Direct mapping, assigne each memory block to a specific line in the cache. If a line is previously taken up by a memory block when a new block needs to be loaded, the old block is trashed. An address space is split into two parts index field and a tag field. The cache is used to store the tag field whereas the rest is stored in the main memory. Direct mapping`s performance is directly proportional to the Hit ratio.

i = j modulo m

where

i=cache line number

j= main memory block number

m=number of lines in the cache

For purposes of cache access, each main memory address can be viewed as consisting of three fields. The least significant w bits identify a unique word or byte within a block of main memory. In most contemporary machines, the address is at the byte level. The remaining s bits specify one of the 2^s blocks of main memory. The cache logic interprets these s bits as a tag of s-r bits (most significant portion) and a line field of r bits. This latter field identifies one of the m=2^r lines of the cache.

2. Associative Mapping:
   In this type of mapping, the associative memory is used to store content and addresses of the memory word. Any block can go into any line of the cache. This means that the word id bits are used to identify which word in the block is needed, but the tag becomes all of the remaining bits. This enables the placement of any word at any place in the cache memory. It is considered to be the fastest and the most flexible mapping form.
3. Set-associative Mapping:
   This form of mapping is an enhanced form of direct mapping where the drawbacks of direct mapping are removed. Set associative addresses the problem of possible thrashing in the direct mapping method. It does this by saying that instead of having exactly one line that a block can map to in the cache, we will group a few lines together creating a set. Then a block in memory can map to any one of the lines of a specific set..Set-associative mapping allows that each word that is present in the cache can have two or more words in the main memory for the same index address. Set associative cache mapping combines the best of direct and associative cache mapping techniques.

Application of Cache Memory:

1. Usually, the cache memory can store a reasonable number of blocks at any given time, but this number is small compared to the total number of blocks in the main memory.
2. The correspondence between the main memory blocks and those in the cache is specified by a mapping function.

Types of Cache:

• Primary Cache:
  A primary cache is always located on the processor chip. This cache is small and its access time is comparable to that of processor registers.
• Secondary Cache:
  Secondary cache is placed between the primary cache and the rest of the memory. It is referred to as the level 2 (L2) cache. Often, the Level 2 cache is also housed on the processor chip.

Locality of reference:
Since size of cache memory is less as compared to main memory. So to check which part of main memory should be given priority and loaded in cache is decided based on locality of reference.

Types of Locality of reference

1. Spatial Locality of reference
   This says that there is a chance that element will be present in the close proximity to the reference point and next time if again searched then more close proximity to the point of reference.
2. Temporal Locality of reference
   In this Least recently used algorithm will be used. Whenever there is page fault occurs within a word will not only load word in main memory but complete page fault will be loaded because spatial locality of reference rule says that if you are referring any word next word will be referred in its register that’s why we load complete page table so the complete block will be loaded.

The Sequential Access Storage Device (SASD) is a computer storage device whose content is accessed sequentially, as opposed to directly.

For example, a tape drive is a SASD,

while a disk drive is a Direct Access Storage Device(DASD).

A direct-access storage device (DASD) is another name for secondary storage devices that store data in discrete locations with a unique address, such as hard disk drives, optical drives and most magnetic storage devices.

It is a technology and term coined for storage devices that IBM developed for use with mainframe computers and some microcomputers. These developed into the modern hard disk and its variants like the optical disk, which today we would simply call secondary storage.

Direct-access storage devices allow the host computer to access data directly from wherever it is stored within the storage device because each data chunk is saved in a discrete and separate location from other chunks, complete with a unique address. This allows the computer to directly point to that location to get the data. Access methods include indexed, sequential and direct (incorrectly referred as random access).

Even if the exact location of the data is known, the speed of access is largely dependent on the capability of the storage device; for example, even if the exact data location within a tape drive is known, the only access method is sequential access because of the inherent design of the tape, which means it must go through all of the locations preceding the one that is needed. Additionally, the tape cannot run very fast. This is in contrast to a direct access disk, which can quickly spin the disk and move the read/write head to the correct track and sector in fractions of a second.

Modern DASDs are internal and external hard disk drives that connect directly to the host computer via an IDE, SATA, eSATA, USB or FireWire interface. Unlike network-attached storage (NAS), DASDs become inaccessible once the device they are connected to goes offline.

A basic system configuration consists of a single instance of the system running on an application server. That server connects to a single instance of the database that is available on a database server.

If the integration framework is also configured for deployment, then you must set up additional messaging queues. The additional queues enable the system to send data to the external systems and receive data from the external systems by using queues.

The basic configuration is appropriate for the following situations:

• Development configuration
• Quality assurance configuration (to test the development work)
• Production system with a user load of 50 users or fewer users

A basic configuration might overload, depending on how much processing is performed within the application. If you need a configuration that handles more traffic than a basic configuration, then you can add Java™ virtual machines, or you can use the clustered configuration.

Even with fewer than 50 user loads, the basic system configuration can overload if there is significant processing. For example, scheduled jobs (such as cron tasks) and reports require significant memory and processing power. If the basic system configuration performs poorly, you can deploy the clustered configuration.

The default reporting engine is run from the application server that provides reporting capabilities.

The following diagram shows the main components in the basic configuration.

Figure 1. Basic system configuration

An operating system (OS) is basically a collection of software that manages computer hardware resources and provides common services for computer programs. Operating system is a crucial component of the system software in a computer system.

These are some few common services provided by an operating system:

• Program execution
• I/O operations
• File System manipulation
• Communication
• Error Detection
• Resource Allocation
• Protection

A file represents a collection of related information. Computers may store files on the disk (secondary storage), for long-term storage purpose. Some Examples: magnetic tape, magnetic disk and optical disk drives like CD, DVD. They have its own properties like speed, capacity, data transfer rate and data access methods.

A file system is generally organized into directories for easy navigation and usage. These directories can contain files and other directions. Some of the major activities of an operating system with respect to file management are:

• Program requires to read a file or write a file.
• Operating system gives the permission to the program for operation on file.
• This permission varies from read-only, read-write, denied and so on.
• The Operating System provides an interface to the user to create/delete files and directories.
• The Operating System provides an interface to create the backup of file system.

Important functions of an operating System:

1. Security: The operating system uses password protection to protect user data and similar other techniques. it also prevents unauthorized access to programs and user data.
2. Control over system performance: Monitors overall system health to help improve performance. records the response time between service requests and system response to have a complete view of the system health. This can help improve performance by providing important information needed to troubleshoot problems.
3. Job accounting: Operating system Keeps track of time and resources used by various tasks and users, this information can be used to track resource usage for a particular user or group of user.
4. Error detecting aids:
   Operating system constantly monitors the system to detect errors and avoid the malfunctioning of computer system.
5. Coordination between other software and users: Operating systems also coordinate and assign interpreters, compilers, assemblers and other software to the various users of the computer systems.
6. Memory Management: The operating system manages the Primary Memory or Main Memory. Main memory is made up of a large array of bytes or words where each byte or word is assigned a certain address. Main memory is a fast storage and it can be accessed directly by the CPU. For a program to be executed, it should be first loaded in the main memory. An Operating System performs the following activities for memory management: It keeps tracks of primary memory, i.e., which bytes of memory are used by which user program. The memory addresses that have already been allocated and the memory addresses of the memory that has not yet been used. In multi programming, the OS decides the order in which process are granted access to memory, and for how long. It Allocates the memory to a process when the process requests it and deallocates the memory when the process has terminated or is performing an I/O operation.
7. Processor Management: In a multi programming environment, the OS decides the order in which processes have access to the processor, and how much processing time each process has. This function of OS is called process scheduling. An Operating System performs the following activities for processor management. Keeps tracks of the status of processes. The program which perform this task is known as traffic controller. Allocates the CPU that is processor to a process. De-allocates processor when a process is no more required.
8. Device Management: An OS manages device communication via their respective drivers. It performs the following activities for device management. Keeps tracks of all devices connected to system. designates a program responsible for every device known as the Input/Output controller. Decides which process gets access to a certain device and for how long. Allocates devices in an effective and efficient way. Deallocates devices when they are no longer required.
9. File Management: A file system is organized into directories for efficient or easy navigation and usage. These directories may contain other directories and other files. An Operating System carries out the following file management activities. It keeps track of where information is stored, user access settings and status of every file and more… These facilities are collectively known as the file system.

Moreover, Operating System also provides certain services to the computer system in one form or the other.
The Operating System provides certain services to the users which can be listed in the following manner:

1. Program Execution: The Operating System is responsible for execution of all types of programs whether it be user programs or system programs. The Operating System utilises various resources available for the efficient running of all types of functionalities.
2. Handling Input/Output Operations: The Operating System is responsible for handling all sort of inputs, i.e, from keyboard, mouse, desktop, etc. The Operating System does all interfacing in the most appropriate manner regrading all kind of Inputs and Outputs.
   For example, there is difference in nature of all types of peripheral devices such as mouse or keyboard, then Operating System is responsible for handling data between them.
3. Manipulation of File System: The Operating System is responsible for making of decisions regarding the storage of all types of data or files, i.e, floppy disk/hard disk/pen drive, etc. The Operating System decides as how should the data should be manipulated and stored.
4. Error Detection and Handling: The Operating System is responsible for detection of any types of error or bugs that can occur while any task. The well secured OS sometimes also acts as countermeasure for preventing any sort of breach to the Computer System from any external source and probably handling them.
5. Resource Allocation: The Operating System ensures the proper use of all the resources available by deciding which resource to be used by whom for how much time. All the decisions are taken by the Operating System.
6. Accounting: The Operating System tracks an account of all the functionalities taking place in the computer system at a time. All the details such as the types of errors occurred are recorded by the Operating System.
7. Information and Resource Protection: The Operating System is responsible for using all the information and resources available on the machine in the most protected way. The Operating System must foil an attempt from any external resource to hamper any sort of data or information.

All these services are ensured by the Operating System for the convenience of the users to make the programming task easier. All different kinds of Operating System more or less provide the same services.