IT245 Business Information Systems

Business Information SystemsUnit 39 min read

IT Infrastructure & Emerging Tech: Hardware, Cloud, AI, IoT & Future Trends

Unit 3 of Business Information Systems explores the foundational IT infrastructure (hardware, software, networks) and cutting-edge technologies (cloud computing, AI, IoT, blockchain) that power modern businesses, with real-world applications in Nepali and global companies.

Core Concepts: IT Infrastructure

IT infrastructure refers to the physical and virtual resources that enable information processing, storage, and communication in an organization. It includes hardware, software, networks, data centers, and cloud services—all working together to support business operations.

1. Hardware Components

Hardware is the physical equipment that processes data. Key components include:

  • Central Processing Unit (CPU): The "brain" of a computer, executing instructions.
  • Memory (RAM): Temporary storage for active data.
  • Storage (HDD/SSD): Permanent data storage.
  • Input/Output Devices: Keyboards, monitors, printers, etc.
  • Networking Devices: Routers, switches, modems.

Worked Example: A Bank’s Server Room A bank like Nabil Bank uses high-performance servers with RAID storage (Redundant Array of Independent Disks) to ensure data redundancy and fast transaction processing. If one disk fails, the system continues running without downtime.

Processes transactions → RAMCPUTemporary Storage → HDD/SSD (RAID)RAMPermanent Storage → DatabaseRedundancy: If one disk fails, system continuesHDD/SSD (RAID)Serves → Bank Transactions (Nabil Bank Example)DatabaseBank Server Workflow
RAID storage ensures data redundancy in Nabil Bank’s server room

Advantages of Robust Hardware: ✔ Reliability: Redundancy prevents crashes. ✔ Speed: Faster CPUs and SSDs improve performance. ✔ Scalability: Can handle more users (e.g., Daraz during sales).

Disadvantages: ✖ Cost: High-end hardware is expensive. ✖ Maintenance: Requires skilled IT staff.


2. Software Infrastructure

Software includes operating systems (OS), middleware, and application software that manage hardware and provide services.

Operating Systems (OS)

  • Windows Server: Used in corporate environments.
  • Linux: Preferred for servers due to stability and security.
  • macOS: Common in creative industries.

Example: eSewa’s Backend eSewa uses Linux-based servers for security and scalability, ensuring millions of transactions run smoothly.

Middleware

Software that connects different applications (e.g., APIs in mobile apps like Pathao).

Example: Daraz’s Order Processing When you place an order, Daraz’s middleware communicates between:

  1. Frontend (Website/App)
  2. Inventory Database
  3. Payment Gateway (Khalti/eSewa)
  4. Logistics (Nepal Post/DHL)
sequenceDiagram
    participant User
    participant DarazApp
    participant InventoryDB
    participant PaymentGateway
    participant Logistics

    User->>DarazApp: Places Order
    DarazApp->>InventoryDB: Check Stock
    InventoryDB-->>DarazApp: Confirm Availability
    DarazApp->>PaymentGateway: Process Payment
    PaymentGateway-->>DarazApp: Confirm Payment
    DarazApp->>Logistics: Dispatch Order

3. Network Infrastructure

Networks enable communication between devices. Key components:

Component Role Example in Nepal
LAN (Local Area Network) Connects devices in a small area Office Wi-Fi at NTC headquarters
WAN (Wide Area Network) Connects LANs over long distances Ncell’s nationwide mobile network
Router Directs traffic between networks Home router (e.g., TP-Link)
Switch Connects devices in a LAN Used in university labs
Firewall Blocks unauthorized access Banks use firewalls for security

Example: NTC’s Network Infrastructure NTC uses fiber-optic cables and microwave towers to provide internet across Nepal. Their SD-WAN (Software-Defined Wide Area Network) optimizes traffic routing for reliability.

Fiber Optic → Regional Hubs (Pokhara, Biratnagar)Microwave Towers → Remote AreasData Center (Kathmandu)Local Exchanges → Customer Homes (Wi-Fi/Cable)SD-WAN optimizes traffic routingRegional HubsNTC’s Network Infrastructure
NTC’s multi-layered network uses fiber, microwave, and SD-WAN for nationwide coverage

4. Data Centers and Cloud Computing

Example: AWS EC2IaaS (Infrastructure as a Service)Example: Google App EnginePaaS (Platform as a Service)Example: Google WorkspaceSaaS (Software as a Service)Cloud Service Models
Comparison of cloud service delivery models with Nepali-relevant examples

Data Centers

Physical facilities housing servers, storage, and networking equipment.

Example: Google’s Data Centers Google uses modular data centers with AI-driven cooling to reduce energy use.

Cloud Computing

Delivers computing services (storage, processing) over the internet.

Cloud Model Description Nepali Example
Public Cloud Shared resources (e.g., AWS, Google Cloud) Daraz uses AWS for e-commerce
Private Cloud Dedicated for a single organization Nabil Bank’s secure internal cloud
Hybrid Cloud Mix of public and private NTC uses hybrid for reliability

Advantages of Cloud Computing: ✔ Cost-Effective: Pay-as-you-go (e.g., small businesses on Google Cloud). ✔ Scalability: Handles traffic spikes (e.g., Diwali sales on Daraz). ✔ Disaster Recovery: Backups stored remotely.

Disadvantages: ✖ Security Risks: Data breaches (e.g., if Khalti’s cloud is hacked). ✖ Dependency on Internet: Downtime if connection fails.


In the Real World

  1. Pathao’s Ride-Hailing App

    • Uses: Cloud computing (AWS) for real-time ride matching, IoT sensors in vehicles for GPS tracking, and AI for dynamic pricing.
    • How: When you request a ride, Pathao’s algorithm matches you with the nearest driver using geospatial data and machine learning.
  2. Nepal Rastra Bank’s Digital Payments

    • Uses: Blockchain for secure transactions (e.g., eSewa’s fraud detection).
    • How: Transactions are recorded immutably, reducing fraud risks.
  3. Himalayan Java’s Supply Chain

    • Uses: IoT sensors on coffee beans to track temperature/humidity during transport.
    • How: Ensures high-quality coffee reaches customers without spoilage.

5. Emerging Technologies

A. Artificial Intelligence (AI) and Machine Learning (ML)

AI enables systems to learn and make decisions.

016.7533.550.2567202012202128202245202367Adoption Rate (%)
Growth of AI adoption in Nepali businesses (2020-2023, % of SMEs)

Example: Ncell’s Chatbot Ncell uses NLP (Natural Language Processing) in its chatbot to answer customer queries about bills and plans.

Applications in Nepal:

  • Banking: Nabil Bank’s AI detects fraudulent transactions.
  • Healthcare: AI analyzes X-rays at Patan Hospital.
  • Retail: Daraz recommends products based on browsing history.

B. Internet of Things (IoT)

Devices connected to the internet, collecting and sharing data.

Example: Smart Traffic Lights in Kathmandu IoT sensors adjust traffic light timings based on real-time congestion data, reducing delays.

graph TD
    A["IoT Sensors"] -->|"Detect Traffic"| B["Cloud Server"]
    B -->|"Analyze Data"| C["AI Algorithm"]
    C -->|"Adjust Timings"| D["Traffic Lights"]

C. Blockchain

Decentralized ledger for secure transactions.

Example: eSewa’s Fraud Prevention Blockchain ensures that once a transaction is recorded, it cannot be altered, preventing fraud.

D. 5G and Edge Computing

  • 5G: Faster internet speeds (critical for Pathao’s real-time tracking).
  • Edge Computing: Processes data closer to the source (e.g., smart factories in Chaudhary Group).

6. IT Infrastructure Management

Managing IT infrastructure involves:

  1. Capacity Planning: Ensuring resources meet future needs (e.g., Daraz during sales).
  2. Disaster Recovery: Backup plans (e.g., NTC’s redundant servers).
  3. Security: Firewalls, encryption, and access controls (e.g., banks use 2FA).

Example: NTC’s Disaster Recovery Plan

  • Backup Power: Generators during outages.
  • Redundant Servers: If one fails, another takes over.

Exam Tip

This unit is heavily tested in TU exams with:

  1. Definitions: Know terms like RAID, SD-WAN, IoT, blockchain.
  2. Diagrams: Draw network topologies, cloud models, or data center layouts.
  3. Case Studies: Expect questions on Nepali companies (Nabil Bank, Daraz, NTC) using IT infrastructure.
  4. Comparisons: Tables comparing public vs. private cloud, LAN vs. WAN.
  5. Scenario-Based: "How would you design a system for X?" (e.g., a hospital’s IoT setup).

Common Mistakes to Avoid: ❌ Confusing cloud models (public/private/hybrid). ❌ Forgetting real-world examples (always link theory to Nepali companies). ❌ Ignoring security in infrastructure discussions.


Final Visual: IT Infrastructure Layers in a Modern Business

Based on the TU BITM syllabus for Business Information Systems (IT245), unit 3.

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