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What is Operations Research and Operations Management?

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Steps in Operations Management

The key steps to be followed in operations management are as follows – 

  1. Establishment of the organisation structure.
  2. Recruit the right staff for the right job.
  3. Develop strategies towards all operation processes.

Why is Operations Management Important?

Operations Management is the nucleus of any company, big or small. The following points explain the importance of operations management and the role of Operations Managers –  

  1. Operation management handles a company’s daily macro and micro activities seamlessly.
  2. It monitors the operating system of a company and enables it to make correct decisions.
  3. Operation management oversees timely production, design, maintenance, warehousing, logistics, distribution network, etc. and even takes charge in case of sudden abnormalities in the execution process.
  4. Operations management ensures brand promotion and customer satisfaction by improving the quality of products.
  5. Customer feedback management is also another important function.
  6. Operation management looks after the revenue health of an organisation and constantly strives to promote cost-effective production methods to improve bottom lines.
  7. Operations Managers are responsible for analysing and fixing up financial budgets. 
  8. It is also employee-centric and motivates them to be better performers.
  9. Operations management helps to build relationships with stakeholders and suppliers. 

Elements of Operations Research

The essence of Operations Research is providing solutions to operational problems through numerical and statistical analysis. The different processes or tools taken up are the followings –

  1. Discrete event simulation
  2. Constraint programming
  3. Mathematical programming
  4. Optimal theory control
  5. Combinatorial optimization
  6. Dynamic programming
  7. Game theory and differential games
  8. Risk analysis
  9. Optimization and linear programming
  10. Stochastic modelling
  11. Artificial Intelligence and network analysis

Three common features in all operations research endeavours are as follows –

Optimization

The purpose is to reach the best performance option with the given parameters. The process involves weighing in all probable solutions and then filtering them to find the optimum one.

Simulation

This is the process of building models around the given problems. Here, solutions can be generated by applying numerical analysis. Each probable solution is tested thoroughly before applying the same in real situations.   

Probability and statistics 

The model is fortified by mathematical algorithms and history data which support finding out operations insights. Risk analysis is also a major activity of this tool. This offers not only reliable solutions but also meaningful predictions for the future. 

Steps in Operations Research

Operations research is a mathematical analysis of operational problems by breaking down large issues into elemental components and helping the management of an organisation in decision-making. The sequence followed may be broadly stated as follows –

  1. Identification of a problem that merits a solution.
  2. Construction of a model that mimics the problem in a real situation.
  3. Using the model to reach a solution.
  4. Testing individual solutions on the model and determining their success and limitations. Finally, the best-suited solution is chosen. 

Why is Operations Research Important?

Operation research may be used at different stages of Government or corporate functions, business operations that may include a product or a service sale or similar other complex operational activities. The key uses are as follows –

  1. Operation research helps in different types of urban and rural planning.
  2. It is helpful for network optimization and engineering.
  3. Inventory management can be done more efficiently because of operations research. 
  4. Operations research is used for Enterprise Resource Planning (ERP) and Supply Chain Management (SCM).
  5. The risk of the firm can be minimised if proper techniques of operations research are followed.
  6. Operation research helps in time management as well as logistics optimisation.

The method of operations research started during World War II days by the planning wing of the military. Later on, such techniques were passed on to the Government, society and business at large. However, operations research today is way different from those practised in those days in terms of technological approach.

Research is required mostly for project management, personnel management, and production management. Risk analysis, cost control and keeping time schedules are the key parameters during research.

Present-day professionals are offered robust subject courses like fintech in banking and finance, so that they may become powerful Operations Managers or Operations Research Analysts in the future. 

Conclusion

The demand for Operation Research Analysts is growing because each organisation wishes to make a correct decision based on scientific research and modelling. An MBA in fintech is all the aspirant needs to complete for his or her successful grooming. Fintech in banking and finance gives a double advantage of management skills and modern global technology to the candidate over and above his or her core finance knowledge. 

The MBA in Fintech course at Imarticus will give prospective candidates the perfect start to their careers. The duration of the course is 2 years. The mode of training is offline. 

Visit the official website of Imarticus for more details on this course. 

Using Regression Analysis for Supply Chain Management

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Regression analysis is a statistical technique that has been helping businesses optimise their operations for years by predicting future trends based on past data.

Foundationally, this type of analysis can consider various factors and determine data-driven business outcomes. It is also highly effective in improving and optimising supply chains.

Companies can use regression analysis techniques to forecast demand and supply or understand general market patterns. Predicting demand and supply accurately can minimise waste and reduce costs, which is crucial for effective supply chains. Regression analysis also assists in making other data-driven decisions in supply chains, such as pricing strategies, inventory management, and resource allocation.

What is Regression Analysis?

Regression analysis is a statistical method for investigating the relationship between one or more independent variables and a dependent variable. It’s primary goal is to estimate the strength and direction of the relationship between these variables. The method analyses historical data, identifies trends and patterns, and then uses these insights to predict future outcomes.

Regression analysis, in essence, helps us understand how changes in one variable can affect another. For instance, a company may use regression analysis to investigate how vendor changes can affect supply pipelines. The company can then forecast the impact by analysing historical data and estimating the strength and direction of the relationship between vendors and supply patterns.

How is regression analysis used in supply chains?

Regression analysis can help businesses accurately predict future demand and supply patterns. This, in turn, allows them to manage inventory better, allocate resources, and ultimately save costs.

Forecast Demand Accurately

Demand forecasting is a critical application of regression analysis in supply chains. Businesses can identify trends and patterns in past sales data to inform future demand forecasts. Seasonal disruptions, economic conditions, and customer behaviour are all factors that can be identified using regression analysis. This data can be used to make more accurate demand forecasts, allowing businesses to avoid stockouts, optimise inventory levels, and reduce waste.

Optimise Pricing Strategies

Another application of regression analysis in supply chains is the optimisation of pricing strategies. Regression analysis can help businesses optimise their pricing strategies to maximise revenue and profitability by analysing past sales data and identifying factors influencing pricing, such as competition and customer behaviour.

Identify Patterns in Supplier Performance

Regression analysis is used in supply chains for various purposes other than demand forecasting and pricing optimisation. For instance, this type of analysis can assist businesses in identifying patterns in supplier performance, which can then be used to optimise the procurement process and minimise supply chain disruptions.

Evaluate the Impact of External Factors

Regression analysis can also be used to assess how external factors affect supply chain operations. Businesses can use regression analysis to assess the impact of changes in economic conditions, regulatory changes, or weather patterns on their supply chain operations. This data can be used to make educated decisions about resource allocation, inventory management, and other critical supply chain functions.

Identify Risks and Opportunities

Finally, regression analysis can assist businesses in identifying potential risks and opportunities within their supply chain. Businesses can identify patterns and trends in historical data that may indicate potential risks or opportunities. A sudden increase in demand for a specific product, for example, may indicate an opportunity for increased sales, whereas a sudden drop in supplier performance may indicate a potential supply chain disruption.

Benefits of using regression analysis for supply chains

Here are some benefits of using regression analysis in supply chain operations:

Improved Demand Forecasting: By analysing past sales data and identifying patterns and trends, regression analysis can assist businesses in forecasting future demand.

Optimise Inventory Management: Businesses can optimise inventory levels and reduce waste by accurately forecasting demand.

Improved Pricing: Regression analysis can assist businesses in identifying pricing factors such as competition and customer behaviour, allowing them to optimise pricing strategies and maximise revenue and profitability.

Accurate Supplier Performance Evaluation: Regression analysis can evaluate supplier performance and identify improvement opportunities for the procurement process.

Better Resource Allocation: Businesses can optimise resource allocation and operational efficiency by analysing data on factors such as lead times, transportation costs, and production capacity.

Enhanced Decision Making: Regression analysis provides valuable insights into the complex relationships that drive supply chain operations, enabling businesses to make informed decisions that result in better outcomes.

Reduced Costs: Businesses can reduce costs and improve profitability by optimising inventory levels, pricing strategies, and resource allocation.

Competitive Advantage: Businesses can gain a competitive advantage by making more informed and strategic decisions by leveraging the insights provided by regression analysis.

Conclusion

Regression analysis is a powerful tool that can assist businesses in optimising supply chain operations, lowering costs, and increasing profitability. Businesses can make well-informed choices driving success and growth in a constantly changing marketplace by leveraging the insights provided by regression analysis.

If you are looking for a supply chain officer course, check out the Executive Certificate Programme For Global Chief Supply Chain And Operations Officer by IIM Raipur and Imarticus. Grab the opportunity to learn from the best in the industry today! Visit their website for more details.

The key purpose of backend development and its importance

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Have you ever wondered what happens on the back end of the websites and applications you enjoy? You might be familiar with the user interface and frontend design, but what about the intricate processes that enable everything to function flawlessly? 

Full Stack Developer Course

Backend developer skills are used in this situation. Back end Development oversees the servers, databases, and applications that power any digital platform’s user interface. We wouldn’t have access to the internet’s limitless potential without it. 

In this day and age, when no one can imagine their life without digital gadgets and applications, the back-end developer position is in high demand. Its significance in web development is resounding, and they have evolved into lucrative employment in various businesses like Microsoft and Facebook. According to statistics, 65% of recruiters anticipate employing at least 11 developers in 2023.

Working on server-side software, which focuses on everything a website can’t show you, is what back-end development entails. Databases, back-end logic, application programming interfaces (APIs), architecture, and servers are the main areas of attention for back-end developers since they guarantee the website functions properly.

We’ll explore the main goal of backend development in this blog and explain why it’s crucial to the success of any digital business. 

What is Back-end Development?

Back-end development is the process of creating a web application’s server-side elements. These elements, which include databases, APIs, and other services that support the front end, are created and maintained by the back-end developer (user interface).

Back-end developers are frequently entrusted with setting up the infrastructure necessary to store the data generated by their apps and with designing the interfaces for doing so. They may also create tools that let other developers work on their projects more effectively by automating processes like code testing or deployment management.

The Key Purpose of Back-end Development

Back-end development is building an application’s back end, which handles and stores data. It’s an essential component of any software project since it dictates the functionality and features of your finished product.

Back-end developers may work on projects in numerous industries and sectors, including games, mobile apps, and eCommerce websites. They frequently collaborate closely with frontend engineers, who are experts in creating user interfaces, but they also provide feedback on issues like security or scalability.

Top back-end development technologies to learn in 2023

  • Java, Python, PHP, Ruby, C#, JavaScript.
  • Node.js, Laravel, Ruby on Rails, Django, Spring.
  • Databases, including Oracle, PostgreSQL, MongoDB, and MySQL.
  • Servers include IIS, Nginx, and Apache.
  • REST, GraphQL, SOAP, and other APIs.
  • Git, Docker, Kubernetes, Jenkins, Amazon, Azure, and other tools and libraries

How to Become a Back-end Developer?

  • Learn the fundamentals of programming languages like Java, Python, or Ruby.
  • Become familiar with databases such as MongoDB and MySQL.
  • Become familiar with server-side frameworks like Ruby on Rails, Flask, or Django.
  • Learn how to use version control software such as Git.
  • Learn how to create and deploy web apps on cloud infrastructures like AWS or Google Cloud.
  • Enroll in online classes or coding boot camps to advance your abilities and expertise.
  • To obtain practical experience, participate in open-source projects, or create initiatives.
  • By reading blogs and attending conferences, you can keep up with the most recent developments in back-end programming.
  • Connect with other developers and businesspeople to obtain knowledge and expertise.

What is the importance of back-end development in web development?

Although there are many advantages to back-end development, they can be summed up in one word: speed. Since they deal with a smaller codebase than frontend developers, back-end developers can produce apps more quickly and effectively.

Businesses now try to make their software available on various devices, such as laptops, smartphones, tablets, etc. So, the back-end developer is driven to produce cross-platform compatible code.

A highly important aspect of websites is their back-end development, which mostly comprises online transmission between databases, servers, and client systems. It must first embrace technologies like web services and microservices for quicker client and server login information exchange.

Website success is influenced by both the front end and the back end. That is the sole reason for every feature on websites. No website can function correctly without high-quality back-end development.

Ending Note

Any online application’s functioning and success depend heavily on backend development. The optimal user experience and smooth front-end operation depend on the well-designed and optimized back end. The need for proficient backend developers will only grow as technology advances. 

Everyone may succeed as a backend developer by staying current with technology and consistently picking up new skills. Backend development can thus be the ideal career choice for you if you have a passion for coding and want to join the fast-expanding IT sector.

You may create end-to-end apps by taking the Imarticus Learning Full Stack Developer Pro course, which thoroughly explains data structures and algorithms. This 6-month curriculum will teach you the fundamentals of front-end and back-end programming, laying the groundwork for a successful career as a full-stack developer.

What Causes OOS(Out-of-Stock) in Inventory Management? How Do Supply Chains Reduce Stockouts?

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Maintaining adequate inventory is a major activity of supply chain management. Manufacturers, vendors, whole-sellers, dealers, and retailers along with their logistics and warehousing partners form a supply chain network that fulfils client demands in a timely manner. Keeping enough inventory is not only important for the dealer but also for the vendor who supplies to the manufacturer. When products go off the racks and cannot fulfil demand, the situation is called Out of Stock. 

best advanced certification program in digital supply chain management course

Enrolling in a supply chain management course is a must for a professional aspiring to master inventory management. It is said that proper inventory management is a health index for an organisation.

Causes of OOS (Out-of-Stock) in Inventory Management.

There are a few main reasons resulting in the out-of-stock situation of the inventory. The causes are explained in detail below –

Inaccurate reporting and inadequate forecasting

Stockouts may sometimes occur due to sudden and unforeseen consumer demand surges. But these are rare incidents. In most cases, predictive demand forecasting is inadequate because of inaccurate reports on sales or existing stock reporting.   

Delivery and logistics problem 

Maintaining an optimum inventory is directly linked with the inventory. Global and domestic logistics have different levels of transit points and their own set of rules. Sometimes enormous delays cause stock shortages. These factors are beyond the control of retailers or distributors and hence are unavoidable at times.

Stock mismatch 

Stockouts often occur due to a disparity between the actual existing stock and that shown on the computer systems. There are three main reasons which lead to this anomaly. The first and foremost is human error, followed by loss of material due to theft or damage. This may also occur due to other technical reasons.

Poor cash flow management 

This is also one of the prominent reasons for stock-outs, even though the sales reporting and stock forecasting had been accurate. Inventory cannot be replenished due to a lack of funds. 

The two remedies to this problem are –

  • To monitor cash flow management stringently so that it does not affect the projected revenue at a later stage 
  • To raise funds timely through financial institutions.

In-efficient stock replenishment management 

This is a very common stockout case. The retailer may not have a systematic stock replenishment procedure in place and misses out on an opportunity for a lucrative sale for want of stock. A system-generated alert on stock replenishment management can solve the problem and a loss on sales can be averted. 

There are several decision phases in supply chain, which each stakeholder in the network must perform with utmost care and due diligence. These decisions prevent frustration with customers due to stockouts and help to retain them. 

To start with, the manufacturer must have a robust vendor inventory management, so that their mutual cash flow should not be stressed. Products are manufactured based on the demand reports at the distributor, dealer, wholesaler or retailer levels. An accurate projection from each of these stakeholders fortifies supply chain management. 

How Do Supply Chains Reduce Stockouts?

There are several time-tested methods of stock-out reduction or stock optimisation. These appear as decision phases in the supply chain by the concerned stakeholder at that stage. Some of the most common remedies are mentioned below –

Physical stock counts on a regular basis – 

Regular physical stock checking is the most commonly practised method. It gives management a real ground idea regarding the shrinkage due to damage or theft. This process acts as preventive care.

Lead time optimisation 

The time between the placement of an order and receiving the same is very crucial for maintaining stocks. The seller should have an estimate of sales quantum within this lead time period and should place orders accordingly so that the shelf is never out of stock at a given time.  

Improve demand forecasting 

The demand forecast should be close to accurate. This saves stakeholders not only from stock-outs but also from losses from excessive inventory, working capital and logistics expenses. Predictive data analysis helps to make a reasonable forecast. 

This is where the study of a supply chain management course comes to relevance. A proper demand projection improves the cash flow, revenue and profitability of an organisation. 

Reorder points for each product 

The inventory is a mix of different products having different demand curves in terms of quantity and time. Thus, the reorder level of each product is also different from the rest and should be followed separately. The reorder level is a function of the safety stock for the given product.

Develop strong relationships with suppliers 

A strong professional relationship bond is the essence of a good business. Sellers and suppliers must have mutual trust and understanding so that fulfilling the demands of the client is their mutual goal. They should have business meetings at regular intervals and should discuss their respective shortcomings and probable solutions. There should be an exchange of easy and free-flowing communication at each level so that there are no surprises at a later stage.

Modern inventory management software 

Automated commands using inventory management software reduce both time and risk of inventory management. 

Vendor Management System is a system based on which suppliers maintain a specific stock level based on shared data by the retailers. Having the right product at the right time and at the right place is very important and reduces unwarranted inventory. 

Retailers implement just-in-time inventory systems to make the above process perfect. The idea of keeping consignment inventory and safety stock is also another process of enhancing customer satisfaction with a little more additional expense. The common tasks performed are – 

  • Setting the reorder level for each product 
  • Automated stock counts 
  • Generating sales reports amongst other

Conclusion

All these automated processes require a deep understanding of data science and artificial intelligence, based on which these techniques perform. An aspirant in this field should study supply chain management from a reputed institute in order to carve out a successful career.

The Digital Supply Chain Management With E&ICT, IIT Guwahati course at Imarticus will enable the prospective candidate to boost their career towards a bright future. The duration of the course is 6 months. The mode of training is online as well as offline. 

Visit the official website of Imarticus for more details. 

The Evolving Regulatory Framework in Capital Markets

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Regulatory bodies are institutions of the state or other public authorities tasked with exercising oversight or regulatory power over specific contexts in which people are involved in any activity. Whether in the field of banking, insurance, pension funds, commodities market or the capital market – the existence of regulatory frameworks is important for security and growth.

 

In the case of the capital market, regulation leads to growth and the development of a market economy depends on the growth of the capital market. A market that is tightly controlled can boost the number of participating and contributing investors, resulting in the development of the economy as well. A well-structured capital markets course helps you have a better understanding of the already existing regulatory frameworks and the constant evolution of the same.

In the article, we shall discuss a brief outlook on the ever-evolving regulatory frameworks in India.

Regulatory frameworks in India

Over the last few years, India has established itself as one of the key players in the capital market, having one of the most refined new equity issuance markets. In the financial sector, India has several regulatory bodies at play. From SEBI. RBI, to IRDA, PFRDA – India boasts of an array of regulatory bodies in the financial sector.

The capital market is a market of equity and debt securities, and in India, it is predominantly regulated by the Securities and Exchange Board of India, which is known as SEBI. SEBI is an autonomous authority responsible to regulate and develop the capital market.

Regulatory agencies:

India currently has four product-driven functioning regulatory agencies, that are –

  • Securities and Exchange Board of India: established in 1988, SEBI at first was a non-statutory board. In 1992, it became an autonomous body with more power through an ordinance. SEBI now overviews and regulates market and investment products.

  • Reserve Bank of India: RBI was established in 1935 in accordance with the provisions of the RBI Act of 1934. Although the central office of the Reserve Bank of India was initially founded in Kolkata, it was later moved to Mumbai in 1937. RBI was privately owned since its inception. In 1949 after the nationalisation, it came under the Government of India. Reserve Bank of India is responsible for regulating credit products, savings and remittances.

  • Insurance Regulatory and Development Authority: formed by the IRDA Act 1999, IRDA is the national agency under the Government of India based in Hyderabad. The IRDA Act 1999 was amended later in 2002 to include some emerging requirements. Insurance Regulatory and Development Authority regulates insurance products, protects the interests of the policyholders and promotes elderly growth in the insurance industry.

  • Pension Fund Regulatory and Development Authority: established by the Government of India in 2003, PFRDA looks after the pension sector and related products.

  • There also existed the Forward Markets Commission or FMC, with a headquarter in Mumbai, that was responsible for regulating commodity-based exchange. This was a statutory body established in 1953 under the Forward Contracts (Regulation) Act 1952. FMC was merged with SEBI in 2015.

Quasi-regulatory agencies:

A quasi-regulatory agency is an agency with a partly legislative character having the right to make rules and regulations with the force of law. It is essentially legislative in character but not within the legislative power or function, especially defined by the Constitution. A neatly tailored capital markets course helps you have a clear understanding of the differences between regulatory agencies and quasi-regulatory ones. There are several government bodies performing quasi-regulatory functions other than SEBI, RBI, IRDA, and PFDA. Those are:

  • National Bank for Agriculture and Rural Development: NABARD supervises and regulates the regional and rural banks along with the state and district cooperative banks.

  • Small Industries Development Bank of India: SIDBI looks after the state finance corporations (SFC) that are responsible for financing small industries.

  • National Housing Bank: NHB, as the name suggests, is responsible for overviewing the housing finance companies.

Central ministries:

Various central ministries under the Government of India are involved in policy-making in the financial system of the country which can lead to economic growth. The Ministry of Finance is the most prominent of those.

Ministry of Finance (MoF) representatives who are on the Boards of regulatory agencies like SEBI and RBI are important policy-makers. Many of the MoF representatives are also part of the board of public sector banks and development financial institutes.

State governments:

The state government regulates the cooperative banking institutions through the Registrar of Cooperatives under the Departments of Agriculture and Cooperation.

FSDC:

To bring more efficient and effective coordination among the financial market regulator, an important addition was made to the regulatory framework in India. Financial Stability and Development Council (FSDC) was formed by the Government of India in 2010 as a non-statutory set-up. The agency since then has worked to maintain financial stability and enhance inter-regulatory coordination, while promoting development in the financial sector in India. It also resolves inter-agency disputes and performs wealth management functions dealing with multiple financial products.

Objectives of regulatory bodies

Financial regulation translates to the supervision of financial institutions to certain requirements, guidelines and restrictions. The foremost goal of the financial regulatory bodies is to maintain the stability and integrity of the financial ecosystem in the country. Therefore, the key objectives of the regulatory bodies are:

  • Financial stability: providing protection and enhancing the financial stability of the country.
  • Consumer protection: protecting and working in the best interests of the consumers and stakeholders.
  • Market confidence: upholding and maintaining the integrity of the financial system.
  • Reduction in financial frauds: reducing the possible avenues of businesses from facing finance-oriented crimes and frauds, thus reducing the loss.

Conclusion

Although India has established quite strong regulatory bodies for the financial sectors, constantly revising and upgrading their functioning policies to match the ever-evolving market is the only way of improving them. Learning about the regulatory bodies and acquiring knowledge of the market is how you can take a step forward. Imarticus Learning in collaboration with IIM Calcutta offers an in-depth capital markets course that helps you grasp the understanding of the topic.

The IIM Calcutta executive program provides you with hands-on knowledge and teaches you how to find resolution in a professional scenario. The collaborative effort of Imarticus Learning and IIM Calcutta also prepares you for all the possible challenges that you might find on the way. For more details on this course, check out the website and the IIM Calcutta executive program right away.

Future of Capital Markets and Financial Services: Problems and Solutions

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Capital markets and financial services are inclusive of each other. A capital market is a place where people deal in financial services such as stocks, bonds, shares, currencies and other financial assets. Both the stock and bond markets are included in capital markets. 

Capital Market Course

Today the capital market is a very crucial place for buyers and sellers of financial assets. It allows common people to make more profit to do more savings for their future. The future of the capital market and financial services is bright but it still has some problems that need to be solved over time. One can better peep into the problems of capital markets with the financial services course to come up with potential solutions that can bring the necessary changes.

Read on to understand the common flaws in the system of capital markets and understand the potential solutions to increase business and market efficiency.

What are Capital Markets?

Capital market is an area of Financial Market where buyers and sellers come together to deal in various financial assets such as stocks, bonds, government securities, currencies, etc. These are generally traded between big investors, businesses, governments, institutions and individuals.

People successfully dealing in capital markets have the eye to identify and allocate assets to their best abilities. There are many notable people that participate in the transaction in the capital market such as analysts, big companies, sell-side institutions and so on.

Capital Market Problems

In the present-day economy, capital markets are indeed very important. They generate income and profit for money individuals and organisations but it also has a negative side. Capital markets can fuel misinformation, materialism and economic slump. Generally influential investors and businesses perpetuate such consequences which can greatly affect the market situation.

Here are the two major problems that capital markets have:

Asymmetric information

Asymmetric information in the capital market is a situation where a buyer or a seller has an upper hand over its contemporaries. This is because the buyer or the seller knows more about the particular investment including its historical background and present which helps them to make better predictions about the investment object. 

As a result, the investor in this particular investment can make more informed and effective decisions when compared to others. This can be misused by employees of any organisation when they have access to sensitive proprietary information. Such employees or investors can misuse confidential information in the capital market to gain unethical profits. 

Asymmetric information is very unhealthy for the market balance and disturbs the parity of the capital market. As is evident from the 2007-2008 mortgage crisis, in extreme situations asymmetric information can also lead to market failure.

Principal-Agent problems

The principal-agent problem is another major issue in the capital markets. These are the conflicts between the owner of an asset and its representative who deals in the capital market on their behalf. Some major types of principal-agent problems in capital markets are as follows:

  • The problems between the shareholders of a company and the management teams.
  • The conflict between major Financial institutions and the rating departments.
  • The issues between lawyers and clients.

These are all examples of principal-agent problems which are common in MNCs. However, a company can handle these problems in various ways such as by realigning and redesigning the priorities of the company, improving the system of incentives, enhancing the flow of information throughout the organisation and so on.

Solutions to Capital Markets’ Problems

There is still not any set of clearly defined solutions to these problems but many organisations have tried and tested some solutions which they can incorporate into their system. The following are some of the ways in which capital market problems can be better dealt with:

Board of directors

Many companies have built a bowl of directors who can strictly look after the management of the company so that the capital market problems can be dealt with. The constant oversight over the management will not allow them to be a part of any misrepresentation shareholders’ interest will be properly represented and ensured.

However, the solution also has a disadvantage. The major drawback is that some of the members of the board of directors can also be biased. Such a selected board of members can be the result of manipulation which will not solve the said problem.

Stock ownership

Stock ownership means offering some stocks to the higher-level employees of an organisation. This is a means of providing incentives to the employees by the company. This helps to motivate employees to perform to their best abilities and tend to manage their work effectively.

This system works in favour of the investors, businesses and employees. The drawback of the system is that CEOs may start to avoid taking financial risks in order to protect the finances of the firm and their stock values to protect their personal interest.

Punishments for misrepresentation

Apart from solutions like incentives and motivation, some companies also indulge in the process of punishing employees for misrepresentation. This is a negative approach towards reducing misrepresentation in the organisation but has proven to be effective.

On the contrary, it can lower the morale of employees and managers can refrain from taking major decisions that involve a degree of risk.

Monitoring company moves

It is possible for private equity investors to purchase out companies from public exchanges even if they are established and traded in a public manner. They can closely examine and monitor the capital markets to predict their next moves. It is very important for the management and stakeholders of the company to review and enhance the internal process and objectives of the organisation.

This helps investors to properly analyse the market and make decisions regarding going public again. The key to this step is to closely monitor and analyse the market and the company processes.

Conclusion

Capital markets and financial services can lose their balance and become turbulent if such problems and the system are not solved. Capital markets are a great platform for investors, organisations and institutions to make money and show their ability to make informed investments. If you want to inculcate knowledge about the capital market then the IIM Lucknow course can be your go-to pick. 

Capital markets have their own share of problems but indeed are an effective place for generating profits by investing effectively. If you want to become a good investor and learn the tricks and tactics of capital market and financial services, sign up for the Financial Services and Capital Markets course IIM Lucknow by Imarticus. It is an advanced level course which is perfect for you to enhance your trading abilities.

How Financial Analysis Can Help You Make Better Investment Decisions

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Making effective investments is one of the major decisions in any business. Investments are very important for the long-term gains of an organisation. Financial statement analysis provides a detailed report about the financial situation of a company which helps stakeholders to make investments in multiple areas, accordingly.

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Investment decisions take into account the buying and selling of funds. It also throws light upon which funds the company needs to hold and which they can release. However, investment decisions must be taken after keen observation and making nearly accurate predictions or else it can result in huge losses or insolvency for the company. 

An insightful financial analysis course can help finance professionals know about better investment decisions with the help of financial analysis. Read on to know the importance of financial analysis in making investment decisions.

Investment Financial Analysis

For investment purposes, a firm generally appoints a financial analyst external to the organisation who performs a thorough analysis for finding out effective investment areas. Analysts might use either a top-down or bottom-up approach to investing. 

In the top-down approach, the analyst searches for macroeconomic opportunities like the higher valued sectors that yield maximum results. It then dives into investing in the best-performing companies in the high-performing sectors after a deep evaluation of the financial statements of the company. Financial modelling is also performed for scanning through all the financial reports to opt for the best investment area. The analyst then analyses the stocks of various companies in order to choose the possibly profitable ones to invest in.

According to the bottom-up approach, analysis chooses a specific company and performance ratio analysis of its past and present performance. Analysts also make predictions about the future performance of the company and decide whether it will be profitable to invest in its stocks or not. While making investment decisions analysts also consider various factors like the overall health of the business, its financial accounts, the supply and demand for its goods and services, evaluate its performance over time and so on.

Importance of Financial Analysis in Investment Decisions

Financial statement analysis is integral for businesses to ascertain the overall financial health of the company and to see what the worth of the business is. For investment purposes, the role of financial analysis cannot be overlooked. Without any financial record, it becomes very difficult for companies to know where they should invest. So financial analysis provides a basis for making profitable investments by looking at the past and present performance of various organisations.

The importance of financial analysis in making investment decisions can be stated as follows:

Identifying trends for making investments

The financial market is huge and it is not possible for anyone to conduct a search on all the companies in each sector. So with the help of financial analysis companies find out the growing and profitable trends or sectors. After identifying the recent trends that are resulting in profits, the management locates the best companies and their stocks to invest in.

These investments are generally done for long-term purposes for yielding more stable and high-value returns.

Evaluating the performance of potential companies to invest in

Financial analysts while performing analysis of financial statements also look to find the best companies to invest in for profit maximisation and minimising risks of losses. After the identification of the growing and profitable financial trend, financial analysts search through various companies in that sector and evaluate their stocks. 

After searching through a whole list of potential opportunities to invest in, financial analysts make predictions as to what stock of which company will result in the maximum profit and balance out the risks. 

Analysing the shareholdings to retain

The financial analysis consists of the income statement that shows the profit and loss of the various dealings the company has conducted in the past years. It provides a clear picture of the shares or investments that have yielded profits for the organisation. With financial analysis, companies can find out the potential areas in which they should continue to invest in.

Thus, looking at the profit and loss statement and the invested stocks that result in profit, businesses can continue to hold or retain those shares for future profits. It also has to find new investment areas for better increasing the company’s worth.

Eliminating the shares that result in losses

As financial analysis consists of the profit and loss statement, it gives a clear picture of the financial position of a company. It shows the areas that have proven to be profitable for the business and also the ones that have resulted in a loss. 

So keeping in mind the growth of the business, the investors can easily release the shares or holdings that are not profitable. The financial analysis gives detailed information about the financial performance for the accounting year and provides stakeholders with data on profit and loss in the income statement.

Making informed plans and decisions regarding investments

Financial analysis is important for companies when formulating major investment decisions and plans. The financial reports provide all the required financial facts that the stakeholders need in order to decide upon the investment options for the next financial year. 

Additionally, businesses also get the opportunity to identify any potential financial risk and reference from investing in those areas. Performing financial analysis provides assistance to the stakeholders in making informed investment decisions which can minimise the risk of losses.

Better allocation of resources

Financial analysis showcases the financial health of the company which in turn allows the management to better allocate resources in the required areas. As resources are limited, proper allocation is a necessity. Performing financial analysis makes the job of resource allocation a bit easier for the stakeholders which also increases the profitability and efficiency of the business.

This is one of the functions of financial management which helps invest the funds in the areas that will yield more profit and identify the areas where cost can be reduced.

Conclusion

Financial analysis is an important tool for making more informed and smarter investment decisions. It analyses the various financial reports of a company to understand its worth. Financial analysts are scaled professionals who find out the prospective investment areas that can increase the profitability of a business. 

If you are a finance professional and want to enhance your decision-making ability regarding investments then the Financial Analysis Prodegree In Collaboration With KPMG course by Imarticus is the best pick for you. Register for the course to better perform financial analysis and make more sound investment decisions. 

What is the Relationship Between Investment Banking and Corporate Finance?

Posted on by Imarticus Learning

The goal of business financing is not only to properly manage a company’s finances but also to find the best practices to minimise financial risk. Both corporate finance ad investment banking is ways in which businesses can ensure better returns to their shareholders. 

Investment Banking Course

In the current money market, investment banking and corporate finance are both integral for businesses. And even though these two have quite a few similarities, they are also different in a lot of aspects. In this article, we will walk you through the relationship between corporate finance and investment banking. You can also avail of online banking certification course for a better understanding of financing and banking. 

What is Corporate Finance? 

Corporate finance refers to functions and operations that organisations use to ensure long-term financial security and success. Starting with sourcing funding for the business, the main goal of corporate finance is to maximize the value of the firm. It is a term used to describe all activities related to funding, investments, and returns on capital. 

Corporate Finance has a lot of different designations and job roles within it. Financing a corporation needs a lot of different professionals to work together. Account Managers, Accountants, Treasurers, Advisors, etc are only a few of the job designations found in Corporate Finance. 

What is Investment Banking? 

Financial institutions like Investment Banks help businesses raise their capital through securities operations in equity and debt markets. Corporate functions like acquisitions and mergers are also done through Investment Banking Firms. If an organisation has a lot of valuable assets, these firms also work as financial advisors to maximize returns on those assets and also keep them secure. It lets businesses safely publicize their securities and raise their funds. 

A lot of people working in the finance industry choose to work in Investment Banking. It is one of the most coveted fields and also offers great career growth. 

What are the Similarities Between Investment Banking and Corporate Finance? 

Investment Banking and Corporate Finance are similar in a lot of ways. 

  • Firstly, both of them are ways in which a company can safely and organically grow its assets. Both Corporate Financing and Investment Banking help organisations manage their assets. 
  • Albeit with different structures, both of them also manage a firm’s investment-related repayments and returns. 
  • Anybody working in these fields needs qualifications like a Bachelor’s or Master’s degree. Sometimes they also need a professional background and experience for some job roles. There are also a few common jobs between the two fields. 

What are the Differences Between Investment Banking and Corporate Finance? 

Even though there are quite a few similarities between them, Investment Banking and Corporate Finance are different in many ways. 

  • Firstly, you have to remember that the goal of Investment Banking is the growth of an organisation while the goal of Corporate Finance is to manage and secure finances. 
  • The main aim of a Corporate Finance professional is to properly handle business goals and perform everyday financial tasks. On the other hand, the main aim of an Investment Banking professional is to raise capital for investors. 
  • People who want to work in Investment Banking usually need higher education and more professional experience than those who work in Corporate Finance. 
  • As a result, Investment Bankers usually earn more money than Corporate Finance professionals, especially those in higher positions. 

How to Build a Career in Investment Banking and Corporate Finance

Both Corporate Finance and Investment Banking offer great opportunities for career growth. 

  • Corporate Finance Professional:

 To become a professional in Corporate Finance, you can choose a lot of different educational paths. Since the field is so diverse and offers so many distinct job roles, it is easy for a lot of people to get into the field and gain experience. You would need a great understanding of how Corporate Finance works and also possess some soft skills like communication and leadership. It also helps to have a Bachelor’s or Master’s degree in a finance-related field. 

Having prior professional experience as an accountant or banker can also help you secure a job in Corporate Finance. There are many available job roles in Corporate Finance like, Credit Manager, Cash Manager, Cost Analyst, Financial Analyst, Benefits Officer, Treasurer, etc. 

  • Investment Banking Professional: 

Investment Banking is a premium field and requires a lot more academic experience than Corporate Finance. The best way to get into the field of Investment Banking is to get an MBA degree in a finance-related field after your graduation. You can get into the field as an associate and slowly build your career. You can also do internships and work in small-scale banks to gather all the professional experience you need in the field. 

There are many job roles available in the Investment Banking field as well. Depending on your qualifications and interests, you can choose to work as a Private Equity Associate, Business Analyst, or Financial Analyst. There are also many online courses available for students and professionals who want to learn Investment Banking. 

Conclusion 

Corporate Finance and Investment Banking are two fields that are very closely related to each other. Usually Investment Banking firms have a Corporate Finance division to maintain their finances and help large corporations. Since they are so closely related, it is not uncommon for professionals from both fields to work in another field. 

But if you want to become a trained professional in Corporate Finance or Investment Banking, then there are many online courses that can help you do so. One of the best Investment Banking courses is the Certified Investment Banking Operations Professional course by Imarticus Learning. With the help of online live sessions, job interview guarantee, career support and a world-class curriculum, the course can help you get acquainted with Investment Banking and concepts such as Anti-money laundering and foreign exchange, while also offering you great placement opportunities.

4 Benefits of coding bootcamps that you can’t ignore

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Unlock the power of bootcamps

In recent years, coding bootcamps have become all the rage as a fantastic alternative to traditional computer science degrees. These intensive and immersive programmes offer a focused and practical approach to learning coding skills in a relatively short period. While some sceptics may question their effectiveness, there are several undeniable benefits of tech bootcamps that make them worth considering for anyone looking to enter the tech industry.

corporate training

In this article, we will explore four key benefits of tech bootcamps and answer the burning question: Are tech bootcamps worth it?

Benefits of tech bootcamps

1. Supercharged learning: Stay ahead of the game!

Coding bootcamps offer an intensive and focused education, cutting out unrelated coursework and theory to provide the most relevant and up-to-date technical skills in a matter of months. With experienced instructors who are well-versed in the latest technologies and industry best practices, coding bootcamps equip you with practical skills and real-world projects.

This preparation enables you to enter the job market quickly and hit the ground running in your career as a developer or programmer.

2. Career support and networking: You’re not alone!

Another major benefit of coding bootcamps is the solid support they offer for your career journey. Bootcamp programmes:

  • Provide dedicated job placement assistance to help graduates find employment in the tech industry.
  • Craft standout resumes to hone your interview skills; they’ve got your back.
  • Organise networking events with potential employers. This gives you a chance to make connections that could lead to exciting opportunities.
  • Partner frequently with local tech companies. This opens doors for valuable internships and job placements.

The tight-knit community within bootcamps creates a supportive network of peers and instructors. It helps to raise collaboration and mentorship opportunities that enhance learning and career growth.

3. Cost-effectiveness: Money matters!

Bootcamps typically have lower tuition costs compared to four-year degrees. Also, many bootcamps provide flexible payment options to ease your financial burden. Some offer income-sharing agreements (ISA), allowing you to pay a portion of your salary after securing a job. This model aligns the bootcamp’s success with your success. It creates a win-win situation for both parties.

The cost-effectiveness of bootcamps makes them an attractive choice, especially for individuals seeking a career change or looking to upskill without the burden of extensive student loans. Money matters and bootcamps understand that!

4. Inclusive learning environment: Embrace diversity!

Bootcamps create an inclusive environment that celebrates diversity. Interacting with peers from various backgrounds:

  • Enhances learning.
  • Promotes collaboration.
  • Prepares you for diverse workplaces.

Embrace a welcoming community that values and celebrates individual strengths.

Closing thoughts

The benefits of tech bootcamps are too good to ignore. The supercharged learning format, focus on industry-relevant skills, unwavering career support, networking opportunities and cost-effectiveness make them an irresistible choice for aspiring tech professionals.

While bootcamps may not replace traditional degrees for certain career paths, they provide a viable and efficient route for individuals looking to quickly acquire practical coding skills and launch their careers in the ever-evolving tech sector.

So, if you’re wondering whether tech bootcamps are worth it, the answer is a resounding yes!

To take the next step in your tech career and explore the vast opportunities that await, visit the Imarticus Learning website today. Discover how we can empower you to thrive in the tech industry through our immersive coding bootcamps and comprehensive career support.

So, roll up your sleeves, get ready to code and embark on an exciting journey towards a fulfilling and successful career in the tech world. The doors to the world of coding are wide open—step in and make your mark!

Ethics and Governance in Data Science: Balancing Innovation and Responsibility

Posted on by Imarticus Learning

After the Covid-19 pandemic, the world adapted efficiently to digital innovations and technological advancements- thereby resulting in a revolution in the field of data science.  Every day organisations generate, collect and analyse data at an unprecedented rate to make informed decisions that aim at boosting their productivity. 

However, with great power comes great responsibility. This data is extremely sensitive in most cases and therefore, it is crucial that we handle it ethically. Users on the other side of the screen are always advised to take extra precautions while sharing data. Nevertheless, data scientists and analysts also have to play a pivotal role in responsibly handling sensitive information.

data analytics course

In this article, we will learn about what data ethics is, the principles of data ethics for business professionals and how to operationalise AI and data ethics. If you want a sneak peek into what a career in data science looks like, read on to explore the fascinating aspect of ethics and governance in data science. 

What is data ethics?

Before enrolling in a data analytics course you must know about data ethics. Data ethics is the study of the moral obligations of gathering, distributing and protecting data while keeping in mind the potential effects on individuals. 

Data ethics focuses on the binding procedures after data mining and understanding how a data analyst is responsible to protect people’s privacy. It is the study of how to use data in a way that does not violate this privacy and yet addresses the concern fully. 

To safeguard people’s safety and keep your business out of any potential legal trouble, learning data ethics is crucial for someone looking for a career in data science. 

Principles of Data Ethics For Business Professionals

Ownership: 

Ownership is important for setting boundaries on who can use, control or access the data. Without clear ownership of data, there can be a high chance of potential data breaches, theft or unauthorised use. Therefore determining who has the right to access the data is important to provide a sense of security to customers and avoid legal and ethical dilemmas. 

Intention: 

The ethical use of data depends on having a justified purpose before mining or collection. Prior to harnessing someone’s private information, be sure to establish clear, ethical objectives outlining why you require the information and how it will only be used to address a legitimate concern for your organisation. 

Outcomes: 

The principle of positive outcomes in data ethics highlights the importance of ensuring that the sharing, storing or analysing of data results in beneficial outcomes. This principle emphasises the need for conscientiousness in data mining and taking the necessary steps to prevent any adverse effects.

How to operationalise data and AI ethics?

Simply defined, operationalising data and AI ethics refers to enforcing ethical norms and principles into action within a certain organisation or situation. Implementing practices, rules and procedures in machine learning and algorithms that promote moral decision-making while reducing the possibility of harm is part of this process.

Find existing infrastructure for ethical programs that can be used for AI and data:

When building a data, machine learning and AI ethics program, it is always helpful to look into what infrastructure already exists in your organisation. By using what’s already in place, you can save resources and streamline the implementation of the program. 

This strategy also facilitates quicker uptake and program integration by reinforcing already-in-use procedures and workflows. The implementation of OOps concepts is also useful in identifying the existing infrastructure that an ethical program for data and AI can use.

Develop industry-specific data and AI ethical risk frameworks:

The hazards and ethical issues associated with the use of data and AI vary by industry. It’s crucial to develop a risk framework that is customised for your sector because of this. In this manner, you can be certain that the specific risks that apply to your organisation are being addressed. 

Furthermore, a tailored risk framework can provide more clarity regarding the specific risks and moral dilemmas associated with the application of data and Python programming in your industry. Making decisions will be easier with this clarity and moral quandaries will be easier to comprehend.

Improve the guidance and tools available to product managers:

Product managers are really important when it comes to creating and implementing Python programming and AI products. When organisations optimise guidance and tools for product managers, they make sure that these individuals have everything they need to make ethical decisions and promote responsible data practices. 

Increase corporate awareness:

By promoting data ethics, people could be held responsible for their actions by the company. Building trust with stakeholders and customers can be facilitated by increasing organisational awareness of data ethics. People are more likely to trust a company and the goods or services it offers when they believe it is functioning morally and responsibly.

Encourage staff members to participate in identifying ethical risks associated with AI both formally and informally:

When employees are encouraged to identify ethical hazards linked to AI and use OOps concepts, employee engagement and active participation in promoting ethical decision-making increase. This can promote moral conduct within the company and help create a culture of appropriate data use.

Employees that are motivated to discover ethical issues associated with AI may achieve more than just risk reduction and responsibility. It may encourage creativity within the company. Organisations can find opportunities for innovation that are consistent with their values and mission by challenging staff to consider the ethical implications of using data and AI.

Track the effects and involve stakeholders:

To use data and AI ethically, we must comprehend how our decisions impact people and communities. Monitoring the consequences of data and AI use allows organisations to fully understand any potential hazards resulting from their practices. Businesses can benefit from lowering these risks and making sure they are utilising data and AI morally.

When it comes to data science, responsible use should always be a top priority. It’s not a one-and-done thing, but an ongoing journey that requires continuous attention and adaptation. 

Imarticus Learning’s Certified Data Science and Analytics course can be of interest to you if you’re trying to improve your knowledge and abilities in ethics and governance in data science. Aspiring data scientists who wish to understand how to strike a balance between innovation and responsibility will greatly benefit from this programme. 

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