Part 1: IT in the Business

Environment

CHAPTER 1:
INTRODUCTION: BUSINESS AND
INFORMATION TECHNOLOGY

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LEARNING OBJECTIVES:

• Discuss business & • Describe the

responses in capabilities expected of
Information Age information system in
• Differentiate among modern organizations
data, information and
knowledge, and
describe the
characteristics of high
quality data
• Name and describe the
components of
computer systems

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Today’s Business Environment

• Characterized by:
– Rapid Change
– Complexity
– Global Economy
– Hyper-competition
– Customer Focus

• Businesses face pressure

to produce more with
fewer resources

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Business Pressures & Organizational
Responses
• Pressures provoke proactive Pressures can be in form of :
and reactive organizational 1. Global Competition for
trade and labor
responses. 2. Real time operations
• Business responses to (aviation, broadcasting,
pressures may involve use of telecommunication, air
Information Technology and force, marine life study
etc)
Information Systems. 3. Changing workforce
• In some cases, IT is the only (becoming more mobile
solution to business than last decade)
4. Customer orientation
pressures.
5. Information overload
• Knowledge of IT capabilities is 6. Ethical Issues
essential to today’s 7. Government Policies
businesspeople. and Acts
8. Social Obligations
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Business Pressures & Organizational
Responses
• Business Pressures on an Organization
that force change.

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Why You Need To Know About IT?

• What can be done with IT and E-Business, Mobile

the consequences of using IT Banking
are very interesting. E-Ticketing, GPRS,
Simulation
• Organizational structure,
management, and business
Shorten Work Processes,
processes are often changed Customer Orientation,
with IT. Better Information
• Career opportunities are Storage
abundant in IT.
• IT affects every business Sales Department
functional area. Financial Department
Marketing Department
Manufacturing
Food Processing
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Why You Need To Know About IT?

Business Strategy
Potential & Pressure Business Objectives & Aims
Of IS/IT Internal & External Changes

Support Business Maps Business Direction

Functions & Aim

IS Strategy
Applications Focus

Service & Infrastructure Prioritization & Needs

IT Strategy
Technology Focus

Business & IS/IT Strategy Alignment, Ward & Griffith,1997

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Definitions

• Data: raw facts; collected, Audio, picture/image,

not organized. graphic, text, voice
• Information: data organized Marketing analysis,
in a meaningful way. Rainfall statistic,
• Knowledge: information production reports
organized to convey
Information + Learning +
understanding, experiences, Experience = Knowledge
accumulated learning, or
expertise.
• Computer Literacy:
knowledge and
understanding of computers
and their uses
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Definitions

• System: Set of components that interact to achieve

a common goal

6 Generic
Components
SYSTEM
Processing

Control

Boundary Output
Input
Feedback

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Definitions

• Computer: Electronic device operating under the

control of instructions stored in its own memory.
(Shelly, Cashman, Vermaat, 2004)

Processes data into

Accepts data information
Raw facts, figures, and
Data that is organized,
symbols
meaningful, and useful

Produces and stores results

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 Definitions

Information System (IS) : A system that collects,

processes, stores, and analyze data and
disseminates information for specific purposes.
(Turban & Rainer, 2003)

Data

Procedures

People
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Definitions

• Computer Based
Information System
The use of hardware, software,
data, people and procedures
that work together to
Hardware
produce quality
information. Software
Application
(Shelly, Cashman, Vermaat, Data
2004) People
An information system
developed to provide a
solution to a business
problem.
(Turban & Rainer, 2003)
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Definitions
• Information Technology: A particular component of a
computer based information system. (Turban & Rainer,
2003)
• Information Technology: The technology component of
an information system (narrow definition); or the
collection of the entire systems in an organization
(broad definition). (Turban, MacLean, Whetherbe, 2004)
(Refer slide 7)

• Information, Communication & Technology: “…Until

recently, everyone talked about Information Technology
(IT) – i.e. using computers to handle information in
various ways. With the advent - or, more accurately, the
popularization - of the Internet, electronic mail, etc.,
this term has been expanded to Information and
Communication Technologies, or I C T…”
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The Components of a Computer: An
Overview
Computer Hardware

• Computer
Components are:
 Input
 Process/System Unit
 Output
 Storage
 Communication/
Network

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The Components of a Computer: An
Overview
What is an input
device?
Hardware used to
enter data and
instructions

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The Components of a Computer: An
Overview
• What is an
output device?
Hardware that
conveys
information
to a user

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The Components of a Computer: An
Overview
• What is the
system unit?
Box-like case
containing
electronic
components used
to process data

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The Components of a Computer: An
Overview
What are two main components on the
motherboard?

Central Processing Unit (CPU)

Also called a processor
Carries out instructions that tell computer what to do

Memory
Temporary holding place for data and instructions

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The Components of a Computer: An
Overview
• What is storage?
Holds data, instructions, and information
for future use

Storage media
Physical material on which data, instructions,
and information are stored

Storage device
Records and retrieves items to and from
a storage medium

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The Components of a Computer: An
Overview
• What is a network?
Collection of computers and communication devices
connected together

Communications
Device Communications
Media

Enables a Satellites
Cables
connection
Telephone Cellular
between
lines radio
computers
One type is
a modem
Internet, Intranet,
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Computer Software : An Overview

Software Program

• A program is a
series of
instructions that
tells the computer
what to do

Application System
(Application Software)
System Software
GUI

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Computer Software : An Overview

• What is system software?

Programs that control the operations of the computer
and its devices

Operating System (OS)

is a set of programs
that coordinates all
activities among
computer hardware Utility Programs allow the user to
devices and allows perform maintenance-type tasks
users to run usually related to managing a
application software computer, its devices or its programs

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Computer Software : An Overview

• What is application software? Javascript program

Programs that perform specific

tasks for users

Word
Spreadsheet
Processing

Presentation
Database
Graphics

Resulting Internet application

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Categories of Computers

• What are the categories of computers?

Personal computers (desktop)

Mobile computers
and mobile devices

Midrange servers

Mainframe computers

Supercomputers

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Categories of Computers

• What are the two most popular series of personal

computers/desktop?
Apple Macintosh
PC and compatibles uses the Macintosh
use the Windows operating system
operating system (Mac OS)

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Categories of Computers

• What are Web-enabled/mobile handheld

computers?

Small
enough to fit
in your Used
by mobile
hand employees such
as meter readers
and delivery
people

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Categories of Computers

• Personal digital assistant (PDA) and Smart Phone

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Categories of Computers

• What types of servers are

there?
Midrange server Powerful, large
computer that supports up to a
few thousand computers

Mainframe Very powerful,

expensive computer that supports
thousands of computers

Supercomputer The fastest,

most powerful, most expensive
computer. Used for applications
requiring complex mathematical
calculations
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What Makes Information Useful?

• It is accurate  It is relevant
– Free of errors  Applies to the issue under
study
• It is complete  It is timely
– Includes everything  Available when needed
needed  It is verifiable
• It is flexible  Basis for results can be
traced
– Can be viewed in
various ways  It is accessible
 All those who need the
• It is reliable information can get to it
– Results are always  It is secure
consistent  Free from contamination
(accidental or deliberate)

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Organizations Have High Expectations of
Their Information Systems
• Fast, accurate processing of business
transactions.
• Storage, retrieval, analysis, and data
sharing to
– Increase communication
– Reduce overload
– Span organizational boundaries
– Support and improve decision making.
• Distinctive capabilities providing
competitive advantage.
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Examples of Computer Usage

• What are the needs of a power user?

– Speed and large amounts of storage
– Types of power users
• Engineers
• Desktop publishers
• Architects
• Graphic artists

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Examples of Computer Usage

• What are some examples

of computer applications
in society?
 Education
 Finance
 Government
 Healthcare
 Science
 Publishing
 Travel
 Industry

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Summary

• Today’s businesses face myriad/countless

pressures.
• Information technology provides tools and
capabilities to respond to those pressures.
• Knowledge of IT and its applications helps
businesspeople develop business strategies
that effectively employ IT.

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Acknowledgement

Books References
• Turban & Rainer. 2003. Introduction to Information
Technology. 2nd Edition. John Wiley & Sons.
• Turban, McLean & Wetherbe. 2003. Information Technology
for Management. 4th Edition. John Wiley & Sons.
• Shelly, Cashman, Vermaat. 2004. Discovering Computer: A
Gateway to Information. Shelly Cashman Series Complete
Edition. Thomson Course Techology.
• Previous Course Materials.

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Questions And Internet Activities

• Why is the study of IS/IT is important to you?

• Describe the meaning of Information Age.

• Enter a web site that offers employment

opportunities in IT in Malaysia and Asian region.
Note IS/IT job availability and salaries. Compare
job availability and salaries to other
professions.(Due:Week 4, Group of 2)

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