HERCOR COLLEGE

Km. 1 Lawaan, Roxas City, Capiz 5800

ACADEMIC YEAR 2021-2022

Department: College of Business Administration Course Code: OME305

Name of Instructor: John Khevin V. Limpoco, CPA Schedule:
Course Descriptive Title: Management Information System Semester: 1st Semester

Name of Student: ________________________________________ Year and Section: BSBA 3A and 3B

Student ID Number: ______________________________________ Contact Number: _________________________
Email Address: __________________________________________ Alternate Contact Number:
__________________

OME305: MANAGEMENT INFORMATION SYSTEM LEARNING MODULE

Course Description:
This course emphasizes on the importance of managing information through information systems
provided by advancement in technology. It gives a vivid reason why information technology matters in a
fast and pacing global market and shows the opportunities of growth, stability, and collaboration within
and outside the territory.

CH
APTER 3 BASICS OF INFORMATION
TECHNOLOGY
LEARNING OBJECTIVES
By the end of this chapter, you will be able to:

1. List major computer hardware components of computer and explain their functions;
2. Identify and evaluate criteria for deciding what computers or related devices to purchase;
3. Explain the difference between application software and system software;
4. List characteristics that are important in evaluating packaged software applications for business
use;
5. Describe business and home applications of digital telecommunications;
6. Compare and contrast various networking and Internet services;
7. Explain the difference between traditional file organization and the database approach to
managing digital data; and
8. Discuss how databases are used on the Web

SCHEDULE

Source: Oz, E. (2007). Management Information Systems – 5th Edition. Singapore: Thomson Learning.

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 In this chapter, we will utilize blended learning method. Upon receiving this learning module, you
shall be guided with the lessons, discussions, and tasks need to be completed. The “DISCUSSIONS”
part of this module is for your reading, make sure to read and understand the provided notes and feel free
to use books or online references provided therein.
In addition, the quizzes and outputs will due ONE WEEK AFTER THE RELEASE SCHEDULE
OF LEARNING MODULES. For inquiries and questions regarding the activity and tasks, you may post it
in our Google classroom with the classroom code (tuuriic). Please post other concerns and queries in the
Google Classroom or email me thru <[email protected]>.

DISCUSSIONS
At the core of any modern information system stands at least one computer. Few machines have
changed human life as radically as the computer, and few such complex machines have become so
affordable to so many businesses and individuals in such a short tie. Because computers are central to
information systems and to business, to successfully implement information systems, you need to
understand them. Businesses have many choices not only in types of computers but also in types of
memory devices, as well as choices of input and output devices. Understanding the capabilities of
hardware and the options available can save companies millions of pesos. This chapter provides you with
the knowledge to make intelligent decisions about computer hardware in the business field.

In addition, as powerful as the hardware might be, it is useless without software. Software
consists of instructions that tell the computer and its peripheral devices what to do and how to do it.
These instructions are called programs or applications. Many IT professionals refer to computer programs
as “systems” because they are composed of components working to achieve a common goal. As a
professional, you must be able to make educated decisions regarding software selection.

LESSON 1: Business Hardware

Hardware refers to the physical components of

the computer. In corporate decision making, managers
should consider software first, not hardware. Businesses
need to first consider the tasks they want to support and
decisions they want to make, and therefore the information
they need to produce. To this end, they should look for the
proper software first, and only then purchase the most
appropriate hardware on which this software can run. In
general, every computer has these components:

 Input devices receive signals from

outside the computer and transfer them
into the computer. The most common
input devices are the computer keyboard
and mouse, but some input devices
accept voice, image, or other signals.
 The central processing unit (CPU) is the
most important part of any computer. The
CPU accepts instructions and data, decodes, and executes instructions, and stores
results or outputs in memory for later display.
 Internal memory also called the main or primary memory, is located near the CPU and
stores data and instructions just before and immediately after the CPU processes them.
Two types form internal memory: RAM (random access memory), and ROM (read-only
memory).
Source: Oz, E. (2007). Management Information Systems – 5th Edition. Singapore: Thomson Learning.

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  External memory, also called external storage, uses different types of media (magnetic
disks, magnetic tapes, optical discs, and flash memory) to store data and information.
 Output devices, most commonly computer monitors and printer, deliver information from
the computer to a person.
The amount of data that computers process and MEASURING AMOUNTS OF DIGITAL
store is measured in ‘bits’ and ‘bytes’. A bit is a binary DATA
digit; a 0 or 1. A standard group of eight bits makes up a 1 KB (kilobyte) = 1,000 bytes
1 MB (megabyte) = 1,000,000 bytes
byte. Computer memory and storage capacity are 1 GB (gigabyte) = 1,000,000,000 bytes
measured in kilobytes (K, thousands of bytes), megabytes 1 TB (terabyte) = 1,000,000,000,000 bytes
(MB, millions of bytes), and gigabytes (GB, billions of 1 PB (petabyte) = 1,000,000,000,000,000 bytes
bytes). 1 EB (exabyte) = 1,000,000,000,000,000,000 bytes

Considerations in Purchasing Hardware

Factor What to look for
Power
• Speed Greater frequency and word size
• RAM Capacity Larger
Expandability Greater number of board slots for additional devices and memory
Ports Greater number of ports for printer, external hard disk, communication
devices, and other peripherals
Ergonomics Greater comfort and safety
Compatibility
• with hardware Compatibility with many other computers and peripheral devices form the
same and other manufacturers
• with software Compatibility with many software packages currently used and potentially to
be used
Footprint Smaller area
Support Availability of telephone and online support for troubleshooting
Supply of information on new upgrades
Warranty Longer warranty period
Cost Lower cost

LESSON 2: Business Software

Source: Oz, E. (2007). Management Information Systems – 5th Edition. Singapore: Thomson Learning.

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 Productivity is important not only for success but also for survival. When executives talk about
productivity tools, they really mean computer programs commonly known as software applications.
Software is a series of instructions to a computer to execute any and all processes, such as displaying
text, mathematically manipulating number, or copying or deleting documents. There are two major
categories of software:

System Software Application Software

It enables applications to It enables users to complete a particular application or task, such as word
run on a computer and processing, investment analysis, data manipulation, or project
managers the interaction management. Application software is divided into two broad categories:
between the CPU, memory, general-purpose application software and application-specific software.
storage, input or output General-purpose application Application-specific software
devices, and other software programs designed to perform
computer components. programs that serve varied purposes specific jobs, such as
Examples are operating such as spreadsheets and word calculating and executing a
systems such as Linux, processors company’s payroll
Macintosh, and Windows. (e.g. Google Chrome, MS Excel, MS (e.g. SAP, Oracle)
Word)

Considerations for Packaged Software

Factor What to look for
Fitness for purpose Try to maximize the number of needs satisfied.
Ease of learning to The shorter the learning time, the better.
use
Ease of use The easier a program is to use, the better.
Try to maximize the number of commands that need to be memorized.
The more intuitive the icons, the better.
Compatibility with Try to maximize compatibility with related software and with other operating
other software systems.
Try to maximize portability of data and output to other programs.
Reputation of vendor Use professional contacts and references to gather background information
on the vendor.
Be sure the vendor can deliver what it promises.
Be sure the vendor stands by its pricing.
Availability and Ask references about their experience.
quality of telephone Look for knowledgeable staff on Web and phone support
and online support
Networking Try to maximize ability of many computers to share the software.
Cost Seek detailed pricing information.
Seek the best price, while maintaining quality and performance.
Consider the total cost of ownership: annual license fees, support cost, and
other costs associated with use of the software.

At the core of any modern information system stands at least one computer. Few machines have
changed human life as radically as the computer, and few such complex machines have become so
affordable to so many businesses and individuals in such a short tie. Because computers are central to
information systems and to business, to successfully implement information systems, you need to
understand them. Businesses have many choices not only in types of computers but also in types of
memory devices, as well as choices of input and output devices. Understanding the capabilities of
hardware and the options available can save companies millions of pesos. This chapter provides you with
the knowledge to make intelligent decisions about computer hardware in the business field.

Source: Oz, E. (2007). Management Information Systems – 5th Edition. Singapore: Thomson Learning.

Page 4 of 10
 In addition, as powerful as the hardware might be, it is useless without software. Software
consists of instructions that tell the computer and its peripheral devices what to do and how to do it.
These instructions are called programs or applications. Many IT professionals refer to computer programs
as “systems” because they are composed of components working to achieve a common goal. As a
professional, you must be able to make educated decisions regarding software selection.

Modern telecommunications technology allows businesses to send and receive information in

seconds. Except when a physical transfer of goods is involved, geographical distances are becoming
meaningless in business transactions. When using computers and other digital devices, people can now
work together as if they were sitting next to each other, even when they are thousand miles apart.
Financial transactions and information retrieval take seconds, and wireless technology enables us to
perform these activities from almost anywhere and while moving. Understanding the technology
underlying telecommunications – its strengths, weakness, and available options – is essential to making
informed business decisions.

Data is usually collected in a way that does not make it immediately useful to businesspeople.
Imagine building a model palace from a pile of building blocks. You have a good idea of what you want to
build, but first you have to organize the blocks so it is easy for you to find and select only the blocks you
need. Then you can combine them into substructures that eventually are integrated into your model.
Similarly, data collected by organizations must be organized and stored so that useful information can be
extracted from it in a flexible manner.

LESSON 3: Business Networks and Telecommunications

Telecommunications is the transmittal of data and information from one point to another.
Telephone, fax, e-mail, the Web – none of these essential business services would be available without
fast, reliable telecommunications. Networking technologies have brought several improvements to
business processes:

 Better business communication. When no physical objects need to be transferred from one place
to another, telecommunications technology can make geographical distance irrelevant. E-mail,
voice mail, instant messaging, faxing, file transfer, cellular telephony, and teleconferencing
enable detailed and instant communication, within and between organizations.

 Greater efficiency. Telecommunications has made business process more efficient. Any
information that is recorded electronically can become immediately available to anyone involved
in a business process, even when the business units are located far apart.

 Better distribution of data. Organizations that can transmit vita data quickly from one computer to
another no longer need centralized databases. Business units that need certain data frequently
might store it locally, while others can access it remotely. Only fast, reliable transfer of data
makes this efficient arrangement possible.

 Instant transactions. The availability of the Internet to millions of businesses and consumers has
shifted a significant volume of business transactions to the Web. Both businesses and consumers
can shop, purchase, and pay instantly online. Wireless technology has also made consumers can
shop, purchase, and pay instantly online.

 Flexible and mobile workforce. Employees do not have to come to the office to carry out their
work as long as their jobs only involve the use and creation of information. They can telecommute
using Internet connections. Salespeople, support personnel, and field workers are more mobile
with wireless communication.

Source: Oz, E. (2007). Management Information Systems – 5th Edition. Singapore: Thomson Learning.

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  Alternative channels. Services that used to be conducted through specialized dedicated channels
can be conducted only through alternative channels. For example, voice communication used to
be conducted only through proprietary telephone networks but is now also conducted through the
Internet, which decrease its cost.

A network is a combination of devices or nodes (computers or communication devices)

connected to each other through one of the communications channels. Computer networks are classified
according to their reach and complexity. There are four basic types of networks:

Wide Area Network (WAN)

It is a far-reaching system of networks. One WAN is composed of two or
more LANs (or MANs) that are connected
Metropolitan across(MAN)
Area Network a distance of more than
approximately 48 kilometers. The most well-know WAN is the Internet.
It usually links multiple Local
LANs within a large city
Area Network or metropolitan region and
(LAN)
typically spans a distance of up to 50 kilometer.
It is a computer network within a building or a campus of adjacent building.
Personal Area Network (PAN)
It is usually established by a single organization with offices within a radius
It is a wireless network ofdesigned
roughlyfor
5-6handheld and portable devices such
kilometers.
as cellphones and tablets or laptop computers, and is inteded for use by
only one or two people. Transmission speed is low to moderate, and the
maximum distance between devices is generally 10 meters.

LESSON 4: Database and Data Warehouses

Businesses collect and dissect data for a multitude of purpose. Digital data can be stored in a
variety of ways on different types of media. They can be stored in what can be called the traditional file
format, in which the different pieces of information are not labeled and categorized, but are stored as
continuous strings of bytes. The chief advantage of this format is the efficient use of space, but the data is
nonetheless difficult to locate and manipulate. By contrast, the database format, in which each piece of
data is labeled or categorized, provides a much more powerful information management tool. Data in this
format can be easily accessed and manipulated in almost any way desired to create useful information
and optimize productivity.

Databases are behind the successful use of automatic teller machines, increased efficiency in
retail stores, almost every marketing effort, and the numerous online search engines and electronic
storefronts on the Web. Combined with, interactive Web pages on the Internet, databases have made an
immense contribution to commerce. Without them, there would be no online banking, no online consumer
catalogs, no online searches for information, no online stock brokerages, and no online chat rooms. Their
impact on business has allowed fewer people to complete larger tasks, and their power has allowed
organizations to learn more about us, as consumers, than we might realize. Imagine: every time you enter
the address of a Web site, a special program performs such search in a huge database and matches your
request with one of millions of addresses. Every time you fill out an online form with details such as your

Source: Oz, E. (2007). Management Information Systems – 5th Edition. Singapore: Thomson Learning.

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address, phone number, taxpayer identification number, or credit-card number, a program feeds the data
into a database, where each item is recorded for further use.

In virtually every type of business today, you must understand the power of databases and
approaches to organizing and manipulating data.

LESSON 5: The Traditional File Approach

There are two overall approaches to maintaining data: the traditional file approach – which has
no mechanism for tagging, retrieving, and manipulate data – and the database approach, which does
have the mechanism. To appreciate the benefits of the database approach, you must keep in mind the
inconvenience involved in accessing and manipulating data in the traditional file approach: program-data
dependency, high data redundancy, and low data integrity.

Source: Oz, E. (2007). Management Information Systems – 5th Edition. Singapore: Thomson Learning.

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 Furthermore, the term ‘file-based approach’ refers to the situation where data is stored in one or
more separate computer files defined and managed by different application programs. Typically, for
example, the details of customers may be stored in one file, order in another etc. Computer programs
access the stored files to perform the various tasks required by the business. Each program, or
sometimes a related set of programs, is called a computer application. For example, all of the programs
associated with processing customers’ orders are referred to as the order processing application. The file-
based approach might have application programs that deal with purchase orders, invoices, sales and
marketing, suppliers, customers, employees, and so on.

Limitations:

 Data Duplication. Each program stores its own separate files. If the same data is to be accessed
by different programs, then each program must store its own copy of the same data.

 Data Inconsistency. If the data is kept in different files, there could be problems when an item of
data needs updating, as it will need to be updated in all the relevant files; if this is not done, the
data will be inconsistent, and this could lead to errors.

 Difficulty in Data Security. Data is stored in different files by different application programs. This
makes it difficult and expensive to implement organization-wide security procedures on the data.

The following diagram shows how different applications will each have their own copy of the files they
need in order to carry out the activities for which they are responsible:

LESSON 6: The Database Approach

An information system that uses database management system (DBMS) to manage its
information has a particular structure, comprising three components: data, DBMS, and application
software. This structure as described below is referred to as the database approach to information system
development.

The central component of the database approach is the DBMS. This software is also referred to
as the “database engine” or the “back end”. With regard to the data it manages, it has several
responsibilities including the following:

Source: Oz, E. (2007). Management Information Systems – 5th Edition. Singapore: Thomson Learning.

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  Data Definition: providing a way to define and build the database
 Data Manipulation: providing a way to insert and update data in the database
 Query Execution: retrieving information from the data in the database
 Data Integrity: ensuring that data stored is well-formed
 Data Security: enforcing restrictions about who is able to access what data
 Provenance: logging capabilities to provide an audit trail for data changes
 Multiuser Concurrency: supporting the activities of many users at the same time

As can be seen from the above list, a DBMS is a complex software application. While all
database management systems may not provide all of these features, these are the general
characteristics of today’s DBMSs. Using a database requires considerable expertise and knowledge
about the specific DBMS being used. Some of the more popular DBMSs today are MySQL, Microsoft
SQL Server, Oracle, PostgreSQL, Microsoft Access, and IBM’s DB2.

The second component in the database approach is the data. Although the physical location or
manner in which the data are stored may be important for performance reasons, the location of the data
does not determine whether or not a system is developed using the database approach. As long as the
DBMS has access to and can perform its responsibilities in regards to the data, the details of the data
storage are not relevant.

The final component of the database approach is the application, also called “front end”
software. Application software interacts with the DBMS to provide information to a user. It may also
provide a way for a user to invoke other functionality of the DBMS. In fact, the DBMS software itself is
non-visual, meaning that the user does not interact directly with the DBMS. Any software that provides an
interface for the user to invoke procedures in the DBMS we will define as application software.

Once the application has determined what the user is trying to accomplish, it sends a request to
the DBMS. The request may be an instruction to change data or a request for information such as the list
of employees who were hired on a particular data. All relational databases use a standard language to
receive and process requests called Structured Query Language (SQL).

Source: Oz, E. (2007). Management Information Systems – 5th Edition. Singapore: Thomson Learning.

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 The DBMS receives the request and determines if the operation requested is allowed for the
authenticated user. If the operation is allowed, the DBMS completes the operation and sends a response
to the application. The application then communicates the information to the user. If the operation is not
authorized for the user or if there is an error in fulfilling the operation, the DBMS responds with an
appropriate message. Again, it is up to the application to display that to the user. It is a critical feature of
the database that the application never bypasses the DBMS to access stored data directly.

The above illustration shows some of the primary components of a typical DBMS and how they
are used in an information system. The user interacts with the DBMS generally by writing SQL statements
through the front end. (Although a sophisticated front end could format the SQL statements itself based
on other types of user input.) These SQL statements are interpreted and executed by the DBMS by either
updating the data or returning results from the data. In this class, we will focus on query statements,
whose purpose is to retrieve data from the database and present it in a form that is understandable by the
user.

Source: Oz, E. (2007). Management Information Systems – 5th Edition. Singapore: Thomson Learning.

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