UNIT 1: SUMMARY OF FACE-TO-FACE DIGITALIZATION

DISCUSSION ● Transformation using a system PDF file

BUSINESS processing using excel (interpret)
● HIghly affected by the information ● Usage of excel
technology ● System that adds value
● All-encompassing ● It has transformation, content, and
● It can also be tangible and intangible assets interprets
● When defined by the standards it is IFRS 3 ● Accessible
○ set of activities, not focus on selling ● It adds value to the object
activities it is interconnected with INFORMATION TECHNOLOGY
each other ● Information technology transforms our
● Bottom line is to earn profit lives
DATA ● It evolves
Unstructured set of facts/figures. It is binary ● In relation to business and how we relate it
digits without thoughts. Also, It is a form of to business
● Figures ● Dealing with information and technology
● Numbers
● Not limited to software
● Unstructured
Data, is unprocessed or raw ● Both the computer technology and
INFORMATION communication
Sufficient and reliable for decision-making. COMPUTER TECHNOLOGY
It must be: COMMUNICATION TECHNOLOGY
● organized and interpreted ● Communicating your information (How
TECHNOLOGY you deliver your messages/ how you relay)
● It is relative ● Who are the end users? (information
● Encompassing not only with computers but technology)
with systems; operating system. ○ Customers & etc considered when
● Application of Scientific knowledge in order dealing
to make our daily lives easier. ○ External & Internal
● We use methods and system to process ○ BPOs – for cutting cost –
information. outsourcing
DIGITIZATION ○ Earn Profit – calculated the risk &
● It is analog to digital (transform) mitigated ask cost, cyber security
● For instance, notes to scanned PDF (information technology)
capture the notes (paper) and converted to
PDF format.
 1. Online Banking – use a website to access MODERN INFORMATION TECHNOLOGY
the BDO website or use the website of the ● Optimizing the use of hardware and
bank. software to support businesses.
2. Mobile Banking – use an application that is
downloaded through the app store or play
store. INTERNAL FACTORS
PURPOSE OF INFORMATION TECHNOLOGY 1. Owner
IT THREE COMPONENTS: 2. Employees'
Productivity EXTERNAL FACTORS
● How and when in allocating your resources 1. Customers
in the least amount of time, and 2. Investors
effectiveness 3. Government
● Efficient
○ Maximine the resources at an
optimal level and allocation.
○ Optimal level – maximize resources
at least amount of time.
■ Depends on the result of the
activity
● Effective
○ Result of the activity.
○ End results/product of the process
Monitoring
● Businesses are regulated by information
technology
● Government now regulates businesses, and
by looking ate specific processes in a
company
Performance Management
● How we conduct our activities with our
vision and mission
● How we file
● How SEC regulate? BIR collection of tax
● Technology is dynamic
● Decision making is also being affected by
the IT
CHAPTER 1: INFORMATION TECHNOLOGY IN A prepare for tasks related to computer
BUSINESS ENVIRONMENT technology in organizations such as;
INFORMATION TECHNOLOGY AND ITS ○ Schools
DISCIPLINE ○ Government
IT comprises a wide range of hardware ○ Healthcare facilities
and software solutions that support ○ Business environments, and the like.
organizations and evaluate data that help them At the moment, these organizations are
accomplish their targets. completely dependent on what IT:
● It also describes the technology-based ● To give and do to people who need a
workflow processes that enhance the suitable system in place.
proficiency of an organization to provide A suitable system
services that produce profits. Graduates of IT programs attend to these needs
IT makes: and problems that occur from time to time.
● most handling high-performance ● is one that responds properly is secured
communication links to wide-ranging from any form of threats
information from one location to another. ● is always ready for upgrades and
maintenance.
MAIN COMPONENTS OF IT: MODERN INFORMATION TECHNOLOGY
● Use of an electronic device known as a IT is defined as the study and application of:
computer. ● Computers
Computer – which allows users to input data, ● Network
process them into information and store them for ● Telecommunications that;
later use. ○ Store
Because of the advancement in IT ○ Manipulate
● the world has turned into a "global village," ○ Retrieve
Global Village – a world viewed as a community in ○ Manage
which distance and isolation have been ○ Send information
dramatically reduced by electronic media such as It includes a combination of software and
television and the Internet. (defined by hardware resources that are used together to
Merriam-Webster) perform various functions that people need in their
everyday life.
IT IS SAID TO HAVE TWO FACES. MODERN IT
● In general, it is commonly used to refer to all is simply more than high technology and
computing functions. gadgetry.
● In education, it applies to a bachelor's There are sophisticated computers
degree program that helps students available in the market today that are fully
equipped with modern software and capable of 3. Charles & Keith
solving a multitude of business and technical by simply following these brands' pages. In
problems. Instagram, for example, approximately eighty
Technology Buzzwords – famous software and percent (80%) of its users follow at least one (1)
hardware vendors use this. In order to sell more business.
complex software products for: Integration of IT into business leads to
● Big data success.
● Machine learning Queue management system – machine with a
● Artificial intelligence (AI) ticket dispenser
● Internet of Things (loT) Integration of advanced IT tools into a business
● Augmented and virtual reality makes it more competitive.
● Data mining, and so on. ● For example, companies that integrate a
People can access software and mobile queue management system (QMS) into
apps for various uses anytime and anywhere. their daily operations promote convenience
IT – is used to support the business activities of to client/customer and employee/staff.
an organization to increase its profit and improve Main purpose of QMS
its service quality. ● is to facilitate the customers' waiting
Business activities include process
1. Administration ● monitor the time spent in a queue
2. Production ● later solve customers' inquiry.
3. Sales This system is useful for service sector
4. Management. companies such as:
IT tools above can be accessed by: ● Banks
1. Customers ● Medical institutions
2. Clients ● Internet service providers
3. Staff ● Insurance companies, and others.
4. Employees
Businesses – are available online through social Companies with QMS guarantee (Ghazal,
media (social networks) Hamouda & Ali, 2015).
IT – is everywhere. At the moment, millions of ● high-quality services
people use social networks across the globe. ● efficient processes
Through social networks, people could ● less customer waiting time
conveniently access updates on their preferred ● better employee working conditions
brands such as: BUSINESS IN THE INFORMATION ERA
1. MaxFactor Most businesses established in the
2. H&M Information Era mostly depend on the use of
advanced technologies. It is a fact that people ● Online banking
currently live in the Information Era, commonly ● E-business
known as the Digital Age. ● M–commerce
● E-commerce
Information Era – is described as enormous and Information Age – enables businesses to
incredible, where huge amounts of information can compete in a marketplace that is complex, global,
be shared around the world with just one click of a and customer focused.
finger.
Everyone has the ability to be Companies must know exactly how to react to
knowledgeable about almost anything with the help opportunities and problems that might come up
of the Internet which can be accessed anytime from this modern business environment
and anywhere. which is a combination of various factors
Many business activities were done in an (internal and external) that might affect business
old-fashioned way. activities and influence a company's operations.
These factors may include
Businesses before ran their daily operations 1. Clients
completely different from what businesses are 2. Suppliers
presently doing. 3. Owners
There were no mobile phones, particularly 4. Technology
smart phones. There were no electronic businesses 5. Laws
and mobile apps, and software is limited. 6. Economic
● Using the Internet is intended only for 7. Social
special purposes and offered to selected 8. Political
people. However, despite the absence of 9. Legal
such IT tools, people were able to thrive. 10. Government activities
Today, people are largely dependent on A business can be easily established but
technology. difficult to sustain.
The evolution of the IT industry, combined with For a business to be successful in a
advancements in technology, has made it possible greater market – it must take the challenge and be
for people to simply do business in real time. aware of the various factors of the modern
IT has managed to include many aspects of business environment.
technology needed by society: Businesses – must learn how to adapt
● Information systems easily to the changes in the market as quickly as
● Networking possible.
● Social media
● Mobile applications
For example, a business needs resources such He/She might handle:
as: ● technical support issues
(1) finance, which depends on support from ● customer complaints
financial institutions ● account inquiries
(2) sales of products, which depend on the needs 2. Banking (Online Banking and Mobile
of customers. Banking)
These are just a few of the many factors of Online banking is one of the many business
a business environment that businesses must banking services that banks offer.
consider. It is popularly known as Internet banking.
In addition, the changing needs of Transactions – can be done over the Internet.
customers and the need for new innovations are through a bank's website with the use of a
part of the business environment. desktop computer or laptop.

The biggest challenge for businesses in this These transactions include:

technological era is surviving in the market ● an online payment system
Business environment – is considered the most ● online checking
fundamental aspect of any business. ● viewing of account
● transaction
● It presents both threats and opportunities ● online application request
for a business. ● transfer of money between accounts.
Businesses – must be aware of the ongoing ● Services traditionally offered:
changes and use these changes as opportunities. ○ local bank branches
○ online banking.
The following are some businesses that are IT eases the work of:
popular in the Digital Age: ● business owners
1. Call Centers ● bank employees
Among the most in-demand jobs all over the ● individual customers through Internet
world are call center jobs. banking.
A call center – is a unified type of The benefits of online banking includes:
company that handles inbound and outbound ● reliability
calls from current and potential customers. It is ● security (e.g., data privacy)
either located within a company or outsourced. ● easy access
● transparent charges
A call center agent – refers to a person ● convenient account monitoring.
who handles incoming or outgoing customer
calls for a certain business.
Mobile banking – allows an account holder to ● Delivery
perform many online transactions through an app ● Processing of information
using mobile phones (smartphones) instead of a ● Other digital content.
desktop computer. IT has replaced traditional or conventional
Mobile banking – requires an account holder to methods of business activities with modern and
register on a mobile app. innovative technological tools.
Features of online banking and mobile
banking are: These technological tools help business
● relatively the same mobile banking requires organizations
a mobile banking app ● Increase profit
● SMS notifications. ● Efficiency
THE CHANGING ROLE OF IT IN BUSINESS ● Productivity.
IT is about telecommunication networks; all Many years ago, business organizations have
kinds of hardware such as: shifted majority of their operations in anticipation of
● Computers the Digital Age;
● Routers ● they used IT to actualize this shift. Most of
● Memory them turned to giant IT companies that
● Cables provide IT solutions.
● Servers Others required tailor-made technology for specific
● Printers clients. As time went by, many companies became
All types of software including both systems so eager to digitalize their operations that providers
and applications such as: created each IT setup as unique, making it
● Operating systems expensive and complicated.
● Productivity tools
● Office application tools ● As a result, businesses engaged with IT
● Data management tools infrastructure, which is so expensive to:
● Social and mobile applications. ○ operate
IT facilitates: ○ maintain at the same time, require a
● Storage lot of staff.
● Distribution At present, we enjoy technologies that are
● Retrieval designed and developed to revolutionize old
● Management concepts
● Manipulation Many of the tasks that involve complex
● Sharing solutions can now be automated by simpler and
● Acquisition cheaper IT.
● Collection
 ● Mobile apps activities and processes so business
● Social media organizations can achieve their goals and
● Cloud computing profit.
● Grid computing Business performance management was
Networking – have ushered in the technological developed as a monitoring method that most
era. businesses use to achieve their goals.
Technological industries – are moving toward
developing software models rather than hardware. It refers to a management culture that helps
● Google, Microsoft, and Amazon – spend businesses optimize their performance by:
plenty of money to be connected in the ● evaluating and;
Cloud where everyone is at now, thereby ● analyzing various processes using software
giving a sense that this new era of IT is applications:
inevitable. ○ such as online analytical processing
PRODUCTIVITY (OLAP) and;
Technological tools and applications ○ executive information systems (EIS).
such as: ROLE OF INFORMATION TECHNOLOGY IN
● Computer- aided design (CAD) OTHER FIELDS
● Office application tools (word processors, ● Technology is no longer about luxury;
spreadsheets, and presentation software) instead, has become a necessity.
● Programming software Technology has become very popular in various
● Database technology; fields such as:
● and the like, improve business productivity. ● Education
MONITORING ● Manufacturing
IT tools are used for monitoring purposes in ● Communication
various areas of business organizations. ● Banking
The main reason for this is to ensure that Industries use technology mainly to improve their
all resources are being utilized efficiently. services and increase their productivity.
● For example, there are companies that EDUCATION
implement real-time inventory ● IT plays a vital role in providing quality
management for monitoring business education to students.
transactions to reduce production cost.
Nowadays, technology is a staple part of most
BUSINESS PERFORMANCE MANAGEMENT classrooms. For example:
● In the world of business, methods are ● Experiential learning
continually being evaluated to determine ○ Students use technology to simulate
more effective and efficient business their learning activities.
EDUCATIONAL TECHNOLOGY d. Constant Therapy
● Widely used to support teaching and This is a mobile app-based educational
learning. technology for students with special needs.
● Many schools, colleges, and universities It provides personalized therapy for students
all over the world recognize the potential with disorders in:
and contribution of educational software in ● Communication
learning. ● Learning
○ However, despite the wide coverage ● Language
of educational technology in terms of It also allows educators to monitor students'
forms and purposes establishing progress.
it in a classroom setting can be LEARNING MANAGEMENT SYSTEM
costly. Choosing the most appropriate educational
application to be integrated into a curriculum can be
The following are some examples of emerging difficult.
educational technologies: A primary consideration of educational
institutions when selecting curriculum materials is
a. Glogster EDU the materials' long-term utility.
Students can use this tool to present their One drawback of using educational software,
research creatively. It allows students to: ● however, is that a software application often
● create unique projects changes; it requires
● research presentations. ○ frequent upgrades
○ Updates
b. Mentimeter ○ purchases of newer ones.
This is a website specifically designed to Learning management systems (LMSs) address
support teaching and learning in schools, this drawback.
colleges, and universities. ● These systems are powerful online
This website increases the participation applications containing designed and
of students in the classroom. It allows teachers developed courses for students.
to: Course contents can be uploaded anytime in
● prepare practice exercise questions online LMSs. Through them educators can prepare online
● ask students to answer virtually. assessments such as:
c. Electronic Learning Organizer ● Quizzes
This is a cloud-based technology that: ● Assignments
● helps language teachers produce activities ● discussions
for their students in the form of digital
learning objects.
LMSS – host forums and post announcements to ● Software
answer the queries of students and cater to their ● Hardware
needs. ● Databases
Furthermore, with the use of LMSS such as ● Networks – provide technical support to
● Blackboard businesses, and train non-technical workers
● Canvas on business information systems.
● Ranger Help Desk Technician Jobs:
● Moodle, and so on, ● Technicians must be knowledgeable about
○ student progress can be monitored computer systems and have good customer
and evaluated online. Educational service skills.
institutions could also maintain the ● They are trained to address the computer
quality of their services using LMSs problems of clients through electronic mail
by establishing technical support and telephone instructions to customers.
through these systems. Technical Support Analyst Jobs:
HEALTH ● Technical support analysts are considered
IT also plays a significant role in the field of professionals who assist staff within an
medicine. For example, organization and support non-IT computer
● Patient record management system users.
(PRMS) – which is designed to record all ● They assist clients who encounter technical
transactions made by patients, are issues while using a particular company's.
common nowadays in hospitals. products.
● Medical doctors – take pictures of Business Intelligence Analyst Jobs:
patients' body parts to detect illnesses ● Business intelligence analysts are computer
or disorders using machines like science graduates who use computer
○ the computerized axial tomography software programs to go through big data
(CAT) and trace specific information to formulate
○ magnetic resonance imaging (MRI). reports and create presentations by
INFORMATION TECHNOLOGY CAREER considering the company's level of
OPPORTUNITIES efficiency and its departments'
Generally, IT specialists manage and advancements over a selected timeline.
maintain technology products, but they are not
limited to technology companies. TRENDS IN INFORMATION TECHNOLOGY
● They may work with businesses and DEVELOPMENT
organizations that use technology and The Adaptability Of The Internet Of Things (Iot)
control large amounts of information. loT is a system of:
IT specialists work with services related to: ● Interconnected computing devices
 ● Mechanical
● Digital machines
● Objects
● Animals
● People
It has the ability to transport data over a network
without requiring human-to-human or
human-to-computer interaction.

DEVELOPMENT OF WEB APPLICATIONS

These are web applications that are
composed of:
● web pages
● websites – similar to traditional and most
mobile applications.
A web app is an application program that
is stored on a remote server and delivered over
the Internet through a browser interface.
THE BRAINPOWER OF ARTIFICIAL
INTELLIGENCE
Artificial intelligence (AI) – is the
simulation of human intelligence processes by:
● machines, particularly computer systems.
These processes include:
● Learning
● Reasoning
● Self- correction
Specific applications of Al include:
● expert systems
● speech recognition
● machine vision
CHAPTER 2: INTRODUCTION TO INFORMATION Listed below are examples of data:
SYSTEM a. A student's class attendance
INFORMATION SYSTEMS AND THEIR b. A car's accident record
CAPABILITIES c. The price of a meal at McDonalds
Digital Age d. A student's exam scores
An information system (IS) is used by e. The postcode of a customer used by a call
people and business organizations for the center agent
improvement of processes and operations to INFORMATION
make things simpler and easier. Is popularly described as:
● Refined
It is a combined set of modules for: ● Structured
● Gathering ● Organized data
● Pocessing A process is required to transform data into
● Storing of data information.
● Ddelivering of information and digital Listed below are examples of information:
products. a. A financial statement
b. The average exam score in a class
INFORMATION SYSTEM
Remains in a state of constant development This figure below is concept of data versus
and change to respond to the needs of people and information with examples.
business organizations.
IS focuses
● Development of technological innovation.

UNDERSTANDING AN INFORMATION SYSTEM

Data versus Information
Data from the Latin word, datum, refer to:
● Raw
● Unorganized COLLECTION OF DATA
● Unprocessed facts For whatever reason should always have a:
Data can be in the form: ● Clear purpose
● Number ● Plan for their use
● Alphabets Business organization's main reason for
● Date collecting data is to:
● Measurement ● Monitor
● Even statement ● Improve performance.
 THE SPECIFIC OBJECTIVES OF A SYSTEM
For example, if company XYZ Corporation wants to DEPEND ON ITS TYPE. THE FOLLOWING ARE
collect data to get feedback from its customers THE TYPES OF SYSTEMS:
regarding its services and performance, it must
consider the following: a. Natural systems. These systems are made
1) Indicators must be clearly defined to by nature. Examples are weather systems
measure effective performance. such as:
2) Collected data must be: i. Typhoons
a) Complete ii. Floods
b) Relevant iii. Other forces of nature.
c) Reliable
d) Accurate b. Man-made systems. These systems are:
3) Collected data must be gathered on time. i. Designed
4) Data must be convertible into information ii. Developed
that is needed. iii. Implemented by human beings.
5) Data must be entered into the computer Examples are:
system. ● Transportation systems
6) Information must be analyzable using: ● Computer systems
a) Appropriate technological tools ● Healthcare
b) Allow for proper interpretation. ● Education systems.
SYSTEM COMPUTER SYSTEM
A system can be defined as a collection of parts It takes inputs and processes them to create
that: outputs.
● Interact
● Interconnect THE CYCLE OF A COMPUTER SYSTEM
Work together to accomplish certain objectives.

SUBSYSTEM
Is a part of a whole system that has its own
area of immediate focus.
For example, the College of Computer
Studies is only a subsystem of a university.
Similarly, the Finance Department is a The diagram shows the cycle of a computer
subsystem of any business organization. system, which consists of a program, input,
process, output, storage, feedback, and control.
 In today's modern understanding of a PROCESS
computer system, after the set of outputs has ● Every computer has a microprocessor.
been generated, CENTRAL PROCESSING UNIT OR THE CPU
It can proceed to three stages: Is considered the brain of a computer and
● Storage (to store the output in a specific the one responsible for controlling all activities
storage location, i.e., database or cloud) and handling input/output (V/O) operations
● Getting appropriate feedback from users, within a computer system. Data inputted into a
and control (to correct problems that occur system is processed by the CPU.
during the process and make sure that the
system fulfills its purpose). OUTPUT
The output is the result after data
INPUT processing. It is usually presented externally
The fundamental idea of a computer system: from the computer system.
● In every input, there is an expected output. ` The output can be presented using an
output device.
USERS Output devices include:
Required to input data into a specific program or ● Printers
computer system using input devices ● Monitors
● Keyboard ● Speakers
● Mouse
● Joystick STORAGE
● Scanner Storage devices help users keep:
● Microphone ● Data
The data could be ● Information
● Text ● Instructions from specific programs.
● Graphics
● Audio STORAGE DEVICES
● Viideos Primarily divided into two types
Then, the data will be processed. (1) Primary storage device
For example, a user enters data in a Microsoft (2) Secondary storage device.
Word program using a keyboard. The text will
automatically appear on the monitor. In this PRIMARY STORAGE
example, the keyboard serves as the input device. Devices include:
● Random-access memory (RAM)
● Read-only memory (ROM).
Device called: and support its management in
● Internal memories making decisions.
Located: IS is essential for business firms as it:
● Inside the CPU, which can easily be ● Manages and;
accessed by the processor anytime. ● Organizes their operations.

SECONDARY STORAGE Like any other system, it operates within a

Devices are known as any alternative specific environment. It includes:
storage. ● Inputs
It allows users to: ○ Parts: Data and instructions
● Store data ● Processes
● Information ● Outputs
● Files
● Programs temporarily for future use. Data and instructions are part of the input;
Listed below are examples of storage devices: These are processed in a specific IS to
a. CD-ROM produce valuable outputs such as
b. Cloud storage ● Reports
c. DVD ● Analyses
d. USB flash drive ● Feedback mechanism
e. Hard drive disk ● Calculations
f. Zip diskette ○ that will be sent later on to the
g. Memory card concerned users or other systems.

INTRODUCING INFORMATION SYSTEMS Take an IS used to maintain and manage student

records in a university as an example.
Information system (IS) is a man-made system The possible inputs are:
that: a. Student's ID
● Collects b. Name
● Stoms c. Program
● Retrieves d. Subjects
● Processes e. Subject schedule
● Manages f. Tuition fees.
● Disseminate
● Analyzes information
○ needed to facilitate a business
organization's operational functions
An IS processes these to update a student's There are two (2) types of updates that can be
registration records in the database (storage), made in the master data of an IS:
and it gives a valuable output: the list of registered (a) information processing (IP)
students in a particular subject or program. (b) data maintenance (DP).

Uers enter data about registration, they must INFORMATION PROCESSING

also enter related information such as: ● refers to data processing functions that are
● who will register for the subject commonly related to internal operations
● how the student will pay his/her tuition fees, (e.g. manufacturing) and economic and
● why the student has decided to be part of financial activities.
the program. ● Data maintenance refers to a system's
These data will be stored in a storage location functional activities such as
(master data) of the IS ○ Adding
● can produce outputs such as: ○ Saving
○ annual reports in the future. ○ Deleting
It could also help an organization analyze the ○ Updating
available data for future reference or ○ Retrieving
improvements. ○ Editing data from the master data.

MASTER DATA An IS is more concerned about the organization's

Relatively permanent data that are stored business processes.
in the IS for a long time. The following are the three (3) logical
These data may include: components of a business process within the
● Customer master data scope of an IS:
○ complete customer information a. Information process
● Employee master data b. Operations process
○ complete details of an employee c. Management process
● Subject master data
○ including information related to the INFORMATION PROCESS
subject, i.e., subject name, ● Refers to a portion of an IS closely related
description, schedule, and so on to a specified business process.
● It plays a crucial role in making these three
components work together to attain a
specific objective.
INFORMATION USERS Whose main objective
For this particular process include the: ● Is to plan, manage, and control the overall
● Staff operations of a business organization.
● Employees
● Management These processes include activities concerning
● Customers ● Planning
Example of this process: ● Decision-making.
● Maintaining customer data Example of this process:
● Receiving a customer's complete order from ● Creating new policies
an e-commerce website ● Procedures on delivering products to
OPERATION PROCESS customers
● refers to a man-made IS that consists of:
○ People DIFFERENCE BETWEEN INFORMATION
○ Policies TECHNOLOGY AND INFORMATION SYSTEM
○ Procedures
○ Equipment IT refers to any technological or
Whose main objective computer-based tool primarily used for supporting
● Is to accomplish a certain goal of a the needs of business organizations.
particular business organization.
The people involved in this process include On the other hand, an IS:
those from ● Collects
● Human resources and; ● Stores
● Those who are tasked with product ● Retrieves
distribution. ● Processes
Example of this process: ● Manage
● Attaching shipment details and including the ● Disseminates
tracking information about a product are ● Analyzes information
○ needed to facilitate business
MANAGEMENT PROCESS organizations' operational functions
● refers to a man-made IS that consists of: and support management in making
○ People decisions.
○ Policies An IS is used by a business organization to attain
○ Procedures its common goal.
○ Equipment
CAPABILITIES OF AN INFORMATION SYSTEM ● Supermarkets
For business organizations to thrive in the that use automated cash registers and bar code
modern business: environment, they must take readers to record and store data.
competition seriously.
They must expect powerful capabilities with B. Managing large-capability storage and
regard to an IS. fast and easy access storage
An IS should focus not only on providing a vast
The following are the capabilities of an IS. data storage for business organizations but also on
A. Processing transactions quickly and fast and easy access to any type of storage.
precisely C. Efficiently communicating through a
Each activity done over an IS is called a network
transaction. An IS must have strong communication
Example: features
● In a bank, the transactions are bank ● that can easily transfer information from one
deposits and withdrawals. computer to another or from one user to
● For a university, transactions include another.
registering in courses, paying tuition fees, Through the use of
and viewing attendance summaries. ● Networks
● Employees of business organizations
Business organizations can produce: Can easily and quickly communicate with each
● Thousands to millions of transactions per other. In addition networks could transmit data,
day, and these are managed by an IS. such as:
● This is referred to as transaction processing ● Text
wherein an IS: ● Audi
○ Can record ● Video
○ Store ● Documents simultaneously
○ Delete
○ Capture D. Easing information overload for users
○ Update data easily IS, including networks, contribute a lot of
information to users, particularly to people in
The most common example of a transaction charge of decision-making.
processing system is a point of sale (POS). This The amount of information available over
POS can be seen in: the Internet nowadays are doubled and even tripled
● Malls every day.
● Retail stores
● Restaurants
 As a result, top-management users: profit was limited, access was poor, transactions
● Managers were done slowly, and information may have been
● Supervisors inaccurate.
● Executives Nowadays, a travel agency integrates its IS
Are having difficulty making decisions with other travel agencies and coordinates closely
because of information overload. with their suppliers.
Thus, an IS must be designed to:
● Analyze problems G. Uniting an organization through the
● Support decision-making to reduce coordination of its big and small groups
information overload. This capability allows organizations or parts
of them to come together toward achieving a
E. Supporting decision-making common goal or objective.
One of the most popular ISs is the decision H. Strengthening organizational memory
support system or DSS. and learning and exploring new things
This system helps users make decisions This means practices and knowledge in the
anytime at all levels of a business organization. past have vast influences on current organizational
The IS allows low-level employees to: operations or activities.
● Participate in information sharing I. Determining the process of separating
○ which is necessary for products and services
decision-making. J. Automating Business Processes
This refers to labor-saving technology by
F. Serving as a competitive weapon which business processes or procedures are
against competitors executed using IS with minimum human assistance
and to reduce costs and expedite work.
More than a decade ago, ISs were viewed
as a waste of money for business organizations. COMPUTER-BASED INFORMATION SYSTEM
Today, ISS are viewed as profit makers IS these days are mostly computer-based.
and a means for competitive advantage over These computer- based ISS (CBISS) use both:
competitors. ● Computer
For example, many years ago, airline ticket ● Telecommunications technology to perform
reservations were restricted to one travel agency certain tasks.
with a specific system that was not linked to other
branches of the travel agency.
The worst scenario was that this travel
agency was also not linked to another travel
agency (organization to organization). Therefore,
THE BASIC COMPONENTS OF CBISS ARE AS 2. Software. Software refers to the set of
FOLLOWS: computer programs that control the overall
operation of the computer system.
1. Hardware. Hardware consists of the Examples: word processor and multimedia software
system's physical devices. COMPUTER SOFTWARE AND ITS TYPES
Examples: printer, mouse, keyboard, scanner, A computer software can be categorized into
microcomputers, workstations, servers, storage two (2) different types:
devices (RAM, ROM, hard drive), network devices 1. System software. It refers to a program
(switches, hubs, fiber optics, routers), and other that controls the overall operations of a
devices (ATM, ID readers/systems) computer.
Examples:
COMPUTER HARDWARE AND ITS ● Disk operating system (DOS)
COMPONENTS ● Unix
The hardware is always referred to as the Best examples for this type of software.
physical component of a computer. ● File management utilities
It can be found in an Internal component of ● Operating systems
the central processing unit (CPU) such as the 2. Application software. It refers to an end-
motherboard, which serves as the brain of the user program, also known as a productivity
computer. program, such as MS Office applications,
game applications, Internet browsing, and
COMPUTER HARDWARE’S INTERNAL email applications. This type of software is
COMPONENTS specifically designed to answer the needs of
its users. It is simple and easy to use.
3. Database. It refers to a collection of related
files and records that are stored in a special
location for easy access.
Examples: MS Access and Oracle
4. Networks. It refers to the connection of two
or more computers established for the
purpose of sharing various data.
Examples: local area network (LAN), metropolitan
The hardware and software are connected to area network (MAN), and wide area network (WAN)
each other, which means that a computer will not 5. Procedures. These are the rules, policies,
work without either of them. and methods that administer the operation
of a computer system. They are as
significant as the people using the system.
 The procedures state the appropriate It is an IS for all types of business transactions
software to use with the hardware and clarify the it:
role of the components in the CBIS.. ● Captures
6. People. ● Stores
They are the most crucial component of an ● Classifies
IS. ● Maintains
They are the people who work with an IS to ● Updates
produce useful outputs. ● retrieves transaction data for:
OTHER COMPUTER-BASED IS COMPONENTS ○ record keeping and inputting data to
1. Telecommunications. other types of CBISS.
It refers to the electronic transmission of The characteristics of a TPS include
information within a specific distance. ● Quality performance
2. Internet. ● Reliability
It is the largest type of network that allows ● Consistency.
users to share information worldwide.
3. World Wide Web. In a TPS, there is no delay in batch processing,
It is accessible through the Internet, and it ● the results of each transaction are
consists of multimedia collections that are stored immediately available.
in a particular database of a CBIS. In the case of a delay in batch processing, errors
usually occur;
FOUR-LEVEL PYRAMIND MODEL OF A CBIS ● they are uncommon but acceptable and will
not demand a shutdown of the entire
system.

For an organization to achieve

● Quality performance
● Reliability
● Consistency of transaction processing
Data must be:
● Readily accessible in a data warehouse
● Backup procedures
● Recovery processes
OTHER TYPES OF IS Must be put in place to deal with
1. Transaction Processing Systems (TPS) ● System and human failure
A TPS is also known as a real-time ● Computer viruses
processing system. ● Software application glitches
 ● Incompatibilities 3. Decision Support Systems (DSS)
● Natural disasters A DSS is a computer-based application that
2. Management Information Systems (MIS) helps companies identify and give solutions by
An MIS is a CBIS that consists of: making decisions on ow to solve problems
● hardware and software applications that including:
support all the organization's business ● Issues on raw data
transactions. ● Documents
This IS collects raw data from different ● Employee
computer systems ● Company profiling
● Analyzes ● Management
● Processes them ● Business models.
● Reports them to assist and serve in The DSS is responsible for delivering
decision-making. information to managers who make assessments
An MIS, as well as the study on how such about specific scenarios that are not well-managed.
system works, should be considered. Other DSS applications include
● Medical diagnosis
The MIS collects and gathers data, such as ● Business management
● Employee profile ● Forest management
● Project timeline ● Railroad projects
● Financial status ● Financial verification
● Inventory management ○ For credit loan application
● Raw materials ○ Credit card application
● Marketing 4. Executive Information Systems (EIS)
● Manufacturing; An EIS is a specialized DSS that assists
Places them in a senior executives of organizations in making
● Data warehouse decisions.
● Makes them ready for access at all times to: It provides easy access to valuable
○ Managers and higher-ups who information necessary to achieve organizational
want to evaluate the data from the goals.
reports generated It is usually made up of four components:
ILLUSTRATION OF THE CONCEPTS 1. Hardware
1. Business planning 2. Software
2. Searching for solutions 3. Telecommunication
3. Analyzing actions 4. User interface
As with other computer systems: DEVELOPING INFORMATION SYSTEMS
Software is the one that controls the computer This chapter will discuss the different approaches
hardware in terms of execution in an EIS. involving how information system (IS) is:
Telecommunication is the process of transmitting By whom & by what:
data from one location to another and facilitating ● Developed
communication among users. ● Implemented
User interface (UI) refers to the means by which a
person deals with a system, that is, how he/she Systems development consists of the procedures
accesses the system or experiences it. in building and upholding IS.
A typical EIS has a user-friendly UI, which means It includes the five main components of IS such
that the operating system is easy to use, and the as
output is easy to interpret. ● Hardware
● Software
Early EISS were built as: ● Data
● Programs for mainframe computers to help ● Procedures
company administrations ● People
● Provide information in terms of the Which have been already discussed in the previous
company's profile and business chapter.
performance for the senior executives. ● It has a combination of one's technical
EIS data that are available in a company are expertise with knowledge and
assisted by technologies such as: management skill in busines
● Computers SYSTEM DEVELOPMENT LIFE CYCLE (SDLC)
● Machines Is one of the methodologies used in
● Workstations done through a network software development.
known as LAN or the local area network However, many developed systems fail to
LAN or the local area network meet the needs and requirements of a business.
● which is a type of network that consists of a One of the many reasons for such failure is that
group of computers and associated devices the
that share common communication lines or ● Systems are not fully functional
wireless links to a server. ● Not so flexible to adjust to the changing
● This network allows employees to deliver needs of the business.
appropriate and accurate information, as The SDLC emphasizes that the system can be
well as ideas, both to the company's higher developed in a series of phases:
and lower management levels. ● This simply means that each phase must be
completed first before phase commences.
 ● In terms of programming, the development Phases of the System Development Life Cycle
phase (building the system) will only Planning The system project plan is composed
commence once the users requirements of the following:
have already been determined, and the ● Determining a business problem or verifying
system design has been produced. if there are problems and opportunities that
An SDLC is composed of multiple phases. In might exist
general, it follows the following: ● Investigating if the solution to be given to
(1) Planning the problem(s) is feasible such that there
(2) Analysis would be an improvement on the IS to be
(3) Design executed
(4) Development ● Obtaining a project management plan
(5) Testing approval for implementation
(6) Implementation ● Identifying appropriate system
(7) Maintenance requirements, which includes:
SDLC Five components of the IS in terms of what
● emphasizes that a system can be hardware devices would be needed:
developed in a series of phases. 1. Software that would be used
● It simply means that each phase must be 2. Data that must be gathered
completed first before another phase 3. Procedures that would be followed,
commences. 4. The people who would be followed,
In terms of programming, the development 5. The people who would be involved in
phase (building the system) developing the system
● will only commence once the users' Criteria for the requirements analysis to start, which
requirements have already been should always be approved by a project manage
determined, and the system's design has ANALYSIS
been produced. The following are done in this phase.
SOFTWARE DEVELOPMENT LIFE CYCLE ● Identifying and taking into account the risks
that are related to how the technology to be
used for the project will be integrated into
the standard operating procedures
● Studying and gathering the:
Requirements of the business process
○ Functional
○ Non-functional
Example of Software applications: non-technical requirements with the necessary
1. computer programming languages components and subsystems integrated.
2. Files The system test may require a series of tests
3. Data flow must not be considered yet during depending on the scope and involvedness of the
the system analysis stage. requirements, including:
3. Design ● six main quality characteristics
This phase aims to transform the system ● Functionality
requirements that have been identified during the ● Reliability
previous stages into a more ● Usability
● detailed system architecture that will be: ● Efficiency
○ Feasible ● Maintainability
○ Full bodied ● Portability
○ Valuable to the organization The entire system must be prepared for the
4. Development congregation before proceeding to the
This phase aims to convert the approved integration and testing stage, meaning:
system architecture and design into a working ● All hardware and software configurations
system must have been constructed and tested
That is reliable and stable through the: functional successfully
● Technical ● All integration plans are ready and prepared
● Non-technical requirements 6. Implementation
○ that were identified and observed The deployment or implementation
during the earlier stages of the life phase first installs the system in the production
cycle solutions. environment and makes it ready for operation.
Solutions in coding may he through the It then ensures that the system is:
following: ● Fully developed
● The availability of technical specifications ● Free from system errors.
● Approved and signed-off blueprints of the The following must be confirmed:
system architecture by clients, stakeholders, ● The fulfillment of all functional and
managers, and the like non-functional requirements
5. Testing ● The approval of business necessities
This phase executes the system ● An observation of authorizations, physical
integration testing of the created and developed constraints, and service-level agreements
system. (e.g., SOA)
It guarantees that the developed systems ● The operations as mentioned and discussed
have brought together all the technical and in the user manuals
MAINTENANCE
This phase involves making changes to the
● Hardware
● Software
● Documentation
○ Process to support and sustain the
system's operational effectiveness.

This is the phase where modifications are made

to
● Enhance the system's performance
● Solutions to the problems o
● System errors encountered are;
○ Derived
○ Security enhancements are
performed, and user
requirements are addressed.
INFORMATION SYSTEM SECURITY

Information security means protecting

information and ISS from
● Malicious software
● Unauthorized access use
● Disclosure
● Modification
● Disruption
● Destruction
INFORMATION SECURITY MANAGEMENT
Is the process of identifying the security
controls to keep and defend information assets.
The succeeding chapters will provide more
information about IS security.