COMPUTERS IN BUSINESS

© 2017 Cosmopoint Sdn Bhd

TABLE OF CONTENT
CHAPTER 1: BUSINESS INFORMATION SYSTEM
1.1 Management Information Systems 1
1.2 Data, Information and Systems 4
1.3 Information Systems in Business 8
Review Questions 10

CHAPTER 2: STRATEGIC USES OF INFORMATION SYSTEMS

2.1 Achieving a Competitive Advantage 11
2.2 Issues in Getting Competitive Advantages from Technology 14
2.3 Business Strategy And Information Technology Strategy 18
Review Questions 21

CHAPTER 3: INFORMATION SYSTEMS IN BUSINESS FUCTIONS

3.1 Organizational Systems 22
3.2 Business Organizational Structure 23
3.3 Enterprise Resource Planning (ERP) 30
3.4 Groupware and Collaborative Work 32
Review Questions 36

CHAPTER 4: INFORMATION TECHOLOGY IN BUSINESS: HARDWARE

4.1 The Central Tool of Modern Information Systems 37
4.2 A Peek inside the Computer 38
4.3 External Storage, Input and Output Technology 41
4.4 Classifying Computers 42
4.5 Computer Networks and Client/Server Computing 43
4.6 Network Computers and Peer-To-Peer Computing 43
Review Questions 44

CHAPTER 5: INFORMATION TECHNOLOGY IN BUSINESS: SOFTWARE

5.1 What is Software? 45
5.2 Levels of Programming Language 47
5.3 Application Software Packages and Productivity Software 56
Review Questions 59

CHAPTER 6: INFORMATION TECHNOLOGY IN BUSINESS: TELECOMMUNICATION AND NETWORKS

6.1 Telecommunication System Component In Business 60
6.2 Communication Processors and Software 61
6.3 Functions of Telecommunication 63
6.4 Types of Signals: Analog and Digital 64
6.5 Communication Channels 66
6.6 Communication Networks 67
Review Questions 69

CHAPTER 7: TECHNOLOGICAL PROCESS: THE INTERNET, INTRANETS AND EXTRANETS

7.1 What is Internet 70
7.2 Internet Technology and Services 82
7.3 Communication on the Internet 86
7.4 Intranets and Extranets 86
Review Questions 98
CHAPTER 8 : DEVELOPING INFORMATION TECHNOLOGY SYSTEM
8.1 Information to System Development Process 99
8.2 Systems Analysis: Feasibility Studies 103
8.3 System Design: Role of the End Studies 103
8.4 Programming: Testing 104
8.5 Conversion: Production and Maintenance 105
8.6 Traditional Systems Lifecycle: Prototyping 109
Review Questions 114

CHAPTER 9 : DATA AND KNOWLEDGE MANAGEMENT

9.1 Managing Digital Data 115
9.2 Components of Database Management Systems 117
9.3 Database Models 118
9.4 Database Architecture: Hierarchical and Network DBMS 123
9.5 Data Warehouse: Data Mining 126
Review Questions 130

CHAPTER 10 : ELECTRONIC COMMERCE

10.1 Categories of E-commerce 131
10.2 Customer-centred Retailing 134
10.3 Direct Sales Over the Web 135
10.4 B2B E-commerce 136
10.5 E-commerce Payment Systems 139
Review Questions 142
PREFACE
Name of Course Computers In Business
Course Code EDB 303
Credit Hour 3
Pre-requisite (if any) Nil

The module introduces the importance of Information System (IS) in organizations and issues
associated with managing. These provides a strategic view of IS and Information
Technology (IT). The topics to be covered are Business Information Systems, Strategic Uses
of Information System, Computer Hardware and Software, Telecommunications and
Networks, Database Management and Basic Concepts in Telecommunication Network in
business processes.

Learning Outcomes
At the end of this subject, students will be able to:
Explain information flow that links between business
strategy and information technology strategy
Explain the concept of the enterprise resource planning
and information technology infrastructure
Discuss the components and functions of a
telecommunication system

Understand internet technology and services

Develop system development process

Mode of Delivery & Assessment Method
Mode of delivery : Lecture, tutorial, workshop and case study. Digital learning
supported by self-study course materials, textbook, Online Learning Management Systems,
digital library, interactive mode.

Assessment Methods

Assessment 1 10%
Assessment 2 10%
Class Participation 10%
Assessment 3 20%
Mid Term Examination 10%
Final Examination 40%
TOTAL 100%

Main References & Additional Information

Main References supporting the course
1) Laudon KC & Laudon JP. (2004). Managing information systems: managing the digital
firm. Pearson.

Main References supporting the course

1) Monk, Ellen & Wagner, Bret. (3rd ed.). (2007). Concepts in enterprise resources planning.
Cengage.

Contributor
• Rosalia Binti Abdullah • Maizatul Nadia Binti Samion
• Jalaludin Bin Tajuddin • Syasikala A/P Muniyandy
• Maznah Binti Salat • Noraliza Binti Alias
• Umi Hidayah Binti Omar
 CHAPTER
BUSINESS

1 INFORMATION
SYSTEMS
SYNOPSIS
Business Information Systems is a boundary-spanning field of study relating to how
information and communication technologies (ICT) can be deployed to improve business
processes and enhance the organisation's value chain networks, which organisations use
to acquire, produce and deliver goods and services all over the (Aug 30, 2016).

OBJECTIVES
The objectives of this chapter are:
• To explain the management information systems
• To clarify the data, information and systems
• To explain the information systems in business

LEARNING OUTCOME
At the end of this chapter, student should be able to:
• Understanding the effects of information systems on business and their relationship to
globalization
• Explain why information systems are so essential in business today
• Define an information system and describe its management, organization and
technology components
• Define complementary assets and explain how they ensure that information systems
provide genuine value to an organization
• Describe the different academic disciplines used to study information system, explain
how each contributes to our understanding of them
 CHAPTER
STRATEGIC USES OF

2 INFORMATION
SYSTEMS
SYNOPSIS
Businesses use these systems to achieve a competitive advantage on their competitors as
they seek to provide a good or service in a way that is better than that of their competition.
For example, a strategic information system can be used to provide a product at a lower
cost than competing organizations.

OBJECTIVES
The objectives of this chapter are:
• To explain to achieving a competitive advantage
• To gaining the competitive advantages through Information Technology
• To explain the issues in getting competitive advantages from Information Technology
• To describe the business strategy and Information Technology

LEARNING OUTCOME
At the end of this chapter, student should be able to:
• Understanding the Porter’s competitive forces model help companies develop
competitive strategies using information systems
• Explain the value chain and value web models help businesses identify opportunities
for strategic information system applications
• Define the information systems help businesses use synergies, core competencies and
network based strategies to achieve competitive advantage
 CHAPTER
INFORMATION

3 SYSTEMS IN BUSINESS
FUNCTIONS
SYNOPSIS
Business processes and their relationship to information systems. Describe the information
systems supporting the major business functions: sales and marketing, manufacturing and
production, finance and accounting and human resources.

OBJECTIVES
The objectives of this chapter are:
• To explain the organizational system
• To clarify the business organizational structure
• To explain the enterprise resource planning (ERP)
• To describe the groupware and collaborative work

LEARNING OUTCOME

At the end of this chapter, student should be able to:

• Understanding the major features of a business are important for understanding the
role of information systems
• Explain how do systems serve different management groups in a business
• Define the system that link the enterprise improve organizational performance
• Define why are systems for collaboration and teamwork so important and what
technologies do they use
• Describe the role of the information system’s function in a business
 CHAPTER INFORMATION

4 TECHNOLOGY IN
BUSINESS:
HARDWARE
SYNOPSIS
IT includes several layers of physical equipment (hardware), virtualization and management
or automation tools, operating systems and applications (software) used to perform
essential functions. User devices, peripherals and software, such as laptops, smart phones
or even recording equipment, can be included in the IT domain. IT can also refer to the
architectures, methodologies and regulations governing the use and storage of data. Type
the synopsis of this chapter.

OBJECTIVES

The objectives of this chapter are:

• To explain the central tool of modern information systems the first objective here]
• To clarify a peek inside the computer
• To explain the input and output devise: batch and online processing
• To explain the external storage media: classification of computers
• To describe the computer networks and client/server computing
• To explain the network computers and peer-to-peer computing

LEARNING OUTCOME
At the end of this chapter, student should be able to:
• Understanding what are the major computer hardware, data storage, input and
output technologies used in business and major hardware trends
• Explain what are the principal issues in managing hardware
 CHAPTER
INFORMATION

5 TECHNOLOGY IN
BUSINESS: SOFTWARE
SYNOPSIS
Software can be thought of as the variable part of a computer and hardware the invariable
part. Software is often divided into application software (programs that do work users are
directly interested in) and system software (which includes operating systems and any
program that supports application software). The term middleware is sometimes used to
describe programming that mediates between application and system software or
between two different kinds of application software (for example, sending a remote work
request from an application in a computer that has one kind of operating system to an
application in a computer with a different operating system).

OBJECTIVES
The objectives of this chapter are:
• To explain the software
• To clarify the levels of programming language
• To explain the application software packages and productivity software

LEARNING OUTCOME
At the end of this chapter, student should be able to:
• Identify the four categories of application software
• Differentiate among the seven forms through which software is available
• Explain how the operating system and utility programs work with application software
• Describe characteristics of a user interface
• Identify the key features of widely used business programs
CHAPTER INFORMATION

6 TECHNOLOGY IN
BUSINESS:
TELECOMMUNICATION
AND NETWORKS
SYNOPSIS
A telecommunications network is a collection of terminal nodes, links are connected so as
to enable telecommunication between the terminals. The transmission links connect the
nodes together. Or Telecommunications, also known as telecom, is the exchange of
information over significant distances by electronic means and refers to all types of voice,
data and video transmission. This is a broad term that includes a wide range of information
transmitting technologies such as telephones (wired and wireless), microwave
communications, fibre optics, satellites, radio and television broadcasting, the internet and
telegraphs.

OBJECTIVES
The objectives of this chapter are:
• To explain the communication processors and software
• To clarify the functions of telecommunications systems
• To explain the types of signals for analog and digital
• To describe the communication channels
• To explain the communication networks
 LEARNING OUTCOME
At the end of this chapter, student should be able to:
• Understanding what are the principal components of telecommunications networks
and key networking technologies
• Explain what are the main telecommunications transmission media and types of
networks
• Define what are the principal technologies and standards for wireless networking,
communication and internet access
• Define why are radio frequency identification (RFID) and wireless sensor networks
valuable for business
 CHAPTER TECHNOLOGICAL

7 PROCESS: THE
INTERNET, INTRANETS
AND EXTRANETS
SYNOPSIS
Internet can be defined as a global computer network providing a variety of information
and communication facilities, consisting of interconnected networks using standardized
communication protocols. Intranet refers to a private network accessible only to an
organization's staff. Generally a wide range of information and services from the
organization's internal IT systems are available that would not be available to the public
from the Internet. A company-wide intranet can constitute an important focal point of
internal communication and collaboration, and provide a single starting point to access
internal and external resources. In its simplest form an intranet is established with the
technologies for local area networks (LANs) and wide area networks (WANs). Extranets is a
website that allows controlled access to partners, vendors and suppliers or an authorized
set of customers – normally to a subset of the information accessible from an organization's
intranet. An extranet is similar to a DMZ in that it provides access to needed services for
authorised parties, without granting access to an organization's entire network. An extranet
is a private network organization.

OBJECTIVES
The objectives of this chapter are:
• To explain what is internet
• To clarify the internet technology and services
• To explain the communication on the internet
• To differentiate the intranets and extranet
 LEARNING OUTCOME
At the end of this chapter, student should be able to:
• Identify the different types of networks
• Describe the principal technologies and standards for wireless networking,
communication and internet access
 CHAPTER DEVELOPING

8 INFORMATION
TECHNOLOGY
SYSTEM
SYNOPSIS
Systems development is the process of defining, designing, testing, and implementing a
new software application or program. It could include the internal development of
customized systems, the creation of database systems or the acquisition of third party
developed software.

OBJECTIVES
The objectives of this chapter are:
• To explain the information to systems development process
• To clarify the systems analysis : feasibility studies
• To explain the system design : role of the end users
• To describe the programming : testing
• To explain the conversion : production and maintenance
• To clarify the traditional systems lifecycle : prototyping

LEARNING OUTCOME
At the end of this chapter, student should be able to:
• Understanding how does building new systems produce organizational change
• Explain what are the core activities in the systems developing process
• Define what are the principal methodologies for modelling and designing systems
• Define what are the alternative methods for building information systems
• Describe what are the new approaches for system building in digital firm era
 CHAPTER
DATA AND

9 KNOWLEDGE
MANAGEMENT
SYNOPSIS
Data is a set of values of qualitative or quantitative variables. An example of qualitative
data would be an anthropologist's handwritten notes about her interviews with people of
an Indigenous tribe. Pieces of data are individual pieces of information. While the concept
of data is commonly associated with scientific research, data is collected by a huge range
of organizations and institutions, including businesses (e.g., sales data, revenue, profits, stock
price), governments (e.g., crime rates, unemployment rates, literacy rates) and non-
governmental organizations (e.g., censuses of the number of homeless people by non-profit
organizations). Knowledge is closely linked to doing and implies know-how and
understanding. The knowledge possessed by each individual is a product of his experience,
and encompasses the norms by which he evaluates new inputs from his surroundings
(Davenport & Prusak 2000).

OBJECTIVES
The objectives of this chapter are:
• To explain the managing digital data first objective here
• To clarify the components of database management systems
• To explain the database models
• To clarify the relational operations
• To understand the database architecture
• To explain the data warehouse
 LEARNING OUTCOME
At the end of this chapter, student should be able to:
• Understanding what is the role of knowledge management programs in business
• Explain what types of systems are used for enterprise- wide knowledge management
and how do they provide value for businesses
• Define what are the major types of knowledge work systems and how do they
provide value for firms
• Define what are the business benefits of using intelligent techniques for knowledge
management
 CHAPTER

10
ELECTRONIC
COMMERCE

SYNOPSIS
Data is a set of values of qualitative or quantitative variables. An example of qualitative
data would be an anthropologist's handwritten notes about her interviews with people of
an Indigenous tribe. Pieces of data are individual pieces of information. While the concept
of data is commonly associated with scientific research, data is collected by a huge range
of is generated within the context of a scientific investigation by observation and recording.
Data has been described as the new oil of the digital economy.

OBJECTIVES
The objectives of this chapter are:
• To explain the categories of E-commerce
• To clarify the customer centred retailing
• To explain the direct sales over the web
• To clarify B2B E-commerce
• To understand the E-commerce payments systems
 LEARNING OUTCOME
At the end of this chapter, student should be able to:
• Understanding what are the unique features of E-commerce, digital markets and
digital goods
• Explain what are the principal E-commerce business and revenue models second
• Define how has E-commerce transformed marketing
• Define how has E-commerce affected business to business transactions
• Understand what is the role of M-commerce in business and what are the most
important M-commerce application
• Explain what issues must be addressed when building an E-commerce web site