Chapter

Three
INFORMATION
TECHNOLOGY
 TABLE OF CONTENTS
01 02
Hardware: Computing,
Introduction Storing and
communicating
03
Programs, Peoples, 04
Procedure and Communication Technologies
Information

05
Database Management
(DBM)
 01
Introduction
 INTRODUCTION
 Definition: Information Technology (IT) involves the use of
systems like computers and networks to process, store, and
manage data.
 Hardware: Physical components, including computers,
servers, and routers, make up the backbone of IT.
 Software: Applications and programs, such as Microsoft
Office and ERP systems, allow businesses to perform
essential tasks.
 Networks: Networks connect devices, facilitating
communication and data exchange across teams, whether in
the same office or across continents.
 Data Management: IT helps organize and safeguard data,
which is essential for effective decision-making and business
 Why IT is Important in Business
 Operational Efficiency: IT automates repetitive
tasks, saving time and reducing human error.
 Data-Driven Decisions: Businesses use data to
identify trends, make forecasts, and plan
strategically.
 Enhanced Communication: IT tools (like email and
video calls) enable real-time communication,
breaking down geographical barriers.
 Competitive Advantage: Businesses that leverage
IT can adapt faster to changes in the market,
gaining an edge over competitors.
 Customer Satisfaction: IT enhances customer
service with faster response times and
personalized communication.
Importance of MIS?
 Finance & CRM: IT streamlines financial processes and
enhances customer relationship management.

 Operations: Boosts efficiency in supply chain and

human resources management.

 Data-Driven Decisions: IT enables analysis for smarter,

faster decision-making.

 Innovation & Security: Drives new business

opportunities while protecting sensitive data.

 Productivity & Cost Savings: Automation increases

productivity and reduces operational costs.
 02
Hardware: Computing,
Storing and
communicating
 Hardware Overview
 Hardware encompasses the physical
components of technology systems, enabling
essential IT functions.
 In IT, hardware is categorized into computing
devices, storage units, and communication
equipment.
 These components work together to perform,
store, and transmit data within an organization.
 Understanding hardware fundamentals is
essential for effective use of IT in business
Computing Hardware - Purpose
and Examples
 Computing hardware is designed for processing
data and running applications critical to business
operations.
 Desktops and laptops are commonly used
devices that provide varying levels of computing
power.
 Servers are powerful machines that manage
large datasets and support multiple users in an
organization.
 Mobile computing devices like tablets and
 Computing Hardware - Role in
Business
 Computing hardware enables the execution of
applications, from basic productivity tools to
complex enterprise software.
 These devices increase productivity by allowing
employees to perform tasks quickly and
efficiently.
 Servers support centralized data processing,
enabling secure storage, access control, and
efficient data handling.
 Portable devices like laptops and smartphones
help employees stay connected and productive
 Storage Hardware - Primary
Storage
 Primary storage, including RAM and cache,
temporarily holds data currently in use for fast
access by the CPU.
 RAM enhances system performance by reducing
the time needed to access frequently used data
and applications.
 Cache memory, located close to the CPU, allows
for even quicker access to critical data, boosting
processing speed.
 Primary storage is volatile, meaning data is lost
 Storage Hardware –
Secondary/Cloud
 Secondary Storage
storage, like hard drives and SSDs,
retains data permanently, even when the device
is powered off.
 Hard drives offer larger storage capacities at
lower costs, while SSDs provide faster data
retrieval and durability.
 Cloud storage enables businesses to store data
remotely, accessible via the internet from any
device.
 Combining on-site and cloud storage solutions
 Communication Hardware -
Purpose
 Communication and
hardware Types
allows devices to
connect, share data, and access the internet,
essential for modern businesses.
 Routers direct data traffic between devices and
manage connections to the internet within
networks.
 Modems convert data into signals that can be
transmitted over various types of networks (e.g.,
broadband, fiber).
 Network Interface Cards (NICs) enable individual
devices to connect to local networks or the
 Communication Hardware -
Purpose
 Communication and
hardware Types
allows devices to
connect, share data, and access the internet,
essential for modern businesses.
 Routers direct data traffic between devices and
manage connections to the internet within
networks.
 Modems convert data into signals that can be
transmitted over various types of networks (e.g.,
broadband, fiber).
 Network Interface Cards (NICs) enable individual
devices to connect to local networks or the
 03
Resources of MIS
 Introduction to Computer
Programs
 Computer programs are essential for managing
tasks and operations in modern businesses.
 They are primarily categorized into system
software and application software.
 Understanding these categories helps students
appreciate how technology supports
organizational functions.
 Knowledge of programs enables effective
decision-making in technology investments.
 What is System Software?
 System software acts as a bridge between
hardware and application software, enabling
functionality.
 Operating systems, such as Windows and
macOS, are prime examples of system software.
 It manages hardware resources and provides a
platform for running applications.
 Familiarity with system software is crucial for
troubleshooting and maintaining business
 What is Application Software?
 Application software consists of programs
designed to perform specific tasks for users.
 Examples include word processors,
spreadsheets, and accounting software used in
business settings.
 These applications enhance productivity by
automating tasks and improving efficiency.
 Understanding application software is vital for
students as they prepare for technology-driven
 The Role of Software in Business
 Both system andOperations
application software play a
crucial role in streamlining business processes.
 They support tasks such as data management,
communication, and financial reporting.
 Businesses rely on software to enhance
collaboration and decision-making across
departments.
 Knowledge of software capabilities helps future
leaders implement effective solutions.
 04
Communication
Technologies
 Introduction to Communication
Technologies
Communication technologies enable
effective information exchange within
organizations.
They play a vital role in enhancing
collaboration and productivity in business
environments.
Understanding these technologies is
essential for future business leaders.
This knowledge helps in selecting
Key Communication Technologies

Email and instant messaging are

fundamental tools for quick and efficient
communication.
Video conferencing platforms, like Zoom
and Microsoft Teams, facilitate remote
meetings.
VoIP (Voice over Internet Protocol) allows
for cost-effective voice communication
over the internet.
 Challenges and Considerations

Communication technologies can lead to

information overload, impacting
productivity.
Security and privacy issues must be
addressed to protect organizational data.
Technological disparities can hinder
effective communication, especially in
diverse teams.
Awareness of these challenges equips
 05
Database Management
(DBM)
 Introduction to Database
Management
Database Management (DBM) involves the
systematic organization of data.
It allows users to create, manage, and
retrieve data efficiently.
DBM is essential for ensuring data integrity
and security.
Understanding DBM is crucial for
businesses to make informed decisions
based on data.
 What is a Database?
A database is an organized collection of
structured information or data.
It allows for easy access, management,
and updating of data.
Databases can store various types of
information, such as text, numbers, and
images.
They are commonly used in business
applications for inventory, customer data,
Database Management Systems
(DBMS)System (DBMS)
A Database Management
is software that manages databases.
It allows users to create, read, update, and
delete data in a structured way.
Common DBMS software includes MySQL,
Oracle, and Microsoft SQL Server.
A good DBMS ensures data integrity,
security, and easy access for users.
 Importance of Data Integrity
Data integrity refers to the accuracy and
consistency of data over its lifecycle.
Maintaining data integrity is crucial for
reliable business operations and reporting.
DBMSs implement rules and constraints to
ensure data remains valid and trustworthy.
Organizations rely on data integrity to
make informed decisions and build
customer trust.
 Backup and Recovery
Regular backups are essential to protect
data from loss due to failures or disasters.
A DBMS typically provides tools for
automating backup processes.
Recovery procedures are critical for
restoring data in case of corruption or loss.
Implementing a solid backup and recovery
strategy minimizes downtime and data
loss.
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