Information Technology Management

Information Technology Management
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Table of Contents
COURSE INFORMATION .......................................................................................................................... 3
MODULE II ........................................................................................................................................... 4
OVERVIEW ........................................................................................................................................... 5
PART III: INFORMATION SYSTEM IN BUSINESS AND MANAGEMENT
INFORMATION SYSTEM IN BUSINESS AND MANAGEMENT ................................................................... 8
ACTIVITY ZONE .................................................................................................................................. 16
ARTIFICIAL INTELLIGENCE .................................................................................................................. 17
ACTIVITY ZONE .................................................................................................................................. 22
BUSINESS INFORMATION SYSTEM...................................................................................................... 23
ACTIVITY ZONE .................................................................................................................................. 27
PART IV: INFORMATION SYSTEM IN BUSINESS AND MANAGEMENT
MANAGERS: KEY TO INFORMATION TECHNOLOGY RESULTS .............................................................. 28
ACTIVITY ZONE .................................................................................................................................. 36
STRATEGIC PLANNING ....................................................................................................................... 37
ACTIVITY ZONE .................................................................................................................................. 45
PROJECT MANAGEMENT ................................................................................................................... 46
ACTIVITY ZONE .................................................................................................................................. 50
REFERENCE ........................................................................................................................................ 51
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Course Information
Course Title: Information Technology Management
Course Description: This course is focused on the fundamental premise
that the major role of information technology is to
provide organization with strategic advantage by
facilitating problem solving, increasing productivity
and quality, improving customer service, and enabling
process reengineering. The students will learn the
importance of information technology in their daily
lives and to use information technology to solve
business problem.
Course Credit: 5 units
Year Level: Third Year
Pre-Requisite: None
Semester Offered: First Semester
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Module II
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WELCOME TO MODULE II
Nowadays, companies worldwide are using information technology to build smarter

cities and communities. The role of information technology in business goes beyond
improved communication. Any company big or small can use IT software and services
to develop innovative products, streamline project management and maximize its
marketing efforts. (Picincu,2018)
Information technology management will discuss the Information system in business

and management, managerial decision making and decision support system, artificial
intelligence and expert system, business function information system, information
technology management, strategic planning and project management. In this module
you will complete various tasks that include analyzing, creating, applying and reflecting
how information system advanced and used through the years.
The role of your course instructor is to guide you in the different learning activities to
ensure that your expected outputs are delivered as suggested by the date of
completion, hence achieving the module outcomes. He/she will give you timely
feedback of your outputs in the learning platform.
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By the end of this module, you will be able to:
1. Understand the fundamentals of decision making and problem solving.

2. Identify the present and future impacts of artificial intelligence on business
operations and management;
3. Identify the major components of an end user computing system and the resources
needed for end user computing;
4. Recognize why managers understand critical principle of IT system development
and provide leadership for these projects
5. Understand the effective strategic planning process and who needs to participate in
it;
6. Manage projects effectively including the management of scope, time, costs, and
quality, ensuring satisfying the needs for which the project was undertaken
7. Understand the distinction between morals, ethics and laws.
Module 1 activities are listed below, followed by estimated time allotment for each
activity.
LEARNING ACTIVITY
Complete Think and Recall Activity
Read about Information System In Business And Management
Complete the Activities
Read about Artificial Intelligence
Read about Business Information System
Read about Managers: Key to Information Technology Results
Read about Strategic Planning
Read about Project Management
Complete Activities
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Let’s get started! (Think and Recall)
Before we begin your journey in this module, let us assess what you
know about Information Technology Management.
In your own words and ideas, answer the following questions:
1. What is Information Technology Management?
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
3. What is the difference between Information System and Information Technology

Management?
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
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Part III: Information System in Business and Management
Let’s Sit and Talk
Managerial Decision Making
Decision making is the process of making choices by identifying a decision, gathering

information, assessing alternative resolutions and evaluating the decisions
effectiveness.
Types of Decisions
Programmed Decisions
- are those that are repetitive and routine,
- made in response to well-structured situation through the use of
predetermined decision rules.
Non-programmed decision
- are those which are novel, unstructured, and unusually consequential.
- unstructured decisions that are generally based on criteria that are not
well-defined.
There are four different decision-making models

 Rational,
 Bounded Rationality,
 Intuitive,
 Creative
Each model differs in terms of how experienced or motivated a decision maker is

to make a choice. Choosing the right approach will make you more effective at work and
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improve your ability to carry out all the P-O-L-C (Planning, Organizing, Leading, and
Controlling) functions.
Four Functions of Management

The four basic functions of management are planning, organizing, leading and
controlling. These functions work together in the creation, execution and realization of
organizational goals. The four functions of management can be considered a process
where each function builds on the previous function. To be successful, management
needs to follow the four functions of management in the proper order.(Indeed, 2020)
Planning
In the planning stage, managers establish organizational goals and create a course of action
to achieve them. During the planning phase, management makes strategic decisions to set a
direction for the organization. Managers can brainstorm different alternatives to achieve the
objective before choosing the best course of action. (Indeed, 2020)
There are several approaches to planning:
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 Strategic planning: This type of planning is often carried out by an organization’s

top management and usually creates goals for the entire organization. It analyzes
threats to the organization, evaluates the organization’s strengths and
weaknesses and creates a plan of how the organization can best compete in its
environment. Strategic planning usually has a long timeframe of three years or
more. (Indeed, 2020)
 Tactical planning: Tactical planning is the shorter-term planning of an objective

that will take a year or less to achieve. It is usually carried out by an organization’s
middle management. Tactical planning is usually aimed at a specific area or
department of the organization such as its facilities, production, finance, marketing
or personnel. (Indeed, 2020)
 Operational planning: Operational planning is the process of using tactical

planning to achieve strategic planning and goals. Operational planning creates a
timeframe for putting a portion of the strategic goal into practice
operationally. (Indeed, 2020)
Organizing
The purpose of organizing is to distribute the resources and delegate tasks to personnel to
achieve the goals established in the planning stage. During the organizing stage, managers
strive to create a work environment conducive to productivity. (Indeed, 2020)
Leading
Leading consists of motivating employees and influencing their behavior to achieve

organizational objectives. Leading focuses on managing people, such as individual
employees, teams and groups rather than tasks. (Indeed, 2020)
Managers usually incorporate different leadership styles and change their management
style to adapt to different situations. Examples of situational leadership styles include:
 Directing: The manager leads by deciding with little input from the employee.
This is an effective leadership style for new employees who need a lot of initial
direction and training. (Indeed, 2020)
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 Coaching: The manager is more receptive to input from employees. They may
pitch their ideas to employees to work cooperatively and build trust with team
members. This style of leadership is effective for individuals who need managerial
support to further develop their skills. (Indeed, 2020)
 Supporting: The manager decides with team members but focuses more on
building relationships within the team. This style of leadership is effective for
employees who have fully developed skills but are sometimes inconsistent in their
performance. (Indeed, 2020)
 Delegating: The leader provides a minimum of guidance to employees and is

more concerned with the vision of the project than day-to-day operations. This
style of leadership is effective with employees able to work and perform tasks on
their own with little guidance. The leader can focus more on high-level goals than
on tasks. (Indeed, 2020)
Controlling
Controlling is the process of evaluating the execution of the plan and making adjustments to
ensure that the organizational goal is achieved. During the controlling stage, managers
perform tasks such as training employees as necessary and managing deadlines. Managers
monitor employees and evaluate the quality of their work. They can conduct performance
appraisals and give employees feedback, providing positive remarks on what they are doing
well and suggestions for improvement. (Indeed, 2020)
Managers may need to make adjustments such as:
 Budget adjustments: Managers monitor the budget and resources to ensure that
they are using the resources available and not going over budget. (Indeed, 2020)
 Staffing adjustments: Managers may need to make challenging decisions such

as whether to reassign an employee who produces a low-quality work to a
different task or dismiss them from a project. (Indeed, 2020)
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Source: Pinterest
Decision Support System
A decision support system (DSS) is a computerized program used to support

determinations, judgments, and courses of action in an organization or a
business. A DSS sifts through and analyzes massive amounts of data, compiling
comprehensive information that can be used to solve problems and in decision-
making.(James, 2020)
A decision support system gathers and analyzes data, synthesizing it to produce

comprehensive information reports. In this way, as an informational application, a
DSS differs from an ordinary operations application, whose function is just to
collect data.(James, 2020)
The primary purpose of using a DSS is to present information to the customer in

an easy-to-understand way. A DSS system is beneficial because it can be
programmed to generate many types of reports, all based on user
specifications.(James, 2020)
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Components of Decision Support System

There are three main fundamental architectural components which are as follows:
 The Users
- Is the main component of the Decision Support System. As DSS uses are
normally managers, policymakers, etc. who may not qualified computer expert.
The Main goal of DSS is to make sure that the users are utilizing and get
benefitted from DSS.(Educba, 2020)
 Database Management System (DBMS)
- A DBMS acts as a data bank for the DSS. It stores large quantities of data
collected from different sources. It provides logical data structures for user
interaction. Inputs and outputs are stored in The database. All the processing is
done in the database. DBMS should able to inform the system user about how to
access database and what are the different types of data is available. (Educba,
2020)
 Model-based Management System (MBMS)
- The function of this system is to fetch the data and from DBMS and transform
that data into information which helps for proper decision making. It should also
provide proper assistance to the user for model development.
Components of DSS
Components of DSS can be categorized as:
1. Inputs: Records, Data factors, numbers, and characteristics for analyzing.
2. User Knowledge and Expertise: To run the proper functioning and providing
inputs, the user must be aware of how to use the system.
3. User Interface: DSS should support model construction and model analysis by
providing a well-structured user interface.
4. Decisions: Based on user requirements, results are generated by the Decision
Support System.
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Types of Decision Support System

There are different types of decision support system which are classified as:
1. Data-driven
- Decision Support System includes file drawer systems, data analytics systems,
analytical information systems, data storage systems and emphasizes access
and manipulation of large structured data databases. (Educba, 2020)
2. Model-driven
- Decision Support System model comes from a variety of fields or specialties and
could include accounting models, financial models, representative models,
optimization models, etc. (Educba, 2020)
3. Knowledge-driven
- This Knowledge-driven focuses on knowledge and advise managers to take
action on the basis of a certain knowledge base analysis. Predefined facts,
Stored procedures, rules, and limitations are also referred to solve problems. It
also has special expertise in problem-solving and is closely associated with data
mining. (Educba, 2020)
4. Document-driven
- This system assists managers in obtaining and managing unstructured
documents and web pages by integrating a range of storage and processing
technologies in order to provide a complete review of documents and analysis.
(Educba, 2020)
5. Communication -driven
- This is also called group decision support systems (GDSS). Communication
driven DSS includes more than one person working to solve complex problems.
It helps executives, managers to work together as one group to come to the final
solution to solve problems. Technology can be used for Communication driven
DSS like Microsoft’s NetMeeting, Groove, etc. (Educba, 2020)
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Advantages of a Decision Support System

 It Saves Time by speeding up the process of decision making.
 It Improves communication between people through meetings, brainstorming
sessions, etc.
 Reports generated by the Decision Support System can be used as evidence.
 It helps to automate processes.
 Reduction of cost
Disadvantages of a Decision Support System
 Overload Information
 Reduction of status
 Unanticipated effects
 Cost in Monetary
 Too much DSS dependency
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MODULE II: Activity Zone
After the discussion, take this activity to assess how far you understand
the topic about the introduction to information system. Answer the
following questions:
1. What is the difference between decision making and problem solving?
2. What are the different processes in solving problem? Explain each using your
own words and idea.

3. How can Decision Support System help a business or an organization?
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MODULE 1: Artificial Intelligence and Expert System
Artificial Intelligence (AI)

- Computers with the ability to mimic or duplicate the functions of the human brain.
- AI represents the most sophisticated computer application, seeking to duplicate
some types of human reasoning
Areas of Artificial Intelligence

- AI is being applied in the business in the form of Knowledge-based System,
which use human knowledge to solve problems. The most popular type of
knowledge-based system is the expert system.
Artificial Intelligence Systems

- The people, procedures, hardware, software, data, and knowledge needed to
develop computer systems and machines that demonstrate the characteristics of
intelligence. Artificial intelligence system also refers to a centralized system of
intelligence in an enterprise business, aimed at helping organizations make the
leap to becoming AI-driven companies.
Major Branches of Artificial Intelligence

Artificial Intelligence can be used to solve real-world problems by implementing the
following processes/ techniques:
1. Machine Learning
- is the science of getting machines to interpret, process and analyze data in
order to solve real-world problems.
2. Deep Learning
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- is the process of implementing Neural Networks on high dimensional data to

gain insights and form solutions. Deep Learning is an advanced field of
Machine Learning that can be used to solve more advanced problems.
3. Natural Language Processing
- refers to the science of drawing insights from natural human language in
order to communicate with machines and grow businesses.
4. Robotics
- is a branch of Artificial Intelligence which focuses on different branches
and application of robots. AI Robots are artificial agents acting in a real-
world environment to produce results by taking accountable actions.
5. Expert Systems
- is an AI-based computer system that learns and reciprocates the decision-
making ability of a human expert.
6. Fuzzy Logic
- is a computing approach based on the principles of “degrees of truth”
instead of the usual modern computer logic i.e. boolean in nature.
- use if-then logical notations to solve complex problems. It does not rely on
conventional procedural programming.
- are mainly used in information management, medical facilities, loan
analysis, virus detection and so on.
Advantages and Disadvantages of Artificial Intelligence

In every innovation, there are advantages and disadvantages; it is up to us to
look for the positive side to have a better world. It is not different with AI; AI has massive
potential to make our lives better and more convenient.
 Advantages of AI
o Reduction in Human Error
o Takes risks instead of Humans
o Available 24x7
o Helping in Repetitive Jobs
o Digital Assistance
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o Faster Decisions
o Daily Applications
o New Inventions
 Disadvantages of AI
o High Costs of Creation
o Making Humans Lazy
o Unemployment
o No Emotions
o Lacking Out of Box Thinking
Expert System
- are one of the prominent research domains of AI
- are the computer applications developed to solve complex problems in a
particular domain, at the level of extra-ordinary human intelligence and
expertise.
Characteristics of Expert Systems

 High performance
 Understandable
 Reliable
 Highly responsive
Components of Expert Systems

 Knowledge Base
- It contains domain-specific and high-quality knowledge.
- Stores all relevant information, data, rules, cases, and relationship used
by the expert system
- The knowledge base of an ES is a store of both, factual and heuristic
knowledge.
o Factual Knowledge − It is the information widely accepted by the

Knowledge Engineers and scholars in the task domain.
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o Heuristic Knowledge − It is about practice, accurate judgement,

one’s ability of evaluation, and guessing.
 Inference Engine
- Seeks information and relationships from the knowledge base and

provides answers, predictions, and suggestions in the way a human
expert would
 User Interface
- provides interaction between user of the ES and the ES itself. It is

generally Natural Language Processing so as to be used by the user who
is well-versed in the task domain. The user of the ES need not be
necessarily an expert in Artificial Intelligence.
Let us see them one by one briefly −
Expert Systems Limitations
Expert Systems have their limitations which include −
 Limitations of the technology
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 Difficult knowledge acquisition
 ES are difficult to maintain
 High development costs
CAPABILITIES OF EXPERT SYSTEMS
When to use an Expert System

 Provide a high potential payoff or significantly reduced downside risk
 Capture and preserve irreplaceable human expertise
 Provide expertise needed at a number of locations at the same time or in a
hostile environment that is dangerous to human health
 Provide expertise that is expensive or rare
 Develop a solution faster than human experts can
 Provide expertise needed for training and develop to share the wisdom of human
experts with a large number of people
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After the discussion, take this activity to assess how far you
understand the topic about the introduction to information system.
Each question is worth 10 points. Answer the following questions:
1. What is the difference between AI and ES?

2. How Artificial Intelligence did change our lives?
3. Give at least three benefits of AI in our society. And explain why.
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MODULE II: Business Function Information System
Let’s Sit and Discuss
Business Information Systems

- are sets of inter-related procedures using IT infrastructure in
a business enterprise to generate and disseminate desired information
- Such systems are designed to support decision making by the people associated
with the enterprise in the process of attainment of its objectives.
- It gets data and other resources of IT infrastructure as input from the
environment and process them to satisfy the information needs of different
entities associated with the business enterprise.
Types of Business Information System

Different systems can be described through:
 A functional perspective: Identifying systems by their major business function
 A constituency perspective: Identifying systems in terms of the major
organizational groups that they serve
There are four main types of information systems that serve different functional
systems:
1. Sales and marketing information systems
- These systems help the firm identify customers for the firm's products or
services, develop products and services to meet their needs, promote
these products and services, sell the products and services, and provide
ongoing customer support.
2. Manufacturing and production information systems
- These systems deal with the planning, development, and production of
products and services, and with controlling the flow of production.
3. Finance and accounting information systems
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- These systems keep track of the firm's financial assets and fund flows.
4. Human resources information systems
- These systems maintain employee records, track employee skills, job
performance and training, and support planning for employee
compensation and career development.
There are four main categories of systems from a constituency perspective.
1. Transaction processing systems (TPS) are basic business systems that serve
the operational level of the organization by recording the daily routine
transactions required to conduct business, such as payroll and sales receipts.
2. Management information systems (MIS) serve middle managers' interests by
providing current and historical performance information to aid in planning,
controlling, and decision making at the management level. MIS typically
compress TPS data to present regular reports on the company's basic
operations.
Source: https://paginas.fe.up.pt/~als/mis10e/images/img02_06.jpg
Above shows how MIS obtain their data from the organization’s TPS. In the system
illustrated by this diagram above, three TPS supply summarized transaction data to the
MIS reporting system at the end of the time period. Managers gain access to the
organizational data through the MIS, which provides them with the appropriate reports.
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3. Decision support systems (DSS), or business intelligence systems, help

managers with non-routine decisions that are unique, rapidly changing, and not
easily specified in advance. DSS are more analytical than MIS, using a variety of
models to analyze internal and external data or condense large amounts of data
for analysis.
https://paginas.fe.up.pt/~als/mis10e/images/img02_08.jpg
This DSS operates on a powerful PC. It is used daily by managers who must develop
bids on shipping contracts.
4. Executive support systems (ESS) provide a generalized computing and

communications environment that help senior managers address strategic issues
and identify long-term trends in the firm and its environment. ESS address
nonroutine decisions requiring judgment, evaluation, and insight because there is
no agreed-on procedure for arriving at a solution. ESS present graphs and data
from many internal and external sources through an interface that is easy for
senior managers to use. Often the information is delivered to senior executives
through a portal, which uses a Web interface to present integrated personalized
business content.
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Source: https://paginas.fe.up.pt/~als/mis10e/images/img02_09.jpg
The illustration above is a model of an executive support system. This system pools
data from diverse internal and external sources and makes them available to executives
in an easy-to-use form.
Ideally, these constituency-based systems are interrelated. TPS are major producers of
information that is required by many other systems in the firm, which, in turn, produce
information for other systems. These different types of systems are loosely coupled in
most business firms, but increasingly firms are using new technologies to integrate
information that resides in many different systems.
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Test I. True or False: Write TRUE if the statement is correct and

change the underlined word with the correct answer if the statement is
incorrect. Each item is worth 2 points.
1. Decision Support Systems are major producers of information that is required by

many other systems in the firm.
2. Identifying systems in terms of the major organizational groups that they serve is
a functional perspective.
3. MPIS deal with the planning, development, and production of products and
services, and with controlling the flow of production.
4. Business information systems are sets of inter-related procedures using IT
infrastructure in a business enterprise to generate and disseminate
desired information
5. Sales and marketing information systems is one of the main categories of system
from a constituency perspective.
Test II. Essay:

1. What are the different business information systems?
2. How are information systems that serve different functional systems different
from systems from a constituency perspective?
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Part IV: Information Technology Management

Managers: Key to Information Technology Results
Let’s Sit and Discuss

1. refers to the process of making your technology work better for you, either as a
standalone process or as part of a wider network.
2. is the process whereby all resources related to information technology are
managed according to an organization's priorities and needs.
Why managers need to understand IT?
New IT business opportunities as well as threats are coming at a faster and a faster
rate. Managers need to understand IT since they play a key role they:
- Frame opportunities and threats so others can understand them
– Evaluate and prioritize problems and solutions
– Lead the effort to pursue IT policies that best meet organizational needs
Information Technology
 Information Technology includes all tools that capture, store, process, exchange
and use information.
 The field of IT includes:
 computer hardware such as
 Mainframe computers, servers, laptops;
 software such as
 Operating system and applications for performing various functions;
 network and related equipment such as
 Modems, routers and switches; and databases for string important
data.
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 IT infrastructure
 Organization’s defined set of IT hardware, software, and networks
 IT support organization
 Staff to plan, implement, operate, and support IT
 Information systems
 Enable a firm to meet fundamental objectives
 Types: function IT, network IT, and enterprise IT
IT infrastructure supports function, network and enterprise information system
Types of Information System
When considering the role of a business manager for working with IT, it is helpful to
divide the information system into three types.
 Function IT
 Network IT
 Enterprise IT
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Function IT
 Includes information systems that improve the productivity of individual users in

performing stand-alone tasks
 Examples
 Computer-aided design (CAD) software
 Word processors
 Spreadsheet software
 Decision support systems
 e-learning systems
 Decision support system (DSS)
 Employs models and analytic tools
 Helps users:
 Gain insights into data
 Draw conclusions from the data
 Make recommendations
 E-learning systems
 Encompass a number of computer-enhanced learning techniques
Network IT
 Information systems that improve communications and support collaboration

among members of a workgroup
 Examples
 Web conferencing
 Conduct meetings or presentations in which participants are
connected via the Internet
 Wiki
 Web site that allows users to edit and change its content easily and
rapidly
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 Electronic corporate directories

 Used in large organizations to find the right person with whom to
collaborate on an issue or opportunity
Enterprise IT
 Information systems used to define interactions among employees and/or with

external customers, suppliers, and other business partners
 Examples
 Transaction processing system (TPS)
 Captures data for company transactions
 Updates the firm’s records, which are maintained in electronic files
or databases
 Enterprise resource planning system (ERP)
 Group of computer programs with a common database
 Used by firms to plan, manage, and control their routine business
operations
 Interorganizational information systems
 Support the flow of data among organizations to achieve shared
goals
 Electronic Data Interchange (EDI)- supports the direct, computer-
to-computer transfer of information in the form of predefined
electronic documents.
The Role of Manager in relation to Information Technology

When new IT is introduced in some organization, managers adopt the technology first,
and then try to figure out what to do with the new information and cope with its
implications.
 Managers have three critical responsibilities when it comes to capturing real
benefits from IT :
 Identifying appropriate IT Opportunities
 Smoothing the way for its successful introduction and adoption
 Mitigating its associated risks.
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Identifying Appropriate IT Opportunities

 When identifying appropriate IT opportunities, what is really important is what the
organization are getting out of their investment in IT, not how they are investing
in IT. The most effective users of IT maximize value from IT investments that are
aligned with their organization’s strategic needs and that are well managed and
executed.
Smooth Introduction and Adoption of IT

 It is human nature to resist change; researchers J.P. Kotter and L.A. Sehlesinger
identified four reasons for this resistance. Many organizations have tried to
implement a promising new IT system, only to have employees never use it or
not use the system to its full potential.
 Managers must be able to overcome this resistance so that the new IT System is
accepted and used throughout the organization.
Four reasons people resist change
 Three major theories on organizational change management

 Change Management Continuum Model
 Unified Theory of Acceptance and Use of Technology
 Three Worlds of IT
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 Change Management Continuum Model

 Seven stages of commitment grouped into three major phases:
 Inform
 Educate
 Commit
Phases and stages of the Change Management Continuum Model

 Unified Theory of Acceptance and Use of Technology
 aims to explain user intentions to use an information system and
subsequent usage behavior. The theory holds that there are four key
constructs:
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Three Worlds of IT
 Three types of IT require different types of organizational change
 Four organizational complements allow improvements with IT
 Better-skilled workers
 Higher levels of teamwork
 Redesigned processes
 New decision rights
Manager’s role in the Three World of IT Model
Ensuring that IT Risk are Mitigated
 Special measures are needed to ensure that the information and its control
mechanisms stand up to intense scrutiny
 Laws mandate stringent control requirements and accurate record keeping
for publicly held corporations
 Managers are responsible for ensuring that physical IT assets are protected
against loss or damage
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Examples of IT Risks
What if Managers Do Not Participate in IT
 Failed IT projects can lead to lowered returns on investment and missed

opportunities
 Managers at 80 percent of surveyed firms believe that their operational and
financial data is not as effective as it should be for developing strategies and
planning
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Test I. Identify the correct answer of each statement. Each item is

worth two points.
1. It refers to the process of making your technology work better for you, either as a
standalone process or as part of a wider network.
2. It is a web site that allows users to edit and change its content easily and rapidly
3. What are the three critical responsibilities of a manager when it comes to
capturing benefits from IT?
4. It is an information system used to define interactions among employees and/or
with external customers, suppliers, and other business partners
5. It includes all tools that capture, store, process, exchange and use information.
Test II. Answer the following question. Each question is worth 10 points.
1. Why managers need to understand IT?

2. What are the three critical role of an effective manager? Explain each.
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MODULE II: Strategic Planning
Strategic planning
 Helps managers identify desired outcomes and formulate feasible plans by
using available resources and capabilities
 Typically an annual process
Variety of approaches
 Issues-based process
 begins by identifying and analyzing key issues that face the
organization, setting strategies to address those issued, and identifying
projects and initiatives that are consistent with the strategies.
 Organic strategic planning
 defines the organization’s vision and values and then identifies projects
and initiatives to achieve the vision while adhering to the values.
 Goals-based strategic planning
 It is a multiphase strategic planning process that begins by performing
a situation analysis to identify an organizations SWOT.
 involves defining the mission and vision of the organization, identifying
objectives and goals that support the mission, setting strategies to
achieve the goals and identifying projects and initiatives.
 The major phases in goal-based strategic planning are:
 Analyze situation,
 Set direction,
 Define strategies, and
 Deploy plan
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Strategic Planning Process
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Defining Vision and Mission

 Vision/mission statement
 Communicates an organization’s overarching aspirations
 Guides organization through changing objectives, goals, and strategies
 Components
 Core ideology
 core ideology identifies a few widely accepted principle that
guide how everyone makes decision in the organization
 Mission statement
 concisely defines the organization’s fundamental purpose for
existing. It is usually is stated in a challenging manner to inspire
employees and customers, and shareholders
 Vision of a desirable future
 the organization’s vision is a concise statement of what the
organization intends to achieve in the future.
 The most effect vision/mission statement inspires and requires employees

to stretch to reach its goals
Conduct Internal Assessment

 Involve all levels and business units
 Preparing a historical perspective that summarizes the company’s development
is an excellent way to begin these steps of strategic planning.
 Gather data about internal processes and operations
 Analyze data to identify and assess:
 How well the firm is meeting current objectives and goals
 How well its current strategies are working
 Process identifies many of the strengths and weaknesses of the firm
Analyzing External Environment

 Examine the industry in which the organization competes
 Collect and analyze facts about its key customers, competitors, and suppliers
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 Members of the organization should be prepared to hear things they do

not like
 Michael Porter’s Five Forces Model
 Most frequently used model for assessing the nature of industry
competition
 Strengths, Weaknesses, Opportunities, Threats (SWOT) matrix illustrates:
 What the firm is doing well
 Where it can improve
 What opportunities are available
 What environmental factors threaten the future of the organization
SWOT matrix analyzes the internal assessment and external environment
Typically, the internal assessment identifies most of the strength and weaknesses, while
analysis of the external environment uncovers most of the opportunities and threats
Defining Objectives
The terms objective and goal frequently are used interchangeably. We distinguish
between the two by defining objective as a statement of a compelling business need
that an organization must see to achieve its vision and mission.
 Objective
 Statement of a compelling business need that an organization must meet
to achieve its vision and mission
 Example
 Preserving consistency in revenue and earnings growth
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Establishing Goals
 Goal is a specific result that must be achieved to reach an objective

 Several goals may be associated with a single objective. The objective states
what must be accomplished and the associated goals specify how to determine
whether the objective is being met.
 Short-term, medium-term, and long-term goals. The organizations start by
achieving relatively easy short term goals, then tackle the more difficult medium-
term goals, and finally address the long term goals.
 A key role of management is to recognize and drop goals that are no longer
relevant. They also must recognize and resolve conflicting goals to avoid having
the organization work to cross purposes.
Setting Strategies
 Strategy is a specific actions an organization will take to achieve its

vision/mission, objectives, and goals
 Selecting a specific strategy focuses and coordinates an organization’s
resources and activities from the top down to accomplish its mission.
 Strategy development is a critical and highly creative steps that is essential to the
organization’s future success. The purpose is to define a set of strategies that
“gives the company an edge in the struggle with its rivals and a better chance at
winning in the long-run competitive game.”
 In choosing from alternative strategies, managers should consider:
 Long-term impact of each strategy on revenue and profit
 Degree of risk involved
 Amount and types of resources that will be required
 Potential competitive reaction
 Michael Porter’s three fundamental strategies
 Become the cost leader
 Provide goods and services for a set of customers better than others
 Focus on a specific niche in the marketplace
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 Market options matrix

 Identify an organization’s product and market options
 Growth-share matrix
 Allocate resources among various business units
Ansoff Market Option Matrix
Growth-share Matrix
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Defining Measures
 Measures
 Metrics that track progress in executing chosen strategies to attain an
organization’s objectives and goals
 Help managers determine if a strategy’s ultimate purpose is being
achieved
 Organizations must take care in setting these metrics because they run the risk
of “getting what they measure” without accomplishing anything meaningful.
Deploying OGSM
 Each year, the senior management team defines objectives (O) for the
organization, establishes numerical goals (G) that index each objective, sets
strategies(S) on how to reach the goals, and defines measures (M) to assess
how well the strategies are being executed.
 Highest-level OGSM
 Deployed to the organization’s business units and functional units
 Managers translate the information into their own unit’s objectives and
goals as input to their own OGSM processes
Identifying Projects and Initiatives
 IT staff members pick up ideas for potential projects

 Through interactions with various business managers
 From observing other IT organizations and competitors
 Can generate many ideas for IT projects that support corporate objectives and
goals
Prioritizing Projects and Initiatives

 Combined process of setting and scheduling priorities is needed
 To define which projects will be staffed and when they will be executed
 Each viable project must relate to a specific organizational goal
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 Can the organization measure the business value of the initiative?

 Tangible benefits
 Can be measured directly and assigned a monetary value
 Intangible benefits
 Cannot directly be measured and cannot easily be quantified in
monetary terms
 What kinds of costs are associated with the project, and what is the likely total
cost of the effort over multiple years?
 See if the project has an attractive rate of return
 Managers must consider risks
 Sequencing of projects must be considered
 Is the organization ready and capable of taking on this project?
Executing Projects and Initiatives

 Business managers have a key role in ensuring good results that meet business
needs
 Success rate for IT projects is not high
 Standish Group
 Estimated in a 2004 report that the IT project success rate is only about 34
percent
 Once a set of project is selected for execution, it must be staffed, provided the
necessary resources and properly initiated to ensure success
Measuring and Evaluating Results

 Actual results of a project must be compared with the goals it expected to
achieve
 Comparison may indicate that a change is needed
 Managers must be flexible and willing to reevaluate their positions
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worth two points.
1. It is a specific actions an organization will take to achieve its vision/mission,

objectives, and goals
2. What does SWOT means?
3. It is a part of strategic planning where you examine the industry in which the
organization competes?
4. It is a specific result that must be achieved to reach an objective.
5. It is a multiphase strategic planning process th.at begins by performing a
situation analysis to identify an organizations SWOT
1. What is the difference between objective and goal?
2. What is strategic planning? Explain in your own words.
3. What is the difference between issues-based process and organic strategic
process?
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MODULE II: Project Management
Project Management
 is the application of knowledge, skills and techniques to projects activities
to meet project requirements.
 is the planning, organizing and managing the effort to accomplish a
successful project.
Project
 is a one-time activity that produces a specific output and or outcome, for
example, a building or a major new computer system.
Project Management Phases

Project phases allow you to organize your project and put it in order so that you can
wrap your mind around it and make progress. There are five phases in project
management, these are
 Initiation – this is where all projects starts. The initiating processes
determine the nature and scope of the project.
 Planning – this is the next step after the project is approved where you
start planning how to manage the project so it can achieve its goals within
the timeline and the budget. The project plan will include what resources
are needed, financing and materials.
 Execution - The execution/implementation phase ensures that the project
management plan's deliverables are executed accordingly. This phase
involves proper allocation, co-ordination and management of human
resources and any other resources such as material and budgets. The
output of this phase is the project deliverables.
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 Monitoring and Controlling - consists of those processes performed to

observe project execution so that potential problems can be identified in a
timely manner and corrective action can be taken, when necessary, to
control the execution of the project. The key benefit is that project
performance is observed and measured regularly to identify variances
from the project management plan.
 Closing – this is the last phase of the project. This includes the formal
acceptance of the project and the ending thereof. Also included in this
phase is the Post Implementation Review. This is a vital phase of the
project for the project team to learn from experiences and apply to future
projects. Normally a Post Implementation Review consists of looking at
things that went well and analyzing things that went badly on the project to
come up with lessons learned.
Project Management Knowledge Areas
The knowledge areas are the core technical subject matter, which are necessary for
effective project management.
 Scope Management
- Includes defining the work that must be done as part of the project and
then controlling the work to stay within the scope to which the team has
agreed. Key activities include initiation, scope planning, scope definition,
scope verification and change control.
 Time Management
- Includes estimating a reasonable completion date, developing a workable
project schedule, ensuring the timely completion of the project. This
involves plan schedule management, which involves creating a schedule
for the project and determining who is responsible for what. At this point,
the duration of each task is also determined.
 Cost Management
- This area involves the project budget. Plan cost management will
determine the method to establish the budget, which includes how and if it
will change and what procedures will be used to control it. Each task will
47 | P a g e
have to be estimated for cost, which means including all resources such
as labor, materials, equipment and anything else needed to complete the
task.
 Quality Management
- Ensures that the project will meet the needs for which it was undertaken.
This process includes:
o Quality Planning
 Involves determining which quality standards are relevant to
the project and determining how they will be met.
o Quality Assurance
 Involves evaluating the progress of the project on an
ongoing basis to ensure that it meets the identified quality
standards.
o Quality Control
 Involves checking project results to ensure that they meet
identified quality standards
 Human Resource Management
- Is about making the most effective use of the people involved with the
project. It includes organizational planning, staff acquisition and team
development. The project team is your most important resource, so it’s
crucial to assemble the best team and to make sure they’re happy.
 Communication Management
- Involves the generation, collection, dissemination, and storage of project
information in a timely and effective manner. It includes communication
planning, information distribution, performance reporting, and managing
communications to meet the needs of the project shareholder. It is at this
point that the dissemination of communications is determined, including
how it’s done and with what frequency. Target who needs what and
when.
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 Risk Management
- Risk management plans will identify how the risks will be itemized,
categorized and prioritized. This involves identifying risks that might occur
during the execution of the project by making a risk register. Perform
qualitative risk analysis after the biggest risks have been identified and
classified by likelihood and impact. Then prioritize them. Then perform
quantitative analysis according to their impact on the project, such as its
budget, schedule, etc.
 Procurement Management
- Involves acquiring goods and/or services from the sources outside the
performing organization. This will obviously have an impact on the budget
and schedule. Planning procurement management starts by identifying the
outside needs of the project and how those contractors will be involved.
 Project Integration Management
- Is perhaps the most important knowledge area because it requires the
assimilation of all eight other project management knowledge areas. This
requires the coordination of all appropriate people, resources, plans and
effort to complete a project successfully.
49 | P a g e

worth two points.
1. It is about making the most effective use of the people involved with the
project.
2. This area will determine the method to establish the budget, which
includes how and if it will change and what procedures will be used to
control it.
3. This area will identify how the risks will be itemized, categorized and
prioritized.
4. This phase ensures that the project management plan's deliverables are
executed accordingly.
5. It is the application of knowledge, skills and techniques to projects
activities to meet project requirements.
1. What is project management?
2. What do you think is the most important phase in project management?
Why?
3. What is the most important project management knowledge area? Why?
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References
McLeod, R.,& Schell, G.(2004). Management Information System. Pearson Education
Inc.
Reynolds, G.(2016). Information Technology for Managers, Second Edition. Cengage
Learning
Internet Sources:
https://www.umassd.edu/fycm/decision-
making/process/#:~:text=Decision%20making%20is%20the%20process,relevant%20inf
ormation%20and%20defining%20alternatives.
https://www.economicsdiscussion.net/management/types-of-decision-making/32202
https://www.indeed.com/career-advice/career-development/basic-functions-of-
management
https://opentextbc.ca/principlesofmanagementopenstax/chapter/overview-of-
managerial-decision-making/
https://www.indeed.com/career-advice/career-development/basic-functions-of-
management#:~:text=The%20four%20basic%20functions%20of%20management%20a
re%20planning%2C%20organizing%2C%20leading,builds%20on%20the%20previous%
20function.
https://courses.lumenlearning.com/principlesmanagement/chapter/11-2-understanding-
decision-
making/#:~:text=The%20four%20different%20decision%2Dmaking,out%20all%20the%
20P%2DO%2DL%2DC%20functions.
https://www.investopedia.com/terms/d/decision-support-system.asp
https://www.prnewswire.com/news-releases/peak-secures-12m-extended-series-a-
investment-to-power-the-enterprise-ai-system-301045867.html
https://www.edureka.co/blog/types-of-artificial-
intelligence/#Branches%20Of%20Artificial%20Intelligence
https://towardsdatascience.com/advantages-and-disadvantages-of-artificial-intelligence-
182a5ef6588c
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https://www.tutorialspoint.com/artificial_intelligence/artificial_intelligence_expert_system
s.htm
https://www.yourarticlelibrary.com/management/information-system/business-
information-system-meaning-features-and-
components/70319#:~:text=Business%20information%20systems%20are%20sets,of%2
0attainment%20of%20its%20objectives.
https://paginas.fe.up.pt/~als/mis10e/ch2/chpt2-2bullettext.htm
https://managementhelp.org/projectmanagement/#defined
https://en.wikipedia.org/wiki/Project_management
https://www.projectmanager.com/blog/project-management-processes-
phases#:~:text=In%20project%20management%20there%20are,project%20manageme
nt%20tools%20come%20in.
52 | P a g e

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Information Technology Management

Nowadays, companies worldwide are using information technology to build smarter

Information technology management will discuss the Information system in business

By the end of this module, you will be able to:

1. Understand the fundamentals of decision making and problem solving.

Let’s get started! (Think and Recall)

In your own words and ideas, answer the following questions:

1. What is Information Technology Management?

3. What is the difference between Information System and Information Technology

Part III: Information System in Business and Management

Let’s Sit and Talk

Managerial Decision Making

Decision making is the process of making choices by identifying a decision, gathering

There are four different decision-making models

Each model differs in terms of how experienced or motivated a decision maker is

Four Functions of Management

There are several approaches to planning:

 Strategic planning: This type of planning is often carried out by an organization’s

 Tactical planning: Tactical planning is the shorter-term planning of an objective

 Operational planning: Operational planning is the process of using tactical

Leading consists of motivating employees and influencing their behavior to achieve

 Delegating: The leader provides a minimum of guidance to employees and is

Managers may need to make adjustments such as:

 Staffing adjustments: Managers may need to make challenging decisions such

Decision Support System

A decision support system (DSS) is a computerized program used to support

A decision support system gathers and analyzes data, synthesizing it to produce

The primary purpose of using a DSS is to present information to the customer in

Components of Decision Support System

Types of Decision Support System

Advantages of a Decision Support System

MODULE II: Activity Zone

1. What is the difference between decision making and problem solving?

own words and idea.

MODULE 1: Artificial Intelligence and Expert System

Let’s Sit and Talk

Artificial Intelligence (AI)

Areas of Artificial Intelligence

Artificial Intelligence Systems

Major Branches of Artificial Intelligence

- is the process of implementing Neural Networks on high dimensional data to

Advantages and Disadvantages of Artificial Intelligence

Characteristics of Expert Systems

Components of Expert Systems

o Factual Knowledge − It is the information widely accepted by the

o Heuristic Knowledge − It is about practice, accurate judgement,

- Seeks information and relationships from the knowledge base and

- provides interaction between user of the ES and the ES itself. It is

Let us see them one by one briefly −

Expert Systems Limitations

Expert Systems have their limitations which include −

 Limitations of the technology

 Difficult knowledge acquisition

 ES are difficult to maintain

 High development costs

CAPABILITIES OF EXPERT SYSTEMS

When to use an Expert System