Information Technology Management

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Table of Contents
COURSE INFORMATION 3
MODULE I 4
OVERVIEW 5
PART I: INTRODUCTION TO INFORMATION SYSTEM
THINK AND RECALL ACTIVITY 7
INFORMATION SYSTEM 8
ACTIVITY ZONE 14
SYSTEM FOR COMPETITIVE ADVANTAGE 15
ACTIVITY ZONE 19
USING TECHNOLOGY TO ENGAGE IN E-COMMERCE 20
ACTIVITY ZONE 26
SYSTEM USERS AND DEVELOPMENT 27
ACTIVITY ZONE 33
PART I: INFORMATION RESOURCES
COMPUTING AND COMMUNICATION RESOURCES 34
ACTIVITY ZONE 43
DATABASE MANAGEMENT SYSTEM 44
ACTIVITY ZONE 52
SYSTEM DEVELOPMENT 53
ACTIVITY ZONE 63
INFORMATION IN ACTION 64
ACTIVITY ZONE 69
REFERENCES 70

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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 1

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WELCOME TO MODULE I

Information technology and management plays a very important role in many different
aspects of technologies in society. The primary focus of information technology
management is the value creation made possible by technology. This requires the
alignment of technology and business strategies. While the value creation for an
organization involves a network of relationships between internal and external
environments, technology plays an important role in improving the overall value chain of
an organization. However, this increase requires business and technology management
to work as a creative, synergistic, and collaborative team instead of a purely
mechanistic span of control. [Bird, M. (2010)]

Information technology management will discuss the essential concepts of information

system, information system for competitive advantage, using information technology to
engage electronic commerce and system users and developers, the different
information resources: computing and communication resource, database management
system, system development and information in Action. 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.

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

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 understand how computer hardware has evolved to its present level of

sophistication;
 use the general systems model of the firm as a template for evaluating any type
of organization;
 recognize the importance and advantages of electronic commerce;
 learn that the organizational context for systems development and use is
changing from a physical to a virtual structure.
 uunderstand the implications of the rapid advances in information and
communication technologies;
 know the advantages and cost of database management systems;
 recognize the system approach as the basic framework for solving problems of
all kinds; and
 recognize that organizational information systems have been developed for
business areas and organizational levels.
Module 1 activities are listed below, followed by estimated time allotment for each
activity.

Part I. Introduction to Information System

1. Think and Recall activity
2. Read about Information System
3. Answer Activity 1
4. Read about Information System for Competitive Advantage
5. Answer Activity 2
6. Read about Using Technology to Engage in e-Commerce
7. Answer Activity 3
8. Read about System Users and Development
9. Answer Activity 4
Part II Information Resources
10. Read about Computing and Communication Resources
11. Answer Activity 5
12. Read about Database Management System
13. Answer Activity 6
14. Read about System Development
15. Answer Activity 7
16. Read about Information in Action
17. Answer Activity 8

Let’s get started! (Think and Recall)

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Before we begin your journey in this module, let us assess what you
know about Information System.

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

1. What is Information System?

______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

2. What is Information Technology?

______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

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

______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

Part 1: Introduction to Information System

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Let’s Sit and Talk

Information System is more than just computers. Information systems are the

combination of people, information technology, and business processes to accomplish a
business objective.

Every information system (IS) has people, processes, and information technology. In
fact, many Information System professionals add most of their value working with
people and processes. They manage the programmers but typically avoid programming
themselves. We can represent an information system as a triangle with people,
processes, and information technology (computers) on the three vertices. The three
parts of an information system are often referred to as the information systems
triangle.

The three part of the information system triangle must interact in concert to realize
business objectives.

The components of Information System

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Information system is made up of five components: hardware, software, data, people,

and process. The first three components of information systems – hardware, software,
and data – all fall under the category of technology. 

Hardware

Information systems hardware is the part of an information system you can touch – the
physical components of the technology. Computers, keyboards, disk drives, iPads, and
flash drives are all examples of information systems hardware. 

Software

Software is a set of instructions that tells the hardware what

to do. Software is not tangible – it cannot be touched.  There
are several categories of software, with the two main
categories being operating-system software, which makes
the hardware usable, and application software, which does
something useful. Examples of operating systems include
Microsoft Windows on a personal computer and Google’s
Android on a mobile phone. Examples of application software are Microsoft Excel and
Mobile legends.

Data

You can think of data as a collection of facts. For example, your street address, the city
you live in, and your phone number are all pieces of data. Like software, data is also
intangible. By themselves, pieces of data are not really very useful. But aggregated,
indexed, and organized together into a database, data can become a powerful tool for
businesses. In fact, all of the definitions presented at the beginning of this chapter
focused on how information systems manage data. Organizations collect all kinds of
data and use it to make decisions. These decisions can then be analyzed as to their
effectiveness and the organization can be improved.

People

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From the front-line help-desk workers, to systems analysts, to programmers, all the way
up to the chief information officer (CIO), the people involved with information systems
are an essential element that must not be overlooked. 

Process

A process is a series of steps undertaken to achieve a desired outcome or goal.

Information systems are becoming more and more integrated with organizational
processes, bringing more productivity and better control to those processes. But simply
automating activities using technology is not enough – businesses looking to effectively
utilize information systems do more. Using technology to manage and improve
processes, both within a company and externally with suppliers and customers, is the
ultimate goal. 

Types of Information System

1. Transaction Processing System (TPS):

 Transaction Processing System are information system that processes data
resulting from the occurrences of business transactions
 Their objectives are to provide transaction in order to update records and
generate reports i.e to perform store keeping function
 Used at operational level of the organization
 The transaction is performed in two ways:
  Batching processing 
  Online transaction processing
2. Management Information System (MIS):
 Management Information System is designed to take relatively raw data available
through a Transaction Processing System and convert them into a summarized
and aggregated form for the manager, usually in a report format.
 Many different types of report are produced in MIS. Some of the reports are a
summary report, on-demand report, ad-hoc reports and an exception report.
 It reports tending to be used by middle management and operational supervisors.
3. Decision Support System (DSS):

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 Decision Support System is an interactive information system that provides

information, models and data manipulation tools to help in making the decision in
a semi-structured and unstructured situation.
 Decision Support System comprises tools and techniques to help in gathering
relevant information and analyze the options and alternatives, the end user is
more involved in creating DSS than an MIS.
4. Experts System:
 Experts systems include expertise in order to aid managers in diagnosing
problems or in problem-solving. These systems are based on the principles of
artificial intelligence research.
 Experts Systems is a knowledge-based information system. It uses its knowledge
about a specify are to act as an expert consultant to users.
 Knowledgebase and software modules are the components of an expert system.
These modules perform inference on the knowledge and offer answers to a
user’s question

Information technology (IT) is the use of computers to store, retrieve, transmit, and

manipulate data or information. Information Technology is typically used within the
context of business operations as opposed to personal or entertainment technologies.

The Evolution in Computer Hardware

From the late 1950s through the 1960s,

computers were seen as a way to more
efficiently do calculations. These first
business computers were room-sized
monsters, with several refrigerator-sized
machines linked together. The primary work
of these devices was to organize and store
large volumes of information that were IBM 704 Mainframe (Lawrence Livermore
National Laboratory)
tedious to manage by hand. Only large
businesses, universities, and government

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agencies could afford them, and they took a crew of specialized personnel and
specialized facilities to maintain. These devices served dozens to hundreds of users at
a time through a process called time-sharing. Typical functions included scientific
calculations and accounting, under the broader umbrella of “data processing.”

In the late 1960s, the Manufacturing Resources Planning (MRP) systems were
introduced. This software, running on a mainframe computer, gave companies the
ability to manage the manufacturing process, making it more efficient. From tracking
inventory to creating bills of materials to scheduling production, the MRP systems (and
later the MRP II systems) gave more businesses a reason to want to integrate
computing into their processes. IBM became the dominant mainframe company.
Nicknamed “Big Blue,” the company became synonymous with business
computing. Continued improvement in software and the availability of cheaper hardware
eventually brought mainframe computers (and their little sibling, the minicomputer) into
most large businesses.

In 1975, the first microcomputer was announced on the cover of Popular Mechanics: the
Altair 8800. Its immediate popularity sparked the imagination of entrepreneurs
everywhere, and there were quickly dozens of companies making these “personal
computers.” Though at first just a niche product for computer hobbyists, improvements
in usability and the availability of practical software led to growing sales. The most
prominent of these early personal computer makers was a little company known as
Apple Computer, headed by Steve Jobs and Steve Wozniak, with the hugely successful
“Apple II.” Not wanting to be left out of the revolution, in 1981 IBM (teaming with a little
company called Microsoft for their operating-system software) hurriedly released their
own version of the personal computer, simply called the “PC.” Businesses, who had
used IBM mainframes for years to run their businesses, finally had the permission they
needed to bring personal computers into their companies, and the IBM PC took off.

Because of the IBM PC’s open architecture, it was easy for other companies to copy, or
“clone” it. During the 1980s, many new computer companies sprang up, offering less
expensive versions of the PC. This drove prices down and spurred innovation. Microsoft

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developed its Windows operating system and made the PC even easier to use.
Common uses for the PC during this period included word processing, spreadsheets,
and databases. These early PCs were not connected to any sort of network; for the
most part they stood alone as islands of innovation within the larger organization.

The Evolution in Computer Application

Information systems are conceptual systems that enable management to control the
operation of the physical system of the firm. The physical system of the firm consists
of the tangible resources – materials, personnel, machines and money. A
conceptual system, on the other hand, consists of the information resources that are
used to represent the physical system.

The physical system of the firm is an open system, interacting with its environment by
means of physical resource flows. An information system is also an open system. A
closed system would not interact with customers or managers or anyone else, and is
not interest to developers and users of information system.

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MODULE 1: Activity 1

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. Which do you think is the most important from the five components of Information
System in order for a business organization to succeed? Why?
2. What innovation do you think has the biggest impact in your life? Why?
3. What is the difference between physical system and conceptual system?

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MODULE 1: Information System for Competitive Advantage

Competitive advantage refers to the use of information to gain leverage in the

marketplace. An important point to recognize is that the firm’s managers use both
conceptual and physical resources in meeting the strategic objective of the firm.

The physical system of the firm is an open system in that interfaces with its
environment. A firm takes resources from its environment, transforms the resources into
products and services, and returns the transformed resources to its environment.

The general system model of the firm

Below is a diagram that shows the flow of resources from the environment, through the
firm, and back to the environment. The flow of the physical resources is at the bottom
and the flow of the conceptual resources is at the top.

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The physical resource flow

– includes personnel, material, machines and money.

The conceptual resource flow

- the arrow in the upper part of the diagram above shows the flow of conceptual
resource – data, information and information in the form of decision.

The firm’s control mechanism

- includes performance standards to meet if the firm wants to accomplish overall
objectives, the management. and Information processor that transform data into
information. The element that enables the firm to operate as a closed-loop system that
is shown in the upper portion of the above diagram.

The feedback loop

- is composed of the virtual resources. Data is gathered from the firm and from
the environment and entered into the information processor, which transforms into
information. The information is made available to managers who make decisions in the
physical systems.

The usefulness of the model

–the general system model of the firm is useful to managers and system
developers alike because it shows the elements and flows that must be managed in
order for the firm to function as an efficient and effective system.

The general system model of the firm

The general system model of the firm makes it easy to see the importance of the
environment. The firm exists for the purpose of providing products and services that
meets the environmental need. The environment of one firm might be different from the
other firm. For example, the bank has different environment than does a sporting goods.
However, there are eight major types of elements that exist in the environment of all
firms. These eight elements exist in major large system called society.

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The firm is connected to its environmental elements through resource flows, including:
• Information flowing from customers;
• Materials flowing to customers;
• Money flowing to stockholders;
• Machinery flowing from suppliers;
• Personnel flowing from suppliers;

Porter’s Value Chains

Harvard professor Michael E. Porter is the person who is most often identified with the
topic of competitive advantage. Porter believes that a firm achieves advantage by
creating a value chain. Margin is the value of the firm’s products and services minus
their costs, as perceived by the firm’s customers. Increased margin is the objective of
the value chain.

The dimension of competitive advantage

Competitive advantage can be realized in terms of achieving strategic, tactical and
operational advantages. The three level of advantage work together. Information
systems that are impacted by all three levels have the best chance to substantially
increase in a firm’s performance.

 Strategic advantage – information system for strategic advantage have a

fundamental effect in shaping the firm’s operation

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 Tactical advantage – is defined as a method of accomplishing the strategy

in a better way than do competitors
 Operational advantage – is one that deals with everyday transaction and
processes. This is where the information system directly interacts with the
process

Information management
Data and information are resources – conceptual resources that represent the physical
resource. A firm’s information resources consist of:
• Computer hardware
• Computer software
• Information specialists
• Users
• Facilities
• Databases
• Information
All of this activity, acquiring information, using it in the most effective way, and
discarding it at the proper time – is call information management.

The dimension of information

As the system developers (users and information specialists) define the output that the
information processor is to provide, they consider four basic dimension of Information:
relevancy, accuracy, timeliness and completeness

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MODULE 1: Activity 2

Test I. True or False. Write True if the statement is True and

change the underlined word with the correct word if the answer
is False. Each item is worth 2 points.

1._____ Competitive advantage can be realized in terms of achieving strategic,

_ tactical and operational advantages.
2._____ Information Technology refers to the use of information to gain leverage in
_ the marketplace.
3._____ Strategical advantage is defined as a method of accomplishing the
_ strategy in a better way than do competitors
4._____ Competitors is one of the eight environmental elements
_
5._____ Margin is the value of the firm’s products and services minus their costs,
_ as perceived by the firm’s customers.

Test II. Answer the following question. Each question is worth 10 points.

1. What are the eight environmental elements? Explain each element.

2. What is value chain?
3. Explain the four basic dimension of information

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MODULE 1: Using information technology to engage in electronic

Commerce Electronic Commerce

Let’s Sit and Talk

Electronic commerce or e-commerce is a business model that

lets firms and individuals buy and sell things over the internet. It is the use of
communication networks and computers to carry out business processes. Currently, e-
commerce is mostly used via the Internet, but before the internet was available, a form
of electronic transactions occurred over Electronic Data Interchange (EDI). Businesses
and customers used EDI by setting up a data link specifically reserved for commerce
between them.  In 1979, Michael Aldrich invented the concept of “teleshopping” which
gave the base structure that evolved into the online shopping ability we know today. 

Importance of ecommerce

In the emerging global economy, e-Commerce has increasingly become a vital

component of business strategy and a solid catalyst for economic development.
Ecommerce offers business a whole range of opportunities, from marketing
opportunities to increasing your products ranges to generating more sales and with an
optimized and well developed website you can not only achieve these goals but also
offer your customers  a round the clock, convenient service, that can boost your
business.

From startups to small and medium-sized businesses right through to huge brands,
there are a large number of companies that can benefit from their own online store,
where they can sell their own products/services.

Electronic commerce beyond the boundary of the firm

business-to-consumer (B2C) e-commerce refers to transactions that occur between a

business and the final consumer of the product e-commerce business to business

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(business-to-business-B2B) refers to inter-business transactions where no party

becomes the final consumer, involves relatively few people, and the parties involved are
highly trained in using information systems and getting to know business processes.
(Winwin Yadiati; Meiryani, 2019)

Business-to-business (B2B)

Anticipated Benefits from Electronic Commerce

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There are three main benefits of e-Commerce:

1. Improved customer service before, during, and after the sale.

2. Improved relationships with suppliers and the financial community.

3. Increased economic return on stockholder and owner investments.

These benefits contribute to the firm’s financial stability and enable it to better compete
in a business world that is employing more and more computer technology.

E-commerce constraints

In implementing e-commerce, of course there are obstacles that are usually

encountered, namely, among others:

• High costs

• Concern about security issues (access to personal data / information)

• Software that is not yet established or not yet available

The constraints on electronic commerce are being disassembled because of the

growing economic importance of e-commerce. The first step is a commitment to
implement the system as part of a strategic business plan to use e-commerce to
achieve competitive advantage.

Business intelligence

Business Intelligence is all about utilizing your raw data for extracting the useful
business information that can result in making better business strategies. The detailed
analysis and report of various aspects like customer buying trends, Sales and Marketing
Trends, Cart Abandonment Reasons, Referral Sources can be achieved which is helpful
in business improvements leading from traffic to conversions. The Business Intelligence
tools are used for getting the explicit information about various store activities that will
result in improved decision making. 

THE INTERORGANIZATIONAL SYSTEM (IOS)

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An IOS is created through linkages with other firms so they can work together as a
coordinated unit. This allows them to achieve benefits that each could not achieve
alone. Inter organizational systems are fundamental to electronic commerce. Inter
organizational systems are the highways of electronic commerce and electronic data
interchange is the favorite method of traveling that highway.

IOS Benefits
The trading partners enter into an IOS venture with the expectation of realizing benefits
such as:
– Comparative Efficiency
– Internal efficiency
– Inter organizational efficiency
– Bargaining Power

Bargaining power is the ability of a firm to resolve disagreement with its supplier and
customers to its own advantage. It is derived from three basic areas:
– Unique product features
– Reduced search-related costs
– Increased switching costs

Vendor stock replenishment is a special type of IOS where the supplier can initiate
the replenishment process by electronically monitoring the firm’s inventory levels

Electronic Data Interchange (EDI)

EDI is essentially electronic forms that can be sent over networks. It involves
transmitting data in a machine readable, structured format, enabling the data to be
received without the need for re-keying. EDI is the dominant implementation of an
interorganizational information system.

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Electronic Funds Transfer (EFT)

When data representing money is transmitted over a computer network, it is called
electronic funds transfer. EFT is used by firms and individuals who have their payroll
checks deposited into their bank accounts or who pay bills using electronic payments. It
also plays a major role in electronic commerce

Indirect IOS Benefits

The indirect benefits of participating in an IOS include:
– increased ability to compete;
– improved relationships with trading partners;
– and improved customer service
• Figure 3.4 shows this relationship between direct and indirect benefits

Business-To-Customer Strategies for Electronic Commerce

Reasons why it’s important to understand B2C business include:

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– More products and services are becoming available for digital delivery
– Consumers are overcoming their reluctance to purchase using the Web
– Higher communications speeds have made the delivery of digital products
practical
– Fear of information theft (such as credit card info), is being replaced with
greater confidence that sensitive information will be safeguarded

Products and Services to Be Delivered to the Consumer over the Internet

 Digital Products: such as songs, albums, movies, computer programs and their
updates and services
 Physical Products: Sales can be made over the Web, but shipping has to be
arranged. The growth of private mail/shipping companies has indirectly aided
retail e-Commerce.

A key difference between digital and physical products is that digital products can be
consumed as soon as they are downloaded

Virtual versus Hybrid sales

 Virtual sales are those made by a firm that does not operate a physical
storefront.
 Hybrid sales occur when firms have both a physical storefront and a Web site
where customers can purchase products

MODULE 1: Activity 3

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Test I. Identify the correct answer of each statement. Each item is

worth two points.

1. What do you call when data representing money is transmitted over a computer
network?
2. It is the ability of a firm to resolve disagreement with its supplier and customers to
its own advantage.
3. It is the dominant implementation of an interorganizational information system.
4. What does IOS stands for?
5. It is a business model that lets firms and individuals buy and sell things over the
internet.

Test II. Answer the following question. Each question is worth 10

points.

1. What benefit does electronic commerce yields?

2. What is the downside of today’s ecommerce?
3. How did electronic commerce change your life?
4. Give two business to business electronic commerce examples.

MODULE 1: SYSTEM USERS AND DEVELOPERS

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Let’s Sit and Discuss

The first office automation applications were mostly designed for secretarial and
clerical personnel but soon spread to managerial and professional ranks. These
applications made possible a concept called the virtual office, where it is not necessary
that workers be physically located at the office. The virtual movement, triggered by
telecommuting and hoteling, became so popular that it was expanded to the concept of
a virtual organization. Firms evaluated the advantages and disadvantages of centralized
and decentralized information services (IS) organization, three future structures were
identified – the partner, platform and scalable models.

The business organization

Information systems have been developed to support all organizational levels. The
information system is tailored to the physical organization- the way that the physical
resources are allocated to the various physical areas of the firm.

Office Automation
Office automation includes all of the formal and informal electronic systems primarily
concerned with the communication of information to and from persons inside and
outside the firm. Innovations in information technology have made it possible for many
firms to carry out activities without the constraint of physical location. The first office
automation was intended to support secretarial and clerical personnel. Examples are
word processing, email, fax, and electronic calendar. As managers and professionals
become computer literate they realize how they can use the application to solve the
problems. When implementing office automation, don’t but the equipment or the
software and then try to fit it into your business, instead, decide what you want to
automate in your business, then look for the system that can automate your work.

Advantage of office automation

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Automating processes reduces your involvement in mundane clerical tasks, such as

organizing customer data or creating reports, and leaves you to concentrate on the
parts of your business that you prefer. It allows a few employees to perform the tasks
of many, such as when one machine automatically chooses, packs and labels
products for shipping. Automation enables people with lower skill levels to perform
higher-level tasks, such as when a clerk creates an attractive and compelling
presentation by typing text into software templates that pull in third-party pictures,
videos and music. Automating information systems reduces storage space, speeds
retrieval and allows several employees to access the same data at the same time.

Disadvantage of Office Automation

Office automation can be expensive when you first invest in software and equipment.
A professional office suite or a machine that scans, duplicates and binds documents,
for example, can be quite expensive. Older or less-skilled employees who are used to
manual methods might find it difficult to operate and adjust to automatic processes.
This could require additional and time-consuming training. If the automated system
does not function -- when power is interrupted, for example -- you might not be able to
use manual methods to continue business.

The Virtual Office

A virtual office gives businesses a physical address and office-related services without
the overhead of a long lease and administrative staff. With a virtual office, employees
can work from anywhere but still have things like a mailing address, phone answering
services, meeting rooms, and videoconferencing. Virtual offices operate as one unit to
serve customers but do not exist in a fixed location.

Advantages of the Virtual Office

The virtual office overcomes the physical constraints of the workplace with electronics
and thereby makes possible several real advantages, including:
• Reduced facility cost
• Reduced equipment costs
• Reduced work stoppages
• Social contribution
Disadvantages of the virtual office

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When a firm commits to a virtual office strategy, it does so with the understanding that
there can be some negative impacts, such as:
 Low morale
 Fear of security risks

The virtual organization

In a virtual organization, firm operations are designed so they are not tied to physical
locations. Virtual Organization is a flexible network of independent entities linked by
telecommunication and computing technologies to share skills, knowledge and access
to expertise in non-traditional ways. It is a form of cooperation involving companies,
institutions and/or individuals delivering a product or service on the basis of a common
business understanding. 

Advantages of Virtual Organization

Virtual organization offers the following advantages:
 It saves time, travel expenses and eliminates lack of access to experts.
 Virtual teams can be organized whether or not members are in reasonable
proximity to each other.
 Use of outside experts without incurring expenses for travel, logging and
downtime.
 Dynamic team membership allows people to move from one project to another.
 Employee can be assigned to multiple, concurrent teams.
 Teams’ communication and work reports are available online to facilitate swift
responses to the demands of the (global) market.
 Employees can accommodate both personal and professional lives.
 Virtual teams allow firms to expand their potential labor markets enabling them to
hire and retain the best people regardless of their physical locations.
Disadvantages of Virtual Organization
In spite of these advantages, virtual organizations suffer from the following
disadvantages also:
 The lack of physical interactions with its associated verbal and non-verbal cues
and also the synergies that often accompany face-to-face interaction

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 Non-availability of paraverbal and non-verbal cues such as voice, eye movement,

facial expression, and body language which help in better communication.
 Ability to work even if the virtual teams are miles apart and the members have
never or rarely met each other face-to-face.
But the fact remains that despite these drawbacks; virtual organizations have become a
reality and are growing in popularity. By now, several successful cases of virtual
organizations abound in our country.

The Information Services Organization

Information System is the term we used to describe the unit of the firm that has
responsibility for the majority of the information resources. Other names – MIS division
or MIS Department and especially IT – are popular.

The Information Resources

We identified the information resources as including computer hardware, computer
software, information specialists, users, users, facilities the database and information.

The information Specialists

The information specialists is responsible of managing data and secured files, analyzing
data, communicating with stockholders, and training other to gather it and understand it.
The original information specialists included the system analyst, programmer and
operator then the database administrator and network specialist was added.
• Systems Analysts
• Database Administrators
• A Webmaster
• Network Specialists
• Programmers
• Operators

End-user computing
End-user computing (EUC) is the development by users of all or part of their information
system. End-user is synonym with user; he or she uses the end product of a computer-
based system. End-user computing evolved because of four main influences

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• The impact of computer education

• The information services backlog

• Low-cost hardware

• Prewritten software

USERS AS AN INFORMATION RESOURCE

In deciding how the firm will use its information resources, management must consider
how end-user computing will be conducted, so as to maximize the benefits and
minimize the risks.

Benefits of End-User Computing

 Match Capabilities and Challenges

 Reduce Communications Gap

Risks of End-user Computing

 Poorly Aimed Systems

 Poorly Designed and Documented Systems

 Inefficient Use of Information Resources

 Loss of Data Integrity

 Loss of Security

 Loss of Control

Systems Development Knowledge and Skill

It is possible to identify not only the types of knowledge and skill needed by information
specialists and users, but also how users can be divided into general management and
their staff

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Putting the System Users and Information Specialists in Perspective

The human element continues to be the most important ingredient in the development
and use of information system. The main players are the users and the information
specialists. Not only has systems development work changed, but the setting in which
the work is performed has changed as well. Electronic communication networks enable
firms to become virtual organizations, so now their development work can be done
almost anywhere.

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MODULE 1: Activity 4

Test I. True or False. Write True if the statement is True and

change the underlined word with the correct word if the answer is
False. Each item is worth 2 points.

1. Computer is the most important element in the development and use of

information system.
2. One of the advantages of office automation is being costly.
3. The first office automation was intended to support managers.
4. Automating information systems reduces storage space, speeds retrieval
and allows employees to access the same data at the same time.
5. One of the disadvantages of virtual office is the fear of security risks.

Test II. Answer the following question. Each question is worth 10

points.

1. What is Virtual Organization?

2. As a future professional, are you in favor of virtual office? Why? or Why
not?

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