Information Technology

By Md. Monowar Hossain, FCA,CISA, CPA,CPFA(UK)

md.monowar@gmail.com

Information technology
CA (Certifiecate level)

Class Notes on

By
Visiting Professor

Md.Monowar Hossain FCA,CISA,FCMA

CPFA(UK), CPA, FCGA, FCS, CIFRS, DCS, MBA
md.monowar@gmail.com

May-2022

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 Information Technology
By Md. Monowar Hossain, FCA,CISA, CPA,CPFA(UK)
md.monowar@gmail.com
st
1 edition: January-2017
7th edition: May-2021edition: Audust-2021

Information Technology
INDEX
(As per References)
Sl. Topcs Chapter
Learning outcomes
01. Information Systems in Business
1. Foundation concepts: information systems in business 1
(Referance: 1, Chapter-1, Section-I)
2. Foundation concepts: the components of information systems 2
(Referance: 1, Chapter-2, Section-II)

02. Information Technologies

3. Hardware (Referance: 1, Chapter-3) 3
4. Software (Referance: 1, Chapter-4) 4
5. Data Resource Management (Referance: 1, Chapter-5) 5
6. Telecommunications and Network (Referance: 1, Chapter-6) 6

03. e-Business Systems

7. e-Business Systems (Referance: 1, Chapter-7, Section-I) 7
8. Functional Business Systems (Referance: 1, Chapter-7, Section-II) 7

04. Electronic Commerce Systems

9. Electronic commerce fundamentals 9
(Referance: 1, Chapter-9, Secction-I)
10. e-Commerce applications and issues 9
(Referance: 1, Chapter-9, Section-II)

05. Enterprise Business Systems

11. Customer Relationship Management (CRM) 8
(Referance: 1, Chapter-8, Section-I)
12. Enterprise Resource Planning (ERP) 8
(Referance: 1, Chapter-8, Section-II)
13. Supply Chain Management (SCM) 8
(Referance: 1, Chapter-8, Secction-III)

References:
1. Management Information Systems: James A O'Brien, George M Marakas, and Ramesh
Behl, Tata McGrawHill Education Private Limited

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 Information Technology
By Md. Monowar Hossain, FCA,CISA, CPA,CPFA(UK)
md.monowar@gmail.com

CA
Information Technology
The following learning outcomes should be read in conjunction with the relevant sections of the technical knowledge
grids.
Information Systems in Business LO1
1. Information Systems in Business
Candidates will be able to understand the five basic areas of information systems needed by business professionals, including
the conceptual system components, major types of information systems and the trends in information systems along with
managerial challenges associated with it.
In the assessment, candidates may be required to:
a. Identify the concept of a system and how it relates to information systems.
b. Explain why knowledge of information systems is important for business professionals and identify five areas
of information systems knowledge that they need.
c. Illustrate how the business applications of information systems can support a firm’s business processes,
managerial decision making, and strategies for competitive advantage.
d. Illustrate several major types of information systems from experiences with business organizations in the real
world.
e. Identify several challenges that a business manager might face in managing the successful and ethical
development and use of information technology in a business.
f. Illustrate the components of real world information systems. Illustrate that in an information system, people use
hardware, software, data, and networks as resources to perform input, processing, output, storage, and control
activities that transform data resources into information products.
g. Demonstrate familiarity with the myriad of career opportunities in information systems

Information Technologies LO2, LO3, LO4, LO5

2. Information Technologies
Candidates will be able to understand and Identify history, trends, developments in different computer systems;
and the major types of technologies used in peripheral devices for computer input, output, and storage.
Candidates will be able to identify the basic features and trends in the major types of application software and
system software used to support enterprise and end-user computing.
Candidates will be able to understand the management of the data resources of computer-using organizations and
understand the key database management concepts and applications in business information systems.
Candidates will be able to understand the basics of the Internet and other telecommunication networks, business
applications, and trends in technical telecommunications alternatives.
In the assessment, candidates may be required to:

a. Identify the major types and uses of microcomputer, midrange, and mainframe computer systems.
b. Outline the major technologies and uses of computer peripherals for input, output, and storage.
c. Identify and illustrate the components and functions of a computer system.
d. Identify the computer systems and peripherals that would be acquired or recommended for a business and
explain the reasons for selections.
e. Illustrate several major types of application and system software.
f. Explain the purpose of several popular software packages for end-user productivity and collaborative
computing.
g. Describe the main uses of computer programming software, tools, and languages.
h. Describe the issues associated with open-source software.
i. Explain the business value of implementing data resource management processes and technologies in an
organization.
j. Outline the advantages of a database management approach to managing the data resources of a business,
compared with a file processing approach.
k. Explain how database management software helps business professionals and supports the operations and
management of a business.
l. Understand the concept of a network and Identify the basic components, functions, and types of
telecommunications networks used in business.
m. Explain the functions of major components of telecommunications network hardware, software, media, and
services and explain the concept of client/server networking.
n. Explain the concepts behind TCP/IP and understand the seven layers of the OSI network model.

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 Information Technology
By Md. Monowar Hossain, FCA,CISA, CPA,CPFA(UK)
md.monowar@gmail.com

e-Business Systems LO6

3. e-Business Systems
Candidates will be able to understand how information systems integrate and support enterprise-wide business processes, as
well as the business functions of marketing, manufacturing, human resource management, accounting, and finance.
In the assessment, candidates may be required to:
a. Identify the following cross-functional enterprise systems, and illustrate how they can provide significant
business value to a company:
i. Enterprise application integration
ii. Transaction processing systems
iii. Enterprise collaboration systems
b. Illustrate how Internet and other information technologies support business processes within the business
functions of accounting, finance, human resource management, marketing, and production and operations
management.
Electronic Commerce Systems LO7

4. Electronic Commerce Systems

Identify the basic process components of e-commerce systems, and discusses important trends, applications, and issues in
e-commerce.
In the assessment, candidates may be required to:
a. Identify the major categories and trends of e-commerce applications.
b. Identify the essential processes of an e-commerce system and give examples of how it is implemented in
ecommerce applications.
c. Identify and give examples of several key factors and Web store requirements needed to succeed in
ecommerce.
d. Identify and explain the business value of several types of e-commerce marketplaces.
e. Discuss the benefits and trade-offs of several e-commerce clicks-and-bricks alternatives.

Enterprise Business Systems LO8

5. Enterprise Business Systems

Understand the goals and components of customer relationship management, enterprise resource planning, and supply chain
management, and the benefits and challenges of these major enterprise applications.

In the assessment, candidates may be required to:

a. Identify and give examples to illustrate the following aspects of customer relationship management, enterprise
resource management, and supply chain management systems:
i. Business processes supported
ii. Customer and business value provided
iii. Potential challenges and trends

b. Understand the importance of managing at the enterprise level to achieve maximum efficiencies and benefits.

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 Information Technology
By Md. Monowar Hossain, FCA,CISA, CPA,CPFA(UK)
md.monowar@gmail.com

Chartered Accountancy
Information Technology
Module-01: 01.Information Systems in Business
Information (1)Foundation concepts: information systems in business
Systems in (2)Foundation concepts: the components of information systems
Business

Understand the five basic areas of information systems needed by business professionals, including
the conceptual system components, major types of information systems and the trends in
information systems along with managerial challenges associated with it.
a. Identify the b. Explain why knowledge of c. Illustrate how the business applications
concept of a information systems is of information systems can support a
system and how it important for business firm’s business processes, managerial
relates to professionals and identify decision making, and strategies for
information five areas of information competitive advantage.
systems. systems knowledge that they
need.
d. Illustrate several e. Identify several challenges f. Illustrate the components of real world
major types of that a business manager information systems. Illustrate that in an
information systems might face in managing the information system, people use hardware,
from experiences successful and ethical software, data, and networks as
with business development and use of resources to perform input, processing,
organizations in the information technology in a output, storage, and control activities that
real world. business. transform data resources into information
products.

g. Demonstrate familiarity with the myriad of career opportunities in information systems

01.1.01 Information systems are the combination of people, information technology, and
Information business processes to accomplish a business objective.
systems
Information systems have
become as integrated into our
daily business activities as
accounting, finance, operations
management, marketing,
human resource management,
or any other major business
function. Information systems
and technologies are vital
components of successful
businesses and organizations.

An Information System (IS) 1can be any organized combination of people,

hardware, software, communications networks, data resources, and policies and
procedures that stores, retrieves, transforms, and disseminates information in an
organization. People rely on modern information systems to communicate with one
another using a variety of physical devices (hardware) , information processing
instructions and procedures (software) , communications channels (networks) , and
stored data (data resources). Although today’s information systems are typically
thought of as having something to do with computers, we have been using
information systems since the dawn of civilization. Even today we make regular use
of information systems that have nothing to do with a computer.

1
Management Information Systems by James OBrien, George Marakas, 10th_Edition

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 Information Technology
By Md. Monowar Hossain, FCA,CISA, CPA,CPFA(UK)
md.monowar@gmail.com

01.1.02 A framework that

Conceptual outlines the major
Framework areas of information
that outlines systems knowledge
the major
areas of
needed by business
Information professionals.
Systems (IS)
2As a professional, you should concentrate your efforts in the following five areas of
IS knowledge:
(1) Foundation Concepts.
Fundamental behavioral, technical, business and managerial concepts about
the components and roles of information systems. Examples include basic
information system concepts derived from general systems theory or
competitive strategy concepts used to develop business applications of
information technology for competitive advantage.
(2) Information Technologies.
Major concepts, developments, and management issues in information
technology—that is, hardware, software, networks, data management, and
many Internet-based technologies.
(3) Business Applications.
The major uses of information systems for the operations, management, and
competitive advantage of a business.
(4) Development Processes.
How business professionals and information specialists plan, develop, and
implement information systems to meet business opportunities. Several
developmental methodologies are explored including the systems
development life cycle and prototyping approaches to business application
development.
(5) Management Challenges.
The challenges of effectively and ethically managing information technology
at the end-user, enterprise, and global levels of a business. Have to focuses
on security challenges and security management issues in the use of
information technology, have to covers some of the key methods business
managers can use to manage the information systems function in a
company with global business operations.

01.1.03 The three fundamental roles of the business applications of information systems.
The Information systems provide an organization with support for business processes
Fundamental and operations, decision-making, and competitive advantage.
Roles of IS in
Business

2
MIS by James OBrien, George Marakas, 10th_Edition page -7

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 Information Technology
By Md. Monowar Hossain, FCA,CISA, CPA,CPFA(UK)
md.monowar@gmail.com

Although there are a seemingly endless number of software applications, there are three fundamental
reasons for all business applications of information technology. They are found in the three vital roles
that information systems can perform for a business enterprise:
(1) Support of business processes and operations.
(2) Support of decision making by employees and managers.
(3) Support of strategies for competitive advantage.
At any moment, information systems designed to support business processes and operations may also
be providing data to, or accepting data from, systems focused on business decision making or achieving
competitive advantage. The same is true for the other two fundamental roles of IS. Today’s
organizations are constantly striving to achieve integration of their systems to allow information to flow
freely through them, which adds even greater flexibility and business support than any of the individual
system roles could provide.
3Support of Business Processes and Operations

Computer-based information systems

Support of Business Decision Making
Support of Strategies for Competitive Advantage

What is a System?
A set of interrelated components with
a clearly defined boundary which work
together to achieve a common set of
objectives.

What is an Information System?

An organized combination of People,
Hardware, Software, Communication
Networks, Data resources, and
Policies and procedures, which
Captures, stores, retrieves,
transforms, and disseminates
information in an organization.

Information System (IS) vs.

Information Technology (IT)

Information System (IS) is all the

components and resources necessary
to deliver information and functions to
the organization. And Information
Technology (IT) is hardware, software,
networking and data management
• Foundation Concepts - Fundamental behavioral, technical, business, and managerial concepts.
• Information Technology - Hardware, software, networks, data management, and internet based
technology

• Business Applications - Major user of IS in the organization

• Development Processes - How to plan, develop, and implement IS to meet business opportunities.
• Management Challenges - The challenges of effectively and ethically managing IT

• Major components of an Information system - Data, Database, Process, Information

3
MIS by James OBrien, George Marakas, 10th_Edition page -8

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 Information Technology
By Md. Monowar Hossain, FCA,CISA, CPA,CPFA(UK)
md.monowar@gmail.com

01.1.04 4The business applications of information systems have expanded significantly over
Trends in the years. The expanding roles of the business applications of information systems.
Information Note how the roles of computerbased information systems have expanded over time.
Also, note the impact of these changes on the end users and managers of an
Systems
organization.

2023 >>>>>>>>>>>

4
MIS by James OBrien, George Marakas, 10th_Edition page -10

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 Information Technology
By Md. Monowar Hossain, FCA,CISA, CPA,CPFA(UK)
md.monowar@gmail.com

01.1.05 Businesses today depend on the Internet, intranets, and extranets to

The Role of implement and manage innovative e-business applications.
e-Business in
Business

The Internet and related technologies and applications have changed the ways
businesses operate and people work, as well as how information systems support
business processes, decision making, and competitive advantage.
Thus, many businesses today are using Internet technologies to Web-enable their
business processes and create innovative e-business applications.
E-business as the use of Internet technologies to work and empower business
processes, e-commerce, and enterprise collaboration within a company and with its
customers, suppliers, and other business stakeholders. In essence, e-business can
be more generally considered an online exchange of value . Any online exchange of
information, money, resources, services, or any combination thereof falls under the
e-business umbrella.
The Internet and Internet-like networks
✓ those inside the enterprise (intranet) and between an enterprise and its
trading partners (extranet)
✓ have become the primary information technology infrastructure that supports
the e-business applications of many companies.
These companies rely on e-business applications to
(1) reengineer internal business processes,
(2) implement e-commerce systems with their customers and suppliers, and
(3) promote enterprise collaboration among business teams and
workgroups.

01.1.06 Enterprise collaboration systems involve the use of software tools to support
Enterprise communication, coordination, and collaboration among the members of networked
collaboration teams and workgroups. A business may use intranets, the Internet, extranets, and
other networks to implement such systems.
systems

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 Information Technology
By Md. Monowar Hossain, FCA,CISA, CPA,CPFA(UK)
md.monowar@gmail.com

For example, employees and external consultants may form a virtual team that uses
a corporate intranet and the Internet for e-mail, videoconferencing, e-discussion
groups, and Web pages of work-in-progress information to collaborate on business
projects.
01.1.07: eCommerce is the buying, selling, marketing, and servicing of products, services, and
eCommerce information over a variety of computer networks. Many businesses now use the
Internet, intranets, extranets, and other networks to support every step of the
commercial process, including everything from advertising, sales, and customer
support on the World Wide Web to Internet security and payment mechanisms that
ensure completion of delivery and payment processes.
For example, e-commerce systems include Internet Web sites for online sales, extranet
access to inventory databases by large customers, and the use of corporate intranets
by sales reps to access customer records for customer relationship management.
01.1.08: • Operations and management classifications of information systems.
Types of • Note how this conceptual overview emphasizes the main purposes of information
Information systems that support business operations and managerial decision making.
Systems • The applications of information systems that are implemented in today’s business
world can be classified in several different ways.
For example, several types of information systems can be classified as either
operations or management information systems.
• Information systems are categorized this way to spotlight the major roles each
plays in the operations and management of a business.

01.1.09 Information systems have always been needed to process data generated by, and
Operations used in, business operations. Such operations support systems produce a variety of
information products for internal and external use; however, they do not emphasize the
Support
specific information products that can best be used by managers.
Systems
Further processing by management information systems is usually required. The role
of a business firm’s operations support systems is to process business transactions,
control industrial processes, support enterprise communications and collaborations,
and update corporate databases efficiently.

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 Information Technology
By Md. Monowar Hossain, FCA,CISA, CPA,CPFA(UK)
md.monowar@gmail.com

A summary of operations support systems with examples

01.1.10: Transaction processing systems are important examples of operations support

Transaction systems that record and process the data resulting from business transactions. They
process transactions in two basic ways. In batch processing , transactions data are
processing
accumulated over a period of time and processed periodically. In real-time (or online
systems ) processing, data are processed immediately after a transaction occurs.
For example, point-of-sale (POS) systems at many retail stores use electronic cash
register terminals to capture and transmit sales data electronically over
telecommunications links to regional computer centers for immediate (real-time) or
nightly (batch) processing. Accounting software that automates accounting transaction
processing.
01.1.11 Process control systems monitor and control physical processes.
Process For example, a petroleum refinery uses electronic sensors linked to computers to
control monitor chemical processes continually and make instant (real-time) adjustments that
systems control the refinery process. Enterprise collaboration systems enhance team and
workgroup communications and productivity and include applications that are
sometimes called office automation systems .
For example, knowledge workers in a project team may use e-mail to send and receive
e-messages or use videoconferencing to hold electronic meetings to coordinate their
activities

01.1.12 When information system applications focus on providing information and support for
Manage- effective decision making by managers, they are called management support systems.
Providing information and support for decision making by all types of managers and business
ment
professionals is a complex task. Conceptually, several major types of information systems
Support support a variety of decision-making responsibilities:
Systems (1) management information systems (MIS),
(2) decision support systems (DSS), and
(3) executive information systems(EIS).

A summary of management support systems with examples

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 Information Technology
By Md. Monowar Hossain, FCA,CISA, CPA,CPFA(UK)
md.monowar@gmail.com

01.1.13 Management information systems (MIS) provide information in the form of reports
Management and displays to managers and many business professionals.
information
For example, sales managers may use their networked computers and Web browsers
systems
to receive instantaneous displays about the sales results of their products and access
(MIS)
their corporate intranet for daily sales analysis reports that evaluate sales made by each
salesperson.
Decision support systems (DSS) give direct computer support to managers during
the decision-making process.
For example, an advertising manager may use a DSS to perform a what-if analysis as
part of the decision to determine how to spend advertising dollars/ taka. A production
manager may use a DSS to decide how much product to manufacture, based on the
expected sales associated with a future promotion and the location and availability of
the raw materials necessary to manufacture the product.

Executive information systems (EIS) provide critical information from a wide variety
of internal and external sources in easy-to-use displays to executives and managers.
For example, top executives may use touch-screen terminals to view instantly text and
graphics displays that highlight key areas of organizational and competitive
performance.

01.1.14
A summary
of other
categories
of
information
systems
with
examples.

01.1.15 Success in today’s dynamic business environment depends heavily on maximizing

Managerial the use of Internet-based technologies and Web-enabled information systems to
Challenges of meet the competitive requirements of customers, suppliers, and other business
Information partners in a global marketplace.
Technology
Information systems and their technologies must be managed to support the
business strategies, business processes, and organizational structures and culture
of a business enterprise. That is because computer-based information systems,
though heavily dependent on information technologies, are designed, operated, and
used by people in a variety of organizational settings and business environments.
The goal of many companies today is to maximize their customer and business
value by using information technology to help their employees implement
cooperative business processes with customers, suppliers, and others. Few
chalanges are:
(a) Managing cash flow (b) Employee buy-in and fostering an open work
Environment (c) Choosing partners and strategic alliances (d) Finding the
right employees (e) Departure of employees with critical knowledge or
proprietary information (f) The internet and e-commerce, etc.

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 Information Technology
By Md. Monowar Hossain, FCA,CISA, CPA,CPFA(UK)
md.monowar@gmail.com

01.1.16 Examples of the challenges and opportunities

that business managers face in managing information systems and technologies to meet business
goals.

01.1.17 By now we should be able to see that the success of an information system should
Success and not be measured only by its efficiency in terms of minimizing costs, time, and the
Failure with use of information resources.
Inforamation Success should also be measured by the effectiveness of the information
Technology technology in supporting an organization’s business strategies, enabling its
business processes, enhancing its organizational structures and culture, and
increasing the customer and business value of the enterprise.
It is important to realize, however, that information technology and information
systems can be mismanaged and misapplied in such a way that IS performance
problems create both technological and business failures.

01.1.18 Developing successful information system solutions to business problems is a

Developing major challenge for business managers and professionals today. As a business
Information professional, you will be responsible for proposing or developing new or improved
System (IS) uses of information technologies for your company. As a business manager, you
Solutions will frequently manage the development efforts of information systems specialists
and other business end users. Most computer-based information systems are
conceived, designed, and implemented using some form of systematic
development process.
Developing
information
systems solutions
to business
problems can be
implemented and
managed as a
multistep process
or cycle.

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 Information Technology
By Md. Monowar Hossain, FCA,CISA, CPA,CPFA(UK)
md.monowar@gmail.com

Several major activities must be accomplished and managed in a complete IS

development cycle. In this development process, end users and information
specialists design information system applications on the basis of an analysis of
the business requirements of an organization.
Examples of other activities include investigating the economic or technical
feasibility of a proposed application, acquiring and learning how to use any software
necessary to implement the new system, and making improvements to maintain
the business value of a system.
A company changed its development practices to deliver the right functionality to
users and become more responsive to their needs. This example emphasizes the
importance of tailoring systems development practices to the needs of a business.
01.1.19 As a prospective manager, business professional, or knowledge worker, you will be
Challenges and challenged by the ethical responsibilities generated by the use of information
Ethics of technology.
Information For example, What uses of information technology might be considered improper,
Technology irresponsible, or harmful to other people or to society?
(IT)
What is the proper business use of the Internet and an organization’s IT resources?
What does it take to be a responsible end user of information technology?
How can you protect yourself from computer crime and other risks of information
technology?
These are some of the questions that outline the ethical dimensions of information
systems. Some of the ethical risks that may arise in the use of several major
applications of information technology. The following example illustrates some of
the security challenges associated with conducting business over the Internet.

Examples of some of the ethical challenges that must be faced by business managers who
implement major applications of information technology.

01.1.20 The successful management of information systems and technologies presents

The major challenges to business managers and professionals. Thus, the information
Information systems function represents:
Technology • A major functional area of business equally as important to business
(IS) Function success as the functions of accounting, finance, operations management,
marketing, and human resource management.
• An important contributor to operational efficiency, employee productivity and
morale, and customer service and satisfaction.
• A recognized source of value to the firm.
• A major source of information and support needed to promote effective
decision making by managers and business professionals.

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 Information Technology
By Md. Monowar Hossain, FCA,CISA, CPA,CPFA(UK)
md.monowar@gmail.com

• A vital ingredient in developing competitive products and services that give

an organization a strategic advantage in the global marketplace.
• A dynamic, rewarding, and challenging career opportunity for millions of
men and women.
• A key component of the resources, infrastructure, and capabilities of today’s
networked business enterprises.
• A strategic resource.

01.1.21 The Information Technology Department performs these core functions:

The Introduces and maintains computerized information systems to process data
Information efficiently to produce useful and timely information.
Technology
Department Provides the appropriate hardware, software, networking and communications
Function infrastructure for automation to achieving the business goal.

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