Information Technology

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

md.monowar@gmail.com

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 (cont..)
The Components of Information Systems
The components of information systems typically include:
1. Hardware: The physical devices used to process and store data, such as computers,
servers, mobile devices, and other electronic devices.
2. Software: The programs and applications that enable users to perform specific tasks,
such as word processing, data analysis, or inventory management.
3. Data: The raw facts and figures that are input into information systems for processing and
analysis, such as customer information, financial data, or inventory levels.
4. Procedures: The rules and guidelines that govern the use of information systems, such
as security policies, backup procedures, or data entry standards.
5. People: The individuals who design, develop, operate, and maintain information systems,
as well as the users who interact with them.
6. Communication networks: The infrastructure that connects hardware, software, and
people across different locations and enables data exchange and communication.
All of these components work together to enable the creation, storage, processing, and
dissemination of information within an organization. Effective management and integration of
these components are critical to the success of information systems and can help organizations
gain a competitive advantage in the marketplace.
Regenerate response

01.2.01 System concepts underlie all business processes, as well as our understanding of
System information systems and technologies. That’s why we need to discuss how generic
Concepts: system concepts apply to business firms and the components and activities of
A Foundation information systems.
5Understanding system concepts will help us understand many other concepts in
the technology, applications, development, and management of information
systems. For example, system concepts help us understand:

Technology Applications Development Management

Computer networks E-business and Developing ways Managing
are systems of e-commerce to use information information
information applications technology in technology
processing involve business includes emphasizes the
components that interconnected designing the basic quality, strategic
use a variety of business components of business value,
hardware, software, information information and security of an
data management, systems. systems. organization’s
and information
telecommunications systems.
network
technologies.
https://www.youtube.com/watch?v=3iAp9me4P1c

5
https://www.interviewbit.com/information-technology-mcq/

04(2023) Page # 25
 Information Technology
By Md. Monowar Hossain, FCA,CISA, CPA,CPFA(UK)
md.monowar@gmail.com

01.2.02
What is a
Syestem ?

Example.
✓ A manufacturing system accepts raw materials as input and produces
finished goods as output.
✓ An information system is a system that accepts resources (data) as input
and processes them into products (information) as output.

✓ A business organization is a system in which human and economic

resources are transformed by various business processes into goods and
services.

01.2.03 • A system does not exist in a vacuum; rather, it exists and functions in an
Other System environment containing other systems.
Characteristics • If a system is one of the components of a larger system, it is a subsystem,
and the larger system is its environment.
• Several systems may share the same environment.
• Some of these systems may be connected to one another by means of a
shared boundary, or interface.

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

• The concept of an open system, that is, a system that interacts with other
systems in its environment.
• The system exchanges inputs and outputs with its environment.
• The syestem is connected to its environment by input and output interfaces.
• A system that has the ability to change itself or its environment to survive is an
adaptive system .

01.2.04 • A business is an example of an organizational system in which economic

Organizational resources (input) are transformed by various business processes (processing)
Syestem into goods and services (output).
• Information systems provide information (feedback) about the operations of the
system to management for the direction and maintenance of the system
(control) as it exchanges inputs and outputs with its environment.

✓ Organizations such as businesses and government agencies are good

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

examples of the systems in society, which is their environment. Society

contains a multitude of such systems, including individuals and their social,
political, and economic institutions.
✓ Organizations themselves consist of many subsystems, such as departments,
divisions, process teams, and other workgroups.
✓ Organizations are examples of open systems because they interface and
interact with other systems in their environment.
✓ Organizations are examples of adaptive systems because they can modify
themselves to meet the demands of a changing environment.

✓ Information systems are made up of interrelated components:

• People, hardware, software, peripherals, and networks.
- They have clearly defined boundaries:
• Functions, modules, type of application, department, or end-user group.
- All the interrelated components work together to achieve a common
goal by accepting inputs and producing outputs in an organized
transformation process:
• Using raw materials, hiring new people, manufacturing products for sale,
and disseminating information to others.
✓ Information systems make extensive use of feedback and control to
improve their effectiveness:
• Error messages, dialog boxes, passwords, and user rights management.

✓ Many information systems are designed to change in relation to their

environments and are adaptive:
• Intelligent software agents, expert systems, and highly specialized
decision support systems.
Information systems are systems just like any other system. Their value to the
modern organization, however, is unlike any other system ever created.

01.2.05 All information systems use people, hardware, software, data, and network
Components of resources to perform input, processing, output, storage, and control activities that
Information Systems transform data resources into information products.
An information system is a system that accepts data resources as input
and processes them into information products as output.
How does an information system accomplish this task?
What system components and activities are involved?
An information system model is expresses a fundamental conceptual
framework (as shown above) for the major components and activities of
information systems.
This information system model highlights the relationships among the
components and activities of information systems.

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

An information system depends on the resources of

- people (end users and IS specialists),
- hardware (machines and media),
- software (programs and procedures),
- data (data and knowledge bases), and
- networks (communications media and network support)
to perform input, processing, output, storage, and control activities that transform
data resources into information products.

It also provides a framework that emphasizes four major concepts that can
be applied to all types of information systems:
• People, hardware, software, data, and networks are the five basic
resources of information systems.
• People resources include end users and IS specialists, hardware
resources consist of machines and media, software resources include
both programs and procedures, data resources include data and
knowledge bases, and network resources include communications media
and networks.
• Data resources are transformed by information processing activities into
a variety of information products for end users.
• Information processing consists of the system activities of input,
processing, output, storage, and control.

01.2.06 An information system consists of five major resources: people, hardware,

Information System software, data, and networks. Let’s briefly discuss several basic concepts and
Resources examples of the roles these resources play as the fundamental components of
information systems.

Information system resources are the assets used to support the development,
implementation, and maintenance of information systems. Effective management
and integration of these information system resources are critical to the success
of information systems and can help organizations achieve greater efficiency,
productivity, and profitability.

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

Examples of information system resources and products.

01.2.07 Business examples of the basic activities of information systems.
Information System
Activities6 • Inpute of Data Resources
• Processing of Data into Information
• Output of Information Products
• Storage of Data Resources
• Control of System Performance

6
MIS by James OBrien, George Marakas, 10th_Edition page -35
7
https://businessdocbox.com/Business_Software/84878824-Information-systems-control-and-audit.html

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

POS –Point of Sale

01.2.08 • As a business professional, you should be able to recognize the fundamental

Recognizing components of information systems you encounter in the real world.
Information
System • This demand means that you should be able to identify:
✓ The people, hardware, software, data, and network resources they
use.
✓ The types of information products they produce.
✓ The way they perform input, processing, output, storage, and control
activities.
• This kind of understanding will help us be a better user, developer, and
manager of information systems.

• As a future Chartered Accountant, this is important to your future success as a

finance manager, entrepreneur, and business professional modern business
fin-technologist.

04(2023) Page # 31
 Information Technology
By Md. Monowar Hossain, FCA,CISA, CPA,CPFA(UK)
md.monowar@gmail.com

We have to understand ….
01.2.09 The IS knowledge that a business manager or professional needs to know
Information (1) foundation concepts: fundamental behavioral, technical, business,
System (IS) and managerial concepts like system components and functions, or
Framework for competitive strategies;
Business
(2) information technologies: concepts, developments, or
Professionals management issues regarding hardware, software, data
management, networks, and other technologies;
(3) business applications: major uses of IT for business processes,
operations, decision making, and strategic/ competitive advantage;
(4) development processes: how end users and IS specialists develop
and implement business/IT solutions to problems and opportunities
arising in business; and
(5) management challenges: how to manage the IS function and IT
resources effectively and ethically to achieve top performance and
business value in support of the business strategies of the
enterprise.

01.2.10 • Information systems perform three vital roles in business firms.

Business Roles (1) Business applications of IS support an organization’s business
of Information processes and operations,
Systems
(2) Business decision making, and
(3) Strategic competitive advantage.

• Major application categories of information systems include

operations support systems (OSS), such as
transaction processing systems (TPS),
process control systems (PCS), and
enterprise collaboration systems (ECS); and
management support systems (MSS), such as
management information systems (MIS),
decision support systems (DSS), and
executive information systems (EIS)
Other major categories are
- expert systems,
- knowledge management systems,
- strategic information systems, and
- functional business systems.

• In the real world, most application categories are combined into cross-
functional information systems that provide information and support for
decision making and also performing operational information processing
activities.
01.2.11 • A system is a group of interrelated components, with a clearly defined
System boundary, working toward the attainment of a common goal by accepting
Concepts inputs and producing outputs in an organized transformation process.
• Feedback is data about the performance of a system.

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

• Control is the component that monitors and evaluates feedback and makes
any necessary adjustments to the input and processing components to
ensure that proper output is produced.

➔ Business organization as a System

01.2.12 • An information system uses the resources of people, hardware, software,

Information data, and networks to perform input, processing, output, storage, and
System Model control activities that convert data resources into information products.

• Data are first collected and converted to a form that is suitable for
processing (input). Then the data are manipulated and converted into
information (processing), stored for future use (storage), or communicated
to their ultimate user (output) according to correct processing procedures
(control).

01.2.13 • Hardware resources include machines and media used in information

Information processing.
System (IS)
Resources and • Software resources include computerized instructions (programs) and
Products instructions for people (procedures).

• People resources include information systems specialists and users.

• Data resources include alphanumeric, text, image, video, audio, and other
forms of data.

• Network resources include communications media and network support.

Information products produced by an information system can take a

variety of forms, including

- paper reports,
- visual displays,
- multimedia documents,
- e-messages,
- graphics images, and
- audio responses.

04(2023) Page # 33
 Information Technology
By Md. Monowar Hossain, FCA,CISA, CPA,CPFA(UK)
md.monowar@gmail.com

01.2.14
Generic System
Concepts

A generic system is one which is representative of all systems, be they physical, sentient or more
abstract. You can define a boundary anywhere, the system it defines will acknowledge the same laws.

A mode of description,
which explains an aspect of an
object in terms of a set of
interacting elements.

The object can, in principle, be

anything:
-a physical object,
-a body of work,
-an idea, or
-an enterprise.

01.2.15
Generic System Development Process

The definition of generic is something without a brand name. An example of generic is the type of soap with
a store's label that says "soap," but without a brand name.

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Information technology is made by combining the two words “Information” and “Technology”.

• Computer systems: Characteristics of a computer, components of a computer system – CPU,

Memory, storage devices, and I/O devices.

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https://www.interviewbit.com/information-technology-mcq/

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

• Memory: Primary memory(RAM and ROM) and Secondary memory.

• Storage devices: Hard disk, CD ROM, DVD, memory stick
• Types of software: System software(operation system, device drivers)
• Computer networking: PAN, LAN, MAN, WAN, Wi-fi, Bluetooth, cloud computers.
• Multimedia: Images, audio, video, animal

Memory: Processing Device: Elements or ALU:

• Three devices are • CPU(Central
used to store data/ Processing Unit) is a
information. processing device.
• Memory is a storage • CPU is the brain on
device of a computer the heart of a
system. computer it is also
• The manufacturer's known as the
developed advanced processor and consists
memory devices that of a total of three
can execute data units:
speedily and can o the control unit(CU)
store large size data. o main memory unit
o arithmetic logic unit
Components of a
computer system: • ALU stands for
Arithmetic and Logic
There are many five Unit
major components of a • ALU is a part of a
computer system: Computer processor
• Memory unit
• storage unit
• control unit
• hardware and
• software

Control Unit:

• The Control Unit controls all the devices connected to the computer system
• It also programs execution along with device communication
• It communicates between processor and memory and computer peripherals.

Watch the following vedios:

• What are systems? https://www.youtube.com/watch?v=e7VZmLUBSQ8
• Open systems, closed systems, and isolated systems https://www.youtube.com/watch?v=ASzTtp6QZ6Y
• Five Components of Information System https://www.youtube.com/watch?v=L0xF8KqjKVU
• Role of Information Systems in Business Today https://www.youtube.com/watch?v=XVvEZXjKZMM

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