Information Technologies:

Concepts and Management

ITATB Module 2
By the end of this module…
• Describe various information systems and their evolution, and
categorize specific systems you observe.
• Describe and contrast transactions processing and functional
information systems.
• Identify the major internal support systems and relate them to
managerial functions.
• Describe the support IT provides along the supply chain,
including CRM.
• Discuss information infrastructure and architecture.
By the end of this module…
• Compare client/server architecture, mainframe-based legacy
systems, and P2P architecture and comment on their
differences.
• Describe the major types of Web-based information systems
and understand their functionalities.
• Describe new computing environments.
• Describe how information resources are managed and what are
the roles of the ISD and end users.
FedEx e-commerce solution

Source: Turban, McLean, Wetherbe (2001)

Customer
Journey

Source: https://www.notyourhobbymarketing.com/nyh-blog/the-modern-beer-buyers-journey
Customer
Journey

Source: https://venngage.com/templates/mind-maps/dark-online-customer-journey-
map-03fe1536-03a4-4448-8ad6-499fa63813e5
Information Systems:
Concepts and Definitions
• Application program – a computer program designed to support a
specific task or a business process or another application program

• Departmental information system – collection of ‘apps’ to support a

business function

• Networked Information Systems

• Enterprise information system
• Interorganizational information system
Information Systems:
Concepts and Definitions
• Data items – elementary description of things, events, activities,
and transactions that are recorded, classified, and stores, but
not organized to convey any specific meeting
• Database – consists of stored data items organized for retrieval
• Information – organized data that have meaning and value to
the recipient
• Knowledge – organized data and/or information that convey
understanding, experience, accumulated learning, and expertise
as they apply to a current problem or activity
Classifications
of Information By Organizational Levels
Systems
• Functional (Departmental)
Information Systems (e.g.,
QuickBooks for Accounting and
Finance Department)

• Enterprise Information Systems

(e.g., enterprise resource planning,
transaction processing system)

• Interorganizational Systems (e.g.,

SABRE, electronica data
interchange, supply chain
management)
Source: Turban, McLean, Wetherbe (2001)
Classifications
By Type of Support Provided
of Information
Systems
• Transaction Processing
System (TPS)

• Management Information
System

• Word Processing System

Source: Turban, McLean, Wetherbe (2001)

Transaction
Processing
System (TPS)
• supports monitoring,
collection, storage, processing,
and dissemination of the
organization’s basic business
transactions

• provides input data

• supports core business

operations: purchasing,
customer billing, payroll,
shipping
Source: Turban, McLean, Wetherbe (2001)
 Examples of TPS

Source: https://priceithere.com/business-tips/best-pos- Source: https://toughnickel.com/personal-finance/BPI-Philippines-BDO-

systems-on-the-market/ Philippines-Banks
Functional
Management
Information
Systems
• aka MIS
• ensure business strategies
come to fruition in an efficient
manner
• provides periodic information
about such topics as
operational efficiency,
effectiveness, and productivity
• use for planning, monitoring,
and control
Source: https://www.geektonight.com/what-is-mis/
Classifications
of Information By Type Organizational Activities IT supports
Systems
• Operational Activities

• Managerial Activities

• Strategic Activities

Source: Turban, McLean, Wetherbe (2001)

People
Supported by IT

Source: Turban, McLean, Wetherbe (2001)

IT-powered Supply Chain
and CRM Operations
• supply chain – flow of materials, information, money,
and services from raw materials suppliers through
factories and warehouses to the end customers
(“door to door”); also includes organizations and
processes that create and deliver the products and
services

• Three major parts of supply chain:

• Upstream = suppliers (procurement)
• Internal = in-house processes of transforming inputs into
outputs (production management, manufacturing, and
inventory control)
• Downstream = customer-oriented activities (distribution,
warehousing, transportation, and after-sale services)

Source: Turban, McLean, Wetherbe (2001)

IT-powered Supply Chain
and CRM Operations
Supply Chain Parts IT Support
Internal Supply Chain • TPS
• all functional
information systems
Upstream Supply Chain • e-procurement
• dashboard

Downstream Supply Chain • CRM

• (near) real-time delivery
trucking

Source: Turban, McLean, Wetherbe (2001)

Information System
Infrastructure and Architecture
• Information infrastructure – consists
physical facilities, services, and
management that support all shared
computing resources in an organization
• Computer hardware
• Software
• Networks and communication
facilities
• Databases
• Information management personnel
• IT architecture – high-level map or plan
of the information assets in an
organization including the physical
design of the building that holds the
hardware
• Business architecture – organizational
plans, visions, objectives and problems, Source: Turban, McLean, Wetherbe (2001)
and the information required to support
them
Basic elements of IT architecture

• Mainframe Environment
• PC Environment
• Distributed Computing
• Client/Server Architecture
• Enterprisewide Computing

• Legacy Systems Source: https://theconversation.com/33-years-

after-creating-the-pc-ibm-leaves-it-behind-in-
• Peer-to-Peer Architecture favour-of-the-cloud-30645

Source: https://www.ibm.com/topics/mainframe
Client/Server vs.
There are multiple clients and
one server.
Clients request for a service to
the server and the server
responds back with the service.
The main focus is of sharing
information.
Data is stored at server side
only.
Client-Server is more stable and
scalable than peer to peer
network.
Data management is
centralized.
P2P
There is no dedicated server
and clients. Each node acts as a
server and as well as client.
Each node in the network can
request for a service and can
provide a service.
The main focus is to develop
connectivity among the nodes.
Each node store its own data.
Stability reduces when the
number of nodes increases.
Each user has its own data and
applications.
Source: https://www.educative.io/edpresso/what-are-
p2p-and-clientserver-networks
Web-based Systems
• applications or services that
reside on a server accessible
using a Web browser, anywhere
and everywhere
• generated content/data are
updated in real time
• universally accessible via the
Web to users
• major communication
networks: Internet, intranets,
and extranets
Source: https://www.sitesown.com/web-based-applications-benefits/
Web-based E-commerce Systems

• electronic storefronts

• electronic markets

• mobile computing and mobile

commerce

• enterprise web

Source: https://www.electronicsforu.com/special/cool-stuff-misc/e-commerce-
recommendation-systems
New Computing Environments

• Utility Computing (Subscription)

• Pervasive Computing (AI, IoT)

• Web Services

Source: https://www.theverge.com/2021/6/7/22522993/apple-siri-on-device-
speech-recognition-no-internet-wwdc
Managing Information Resources
• Properly managing information systems is necessary.

• Information Systems Department (ISD) + end users

• ISD role has been evolving from purely technical to managerial

to strategic.
Managerial Issues
• The transition to e-business.
• From legacy systems to client/server to intranets, corporate portals,
and Web-based systems.
• Dealing with outsourcing and utility computing trends.
• Preparing a reasonable budget for infrastructure.
• Roles of ISD and end-users.

• Ethical issues.