Introduction to Unit

UBAI 2043
IT for Management

Ms. Ng Shwu Shing

Room number: H1-200
nsshing@utar.edu.my

1.1
Main Text
• Turban, E., McLean, E., Wetherbe, J., Leidner, D. (2010)
Information Technology for Management (7th ed), New
Jersey: John Wiley & Sons.

Additional Texts
• Laudon, K.C., & Laudon, J.P. (2010). Management
Information Systems: Managing the Digital Firm (11th ed.).
New Jersey: Prentice Hall.
• O’Brien, James A. (2007) Introduction to Information
Systems (13th ed), New York: McGraw-Hill.
• Rainer, R. K. et al. (2007). Introduction to Information
Systems, New Jersey: John Wiley & Sons.

1.2
Assessment Details Weight

Coursework Group Assignment Report 20%

Assignment presentation 20%

Examination 2.5-hour written exam 60%

TOTAL 100%
 Lecture 1

Fundamentals of
Information Technology
& Information Systems

1.4
• What do you know?
• Systems
• What is an Information System?
• Organisational Levels
• Components of IS
• Activities of IS
• Information
• IS vs IT
• Trends in Technology
• Roles of IS
• Organisational Systems
• People in Organisation

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• Understand the concept of computer, information
systems, systems, component and activities of IS in
different level of organisation.
• Describe the difference between data, information
and knowledge.
• Understand the trend of technology
• Understand the role of IS in organisation
• Describe the various organisational systems

1.6
What are some of universal use of information
technologies in many aspects of Malaysian life?
Some examples are:
• ATM machines and banks in general.
• Grocery store checkout line cash registers
with bar code scanners and the ability to use
bank cards and credit cards for purchases.
• Educational institutions rely on IT. The
registrar’s office, financial aid office and the
library are just a few examples.

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An IS Framework for Business Professionals

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DIGITAL ENTERPRISE

• = an organization that uses computers and

IS to perform or support its activities

• Digital Enterprise uses IT to accomplish

these objectives:
– Reach and engage customers more
effectively
– Boost employee productivity
– Improve operating efficiency

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 A set of elements or components that
interact to accomplish common goals.

• Examples of system:
• Living organisms
• A business organization
• Environmental ecosystem
• Political organization

Source: Stair, pg 8-14 1.10

 Environment

Feedback Feedback
Signals Signals
Control Control by Control
Signals Management Signals

Input of Manufacturing Output of

Raw Materials Process Finished Products

System Boundary
Other Systems
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Information System Is A System

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 Definition of Information System

Information System a set of interrelated components

People Software Hardware Networks Data Procedures

Resources

that collect, process, store, and distribute information to

support decision making and control in an organization.
Source: Stair, pg 15-21 1.13
 CEO, President, Chairman, ..
Strategic

Branch Managers, Unit

Manager, Functional Managers,
Dean, Head of Department
Management

Supervisors, Clerk, Operation

Operational manager

Source: O’Brien, pg 9 1.14

• Hardware
• Software
• Data
• Network
• Procedures
• People
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 i. People

People required for operation of information system

People Resources
End Users Specialists

People who use information system: People who develop & operate information

e.g: - accountant system:

- sales persons e.g: - system analyst

- engineers - software developers

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 ii. Hardware

Includes all physical devices and materials used in

information processing
Hardware Resources
Computer Computer
Systems Peripherals

Consist of CPU & interconnected peripheral Computer devices:

devices: e.g: - keyboard

e.g: - laptop - electronic mouse

- desktop - printer
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 iii. Software

All sets of information processing instructions to properly

capture, process & disseminate information

Software Resources

System Software Application Software

Control use of all system
resources (hardware, software,
data); operating system
e.g - Unix, Linux, Windows
Programs that perform specific tasks for
users
e.g - payroll program,
- word processing program
- sales analysis program
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iv. Data

All data in the forms of alphanumeric, text, image, audio

and video.
Data Resources
Numbers Video
Text Audio
Image

Example - Product descriptions

- Customer Records

- Employee Files
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v. Network

Network resources emphasizes on communication

technologies and networks

Network Resources
Communication
Network
media
Support

i. Wire base Technologies to support communication network:

e.g – twisted pair cable i. Communication processors

- coaxial cable e.g: - modems, multiplexers

- fiber-optic cable ii. Communication control software

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 vi. Procedure

Procedures include the strategies, policies, methods & rules for

using Computer based Information System.

Procedures Resources
Strategies
Rules
Policies Methods

Examples of Procedures:
1. Procedures about when each program is to be run or executed.
2. Procedures on who can have access to facts in the database.
3. Procedures on what is to be done in case a disaster, such as fire that renders
the IS unusable.
Source: Stair, pg 21 1.21
 Control
Controlof
ofSystem
SystemPerformance
Performance

Input
Inputof
of Output
Outputof
of
Processing
Processing
Data
Data Information
Information
Data
Data
Resources
Resources Products
Products

Storage
Storageof
of Data
DataResources
Resources

Source: O’Brien, pg 24-34 1.22

 Example of Activities

INPUT PROCESS OUTPUT

Source: Stair, pg 9
FEEDBACK 1.23
 Primary purpose of IS is Information.
Information Flows in Organisations
Information in the form of: Example :
• Email 1. University / College :
• web pages - information about students,
departments, tutorial groups,
• reports faculties, lecturers, computer
• memos and handouts labs
• lectures 2. Business Organisation
• telephone calls - information about stakeholders,
government policies, recruitment,
• meetings and tutorials profit and loss, training, etc
3. Hospital
- information about medicines,
doctors, nurses, laboratories,
outpatients, wards, ambulance,
etc
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Data vs Information vs Knowledge
Primary Purpose of IS is to collect data, processes it into information then
converts information into knowledge for a specific purpose.

• Data
– Streams of raw facts representing events, activities and transactions that are
captured, recorded, stored and classified but not organized to convey any
specific meaning.
• Information
– Data that has been organized so that they have meaning and useful to the
recipient in the processes such as making decisions. Information comes from the
data that have been processed.
• Knowledge
– Information that has been organized and processed to convey understanding,
experience and expertise as they apply to a current problem or activity
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Example Data vs Information

Post Employment Data Human Resource

Development Reports
Medical / Accident Record
Disciplinary Actions Compensation Reports
Human Monthly Payroll
Compensation & Benefits
Retirement & Termination Resource Employee Benefits Records
Scholarship / Loans Information Turnover & Absenteeism
Individual Reference System Reports
Payroll Human Resource Planning
Reports
Quarters
Training Accomplishment Competency Inventories
Resignation Data Other Reports

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• IT refers to the technological side of an IS which
includes the hardware, software, database,
networks and so on.
• IT can be viewed as a subsystem of an IS.
• Sometimes, the term IT is used interchangeably
with IS.

IT = Hardware + Software + Database + Telecommunication + Network

IS = IT + People + Data + Procedures + Management

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• Internet
• Mobile Computing and M-Commerce
• Wireless networks
• Pervasive Computing
• Smart Devices
• The Network Computer
• Optical Networks
• Storage Area Networks
• Intranets & Extranets
• The Internet
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 Be better than competitor
Support Example: Install Kiosks, create e-
Strategies for commerce
Competitive
Advantage
Help managers to make
decisions. Example: What
product need to increase?
Support
What product need to reduce?
Business Decision Making

Support in day to day

business operations
Example:
Support -Record customer
Business Processes and Operations
purchase
-Keep tract inventory
Source: O’Brien, pg 9 -Pay employees 1.29
Information System -
Classification By Support
Function

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 Personal and Productivity
systems
• To support individuals.
• Known as personal information management
(PIM), system intends to support the activities
that we perform to ease our life.
• A popular PIM tool is the personal digital
assistant (PDA), with the functions such as
calculators, calendars, schedulers and
computer memory.

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 TPS

• Transaction Processing System.

• Ex: POS systems
• Face or perform repetitive information
processing
• In banking, TPS cover deposit and
withdrawals.

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 Functional and Management
Information Systems
• Functional Systems: Put in place in each
department to ensure that business strategies
come to fruition in an efficient manner.
• Eg: HR system, Production systems, Marketing
systems etc.
• MIS: used for planning, monitoring, and control.
• Eg: Generate a sales forecast by region report
• Help Marketing mgr for advertising and pricing.

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 Enterprise (Integrated) Systems

• A system that provides support to both

functional departments and business processes.
• One of the most popular enterprise
applications is Enterprise Resource Planning
(ERP), which enables companies to plan and
manage the resources of an entire
organization.
• Other example such as CRM, KM and etc.

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 Interorganizational Systems
(IOSs)
• The systems that connect two or more
organizations, supported by EDIs.
• Enable computers to process large amounts of
information that flow between organizations.
• In addition, they enable computers to ‘talk’ with
other computers in different organizations.
• Connect buyers and sellers.
• Eg: order electronically, bill electronically and pay
electronically.

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 Global Systems

• IOSs that connect companies located in two or

more countries are referred as global
information systems.
• Eg: If you have customers from other
countries who buy from you online, you may
need the support of a global system.

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 Very large and Special Systems.
• Eg: Natinal Health Care System in Denmark.
• In Denmark, all 5.3 million Danish residents and
150,000 healthcare professionals have access to the
“Danish National e-Health Portal”. Its facilitates
communications between doctors and patients,
increase collaboration among healthcare providers,
government agencies, pharmacies, healthcare
professionals.
• The technology includes complicated software and
hardware from IBM and other vendors.

1.37
• TPS automates routine and repetitive tasks that are critical to
the operation of the organization, such as preparing a payroll,
billing customers, Point-of-Sale, and Warehouse operations
• Data collected from this operation supports the MIS and DSS
systems employed by Middle Management
• Computerizes the primary and most of the secondary activities
on the Value Chain
• Primary purpose to perform transactions and collect data

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• These systems access, organize, summarize, and display
information for supporting routine decision making in the
functional areas. Geared toward middle managers, MIS are
characterized mainly by their ability to produce periodic
reports such as a daily list of employees and the hours they
work, or a monthly report of expenses as compared to a budget
• Typical uses would be in Replenishment, Pricing Analysis
(Markdowns) and Sales Management
• Decisions supported are more structured
• Primary purpose to process data into information

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• ESS systems or Enterprise Information Systems (EIS) were originally
implemented to support senior management. These systems have been
expanded to support other managers within the enterprise
• At the senior management level they support Strategic Activities which
deals with situations that may significantly change the manner in which
business is done

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An information system (IS) support each
department in a corporation.

1. Marketing and Sales Systems

2. Human Resources System
3. Finance and Accounting Systems

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 References

Turban, E., McLean, E., Wetherbe, J., Leidner, D. (2010) Information Technology for
Management (7th ed), Wiley.

O’Brien, J. A. (2005). Introduction to Information Systems (12th ed.), New York, McGraw-
Hill.

Stair, Ralph M. and Reynolds, George W. (2002) Principles of Information Systems (7th
ed), Massachussets, Thomson Course Technology.

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