AIS 1 Reviewer MIDTERMS
AIS 1 Reviewer MIDTERMS
IT in Business
- Shifted Majority of their operations
- Traditional to Automated
- Helps to improve productivity
(technological tools and
application) and monitoring (real
time inventory management
Role of IT in other fields
- Education
- Communication
- Government
- Economy
- Health and Medicines
- Music and Arts and Sports
Educational Technologies
- Glogster
- Mentimeter
- Electronic Learning Organizer
- Constant Therapy
Health
- Computerized axial tomography
- Magnetic resonance imaging
Career Opportunities
- Help desk technician
- Technical support analyst
- Business Intelligence Analyst
Chapter 2 - Introduction to
Information System
- An information system (IS) is a man
made system that collects, stores,
retrieves, processes, manages, For example, if company XYZ Corporation
disseminates, and analyzes wants to collect data to get feedback from
information its customers regarding its services and
performance, it must consider the
INFORMATION SYSTEM AND THEIR following:
CAPABILITIES Indicators must be clearly defined
- Centralized focus on the to measure effective performance.
development of technological Collected Data must be complete,
innovations relevant, reliable, and accurate.
Collected data must be gathered
Information System on time.
- In Digital Age, an Information Data must be convertible into
System (IS) is used by people and information that is needed.
business organizations Data must be entered into the
- Information system is a combined computer system.
set of modules for gathering, Information must be analyzable
processing, and storing of data. using appropriate technological
- Focuses on the development of tools and allow for proper
technological innovations interpretation
Examples: INPUT
Financial Statements - data that is entered into a system,
Average exam scores in class device, or process
STORAGE
- refers to a method and medium
used to save and retain data and
programs for future use.
2 Types of Storage
1. PRIMARY STORAGE
- temporary storage used for data
that is actively being processed by
the CPU.
2. SECONDARY STORAG
- used for long-term data retention.
CAPABILITIES OF AN INFORMATION
MASTER DATA SYSTEM
- are relatively permanent data that
are stored in the IS for a long time A. PROCESSING TRANSACTIONS
Example: QUICKLY AND PRECISELY
customer master data - Each activity done over an IS is
employee master data called a transaction.
subject master data - Transaction processing - an IS
can record, store, delete, capture,
TWO TYPES OF UPDATES THAT CAN and update data easily
BE MADE IN THE MASTER DATA POINT OF SALE (POS)
- hardware merchants use to process
INFORMATION PROCESSING payments and complete customer
- data processing functions that are purchases
commonly related to internal
operations and economic and
financial activities
DATA MAINTENANCE
- system's functional activities such
as adding, saving, deleting,
updating, retrieving, and editing
data from the master data.
B. MANAGING LARGE-CAPABILITY
STORAGE AND FAST AND EASY
ACCESS STORAGE
THREE LOGICAL COMPONENTS OF A
BUSINESS PROCESS WITHIN THE C. EFFICIENTLY COMMUNICATING
SCOPE OF AN IS THROUGH A NETWORK
- networks could transmit data, such
INFORMATION PROCESS as text, audio, video, and
- consists of locating and capturing documents simultaneously
information, using software to
manipulate it into a desired form, D. EASING INFORMATION
and outputting the data OVERLOAD FOR USERS
- is must be designed to analyze
OPERATIONS PROCESS problems and support decision-
- consists of people, policies, making to reduce information
procedures, and equipment whose overload.
main objective is to accomplish a
certain goal of a particular business E. SUPPORTING DECISION-MAKING
organization.
- Decision Support System or Examples: printer, mouse, keyboard,
DSS - a computer program scanner
application used to improve a
company's decision-making SOFTWARE
capabilities. - It consists of the computer
programs that govern the operation
F. SERVING AS A COMPETITIVE of the computer.
WEAPON AGAINST Examples: word processor and
COMPETITORS multimedia software
G. UNITING AN ORGANIZATION
THROUGH THE COORDINATION
OF ITS BIG AND SMALL GROUPS
H. STRENGTHENING
ORGANIZATIONAL MEMORY
AND LEARNING AND
EXPLORING NEW THINGS
J. AUTOMATING BUSINESS
PROCESSES
NETWORKS
- It refers to the connection of two or
more computers established for the
purpose of sharing various data.
Examples: Local Area Network (LAN),
Metropolitan Area Network (MAN), and
Wide Area Network (WAN)
PROCEDURES
- These are the rules, policies, and
methods that administer the
Computer-Based Information System operation of a computer system.
- A Computer-Based Information They are as significant as the
System (CBIS) is a single set of people using the system.
hardware, software, databases, - Good procedures can help
telecommunications, people, and companies take advantage of new
procedures that are configured to opportunities and avoid potential
collect, manipulate, store, and disasters.
process data into information.
PEOPLE
HARDWARE - They are the most crucial
- It consists of the system’s physical component of an IS. They are the
devices. people who work with an IS to
- produce useful outputs.
- - The people involved include:
- It consists of computer equipment users of the system
used to perform input, processing, IS personnel
storage, and output activities.
COMPUTER BASED IS COMPONENTS
TELECOMMUNICATIONS
- IS the electronic transmission of TRANSACTION PROCESSING SYSTEMS
signals for communications, which (TPS)
enables organizations to carry out
their processes and tasks through EXAMPLES:
computer networks. PAYROLL SYSTEM
ORDER PROCESSING SYSTEMS
SYSTEM FOR PAYMENTS AND
FUND TRANSFERS
ACCOUNTS PAYABLE AND
ACCOUNTS RECEIVABLE
INTERNET
- Is the world’s largest computer SABRE
network, consisting of thousands of
interconnected networks, all freely - The first online reservation system
exchanging information. revolutionized air travel and
WWW hastened globalization was
- World Wide Web developed by IBM for American
- It is accessible through the Airlines in the early 1960s. Sabre
Internet, and it consists of was designed to process up to
multimedia collections that are 83,000 daily transactions and ran
stored in a particular database of a on two IBM 7090 computers. Later
CBIS. iterations of Sabre, such as Airline
Control Program (ACP) and
OTHER TYPES OF INFORMATION Transaction Processing Facility
SYSTEMS (IS) (TPF), would be adopted by large
banks, credit card companies and
hotel chains. These days,
companies across every major
industry rely on modern TPS
software for processing business
transactions.
MANAGEMENT INFORMATION
SYSTEMS (MIS)
- A CBIS consisting of hardware and
software that supports business
transactions.
- Collects, analyzes, processes, and
reports data to assist in decision-
making
- Provides managers and executives
with constant access to data and
reports for evaluation and decision-
making.
- EXAMPLES:
SALES MANAGEMENT - Utilizes technologies like computers
SYSTEMS and workstations, connected
INVENTORY CONTROL through a LAN (Local Area
SYSTEMS Network), enabling information
BUDGETING SYSTEMS sharing across management levels
HUMAN RESOURCE - Coca-Cola uses an Executive
MANAGEMENT SYSTEMS Information System (EIS) to provide
its executives with real-time data
DECISION SUPPORT SYSTEMS (DSS) on sales, supply chain efficiency,
- Computer-based application that financial performance, consumer
helps companies identify and give behavior, and sustainability efforts.
solutions by making decisions on
how to solve problems. DEVELOPING INFORMATION SYSTEMS
- Delivers information to managers - Will discuss how the different
who make assessments about approaches involving how
specific scenarios that are not well- information system (IS) is
managed. developed and implemented by
whom and what
INFORMATION SYSTEM
- Information systems is an umbrella
term used to describe the various
networks, hardware, and software
that people and businesses use to
make sense of data and put it to
use. In addition to interpreting
data, information systems also
collect, process, and distribute it.
EXAMPLES:
GROUP DISCUSSION SUPPORT SYSTEMS DEVELOPMENT
SYSTEMS - Consists of the procedures in
COMPUTER-SUPPORTED building and upholding IS. It
COOPERATIVE WORK SYSTEMS includes the five main components
LOGISTICS SYSTEMS of IS such as hardware, software,
FINANCIAL PLANNING SYSTEMS data, procedures, and people. It
SPREADSHEET MODELS has a combination of one’s
technical expertise with knowledge
AAIMS and management skill in business
- One of the first data-driven DSS
was built using an APL-based SYSTEM DEVELOPMENT LIFE CYCLE
software package called AAIMS, An (SDLC)
Analytical Information Management - Is one of the methodologies used in
System. It was developed from software development. The SDLC
1970-1974 by Richard Klaas and emphasizes that the system can be
Charles Weiss at American Airlines developed in a series of phases.
(cf. Alter, 1980). This simply means that each phase
must be completed first before
EXECUTIVE INFORMATION SYSTEMS another phase commences.
(EIS)
- Assists senior executives of
organizations in making decisions PHASES OF THE SYSTEM
by providing easy access to DEVELOPMENT LIFE CYCLE
valuable information necessary to
achieve organizational goals.
clients, stakeholders, managers,
and the like.
TESTING
- The system test may require a
series of tests depending on the
scope and involvedness of the
requirements, including the six
main quality characteristics
(ISO/IEC 9126):
Functionality
PLAN Reliability
- Determining a business problem or Usability
verifying if there are problems and Efficiency
opportunities that might exist Maintainability
- Investigating if the solution to be Portability
given to the problem(s) is feasible
such that there would be an
improvement on the IS to be - The entire system must be
executed prepared for the congregation
- Obtaining a project management before proceeding to the
plan approval for implementation integration and testing stage,
meaning:
All hardware and software
configurations must have
been constructed and
tested successfully
All integration plans are
ready and prepared
ANALYSIS
- Functional requirements -
defines a system or its component
(e,g, aunthentication, error
handling and logging, backup and
recovery, etc.). IMPLEMENTATION
- Non-functional requirements - - The implementation or deployment
defines the quality attribute of a phase first installs the system in
software system (e.g. efficiency in the production environment and
use, intuitiveness, low perceived makes it ready for operation.
workload). - A canary release is when they
deploy the software to a small
DESIGN group of users first to catch any
- This phase aims to transform the problems before a full release.
system requirements that have The following has to be confirmed:
been identified during the previous The fulfillment of all the functional
stages into a more detailed system and non-functional requirements
architecture that will be feasible, The approval of business
full-bodied, and valuable to the necessities
organization. An observation of all
authorizations, physical
DEVELOPMENT constraints, and service level
- Developers write code and build agreements
the app according to the finalized The operations as mentioned and
requirements and specification discussed in the user manuals
documents.
MICROSOFT EXCEL
- it is a spreadsheet program that
includes features such as
calculation, macro programming
and graphic tools
- Microsoft Excel enables users to
format, organize and calculate
data in a spreadsheet. By
organizing data using software
like Excel, data analysts and
other users can make
information easier to view as
LESSON 3: EMERGING CONTRACT data is added or changed.
TECHNOLOGIES FOR BUSINESS
PROCESSES
TYPES OF SaaS
GRID COMPUTING
Risks of Mobile Computing - Grid computing has emerged as
Connectivity Issues the next useful stage in
Security Issues and Concerns distributed computing. It offers
a high degree of resource
Advantages of Mobile Computing sharing and proper collaboration
on a scale that would exceed Smart transportation
even the power of the World - it relies on data sent between
Wide Web (WWW) and the vehicles and different
currently available distributed transportation infrastructures
computing.
IOT IN BUSINESS
GRID COMPUTING IN MAJOR
BUSINESS AREAS Equipment maintenance
Higher education prognostics
Financial services - with IoT applications, equipment
Life sciences maintenance is easier to
Government services perform because these
Engineering services applications can predict future
Collaborative games failure or detect equipment
issues.
Connected cars
- These are vehicles with access
to the Internet of the cloud.
ARTIFICIAL INTELLIGENCE
- AI has significantly transformed ENTERPRISE REPORTING
society since its inception. - It refers to a program that
- Originated in 1943 with Warren builds infrastructure specifically
McCulloch and Walter Pitts, for strategic reporting to
drawing from physiology and support the strategic
neuron functions management of a business. It
- AI enables machines to use may involve executive
algorithms for interpreting, information systems, online
learning, and making decisions analytical processing (OLAP),
based on data. and data visualization
- It allows for analyzing vast MEASUREMENT
amounts of information - It refers to a program that
creates performance metrics
ARTIFICIAL INTELLIGENCE KEY and performs benchmarking
APPLICATIONS IN BUSINESS that aids business leaders in
Robotics determining how to progress
Speech Recognition toward certain business goals.
Cybersecurity COLLABORATION PLATFORM
- It refers to a program that
initiates and obtains inputs from
MACHINE LEARNING various areas (both from inside
- allows computers to learn and outside the business) to
automatically without human work and collaborate with each
assistance and intervention. other by data sharing or
electronic data interchange
BUSINESS APPLICATION
- involves processes, KNOWLEDGE MANAGEMENT
technologies, and tools that - It refers to a program that
transform data into actionable makes a business data-driven.
insights for profitable business
actions
KEY COMPONENTS
Data Warehousing LESSON 4: E-COMMERCE, E-
- Collecting and storing data. BUSINESS AND M-COMMERCE
Business Analytics
- Analyzing data to inform
decisions THE INTERNET
Knowledge Management - International Network
- Converting information into - Is a large network used by
strategic plans business organizations to
establish E-Business and E-
BI Applications in Organizations commerce websites
COMPUTER NETWORKS
M-COMMERCE FORCES
INVENTORY
- THERE ARE CERTAIN RULES AND
PROHIBITIONS THAT ALIGN
WITH LEASE, DEED, OR ZONING
CODES WHEN IT COMES TO
STOCK INVENTORY FOR
BUSINESSES
GUIDLINES AND LAWS GOVERNING
E-COMMERCE BUSINESS RESTRICTIONS
- The insurance depends on the
TAXES location and nature of a
(EVERY STATE AND/OR COUNTRY HAS business
DIFFERENT RULES AND LAWS
REGARDING TAXES.) PAYMENT CARD INDUSTRY (PCI)
- Conducting research and COMPLIANCE
understanding your target - SERVES AS PROTECTION FOR
market are necessary to avoid ONLINE BUSINESSES,
problems about taxation ESPECIALLY SOFTWARE-AS-A-
TRADEMARKS, PATENTS, AND SERVICE (SAAS) E COMMERCE
COPYRIGHTS PLATFORMS, FROM PROBLEMS
SUCH AS DATA THEFT
TRADEMARK
- It is a distinguishing word, Being PCI compliant also means
phrase, symbol, and/or design having to avoid the storage of oral and
that identifies the uniqueness of written information regarding
a product or service of one purchases. For example, keeping the
party from the others. card number of a customer recorded
on a phone call is prohibited
PATENTS
- Is an exclusive right granted for LAWS AND LEGAL REQUIREMENTS
an invention, processes, or IN THE COUNTRY CONCERNING
scientific creations. CUSTOMER SECURITY
REAL-WORLD EXAMPLES OF E-
COMMERCE AND M-COMMERCE
AMAZON
- It is an American e-commerce
website that gives users an
opportunity to buy products
online worldwide
EBAY
- It is an American e-commerce
website that provides various
services to consumers such as
auction, online payment, and
online shopping
ALIBABA
- It is a well-known Chinese
company that is now part of the
global market of e-commerce. It
specializes in retail, the
Internet, and technology
MOBILE VOUCHERS
- a prepaid debit card loaded with
a particular amount of money,
and it is used in place of cash or
a bank debit card to make
payment for goods and
services. Voucher come in two
forms- a physical plastic card
and an Ecode.
ETORO
- It is a platform that can be used
to invest in stocks or trading