Fundamentals of

Information Technology
WEEK -02
BY:SARAH
AHMED
Outline
What is Information Technology?
Difference Between Computer Science and information Technology.
Data, process, and Information.
Why Learn about Information Systems?
Characteristics of Information systems.
computer-based information system (CBIS)
Business Information Systems
Database Management System (DBMS)
Enterprise resource planning (ERP)
Outline
Customer Relationship Management(CRM).
Transaction Processing Systems.
Decision Support Systems.
What is Information Technology?
Information technology (IT) is the management of computers and information systems.
Information technology encompasses both the hardware and software components of computer
systems.
The aim of information technology is to coordinate and assemble existing computer systems to
solve a problem.
IT professionals are also responsible for troubleshooting any issues with computer systems –
making sure they are well managed and function as expected.
Difference Between Computer Science
and information Technology
The main difference between computer science and information technology is this: computer
science professionals are responsible for developing and improving computer systems when it
comes to hardware and software.
On the other hand, information technology (IT) professionals are responsible for maintaining
those hardware and software components and applying them to the exact day-to-day life they
are meant for, or the problems they are developed to solve.
Data , process and Information
Data consists of raw facts, such as an employee number, total hours worked in a week, inventory
part numbers, or sales orders.

The Process of
Transforming Data into
Information
Data , process and Information
Process
Turning data into information is a process or a set of logically related tasks performed to achieve a
defined outcome
For example, consider a business that collects sales data from its various stores. The raw data may
include lists of product sales, dates, and locations. By following a process that involves tasks like
summing up sales by product category, calculating monthly revenues, and creating visual reports,
this raw data is transformed into actionable information. The defined outcome might be to identify
which products are the top sellers, track revenue trends, and make data-driven decisions on
inventory management and marketing strategies.
Information is a collection of facts organized and processed so that they have additional value
beyond the value of the individual facts. For example, sales managers might find that knowing the
total monthly sales suits their purpose more (i.e., is more valuable) than knowing the number of
sales for each sales representative
Why Learn about Information Systems
Information systems are used in almost every imaginable profession.
Entrepreneurs and small business owners use information systems to reach customers around
the world.
Sales representatives use information systems to advertise products, communicate with
customers, and analyze sales trends.
 Managers use them to make multimillion-dollar decisions, such as whether to build a
manufacturing plant or research a cancer drug.
Financial advisors use information systems to advise their clients to help them save for their
children’s education and retirement.
From small music stores to huge multinational companies, businesses of all sizes could not
survive without information systems to perform accounting and finance operations.
What is an Information System?
An information system (IS) is a set of interrelated elements or components that collect (input),
manipulate (process), store, and disseminate (output) data and information and provide a
corrective reaction (feedback mechanism) to meet an objective.
What is an Information System?
Input :
In information systems, input is the activity of gathering and capturing raw data.
In producing paychecks, for example, the number of hours every employee works must be
collected before paychecks can be calculated or printed.
In a university grading system, instructors must submit student grades before a summary of
grades for the semester or quarter can be compiled and sent to students.
Processing:
In information systems, processing means converting or transforming data into useful outputs.
Processing can involve making calculations, comparing data and taking alternative actions, and
storing data for future use. Processing data into useful information is critical in business settings
What is an Information System?
Processing can be done manually or with computer assistance.
In a payroll application, the number of hours each employee worked must be converted into net, or take-
home, pay. Other inputs often include employee ID number and department. The processing can first involve
multiplying the number of hours worked by the employee’s hourly pay rate to get gross pay.
If weekly hours worked exceed 40, overtime pay might also be included.
Gross pay is the total amount of money an employee earns before taxes and other deductions are taken out
For example, if an employee has an hourly wage of $15 and works 40 hours in a week, their gross pay for that
week would be $600.
Gross pay = $15/hour * 40 hours = $600
If an employee has an annual salary of $60,000 and is paid biweekly, their gross pay for each pay period
would be?
Gross pay = Annual salary / Number of pay periods per year
What is an Information System?
Output
In information systems, output involves producing useful information, usually in the form of
documents and reports. Outputs can include paychecks for employees, reports for managers,
and information supplied to stockholders, banks, government agencies, and other groups. In
some cases, output from one system can become input for another. For example, output from a
system that processes sales orders can be used as input to a customer billing system.
Feedback
In information systems, feedback is information from the system that is used to make changes
to input or processing activities.
Example of Feed Back
•For example, errors or problems might make it necessary to correct input data or change a
process. Consider a payroll example. Perhaps the number of hours an employee worked was
entered as 400 instead of 40. Fortunately, most information systems check to make sure that data
falls within certain ranges. For number of hours worked, the range might be from 0 to 100 because
it is unlikely that an employee would work more than 100 hours in a week. The information system
would determine that 400 hours is out of range and provide feedback. The feedback is used to
check and correct the input on the number of hours worked to 40. If undetected, this error would
result in a very high net pay on the printed paycheck.
•Feedback is also important for managers and decision-makers. For example, a furniture maker
could use a computerized feedback system to link its suppliers and plants. The output from an
information system might indicate that inventory levels for oak are getting low—a potential
problem. A manager could use this feedback to decide to order more wood from a supplier. These
new inventory orders then become input into the system. In addition to this reactive approach, a
computer system can also be proactive—predicting future events to avoid problems.
Characteristics of Information Systems
Forecasting
Forecasting: Predicting future events to avoid problems.
This concept can be used to estimate future sales and order more inventory before a shortage
occurs
computer-based information system
(CBIS)
A single set of hardware, software, databases, telecommunications, people, and procedures that
are configured to collect, manipulate, store, and process data into information
computer-based information system
(CBIS)
Hardware
Hardware consists of the physical components of a computer that perform the input,
processing, storage, and output activities of the computer. Input devices include keyboards,
mice, and other pointing devices; automatic scanning devices. Processing devices include
computer chips that contain the central processing unit and main memory.
A pointing device is a type of input devices that allows a user to interact with a computer by
moving a cursor on a monitor to select icons and trigger desired actions
Software
Software consists of the computer programs that govern the operation of the computer. These
programs allow a computer to process payroll, send bills to customers, and provide managers
with information to increase profits, reduce costs, and provide better customer service
computer-based information system
(CBIS)
The two types of software are system software and application software.
System software is designed to manage and control the hardware and the overall operation of a
computer system. It provides a platform for the execution of application software and serves as
an intermediary between the hardware and application software.
◦ Operating System (OS): The core system software that manages hardware resources, provides user
interfaces, and allows for the execution of software applications.
◦ Device Drivers: Software that enables communication between the operating system and specific
hardware devices, such as printers, graphics cards, and network adapters.
Application software is designed for specific tasks or functions that directly serve the needs and
requirements of users. It's created to perform a particular job or solve a specific problem, such as word
processing, image editing, or data analysis.
computer-based information system
(CBIS)
Databases A database is an organized collection of facts and information, typically consisting of
two or more related data files. An organization’s database can contain facts and information on
customers, employees, inventory, competitors’ sales, online purchases, and much more
Telecommunications The electronic transmission of signals for communications; enables
organizations to carry out their processes and tasks through effective computer networks.
Networks Computers and equipment that are connected in a building, around the country, or
around the world to enable electronic communication
Internet The world’s largest computer network, consisting of thousands of interconnected
networks, all freely exchanging information.
computer-based information system
(CBIS)
Intranet: An internal network based on Web technologies that allows people within an
organization to exchange information and work on projects.
Extranet: A network based on Web technologies that allows selected outsiders, such as business
partners and customers, to access authorized resources of a company’s intranet.

When you log on to the FedEx site

(www.fedex.com) to check the status of a
package, you are using an extranet.
computer-based information system
(CBIS)
Procedures: Procedures include the strategies, policies, methods, and rules for using the CBIS,
including the operation, maintenance, and security of the computer. For example, some
procedures describe when each program should be run. Others describe who can access facts in
the database or what to do if a disaster, such as a fire or earthquake renders the CBIS unusable
Business Information Systems
The most common types of information systems used in business organizations are those designed for
electronic and mobile commerce, transaction processing, management information, and decision support.
In addition, some organizations employ special-purpose systems, such as virtual reality
E-commerce involves any business transaction executed electronically between companies (business-to-
business, or B2B), companies and consumers (business-to-consumer, or B2C), consumers and other
consumers (consumer-to-consumer, or C2C), business and the public sector, and consumers and the public
sector.
Mobile commerce (m-commerce) is the use of mobile, wireless devices to place orders and conduct
business. M-commerce relies on wireless communications that managers and corporations use to place
orders and conduct business with handheld computers, portable phones, laptop computers connected to a
network, and other mobile devices.
Today, mobile commerce has exploded in popularity with advances in smartphones, including Apple’s
iPhone. Customers are using their cell phones to purchase concert tickets from companies such as
Ticketmaster Entertainment (www.ticketmaster.com) and Tickets (www.tickets.com).
Business Information Systems
Electronic procurement (e-procurement), for example, involves using information systems and
the Internet to acquire parts and supplies

Electronic business (e-business) goes beyond e-commerce and e-procurement by using

information systems and the Internet to perform all business-related tasks and functions, such
as accounting, finance, marketing, manufacturing, and human resource activities. E-business
also includes working with customers, suppliers, strategic partners, and stakeholders.
Database Management System (DBMS)
For example, within a
company there are
different departments,
as well as customers,
who each need to see
different kinds of data.
Each employee in the
company will have
different levels of access
to the database with
their own customized
front-end application.
Enterprise resource planning (ERP)
Enterprise resource planning (ERP) refers to a type of software that organizations use to manage
day-to-day business activities such as accounting, procurement, project management, risk
management and compliance, and supply chain operations. A complete ERP suite also
includes enterprise performance management, software that helps plan, budget, predict, and
report on an organization’s financial results.
ERP systems tie together a multitude of business processes and enable the flow of data between
them. By collecting an organization’s shared transactional data from multiple sources, ERP
systems eliminate data duplication and provide data integrity with a single source of truth.
Customer Relationship
Management(CRM)
A Customer Relationship Management (CRM) System
is a software tool that helps businesses manage their
interactions with customers. The first case in a CRM
system is to create a new customer. This involves
gathering information about the customer, such as
their name, contact information, and any relevant
details about their business. By inputting this
information into the CRM system, the business can
keep track of their customers and organize their
interactions with them.
Customer Relationship
Management(CRM)
The second case in a CRM system is to view customer information. This allows businesses to see
a detailed view of each customer, including their contact information, purchase history, and any
notes or interactions that have been recorded. By having this information readily available,
businesses can better understand their customers' needs and preferences, and tailor their
interactions accordingly.
The third case in a CRM system is to update customer information. Customers' contact
information and other details may change over time, so it's important for businesses to keep this
information up-to-date. With a CRM system, businesses can easily make changes to customer
information and ensure that they have the most accurate information available.
Customer Relationship
Management(CRM)
The fourth case in a CRM system is to assign a salesperson to a customer and track sales
performance. By assigning a dedicated salesperson to each customer, businesses can establish a
personal relationship with their customers and better understand their needs. Additionally, by
tracking sales performance, businesses can see which customers are generating the most
revenue and identify areas where they can improve their sales strategies. This information can
be used to optimize the sales process and improve overall business performance.
Transaction Processing Systems
A transaction is any business-related exchange such as payments to employees, sales to
customers, or payments to suppliers. Processing business transactions was the first computer
application developed for most organizations. A transaction processing system (TPS) is an
organized collection of people, procedures, software, databases, and devices used to perform
and record business transactions. If you understand a transaction processing system, you
understand basic business operations and functions.
Management Information Systems(MIS)
A management information system (MIS) is an organized collection of people, procedures,
software, databases, and devices that provides routine information to managers and decision
makers. An MIS focuses on operational efficiency. Manufacturing, marketing, production,
finance, and other functional areas are supported by MISs and linked through a common
database. MISs typically provide standard reports generated with data and information from the
ERP
Decision Support Systems
◦ Decision support system (DSS):An organized collection of people, procedures, software, databases, and
devices used to support problem-specific decision making
REFERENCES
Textbook:
Chapter 1:
Fundamentals of Information System by Ralph Stair
Links:
https://www.oracle.com/pk/erp/what-is-erp/
https://
www.fieldengineer.com/blogs/whats-the-difference-computer-science-vs-information-technol
ogy