It for management

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COLLAGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF INFORMATION TECHNOLOGY
(itm3171)
Prepared By: lecturer Issack M.
Tell: (+252- 612464664)
Email: issack7501@gmail.com

2. Chapter 2
Information Technologies: Concepts,
Types and IT Support
Information Technology for Management
Improving Performance in the Digital Economy

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Chapter Outline
• 2.1 Information Systems: Concepts and Definitions
• 2.2 Classification and Types of Information Systems
• 2.3 How IT Supports People
• 2.4 How IT Supports Supply Chains and Business
Processes
• 2.5 Information Systems Infrastructure, Architecture, and
Emerging Computing Environments

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Learning Objectives
1. Define information systems and describe various types
of information systems and categorize specific systems
you observe.
2. Relate and contrast transaction processing and
functional information systems.
3. Identify the major enterprise internal support systems
and relate them to managerial functions.
4. Analyze the support IT provides people in different roles
in the organization.
5. Describe the support IT provides to business processes
and the supply chain.

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Learning Objectives cont’d
1. Explain information infrastructure and different
types of information architectures.
2. Distinguish the major types of Web-based
information systems and understand their
functionalities.
3. Describe emerging information technologies.
4. Analyze innovative and futuristic IT systems and
applications.

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Chapter 2
Information Technologies: Concepts,
Types, and IT Support

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IT-Performance Model:
Information Technology is interrelated to all the
following factors which follow up on one another:
mission, goals and objectives , strategy and plans
monitoring, performance and comparing , solutions
and critical responses

8. Ways to build upon these factors
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Mission goals and objectives: create IT support systems
and automate business processes
Strategy and plans: How does IT support people, supply
chains and how do we plan for e-commerce?
Monitoring, performance, and comparing: Metrics,
dashboards and scorecards and data mining analysis
Solutions and critical responses: use emerging systems,
use RFID, use social networking, m-commerce and
innovative analysis

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CONT.........
Information System(IS): one that collects, processes,
stores, analyzes and disseminates data and information
for a specific purpose
Application Program: A computer program designed to
support a specific task or a business process (such as
executing the payroll) or, in some cases, to support
another application program.

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Departmental Information System: Collection of
application programs in a single department (e.g.,
collection of application programs in the HR area is called
the Human Resources Information System)
Information Systems are usually connected by means of
electronic networks. These can be wire line or wireless.
These systems can connect an entire organization or even
multiple organizations.
One of the primary goals of IS’s is to economically process
data into information or knowledge.

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Data Items: An elementary description of things, events,
activities and transactions that are recorded, classified and
stored, but not organized to convey any specific meaning.
Can be numeric, alphanumeric, figures, sounds or images.
Database: Consists of stored data items organized for
retrieval
Information: Data has been organized so that they have
meaning and value to the recipient
Knowledge: Consists of data and/or information that have
been organized and processed to convey

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understanding, experience, accumulated learning and
expertise as they apply to a current problem or activity.
Organizational Knowledge: Data that is processed to
extract critical implications and to reflect past
experiences. Has a very high potential value.
Data, information and knowledge can be inputs to an IS
and they can also be outputs.
Raw data is processed to information and/or to
knowledge. IS’s can be processed to knowledge, but it
may generate data as well.

13. CONTI.....
2-13
IS’s are made of components that can be assembled in
many different configurations resulting in a variety of
IS’s and applications. IS can be classified into groups that
share similar characteristics.
IS’s are classified by organization levels and by the type
of support needed in this section. This represents
diversity of systems as well.
The vast majority of organizations still have a traditions
hierarchical structure. Thus, IS’s are built according to
this hierarchy. Such systems can stand alone, bust they
are usually interconnected.

14. Levels Starting from the Bottom Up
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1. Personal and Productivity Systems (Personal Information
Management): Small systems built to support many
individuals. Popular tools used here are PDA’s, and Excel.
2. Transaction Processing Systems: Supports the
monitoring, collection, storage, processing and
dissemination of the organization’s basic business
transactions. It also provides the input data for other IS’s.
(e.g. Performance of periodic financial, accounting and other
routine business activities facing repetitive information
processing tasks.)
The IS that supports such processes is called the transaction
processing system.

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3. Functional and Management Information Systems:
A functional system provides periodic reports about
operational efficiency, effectiveness and productivity by
extracting information from databases and processing it
according to the needs of the user.
There are 2 types: those that support managers
(management information systems) and those that support
other employees in the functional areas.

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4. Enterprise Information Systems: Support business
processes that are performed by two or more
departments. The activities are frequently done in
sequence, but some can be conducted simultaneously.
Enterprise resource planning enables companies to plan
and manage the resources of an entire enterprise.
5. Interorganizational Systems: Connecting 2 or more
organizations. Most common are those that connect
sellers and buyers. IOS’s enable computers to process large
amounts of information that flows between organizations.

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6. Global Information Systems: IOS’s that connect
companies located in 2 or more countries.
7. Very Large & Special Systems: Large systems often
global in nature and include subsystems of the
previous levels.

18. How does IT support people?
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1. Operational Activities: This deals with the day-to-day
operations of an organization. They are short-term in
nature. These systems are used mostly by supervisors,
operators, clerical employees, field employees, etc.
2. Managerial Activities:
These are also called tactical activities or decisions. They
generally deal with middle-management activities such as
short-term planning, organizing and control. They mainly
use internal sources of data.

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3. Strategic Activities:
Deal with situations that may significantly change the
manner in which business is done. (e.g. mergers &
acquisitions) Made by top management and require
elaborate research as well as extensive internal and
external communications and collaboration.

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The above activities are supported by the people listed below:
Executives and Managers: At the top of the triangle.
They are few in number and responsible for strategic decisions.
Middle managers make tactical decisions and are supported mainly
by functional IS’s and MIS in the areas where they work.
Knowledge Workers, Clerical Staff and Data Workers:
Staff support between top and middle management are called
knowledge workers. They create information and knowledge as part
of their work and integrate it into the business.
Clerical workers support managers at all levels. Among those there
are data workers who use, manipulate, or disseminate information.
(e.g. bookkeepers and secretaries)

21. How does IT support supply chains and
business processes?
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There are 3 segments inside a company (internal), with suppliers
(upstream) and with customers (downstream).
Support of the Internal Supply Chain: Covers all of the functional IS’s.
Special software called supply chain management software is available
to support segments’ of the chain.
Support of the Upstream Supply Chain: Improving procurement
activities and relationship with vendors.
Support of the Downstream Supply Chain: First IT supports customer
relationship management activities and secondly IT also supports
order taking and shipment to customers.

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Managing Supply Chains: Enterprise resource planning software
helps in managing both the internal and the external relationships
with the business partners. Second is SCM software which helps in
decision making related both to internal segments and to their
relationship with external segments.
Radio frequency identification (RFID): A technology that uses
electronic tags instead of bad codes to identify objects or items. The
tags can be attached to or embedded in objects, animal or humans.
RFID readers use radio waves to interact with the tags. The radio
waves enable the unique identification of the objects, transmission
of data and or storage of information about the object.