Notes for CHAPTER 2

Information Technology: Concepts, Types and IT Support

(Please note that notes do not present text of the entire chapter but is aimed at providing a handy
summary/reference document)
Information Systems (IS) can be defined as one that collects, processes, stores, analyzes and
disseminates data and information for a specific purpose. Furthermore, IS contains of smaller
information systems referred to as applications. An Application Program is a computer program
designed to support a specific task or a business process (such as execute the payroll) or in some cases,
to support another application programs.
Information systems are generally connected by means of electronic network; wire line and/or wireless.
ISs primary goal is to process data into information or knowledge. Data items are elementary
description of things, events, activities and transactions that are recorded, classified and stored, but not
organized to convey any specific meaning. A database consists of stored data items. Information is
data that has been organized so that they have value and meaning to the recipient. Data is processed into
information by means of application. Knowledge consists of data and/or information that have been
organized and processed to convey understanding, experience, accumulated learning and expertise as
they apply to a current problem or activity.
Classification of Information System
I.

Based on Organizational Level:

a. Personal and productivity system- small systems that are built to support many
individuals
b. Transaction processing system- supports the monitoring, collection, storage, processing
and dissemination of the organizations basic business transactions
c. Functional and Management Information System- designed to support functional
activities and to provide periodic reports about operational efficiency, effectiveness and
productivity. MIS supports management activities and provides reports that include
summaries, comparisons and other statistics
d. Enterprise information system- support business processes that are performed by two or
more departments (Eg: CRM, KM, BI, etc.)
e. Inter organizational systems- IS connects two or more organizations such as buyers and
sellers
f. Global information systems- connect companies located across the globe
g. Very large and special systems- they are often global in nature that include many
subsystems of the previous levels and are designed for only one industry

II.

Based on Type of Support:

Information systems can also be classified by the kind of support that they provide to
managers, employees, workers, etc. Some examples of this type of classification are MIS,
DSS, groupware, business intelligence, etc. These systems can also be integrated with each
other and such integration provides extended functionalities, making them more useful.

Need of IT
-

To support day to day operations of an organization

To assist managers in short term planning and decision making
To help top management in strategic planning and implementation
Helps in finding and analyzing information
Evaluation of decision alternatives becomes easier
Communication and collaboration with employees and business partners
Helps in managing supply chains such as internal, upstream (between company and suppliers)
and downstream (between company and customers) supply chain
IT supports other types of systems such as industry specific systems, E-commerce business
models, online search, etc.

Information Infrastructure consists of the physical facilities, services and management that support all
shared computing resources in an organization. The IT infrastructure has five components; hardware,
network and communication facilities, databases and data workers, and information management
personnel.
IT Architecture is a high level map or plan of the information assets in an organization, including the
physical design of the building that holds the hardware. It is a guide for current operation and a blueprint
for future directions.
Web based systems refer to those applications or services that are resident on a server that is accessible
using a web browser and is therefore accessible from anywhere in the world via the web. Eg: Web based
e-commerce systems, e-markets, etc.
Emerging Computing Environment
1. Service Oriented Architecture use of services, such as reuse and reconnect existing IT assets, to
support variety of business needs
2. Web Services software systems to support machine to machine interaction over a network
3. Software as a service (SaaS) an enterprise model in which computing resources are available to
the user when needed
4. Utility Computing provides computing resources available on demand from providers around the
globe
5. Grid Computing conventional networks designed to provide communication among devices
6. Cloud Computing a paradigm in which information is permanently stored in servers on the
internet and cached temporarily on clients that include desktops, entertainment centers,
notebooks, etc.
7. Mobile and Pervasive Computing to have a real time connection between a mobile device and
other computing environment

VIRTUALIZATION

It separates business applications and data from hardware resources. It allows companies to pool
hardware resources-rather than to dedicate servers to application- and assign those resources to
application as needed. Types of virtualization:
1. Storage virtualization - pooling of physical storage from multiple network devices
2. Network virtualization - combines the available resources in a network by splitting the network
load into manageable parts
3. Hardware virtualization the use of software to emulate a hardware other than the one it is
actually running in
Some of the most innovative information systems are those that are aimed at reducing traffic congestion
and air pollution, eliminating accidents (Intelligent Traffic Control System). Predictive Analysis tools
help determine the probable future outcomes for an event or the likelihood of a situation occurring.
Innovative Health Care Wireless Predictive System is a remote medical monitoring system that helps
in early diagnosis of a disease or illness