5487 - File - Week 2

SOUTH EAST ASIAN INSTITUTE OF TECHNOLOGY, INC.
National Highway, Crossing Rubber, Tupi, South Cotabato
COLLEGE OF INFORMATION AND COMMUNICATION TECHNOLOGY
___________________________________________________
LEARNING MODULE
FOR
IT 224: INFORMATION MANAGEMENT 1
_____________________________________________________
WEEK 2
COURSE OUTLINE
COURSE CODE : IT 224

TITLE : INFORMATION MANAGEMENT 1
TARGET POPULATION : All BS Information Technology Students
INSTRUCTOR : MS. CAROL KATE M. ESTACIO
Overview:
Information Management generally defined as the harnessing of the information resources and
information capabilities of the organization so that the organization can make use of the information to
improve its efficiency and effectiveness. It is constantly evolving as the technology, ideas, and business
needs change. IM can encompass a cycle of organizational activities: gathering data, analyzing,
categorizing, contextualizing, and achieving (and in some cases, deleting it), in order to support a
business’ needs.
Content:
The Role of IT in Business
Objectives:
General Objective
 Explain the “business of business”

 Discuss the purpose of information technology in non-profit and government organizations
 Define “competitive advantage”
 Discuss the difference between information systems and information technology.
 Describe the use of IT in business from the perspective of end0-users.
 Describe and discuss various models of the evolution of IT in business and the impact of IT
in business operations and strategy.
Instruction to the Learner
Each chapter in this module contains a major lesson involving the emerging fields that is concerned
with: The infrastructure used to collect, manage, preserve, store, and deliver information in IM. The
units are characterized by continuity, and are arranged in such a manner that the present unit is related
to the next unit. For this reason, you are advised to read this module. After each unit, there are
exercises to be given. Submission of task given will be every Monday during your scheduled class hour.
How do we classify businesses?
 Ownership
- Sole proprietorship
- Partnership
- Corporation
 Type of Activity
- Merchandising
- Manufacturing
- Service
What is the Business of Business?
 Proprietorship & Partnerships

- Make money (profit) to provide income for proprietor or partners.
 Corporations
- Provide a return for shareholders
 Objective of IT in Business
 “The Objective of information technology systems development in business
is to increase the wealth of shareholders by adding to the growth premium
of their stock.” ---Christopher Gardner
 Primary focus of IT must be contributing to profit.
Non-Profit Organization
 Non-profit Organizations
- Provide services and/or
- Raise money to provide services
o Non-Profit Sector Members
 Charities
 Religious Organizations
 Schools, Colleges and Universities (some colleges are businesses)
 Health care
 Associations
o It in Government/Non-Profits
 Non-profits cover broad range
- Some indistinguishable from business (national Geographic,
USAA)
- Some effectively have no IT budget (Salvation Army, Habitat
for Humanity)
 Government efforts often fall far short of supporting
efficiency/effectiveness
- FAA (air traffic control), IRS
 Focus is on efficient and effective attainment of goals (rather than on profit)
 What does IT do for business?
 Structurally and operationally enable and facilitate information systems &
communications
 What is Information Technology?

 Computer technology (hardware & software) for processing & storing
information and communications & network technology for transmitting
information.
 What does IS do for business?

 Support business operations
 Support managerial decision making
 Support strategic competitive advantage
 What is an Information System?

 An organized combination of people, physical devices, information
processing instructions, communications channels, and disseminates
information in an organization
Traditional IS Classifications:
 Operations Support Systems

- Process data generated by business operations
 Transaction Processing Systems
 Process Control Systems (Includes manufacturing systems)
 Enterprises collaboration systems
 Office Automation Systems
- Types of Support System
 Support Chain Management
 Customer Relationship Management
 ERP(Enterprise Resource Planning)
 E-commerce systems
- Examples of Support Systems
 Airlines (Computerized reservation systems)
 Federal Express (Ebusiness Tools)
 Management Support Systems

- Provide information and support needed for effective decision making by
managers
 Management Information Systems
 Decision Support Systems
 Executive Information Systems
Using IT in Business
 Based on end-user perceptions of IT and the activity of the business

- Activities (From earlier In the lecture)
 Merchandising
o Point of Sale (POS) Systems
- Ideally (hopefully!) integrated with Inventory
Management System; may be CRM system
o Inventory Management
o E-commerce Systems
- Incorporates both functions above and adds in a catalog
function
o Marketing
 Manufacturing
o Design Systems
- CAD/CAM
o Production Automation Systems
- Includes robots and robotic systems
o Plant Operation Systems
- Process Planning
- Dispatch Management
- Work Instructions Delivery
- Quality Assurance
- Maintenance Repair and Overhaul
- Production Rate
- Job/Order Status
- Labor and Resource Usage
- Work in Process(WIP)
- Material Routing
- Current Material Location
 Service
o Type of systems vary wildly depending on the nature of
services provided
Examples:
o Medical Information Systems
- Medical record management
- Prescription management
- Diagnostic support systems
- Consultation support
o Travel Agencies (early adopters)
o News media
Five IT Management Eras
Era Major (new) Roles Application Innovations
Accounting IS dominance Batch systems (DP)
Operational Business management Online systems

involvement
Information End user involvement Interactive decision support

(MIS)
Network Business management Strategic information systems

ownership (SIS)
Internet Top management leadership Web-based applications
Three Era Model
Era Characteristics When?
Data Processing Operational control systems 1960’s

(DP) Transaction processing 
Management Control & planning systems 1970’s

Information 
Problem solving and decision support
Systems (MIS)
Strategic Systems critical to business operations & 1980’s

Information competitive advantage 
Systems (SIS)
Possible IT/IS permeates organization Now? 

“Fourth Era?”: Inseparable from enterprise
Organizational IS Delivers sustainable competitive advantage
Capability
Another Three Era Model
Administrative Target for Justification/

Era Framework IT Use Benefits
Mainframe Regulated Back office Organizational

monopoly automation productivity
Microcomputer Free Individual decision Individual

market making and effectiveness
productivity
Internetworkin Shared Electronic integration Business advantage

g partnership and learning
IT Impact on Strategy & Operations
Key to IT Management Success:

Always Remember:
 Information Technology is expensive
- Businesses cannot dump money into the IT hole without a tangible return
 Information Technology in business must contribute to the bottom line:
- Profits!
To do!
 How will you classify businesses by ownership structure and activity?
 Discuss the contribution of information technology to business.
 What are the purpose of information technology in non-profit and
government organizations?
 Describe how IT contributes to competitive advantage.
 Differentiate information system and information technology.
 Cite and describe examples of support systems.
Challenge!

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SOUTH EAST ASIAN INSTITUTE OF TECHNOLOGY, INC.

National Highway, Crossing Rubber, Tupi, South Cotabato

COLLEGE OF INFORMATION AND COMMUNICATION TECHNOLOGY

COURSE CODE : IT 224

The Role of IT in Business

 Explain the “business of business”

Instruction to the Learner

What is the Business of Business?

 Proprietorship & Partnerships

 What is Information Technology?

 What does IS do for business?

 What is an Information System?

 Operations Support Systems

 Management Support Systems

 Based on end-user perceptions of IT and the activity of the business

Era Major (new) Roles Application Innovations

Accounting IS dominance Batch systems (DP)

Operational Business management Online systems

Information End user involvement Interactive decision support

Network Business management Strategic information systems

Internet Top management leadership Web-based applications

Three Era Model

Era Characteristics When?

Data Processing Operational control systems 1960’s

Management Control & planning systems 1970’s

Strategic Systems critical to business operations & 1980’s

Possible IT/IS permeates organization Now? 

Administrative Target for Justification/

Mainframe Regulated Back office Organizational

Microcomputer Free Individual decision Individual

Internetworkin Shared Electronic integration Business advantage

IT Impact on Strategy & Operations

Key to IT Management Success:

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