BUSINESS INFORMATION SYSTEMS

Information system

A set of interrelated components that collect (or retrieve), process, store, and distribute
information to support decision making, coordinating, and control in an organization.

In addition, information systems may also help managers and workers to analyse problems,
visualize complex subjects, and create new products.

Components of an information system

People

Information systems are useless without:

● skilled people to build and maintain them,

● and without people who can understand how to use the information in a system to
achieve business objectives

● employee attitudes about their jobs, employers, or technology can have a powerful
effect on their abilities to use information systems productively.

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 ● Business firms require many different kinds of skills and people.

Hardware:
–Consists of computer equipment used to perform input, processing, and output activities
Software:
–Consists of the computer programs that govern the operation of the computer
Database:
–Organized collection of facts and information, typically consisting of two or more related data
files
Telecommunications, networks, and the Internet:
–The electronic transmission of signals for communications
Networks:
–Connect computers and equipment to enable electronic communication
Internet:
–World’s largest computer network, consisting of thousands of interconnected networks, all
freely exchanging information

Procedures:

–Include strategies, policies, methods, and rules for using the Computer Based Information
Systems

Information and Data

1. Information

○ data that have been shaped into a form that is meaningful and useful to human
beings.

2. Data,

○ streams of raw facts representing events occurring in organizations or the

physical environment before they have been organized and arranged into a form
that people can understand and use.

How is information is produced

Three activities in an information system produce the information:

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 i. Input - captures or collects raw data from within the organization or from its external
environment.

ii. Processing - converts this raw input into a meaningful form.

iii. Output transfers the processed information to the people who will use it or to the
activities for which it will be used.

Roles of Information Systems

1. Decision making

In an organization or business the managers need to make decisions all the time.

The decision must be backed by quality judgment of the situation and its implications.

Data collected, compiled and presented in a simple way helps managers understand the position
of the organization and take appropriate decisions.

For example the final report of a company shows the companies sources of funds and it
applications for return.

2. Operations management

Information system is used to manage every day operation in an organization such as employee
monthly salary, taxes, attendance, leave records, record income and expenses, receivables,
procuring goods and inventory management to name a few.

Daily tasks or operations management to keep records or follow up on supplies, creditors, and
inventory is made easier with the help of IS.

3. Customer interactions

IS also helps in customer interaction especially with online shopping.

Use of blogs and surveys to capture market feedback

4. Collaboration on teams

IS has made the world a smaller place. With connectivity available communication has
increased a lot.

People can conduct meetings from different countries through zoom and skype.

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5. Strategic initiatives & competitive advantage

Innovative application of information to technology helps a business to gain strategic

advantage over the competitor.

A strategic information system can help provide product and services that a business a
competitive advantage over its competitors.

Levels of management

 Refers to a line of demarcation between various managerial positions in an

organization.
 The number of levels in management increases when the size of the business and work
force increases and vice versa
 The level of management determines a chain of command, the amount of authority &
status enjoyed by any managerial position.

The levels of management can be classified in three broad categories:

○ Top level/Strategic/ Administrative level

○ Middle level /Tactical/ Executory

○ Low level /Operational/ Supervisory / Operative / First-line managers

A framework for information system

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The information requirements for users at each level differ. Towards that end, there are a
number of information systems that support each level in an organization.

Information System Classification:

Operational Management-Includes transaction processing system, office automation system,

and knowledge management system, handles structured data, and used by workers and
employees to streamline daily operations

Tactical Management-Used by business unit managers, handles semi-structured data, and

includes management information systems

Strategic Management-Used by executives, handles unstructured data, and includes the

decision support system and executive support system

Types of Information System

Transaction Processing Systems

A transaction encompasses all of the purchases and sales of products and services, along with
any daily business transactions or activities required to operate a company.

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Examples of typical transactions include billing clients, bank deposits, new hire data, inventory
counts, or a record of client-customer relationship management data.
Transaction processing systems are used to record day to day business transactions of the
organization. They are used by users at the operational management level.

Examples of transaction processing systems include;

Point of Sale Systems–records daily sales

Payroll systems–processing employees salary, loans management, etc.

Stock Control systems–keeping track of inventory levels

Airline booking systems–flights booking management

Management Information System (MIS)

Management information systems are specially developed to support the planning, controlling,
and decision-making functions of middle managers.
A management information system(MIS) extracts transaction data from underlying TPSs,
compiles them, and produces information products in the form of reports, displays, or
responses.

Examples of management information systems include;

Sales management systems –they get input from the point of sale system

Budgeting systems–gives an overview of how much money is spent within the organization
for the short and long terms.

Human resource management system–overall welfare of the employees, staff turnover, etc.
Tactical managers are responsible for the semi-structured decision. MIS systems provide the
information needed to make the structured decision and based on the experience of the tactical
managers, they make judgement calls i.e. predict how much of goods or inventory should be
ordered for the second quarter based on the sales of the first quarter.
Decision Support Systems

A decision support system (DSS) is an interactive computer-based information system that,

like MIS, also serves at the management level of an organization.

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However, in contrast to MIS, it processes information to support the decision-making process
of managers. It provides middle managers with the information that enables them to make
intelligent decisions.
Decision support systems are used by senior management to make non-routine decisions.
Decision support systems use input from internal systems (transaction processing systems and
management information systems) and external systems.

Examples of decision support systems include;

Financial planning systems–it enables managers to evaluate alternative ways of achieving
goals.

Bank loan management systems–it is used to verify the credit of the loan applicant and predict
the likelihood of the loan being recovered.

EXECUTIVE SUPPORT SYSTEMS (ESS)

Senior managers use executive support systems (ESS) to help them make decisions.
ESS serve the strategic level of the organization.
They address non-routine decisions requiring judgment, evaluation, and insight because there
is no agreed-on procedure for arriving at a solution.

They use advanced graphics software to display critical information about tax regulations, new
competitive start-ups, internal compliance issues, and other relevant executive information.
This allows leaders to track internal performance, monitor the competition, and pin point
growth opportunities.

GENERAL SYSTEMS THEORY

A system is a group of elements that are integrated with the common purpose of achieving an
objective.
Every system comprises of basic components which in a coordination formulate a system.
These are as follows.
Input elements
The information entered into a system. For instance, raw data input to the computer system.

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Process
Any specific treatment defined in the system to be performed on the data entered into the
system, for instance, computation, analysis, application of any model.

Output elements

The results given by the system after the process has been performed on the data being input
to the system

Control mechanism

Every system is expected to generate some sort of standardized output. Hence actual output
needs to be compared with what it is supposed to generate. This comparison of actual with
expected output is done with the help of control mechanism

Feedback system

Once the control mechanism has been devised, it needs to a reporting mechanism, which should
respond with a corrective action, if required

Objectives

We just mentioned that a control mechanism should compare actual output with expected/Ideal
output but before this is being done, there needs to be a list of specific objectives which define
expected output

System boundary-represents the confines or internal limits within which a system operates.

System Interface -is the region within which a system exchanges materials or information
with the environment. Eg Procurement.

Subsystem –is a system within another system

System Entropy –chaos that emanates from a system lacking maintenance caused by system
stress (not being able to meet the demands or objectives of the system).

Open system- refers to the connection a system has to its environment by means of inflows
and outflows of resources between the environment and organization.

Closed system- refers to a system that is dependent on internal resources and data for decision
making rather than external environment.

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Information Technology infrastructure
Hardware

Computer hardware is a collective term used to describe any of the physical components of an
analog or digital computer. The term hardware distinguishes the tangible aspects of a
computing device from software, which consists of written, machine-readable instructions
or programs that tell physical components what to do and when to execute the instructions.

Hardware components used in businesses

1. Computers: Desktops, laptops, and workstations are essential for various tasks such as
office work, data processing, and software development.

2. Servers: Used for hosting websites, storing data, managing networks, and running
enterprise applications.

3. Networking equipment: Routers, switches, and firewalls enable communication and

data transfer within the organization and with external networks such as the internet.

4. Printers and Scanners: Necessary for printing documents, invoices, reports, and
scanning physical documents for digital storage.

5. Storage devices: Hard disk drives (HDDs), solid-state drives (SSDs), and network-
attached storage (NAS) devices for storing and accessing data.

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 6. Peripheral devices: Keyboards, mice, monitors, and other input/output devices are
used for interacting with computers and other hardware.

7. Point-of-sale (POS) systems: Used in retail and hospitality businesses for processing
transactions and managing inventory.

8. Barcode scanners and RFID readers: Essential for tracking inventory and assets in
warehouses and retail environments.

9. Security cameras and surveillance systems: Used for monitoring premises,

enhancing security, and preventing theft.

10. Telecommunication equipment: Business phone systems, VoIP (Voice over Internet
Protocol) solutions, and video conferencing equipment for communication within and
outside the organization.

11. Power backup systems: Uninterruptible power supplies (UPS) and generators to
ensure continuous operation in case of power outages.

12. Data center infrastructure: Cooling systems, racks, and environmental monitoring
equipment for maintaining optimal conditions in data centers

Software
Computer software refers to a set of instructions, programs, or data that enable computers to
perform specific tasks or functions. It encompasses a wide range of applications, utilities,
operating systems, and programming languages that enable users to interact with and control
computer hardware.

Software can be categorized into two main types:

1. System software: This type of software provides the necessary functionality for the
computer hardware to operate and manage its resources efficiently. Examples include
operating systems like Windows, macOS, and Linux, as well as device drivers, utility
programs, and system tools.
2. Application software: Application software is designed to perform specific tasks or
functions for end-users. It includes a diverse range of programs such as word
processors, spreadsheets, web browsers, email clients, graphics editors, games, and
specialized business applications like accounting software and customer relationship
management (CRM) systems.

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Software can also be classified based on its distribution model:
1. Proprietary software: Developed and distributed by a company or individual under
restrictive licensing terms, typically requiring payment for use or access.
2. Open-source software: Software whose source code is freely available for anyone to
use, modify, and distribute. Open-source software is often developed collaboratively
by a community of developers and is usually distributed under licenses that allow for
free use and redistribution.

Sources of computer software

Computer software can originate from various sources, catering to different needs and
preferences. Here are the primary sources of computer software:
1. Commercial Software: Developed by software companies and sold to users for a fee.
Commercial software often comes with customer support, regular updates, and
sometimes additional services. Examples include Microsoft Office, Adobe Creative
Suite, and various productivity and business software.
2. Open-Source Software (OSS): Software whose source code is made available to the
public, allowing users to study, modify, and distribute the software freely. Open-source
software is often developed collaboratively by a community of developers. Examples
include the Linux operating system, the Apache web server, the Mozilla Firefox web
browser, and the LibreOffice productivity suite.
3. Freeware: Software distributed for free, but usually without access to the source code.
Freeware is often available for personal use, and developers may offer it as a way to
promote other products or services. Examples include some media players, file
compression tools, and basic utilities.
4. Shareware: Software distributed for free initially, with the option for users to pay a fee
for continued use or access to additional features. Shareware typically allows users to
try the software before making a purchase. Examples include WinRAR, which offers a
trial version with limited functionality, and various games with shareware versions.
5. Public Domain Software: Software that is not protected by copyright and can be used,
modified, and distributed freely by anyone. Public domain software can be a result of
expired copyright, intentional release into the public domain by the author, or software
created by government agencies that are not subject to copyright. Examples include
some older software that has fallen into the public domain.

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 6. Custom Software: Software developed specifically for a particular organization or
individual to meet their unique requirements. Custom software is often developed by
in-house teams or contracted developers and tailored to the specific needs of the client.
Examples include enterprise resource planning (ERP) systems, customer relationship
management (CRM) software, and proprietary business applications.

Software licenses
A software license is a legal agreement between the owner or developer of a piece of software
and the end-user that outlines the terms and conditions under which the software can be used.
It defines the rights and restrictions pertaining to the usage, distribution, modification, and
redistribution of the software.

Key components of a software license typically include:

1. Grant of License: This section specifies what the user is allowed to do with the
software, such as installing, using, and making copies of it.

2. Restrictions: This section outlines the actions that the user is prohibited from taking,
such as reverse-engineering, modifying, or redistributing the software without
permission.

3. Usage Terms: This part details how the software can be used, including the number of
installations or users allowed, whether it can be used for commercial purposes, and any
restrictions on transferring the license to another party.

4. Ownership and Copyright: This section clarifies that the software remains the
property of the developer or owner, and the license does not transfer ownership of the
software to the user. It also reaffirms the copyright protections of the software.

5. Warranty and Liability: Software licenses typically include disclaimers of warranties

and limitations of liability, specifying that the software is provided "as is" and the
developer is not responsible for any damages resulting from its use.

6. Termination: This part outlines the conditions under which the license may be
terminated, such as breach of the terms of the agreement, and the consequences of
termination.

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 7. Jurisdiction and Governing Law: The license may specify which jurisdiction's laws
apply to the agreement and where disputes must be resolved.

DATABASES AND INFORMATION MANAGEMENT

Database
A database is a structured collection of data that is organized in a way that allows for efficient
storage, retrieval, and manipulation of information. It serves as a central repository for storing
and managing data, enabling users and applications to access, update, and analyze information
as needed.
Key characteristics of databases include:

1. Structured Format: Data in a database is organized into tables, rows, and columns, following
a predefined schema or data model. This structured format facilitates efficient storage and
retrieval of information.

2. Data Integrity: Databases enforce rules and constraints to ensure the accuracy and
consistency of data. This includes enforcing data types, unique constraints, referential integrity,
and other validation rules.

3. Querying and Manipulation: Databases provide a query language or interface that allows
users and applications to retrieve, filter, and manipulate data based on specific criteria.
Common query languages include SQL (Structured Query Language) for relational databases
and NoSQL query languages for non-relational databases.

4. Concurrency Control: Databases implement mechanisms to manage concurrent access to

data by multiple users or applications, ensuring that transactions are executed in a consistent
and isolated manner.

5. Security: Databases include features for authentication, authorization, and encryption to

protect sensitive data from unauthorized access or manipulation.

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6. Scalability: Databases are designed to scale with growing data volumes and user loads. This
may involve horizontal scaling (adding more servers) or vertical scaling (upgrading hardware
resources).

7. Backup and Recovery: Databases offer mechanisms for backing up data and recovering from
failures or disasters to ensure data availability and integrity.

Databases are used in a wide range of applications and industries, including e-commerce,
banking, healthcare, telecommunications, manufacturing, and more. They play a crucial role
in storing and managing structured data efficiently, enabling organizations to make informed
decisions, improve business processes, and deliver value to customers.

Database elements
Database elements refer to the fundamental components that make up a database and enable
the storage, retrieval, and manipulation of data. These elements include:
1. Tables: Tables are the primary structures within a database where data is stored. They consist
of rows and columns, with each row representing a record or entry, and each column
representing a specific attribute or field.
2. Columns (Fields): Columns, also known as fields or attributes, define the individual data
elements that make up a table. Each column has a unique name and data type, specifying the
kind of data it can store (e.g., text, numbers, dates).
3. Rows (Records): Rows, also called records or tuples, represent individual instances of data
within a table. Each row contains a set of values corresponding to the columns defined in the
table.
4. Keys: Keys are attributes or combinations of attributes that uniquely identify each row in a
table. The primary key is a special key that uniquely identifies each record in the table, while
foreign keys establish relationships between tables by referencing the primary key of another
table.
5. Indexes: Indexes are data structures that improve the performance of database queries by
enabling faster retrieval of data. They provide a quick lookup mechanism for locating records
based on the values of specific columns.
6. Constraints: Constraints are rules or conditions imposed on the data within a database to
ensure its integrity and consistency. Common types of constraints include primary key
constraints, foreign key constraints, unique constraints, and check constraints.

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7. Views: Views are virtual tables derived from one or more underlying tables in the database.
They provide a way to present data in a customized format without altering the underlying data
schema.

Database Management Systems

Database Management Systems (DBMS) are software applications that provide an interface
between users or applications and the database. They facilitate the creation, organization,
manipulation, and retrieval of data from databases. DBMSs offer a systematic way to manage
large volumes of structured data efficiently. Here are some key components and functions of
Database Management Systems:
1. Data Definition Language (DDL): DBMSs provide a DDL to define the structure and
organization of the database. This includes creating tables, specifying columns and data
types, defining constraints, and establishing relationships between tables.
2. Data Manipulation Language (DML): DBMSs support a DML to insert, update,
delete, and retrieve data from the database. Common DML commands include
SELECT, INSERT, UPDATE, and DELETE, which enable users to interact with the
data stored in the database.
3. Query Language: Most DBMSs support a query language, such as SQL (Structured
Query Language), for retrieving and manipulating data in the database. SQL allows
users to perform complex queries, aggregations, joins, and data transformations to
extract meaningful information from the database.
4. Concurrency Control: DBMSs implement concurrency control mechanisms to
manage simultaneous access to the database by multiple users or applications. This
ensures that transactions are executed in a consistent and isolated manner, preventing
data corruption or inconsistency.
5. Transaction Management: DBMSs support transactions, which are units of work that
consist of one or more database operations. They ensure that transactions are executed
atomically (all-or-nothing), consistently (maintaining data integrity), and durably
(permanently saved to the database).
6. Data Security: DBMSs provide security features to protect sensitive data from
unauthorized access, modification, or disclosure. This includes user authentication,
access control mechanisms, encryption, and auditing capabilities to track database
activity.

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 7. Backup and Recovery: DBMSs offer mechanisms for backing up data and recovering
from failures or disasters to ensure data availability and integrity. This includes periodic
backups, transaction logs, and recovery utilities to restore the database to a consistent
state in case of failures.
8. Data Integrity: DBMSs enforce data integrity constraints, such as primary key
constraints, foreign key constraints, unique constraints, and check constraints, to ensure
the accuracy and consistency of data stored in the database.
9. Concurrency and Locking: DBMSs employ concurrency control mechanisms, such
as locking, to manage simultaneous access to data by multiple users or transactions.
This prevents conflicts and ensures that transactions are executed in a coordinated
manner.
10. Data Replication and Distribution: Some advanced DBMSs support data replication
and distribution across multiple servers or locations to improve performance,
scalability, and fault tolerance. This allows for distributed database systems that can
handle large volumes of data and serve geographically dispersed users.
Overall, Database Management Systems play a crucial role in enabling organizations to store,
manage, and analyse large volumes of data efficiently, providing users and applications with
the necessary tools to interact with the database effectively.

Telecommunications, the Internet, and Wireless Technology

Data communications
Data communications refers to the transmission of data or information between two or more
devices through a medium such as wires, cables, fiber optics, or wireless channels. It
encompasses the technologies, protocols, and standards used to establish, maintain, and
terminate communication sessions between devices, allowing them to exchange data reliably
and efficiently.
Computer network
A computer network is a collection of interconnected computers and other devices that can
communicate and share resources with each other. These devices can be connected by wired
or wireless communication links, enabling them to exchange data, share information, and
collaborate on tasks. Computer networks allow users to access shared resources, such as files,
printers, and internet connections, and communicate with each other using various applications
and services.

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Computer networks play a crucial role in modern computing and telecommunications, enabling
communication, collaboration, and resource sharing among individuals, organizations, and
systems across the globe. They form the foundation for various technologies and services,
including the internet, intranets, extranets, cloud computing, and Internet of Things (IoT)
applications.

Advantages and disadvantages of networking computers

Advantages:
1. Resource Sharing: Networking allows for the sharing of hardware devices such as
printers, scanners, and storage devices, as well as software applications and data files.
This reduces duplication of resources and improves efficiency.
2. Communication: Networking enables easy and fast communication among users,
whether through email, instant messaging, video conferencing, or collaborative tools.
This enhances productivity and facilitates collaboration, especially in distributed teams.
3. Centralized Management: Network administrators can centrally manage and control
resources, user accounts, security settings, and software updates across the network.
This simplifies administration tasks and ensures consistency and security.
4. Data Backup and Recovery: Centralized storage and backup solutions can be
implemented on networks, allowing for automated data backups and efficient recovery
in case of data loss or hardware failures.
5. Remote Access: Networking enables users to access network resources and
applications remotely, from anywhere with an internet connection. This facilitates
remote work, telecommuting, and mobile computing, improving flexibility and
productivity.
6. Cost Savings: By sharing resources and infrastructure, networking can lead to cost
savings in terms of hardware, software licensing, and maintenance. It also allows for
economies of scale in purchasing and management.
7. Scalability: Networks can be easily scaled to accommodate growing needs by adding
more devices, expanding infrastructure, or upgrading bandwidth and performance as
required.
Disadvantages:
1. Security Risks: Networking exposes systems to security threats such as unauthorized
access, data breaches, malware infections, and denial-of-service attacks. Proper

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 security measures, such as firewalls, encryption, and access controls, are essential to
mitigate these risks.
2. Complexity: Networking adds complexity to IT infrastructure, requiring specialized
knowledge and skills to design, implement, and maintain. Configuring network devices,
troubleshooting connectivity issues, and ensuring compatibility can be challenging
tasks.
3. Dependency on Infrastructure: Network downtime or failures can disrupt operations
and productivity, especially in mission-critical environments. Redundancy, backup
systems, and disaster recovery plans are necessary to minimize the impact of network
failures.
4. Privacy Concerns: Networking raises privacy concerns related to the collection,
storage, and transmission of sensitive information over the network. Compliance with
data protection regulations and privacy policies is crucial to safeguard user privacy and
data confidentiality.
5. Performance Bottlenecks: Network congestion, bandwidth limitations, and latency
issues can degrade performance and affect the responsiveness of networked
applications. Optimization techniques such as traffic shaping, quality of service (QoS),
and network monitoring are needed to address performance bottlenecks.
6. Maintenance Overhead: Networks require regular maintenance, updates, and
troubleshooting to ensure optimal performance and security. This includes software
patches, firmware updates, hardware replacements, and periodic audits of network
configurations.
7. Compatibility Issues: Networking heterogeneous systems and devices from different
vendors can lead to compatibility issues, interoperability challenges, and integration
complexities. Standards-based protocols and vendor-neutral solutions can help mitigate
these issues.

Computer networks can be categorized into various types based on their scale, geographical
scope, and purpose. Here are some common types of networks:
1. Local Area Network (LAN):
 A LAN is a network that typically spans a small geographical area, such as a
single building, office, or campus.
 LANs are used to connect devices within a limited area to share resources such
as files, printers, and internet access.

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  Ethernet and Wi-Fi are common technologies used in LANs.
2. Wide Area Network (WAN):
 A WAN is a network that spans a large geographical area, such as multiple
cities, countries, or continents.
 WANs connect LANs and other networks over long distances, often using
leased lines, satellite links, or public networks like the internet.
 WANs enable global communication and access to remote resources.
3. Metropolitan Area Network (MAN):
 A MAN is a network that covers a larger geographical area than a LAN but
smaller than a WAN, such as a city or metropolitan area.
 MANs are used to connect multiple LANs within a city to provide high-speed
connectivity and services.
4. Wireless LAN (WLAN):
 A WLAN is a type of LAN that uses wireless communication technologies, such
as Wi-Fi, to connect devices within a limited area.
 WLANs offer flexibility and mobility, allowing users to connect to the network
without physical cables.
5. Personal Area Network (PAN):
 A PAN is a network that connects devices within the immediate vicinity of an
individual, typically within a range of a few meters.
 Bluetooth and Near Field Communication (NFC) are common technologies
used in PANs to connect devices like smartphones, tablets, and wearable
devices.
6. Virtual Private Network (VPN):
 A VPN is a secure network that allows users to access a private network over a
public network, such as the internet.
 VPNs provide encrypted connections and tunnelling protocols to ensure privacy
and security for remote users accessing corporate networks or accessing the
internet privately.
7. Intranet:
 An intranet is a private network that uses internet technologies to share
information, resources, and services within an organization.
 Intranets are used for internal communication, collaboration, document sharing,
and accessing corporate resources such as databases and applications.

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 8. Extranet:
 An extranet is a network that extends an intranet to authorized external users,
such as customers, partners, or suppliers.
 Extranets provide controlled access to specific resources or services for external
users while maintaining security and privacy.

Network topology
Network topology refers to the physical or logical arrangement of nodes and links in a computer
network. Different network topologies have distinct characteristics in terms of cost, scalability,
reliability, and performance. Here are some common network topologies:

1. Bus Topology:
- In a bus topology, all devices are connected to a single shared communication line, called a
bus.
- Data is transmitted along the bus, and each device receives all transmissions but only
processes data intended for it.
- Bus topologies are simple and inexpensive to implement but can suffer from performance
degradation and reliability issues if the bus fails.
2. Star Topology:
- In a star topology, each device is connected directly to a central hub or switch.
- All data transmissions pass through the hub, which manages communication between
devices.
- Star topologies are easy to install, scalable, and provide better performance and fault
isolation compared to bus topologies.
3. Ring Topology:
- In a ring topology, devices are connected in a closed loop, with each device directly
connected to two neighboring devices.
- Data circulates around the ring in one direction, and each device receives and forwards data
packets.
- Ring topologies offer simplicity and uniform performance but can suffer from network
disruptions if a single device or link fails.
4. Mesh Topology:
- In a mesh topology, each device is connected to every other device in the network, creating
multiple paths for data transmission.

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 - Mesh topologies provide redundancy, fault tolerance, and high reliability, as data can be
rerouted along alternative paths if a link or device fails.
- Full mesh topologies, where every device is connected to every other device, offer the
highest level of redundancy but can be costly and complex to implement.

5. Hybrid Topology:
- A hybrid topology combines two or more basic topologies to form a larger network.
- For example, a hybrid topology may consist of a combination of star and bus topologies, or
star and ring topologies.
- Hybrid topologies offer flexibility and scalability, allowing organizations to design
networks that meet their specific requirements.

6. Tree Topology:
- In a tree topology, devices are arranged hierarchically in a tree-like structure, with multiple
levels of interconnected hubs, switches, and nodes.
- Data flows from the leaves (end devices) to the root (central hub or switch) and vice versa.
- Tree topologies are commonly used in large-scale networks such as corporate LANs and
WANs, offering scalability and ease of management.

Client-server Network
A client-server setup is a common architecture used in computer networking where one or more
computers, known as clients, communicate with a central computer, known as the server. This
architecture is widely used in various applications and services on the internet and local
networks.
1. Server: The server is a powerful computer or a cluster of computers that provide
services or resources to other computers, known as clients, on the network. Servers
typically have high-speed connections, large storage capacities, and powerful
processors to handle requests from multiple clients simultaneously.
2. Client: A client is a computer, device, or software application that requests services or
resources from the server. Clients can range from desktop computers, laptops,
smartphones, tablets to IoT devices and embedded systems. Clients interact with the
server by sending requests for data, processing, or other services.

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Common Network Devices
1. Router: Routers are essential devices that forward data packets between computer
networks. They determine the best path for data to travel based on network conditions
and destination addresses. Routers are crucial for connecting multiple networks
together, such as home networks to the internet or different segments of a corporate
network.
2. Switch: Switches are devices that connect multiple devices within a local area network
(LAN) and forward data to the appropriate destination based on MAC addresses. Unlike
hubs, switches create separate collision domains for each port, improving network
performance by reducing collisions and increasing bandwidth availability.
3. Hub: Hubs are simple devices that connect multiple network devices within a LAN.
Unlike switches, hubs operate at the physical layer of the OSI model and broadcast data
to all connected devices, leading to potential network congestion and collisions.
4. Firewall: Firewalls are network security devices that monitor and control incoming and
outgoing network traffic based on predefined security rules. They protect networks
from unauthorized access, malware, and other cyber threats by filtering traffic and
enforcing security policies.
5. Modem: Modems (modulator-demodulator) are devices that modulate and demodulate
digital data to enable communication between digital devices and analog transmission
media, such as telephone lines or cable systems. They convert digital signals from
computers into analog signals suitable for transmission over analog lines and vice versa.
6. Access Point (AP): Access points are devices that enable wireless devices to connect
to a wired network. They serve as wireless communication hubs, allowing devices such
as laptops, smartphones, and tablets to access network resources without the need for
physical connections.
7. Network Interface Card (NIC): NICs are hardware components installed in
computers and other devices to connect them to a network. They enable devices to send
and receive data over a network by providing a physical interface (e.g., Ethernet port)
and implementing networking protocols.

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Enterprise systems
Enterprise systems play a crucial role in enabling organizations to improve efficiency, reduce
costs, enhance decision-making, and maintain competitiveness in today's dynamic business
environment.

Customer Relationship Management (CRM) Systems

Customer Relationship Management (CRM) systems are software applications designed to
help organizations manage interactions with current and potential customers, streamline sales
processes, improve customer service, and drive customer engagement and loyalty. CRM
systems typically centralize customer data, automate repetitive tasks, and provide tools for
analysing customer interactions and relationships.
Here are some key features and functionalities of Customer Relationship Management
Systems:
1. Contact Management: CRM systems store detailed information about customers,
including their contact details, communication history, preferences, and purchase
history. This centralized database allows organizations to maintain a comprehensive
view of their customers and track interactions across multiple channels.
2. Lead Management: CRM systems automate lead capture, qualification, and nurturing
processes, helping sales teams prioritize leads and convert them into opportunities.
They track leads through the sales pipeline, assign tasks to sales representatives, and
provide insights into lead conversion rates and performance.
3. Sales Automation: CRM systems streamline sales processes by automating repetitive
tasks such as lead assignment, opportunity management, quote generation, and sales
forecasting. They provide workflows, reminders, and notifications to guide sales
representatives through each stage of the sales cycle.
4. Marketing Automation: CRM systems integrate with marketing tools to automate
marketing campaigns, lead generation, and customer segmentation. They enable
organizations to create personalized marketing messages, track campaign performance,
and measure the effectiveness of marketing efforts.
5. Customer Service and Support: CRM systems include features for managing
customer service interactions, such as ticketing, case management, and knowledge base
management. They enable organizations to track customer inquiries, resolve issues
efficiently, and provide timely support across multiple channels (e.g., phone, email,
chat).

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 6. Analytics and Reporting: CRM systems provide analytics and reporting tools to help
organizations analyze customer data, identify trends, and measure key performance
indicators (KPIs) such as customer acquisition cost, customer lifetime value, and
customer satisfaction. They generate reports, dashboards, and visualizations to facilitate
data-driven decision-making.

Supply Chain Management (SCM) Systems

Supply Chain Management (SCM) systems are software applications that help organizations
manage the flow of goods, services, information, and finances as they move from the supplier
to the manufacturer, wholesaler, retailer, and ultimately to the end customer. These systems
facilitate the coordination and optimization of various processes involved in the supply chain,
including procurement, production planning, inventory management, logistics, and
distribution.
Here are some key features and functionalities of Supply Chain Management Systems:
1. Inventory Management: SCM systems provide tools for managing inventory levels,
tracking stock movements, and optimizing inventory across multiple locations. They
help organizations minimize stockouts, reduce excess inventory, and improve inventory
turnover rates.
2. Demand Forecasting and Planning: SCM systems use historical data, market trends,
and forecasting algorithms to predict future demand for products and materials. This
information helps organizations plan production schedules, procurement activities, and
inventory levels more accurately.
3. Supplier Relationship Management (SRM): SCM systems include features for
managing relationships with suppliers, such as supplier evaluation, performance
monitoring, and collaboration tools. These features help organizations identify strategic
suppliers, negotiate contracts, and ensure supply chain resilience.
4. Order Management: SCM systems automate order processing tasks, including order
capture, order fulfillment, and order tracking. They enable organizations to manage
orders from multiple channels (e.g., online, offline) and provide visibility into order
status and delivery timelines.
5. Logistics and Transportation Management: SCM systems optimize the movement
of goods from suppliers to customers by selecting the most cost-effective transportation
routes, carriers, and modes of transportation. They also track shipments in real-time,
manage transportation contracts, and handle customs clearance procedures.

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 6. Warehouse Management: SCM systems include features for managing warehouse
operations, such as receiving, storing, picking, packing, and shipping goods. They
optimize warehouse layout, inventory placement, and labor allocation to improve
efficiency and reduce operating costs.
7. Supply Chain Analytics: SCM systems provide analytics and reporting tools to help
organizations monitor key performance indicators (KPIs), analyze supply chain
performance, and identify areas for improvement. They generate reports, dashboards,
and visualizations to facilitate data-driven decision-making.

E-Commerce
E-commerce, short for electronic commerce, refers to the buying and selling of goods and
services over the internet. It encompasses a wide range of online transactions, including online
retail (e-tail), electronic payments, online auctions, and internet banking.
Here are some key components and aspects of e-commerce:
1. Online Retail (E-Tail): Online retail involves the sale of products and services directly
to consumers through e-commerce websites or online marketplaces. E-tailers offer a
wide range of products, including consumer electronics, apparel, books, household
goods, and digital downloads. Examples of online retail platforms include Amazon,
eBay, Walmart.com, and Alibaba.
2. Digital Products and Services: E-commerce also includes the sale of digital products
and services, such as e-books, software, music, streaming video, online courses, and
digital subscriptions. Digital products can be delivered instantly over the internet,
making them convenient for consumers and profitable for sellers.
3. Online Marketplaces: Online marketplaces are platforms that connect buyers and
sellers, allowing them to conduct transactions independently. Marketplaces facilitate
the exchange of goods and services between multiple parties and often provide tools
for product discovery, comparison shopping, and seller ratings. Examples of online
marketplaces include Etsy, Airbnb, Uber, and Upwork.
4. Mobile Commerce (M-Commerce): Mobile commerce refers to e-commerce
transactions conducted on mobile devices, such as smartphones and tablets. M-
commerce is growing rapidly, driven by the increasing adoption of mobile devices and
the convenience of mobile shopping apps and mobile-optimized websites.
5. Payment Gateways and Digital Wallets: E-commerce transactions are facilitated by
payment gateways, which securely process online payments using credit cards, debit

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 cards, digital wallets (e.g., PayPal, Apple Pay, Google Pay), and other electronic
payment methods. Payment gateways encrypt sensitive financial information to ensure
the security of transactions.
6. Supply Chain and Logistics: E-commerce businesses rely on efficient supply chain
and logistics operations to fulfill orders, manage inventory, and deliver products to
customers. Fulfillment centers, warehouses, and third-party logistics providers play a
crucial role in the e-commerce supply chain, ensuring timely delivery and customer
satisfaction.
7. Security and Trust: Security is a top priority in e-commerce to protect sensitive
customer data, prevent fraud, and build trust with consumers. E-commerce websites use
encryption, secure sockets layer (SSL) certificates, and other security measures to
safeguard transactions and customer information.
8. Personalization and Customer Experience: E-commerce businesses leverage data
analytics and customer insights to personalize the shopping experience, recommend
products, and engage customers through targeted marketing campaigns, personalized
emails, and loyalty programs. Providing a seamless and personalized shopping
experience is key to attracting and retaining customers in the competitive e-commerce
landscape.
9. Regulatory Compliance: E-commerce businesses must comply with various
regulations and standards related to online transactions, data privacy, consumer
protection, and taxation. Compliance requirements may vary depending on the
jurisdiction and the nature of the business.

E-commerce Models
E-commerce encompasses various business models that define how goods and services are
bought and sold online. These models can vary based on factors such as the nature of the
products or services, the target market, and the relationship between buyers and sellers. Here
are some common e-commerce models:
1. Business-to-Consumer (B2C):
 In the B2C model, businesses sell products or services directly to individual
consumers through e-commerce websites or online marketplaces.
 Examples include online retail stores like Amazon, Walmart.com, and Best
Buy, where consumers purchase goods ranging from electronics and apparel to
home goods and groceries.

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 2. Business-to-Business (B2B):
 In the B2B model, businesses sell products or services to other businesses
through online platforms or electronic marketplaces.
 Examples include manufacturers, wholesalers, and distributors selling products
to retailers, suppliers offering services to other businesses, and online
marketplaces connecting businesses with suppliers and vendors.
3. Consumer-to-Consumer (C2C):
 In the C2C model, individual consumers buy and sell products or services
directly to other consumers through online platforms or marketplaces.
 Examples include online auction sites like eBay and classified ads platforms
like Craigslist, where individuals can sell used items, handmade goods, or
services to other consumers.
4. Consumer-to-Business (C2B):
 In the C2B model, individual consumers offer products or services to
businesses, often through online platforms or freelance marketplaces.
 Examples include freelance platforms like Upwork and Fiverr, where
individuals offer their skills and services to businesses seeking freelance or
contract work.
5. Business-to-Government (B2G):
 In the B2G model, businesses sell products or services to government agencies
or entities through online procurement portals or government-contracted
marketplaces.
 Examples include vendors providing goods and services to government
agencies for various purposes such as infrastructure projects, healthcare
services, and IT solutions.
6. Government-to-Citizen (G2C):
 In the G2C model, government agencies offer services and information to
citizens through online portals or platforms.
 Examples include government websites providing services such as online tax
filing, vehicle registration, permit applications, and access to public records.
7. Subscription Model:
 In the subscription model, customers pay a recurring fee at regular intervals
(e.g., monthly, annually) to access products or services.

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  Examples include subscription-based businesses such as streaming services like
Netflix and Spotify, subscription boxes like Birchbox and Blue Apron, and
software-as-a-service (SaaS) companies offering cloud-based applications.
8. Dropshipping:
 In the drop shipping model, retailers sell products to customers without
maintaining inventory. Instead, they purchase products from a third-party
supplier or manufacturer who ships the products directly to the customer.
 Examples include e-commerce businesses that partner with dropshipping
suppliers to offer a wide range of products without the need for warehousing or
inventory management.

M-COMMERCE
Mobile commerce, often abbreviated as m-commerce, refers to the buying and selling of goods
and services using mobile devices such as smartphones and tablets. It encompasses a wide
range of transactions conducted over wireless networks, including online purchases, mobile
banking, mobile payments, and mobile ticketing.
Here are some key aspects and characteristics of mobile commerce:
1. Mobile Shopping: Mobile commerce enables consumers to browse e-commerce
websites, make purchases, and complete transactions using mobile apps or mobile-
optimized websites. Mobile shopping offers convenience and flexibility, allowing
consumers to shop anytime, anywhere, using their smartphones or tablets.
2. Mobile Payments: Mobile commerce facilitates electronic payments using mobile
devices, mobile wallets, and mobile payment apps. Consumers can securely store their
payment information (e.g., credit card details, digital wallets) on their mobile devices
and use them to make purchases in-store, online, or through mobile apps. Examples of
mobile payment services include Apple Pay, Google Pay, Samsung Pay, and PayPal.
3. Mobile Banking: Mobile commerce includes banking services and financial
transactions conducted through mobile banking apps or mobile-optimized banking
websites. Consumers can check account balances, transfer funds, pay bills, deposit
checks, and manage their finances using their smartphones or tablets. Mobile banking
offers convenience and accessibility, allowing consumers to perform banking tasks on
the go without visiting a physical bank branch.
4. Mobile Ticketing: Mobile commerce enables consumers to purchase and store tickets
for events, transportation, movies, concerts, and other activities on their mobile devices.

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 Mobile ticketing eliminates the need for paper tickets and provides a convenient way
for consumers to access tickets, receive notifications, and present tickets at venues
using their smartphones or tablets. Examples of mobile ticketing platforms include
Ticketmaster, Eventbrite, and airline mobile apps.
5. Location-Based Services: Mobile commerce leverages location-based services (LBS)
to provide personalized shopping experiences, targeted promotions, and location-based
offers to consumers based on their geographic location. Retailers and businesses use
geolocation technology to send location-specific messages, coupons, and discounts to
consumers' mobile devices when they are near a physical store or point of interest.
6. Mobile Advertising: Mobile commerce relies on mobile advertising to reach
consumers and promote products and services through mobile apps, mobile websites,
and mobile ad networks. Mobile ads include various formats such as banner ads,
interstitial ads, native ads, and video ads displayed on smartphones and tablets. Mobile
advertising enables businesses to target specific audiences, drive engagement, and
increase brand awareness in the mobile space.
7. Mobile Commerce Platforms: Mobile commerce platforms provide tools and
solutions for businesses to create, launch, and manage mobile commerce applications
and experiences. These platforms offer features such as mobile app development,
mobile website optimization, mobile marketing, mobile analytics, and mobile payment
integration. Examples of mobile commerce platforms include Shopify Mobile,
WooCommerce Mobile, and Magento Mobile.

STRATEGIC USES OF INFORMATION TECHNOLOGY

Information technology must be conceived of broadly to encompass the information that
businesses create and use as well as a wide spectrum of increasingly convergent and linked
technologies that process the information.
In addition to computers, then, data recognition equipment, communications technologies,
factory automation, and other hardware and services are involved.

Competitive Strategy
◦ A competitive strategy is a statement that identifies a business’s approach to compete,
its goals, and the plans and policies that will be required to carry out those goals (Porter,
1985).
◦ A strategy, in general, can apply to a desired outcome, such as gaining market share.

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 ◦ A competitive strategy focuses on achieving a desired outcome when competitors want
to prevent you from reaching your goal.
◦ Therefore, when you create a competitive strategy, you must plan your own moves, but
you must also anticipate and counter your competitors’ moves.

Strategic information systems

◦ Strategic information systems (SISs) provide a competitive advantage by helping an
organisation implement its strategic goals and improve its performance and
productivity.
◦ Any information system that helps an organization either achieve a competitive
advantage or reduce a competitive disadvantage, qualifies as a strategic information
system.

Using information technology for competitive advantage

Porter’s Competitive Forces Model.
◦ Porter’s model demonstrates how IT can make a company more competitive.

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 ◦ Porter’s model identifies five major forces that can endanger or enhance a company’s
position in a given industry.
◦ Every competitive organization, no matter how large or small, or what business it is in,
is driven by these forces.
◦ Significantly, Porter (2001) concludes that the overall impact of the Web is to increase
competition, which generally diminishes a firm’s profitability.

1. The threat of entry of new competitors.

 The threat that new competitors will enter your market is high when entry is easy
and low when there are significant barriers to entry.
 An entry barrier is a product or service feature that customers have learned to
expect from organizations in a certain industry.
 For most firms, the Web increases the threat that new competitors will enter the
market because it sharply reduces traditional barriers to entry, such as the need for
a sales force or a physical storefront.
 Today, competitors frequently need only to set up a Web site.
 This threat of increased competition is particularly acute in industries that perform
an intermediation role, which is a link between buyers and sellers (e.g., stock
brokers and travel agents), as well as in industries where the primary product or
service is digital (e.g., the music industry).
 In addition, the geographical reach of the Web enables distant competitors to
compete more directly with an existing fi rm.

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 2. The bargaining power of suppliers.
 Supplier power is high when buyers have few choices from whom to buy and low
when buyers have many choices.
 Therefore, organizations would rather have more potential suppliers so they will be
in a stronger position to negotiate price, quality, and delivery terms.
 The Internet’s impact on suppliers is mixed. On the one hand, it enables buyers to
find alternative suppliers and to compare prices more easily, thereby reducing the
supplier’s bargaining power.
 On the other hand, as companies use the Internet to integrate their supply chains,
participating suppliers prosper by locking in customers.

3. The bargaining power of customers (buyers).

 Buyer power is high when buyers have many choices from whom to buy and low
when buyers have few choices.
 Information technology enables companies to track the activities and accounts of
millions of customers, thereby reducing buyer power.
 Example, loyalty programs which reward customers based on the amount of
business they conduct with a particular organization (e.g., airlines, hotels, and rental
car companies).

4. The threat of substitute products or services

 If there are many alternatives to an organization’s products or services, then the
threat of substitutes is high. If there are few alternatives, then the threat is low.
 Information-based industries experience the greatest threat from substitutes. Any
industry in which digitized information can replace material goods (e.g., music,
books, and software) must view the Internet as a threat because the Internet can
convey this information efficiently and at low cost and high quality.
 Even when there are many substitutes for their products, however, companies can
create a competitive advantage by increasing switching costs.
 Switching costs are the costs, in money and time, imposed by a decision to buy
elsewhere.
 For example, when you buy products from Amazon, the company develops a profile
of your shopping habits and recommends products targeted to your preferences.

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  If you switch to another online vendor, that company will need time to develop a
profile of your wants and needs. In this case, the switching cost involves time rather
than money.

5. The rivalry among existing firms in the industry.

 The threat from rivalry is high when there is intense competition among many firms
in an industry. The threat is low when the competition is among fewer firms and is
not as intense.
 The visibility of Internet applications on the Web makes proprietary systems more
difficult to keep secret. In simple terms, when I see my competitor’s new system
online, I will rapidly match its features to remain competitive.
 The result is fewer differences among competitors, which leads to more intense
competition in an industry.

Porter’s Value Chain Model

◦ A value chain is a sequence of activities through which the organization’s inputs,
whatever they are, are transformed into more valuable outputs, whatever they are.
◦ The value chain model identifies points where an organization can use information
technology to achieve competitive advantage

According to Porter’s value chain model, the activities conducted in any organization can be
divided into two categories: primary activities and support activities.
◦ Primary activities relate to the production and distribution of the firm’s products and
services. These activities create value for which customers are willing to pay.
◦ Support activities do not add value directly to the firm’s products or services. Rather,
as their name suggests, they contribute to the firm’s competitive advantage by
supporting the primary activities.
In a manufacturing company, primary activities involve purchasing materials, processing the
materials into products, and delivering the products to customers. Manufacturing companies
typically perform five primary activities in the following sequence:

1. The incoming materials are processed (in receiving, storage, and so on) in activities called
inbound logistics.

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2. The materials are used in operations, where value is added by turning raw materials into
products.
3. These products are prepared for delivery (packaging, storing, and shipping) in the outbound
logistics activities.
4. Marketing and sales sell the products to customers, increasing product value by creating
demand for the company’s products.
5. Finally, the company performs after-sales service for the customer, such as warranty service
or upgrade notification, adding further value.

Support activities consist of:

1. The firm’s infrastructure (accounting, finance, management)
2. Human resources management
3. Product and technology development (R&D)
4. Procurement
◦ Each support activity can be applied to any or all of the primary activities. In addition,
the support activities can also support one another.

Strategies for Competitive Advantage

1. Cost leadership strategy. Produce products and/or services at the lowest cost in the industry.
2. Differentiation strategy. Offer different products, services, or product features than your
competitors.
3. Innovation strategy. Introduce new products and services, add new features to existing
products and services, or develop new ways to produce them.
4. Operational effectiveness strategy. Improve the manner in which a firm executes its internal
business processes so that it performs these activities more effectively than its rivals. Such
improvements increase quality, productivity, and employee and customer satisfaction while
decreasing time to market.
5. Customer-orientation strategy. Concentrate on making customers happy. Web-based
systems are particularly effective in this area because they can create a personalized, one-to-
one relationship with each customer.

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SYSTEMS ANALYSIS AND DESIGN

Designing an Information System

Designing an information system is a complex process that requires a deep understanding of

the organization and its needs. The first step is to understand the organization’s goals and
objectives. Once these are understood, the designer must develop a system that will meet these
goals and objectives. The system must be designed to be flexible and adaptable, as the
organization’s needs may change over time. The system must also be designed to be scalable,
so that it can grow with the organization.

It is a formal method for the design and development of new systems. The process entails
analyzing the current state of the system, determining requirements, developing a solution, and
becoming ready to implement or deploy it. Knowing an organization’s objectives, structure,
and processes is required for a project manager to design and analyze its information systems.

An information system is made up of various types of hardware such as computers, tablets,

smartphones, disks, and so on. Before developing a new information system, information
requirements must be met. One of the primary functions of management information systems
is to monitor key performance indicators.

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Steps Required to Design for A Good Information System

There is no silver bullet for designing a good information system, but there are a number of
steps that can be taken to improve the chances of success.

 Firstly, it is important to understand the needs of the business and how the information
system can help to meet those needs.
 Secondly, the system should be designed to be flexible and easily adaptable to changing
requirements.
 Thirdly, the system should be easy to use and understand, with a clear and consistent
user interface.
 Finally, the system should be tested thoroughly before being put into production.

Systems Development Life Cycle

System development life cycle (SDLC) is the process by which an information system is
designed. A standard process followed in an organization to conduct all the steps necessary to
analyze, design, implement, and maintain information systems

Stages of the SDLC

1. Planning
This is the first phase in the systems development process. It identifies whether or not there is
the need for a new system to achieve a business’s strategic objectives. This is a preliminary
plan (or a feasibility study) for a company’s business initiative to acquire the resources to build
on an infrastructure to modify or improve a service. The company might be trying to meet or
exceed expectations for their employees, customers and stakeholders too. The purpose of this
step is to find out the scope of the problem and determine solutions. Resources, costs, time,
benefits and other items should be considered at this stage.

2. Systems Analysis and Requirements

The second phase is where businesses will work on the source of their problem or the need for
a change. In the event of a problem, possible solutions are submitted and analyzed to identify
the best fit for the ultimate goal(s) of the project. This is where teams consider the functional
requirements of the project or solution. It is also where system analysis takes place—or
analyzing the needs of the end users to ensure the new system can meet their expectations.
Systems analysis is vital in determining what a business’s needs are, as well as how they can

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 be met, who will be responsible for individual pieces of the project, and what sort of timeline
should be expected.

There are several tools businesses can use that are specific to the second phase. They include:

 CASE (Computer Aided Systems/Software Engineering)

 Requirements gathering
 Structured analysis

3. Systems Design

The third phase describes, in detail, the necessary specifications, features and operations that
will satisfy the functional requirements of the proposed system which will be in place. This is
the step for end users to discuss and determine their specific business information needs for the
proposed system. It’s during this phase that they will consider the essential components
(hardware and/or software) structure (networking capabilities), processing and procedures for
the system to accomplish its objectives.

4. Development

The fourth phase is when the real work begins—in particular, when a programmer, network
engineer and/or database developer are brought on to do the major work on the project. This
work includes using a flow chart to ensure that the process of the system is properly organized.
The development phase marks the end of the initial section of the process. Additionally, this
phase signifies the start of production. The development stage is also characterized by
installation and change. Focusing on training can be a huge benefit during this phase.

5. Integration and Testing

The fifth phase involves systems integration and system testing (of programs and
procedures)—normally carried out by a Quality Assurance (QA) professional—to determine if
the proposed design meets the initial set of business goals. Testing may be repeated,
specifically to check for errors, bugs and interoperability. This testing will be performed until
the end user finds it acceptable. Another part of this phase is verification and validation, both
of which will help ensure the program’s successful completion.

6. Implementation

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The sixth phase is when the majority of the code for the program is written. Additionally, this
phase involves the actual installation of the newly-developed system. This step puts the project
into production by moving the data and components from the old system and placing them in
the new system via a direct cutover. While this can be a risky (and complicated) move, the
cutover typically happens during off-peak hours, thus minimizing the risk. Both system
analysts and end-users should now see the realization of the project that has implemented
changes.

7. Operations and Maintenance

The seventh and final phase involves maintenance and regular required updates. This step is
when end users can fine-tune the system, if they wish, to boost performance, add new
capabilities or meet additional user requirements.

Alternative methods of building Information Systems

1. Agile Software Development Life Cycle

Agile is based on an incremental and iterative approach. Fast failure is a notable aspect of it,
and Agile features ongoing release cycles. Each of these features small changes over the
previous release, with the product tested with each iteration.

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 2. Iterative Software Development Life Cycle

Instead of beginning with complete knowledge of requirements, project development teams

following the iterative methodology implement a set of software requirements. Subsequently,
they test, evaluate, and identify further requirements.

Factors Contributing to Failures of MIS

 The MIS does not provide that information which is needed by then managers but it tends to
provide the information generally the function calls for. The MIS then becomes an impersonal
system.
 Under estimating the complexity in the business systems and not recognizing it in the MIS
design leads to problems in the successful implementation.
 Adequate attention is not given to the quality control aspects of the inputs, the process and the
outputs leading to insufficient checks and controls in the MIS.
 Lack of training and appreciation that the users of then information and the generators of the
data are different, and they have to play an important responsible role in the MIS.
 The MIS does not meet certain critical and key factors of its users such as a response to the
query on the database, an inability to get the processing done in a particular manner, lack of
user-friendly system and the dependence on the system personnel.
 A belief that the computerized MIS can solve all the management problems of planning and
control of the business.
 Lack of administrative discipline in following then standardized systems and procedures,
wrong coding and deviating from the system specifications result in incomplete and incorrect
information.
 The MIS does not give perfect information to all the users in the organization.

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SECURITY AND ETHICAL ISSUES OF INFORMATION SYSTEMS
Threats to computer systems
 A computer system threat is anything that leads to loss or corruption of data or physical
damage to the hardware and/or infrastructure.
 The threats could be intentional, accidental or caused by natural disasters.
 Knowing how to identify computer security threats is the first step in protecting
computer systems.
 Information systems have made many businesses successful today. Some companies
such as Google, Facebook, EBay, etc. would not exist without information technology.
However, improper use of information technology can create problems for the
organization and employees.
 Criminals gaining access to credit card information can lead to financial loss to the
owners of the cards or financial institute. Using organization information systems i.e.
posting inappropriate content on Facebook or Twitter using a company account can
lead to lawsuits and loss of business.
Information system Security

 MIS security refers to measures put in place to protect information system resources
from unauthorized access or being compromised. Security vulnerabilities are
weaknesses in a computer system, software, or hardware that can be exploited by the
attacker to gain unauthorized access or compromise a system.
 People as part of the information system components can also be exploited using social
engineering techniques. The goal of social engineering is to gain the trust of the users
of the system.

Physical Threats

 A physical threat is a potential cause of an incident that may result in loss or

physical damage to the computer systems.
 The following list classifies the physical threats into three (3) main categories;
 Internal: The threats include fire, unstable power supply, humidity in the
rooms housing the hardware, etc.
 External: These threats include Lightning, floods, earthquakes, etc.

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  Human: These threats include theft, vandalism of the infrastructure and/or
hardware, disruption, accidental or intentional errors.

Safeguards (Physical Threats)

 Internal: Fire threats could be prevented by the use of automatic fire detectors and
extinguishers that do not use water to put out a fire. The unstable power supply can be
prevented by the use of voltage controllers. An air conditioner can be used to control
the humidity in the computer room.
 External: Lightning protection systems can be used to protect computer systems
against such attacks. Lightning protection systems are not 100% perfect, but to a certain
extent; they reduce the chances of Lightning causing damage. Housing computer
systems in high lands are one of the possible ways of protecting systems against floods.
 Humans: Threats such as theft can be prevented by use of locked doors and restricted
access to computer rooms.
Non-Physical Threats

A non-physical threat is a potential cause of an incident that may result in;

 Loss or corruption of system data

 Disrupt business operations that rely on computer systems
 Loss of sensitive information
 Illegal monitoring of activities on computer systems
 Cyber Security Breaches

The non-physical threats are also known as logical threats.

 Virus
 Trojans
 Worms
 Spyware
 Key loggers
 Adware
 Denial of Service Attacks
 Unauthorized access to computer systems resources such as data Phishing

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Safeguards (Logical Threats)

1. To protect against viruses, Trojans, worms, etc. an organization can use anti-virus
software. In additional to the anti-virus software, an organization can also have control
measures on the usage of external storage devices and visiting the website that is most
likely to download unauthorized programs onto the user’s computer.
2. Unauthorized access to computer system resources can be prevented by the use of
authentication methods. The methods can be, in the form of user ids and strong
passwords, smart cards or biometric, etc.
3. Intrusion-detection/prevention systems can be used to protect against denial of
service attacks.
4. Firewall: A firewall is a security-conscious piece of hardware or soft-ware that sits
between the Internet and your network with a single-minded task: preventing them from
getting to us.
5. Copyrights: Copyright is a legal means of protecting an author's work. It is a type of
intellectual property that provides exclusive publication, distribution, and usage rights
for the author.
6. Backup. In information technology, a backup, or data backup is a copy of computer
data taken and stored elsewhere so that it may be used to restore the original after a data
loss event.
Information system Ethics

Ethics refers to rules of right and wrong that people use to make choices to guide their
behaviors. Ethics in MIS seek to protect and safeguard individuals and society by using
information systems responsibly.

Information Communication Technology (ICT) policy

An ICT policy is a set of guidelines that defines how an organization should use information
technology and information systems responsibly. ICT policies usually include guidelines on;

 Purchase and usage of hardware equipment and how to safely dispose them
 Use of licensed software only and ensuring that all software is up to date with latest
patches for security reasons
 Rules on how to create passwords (complexity enforcement), changing passwords, etc.
 Acceptable use of information technology and information systems
 Training of all users involved in using ICT and MIS
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