CHAPTER 2

INTRODUCTION: BUSINESS AND INFORMATION

TECHNOLOGY
Frieta Bella Quamila Janvier / 016201200012 / IR 2

1.1 BUSINESS

IN

THE

INFORMATION

AGE: PRESSURES AND RESPONSES

Business Pressures

Global competition for market and for labor

Need for real-time operations
Changing work force
Customer orientation
Technological innovation and obsolescence
Information overload

Organizational

Responses

to

Business

Information Age

Strategic systems
Customer focus and service
Continuous improvement efforts
Business process reengineering
Empowering employees and fostering collaborative work

Pressures

in

the

1.2 REALITY CHECK I: WHY YOU NEED

TO

KNOW

ABOUT

INFORMATION

TECHNOLOGY
IT is Generally Interesting
The more you know about the power of the technologies, the more you will want to know about how
they work. The more you learn about how they work, the more you will be able to see how they can
accomplish what they do.

IT Facilitates Work in Organizations

Every manager and staff member should know how to build, use, and manage successful systems
based on information technology. He or she also should know how to avoid unsuccessful systems and
failures.

IT Off ers Career Opportunities

It is important to note that although information technology eliminates some jobs, it creates many
others. The demand for traditional information technology staff is huge.

IT is Used by All Departments

Further, information technology is vital for every functional area of the business, and IT systems are
integral to every functional area.

.3 WHAT IS AN INFORMATION SYSTEM

DATA are raw facts or elementary descriptions of things, events, activities, and transactions, that are
captured, recorded, stored, and classified, but not organized to convey any specific meaning.
INFORMATION is a collection of facts (data) organized in some manner so that they are meaningful
to a recipient.
KNOWLEDGE consists of information that has been organized and processed to convey
understanding, experiences, accumulated learning, and expertise as it applies to a current
business problem or process.

What is a Computer-Based Information System?

A computer-based information system (CBIS) is an information system that uses computer and
often telecommunications technology to perform some or all of its intended tasks.
The basic components of information systems are the following:

Hardware: a set of devices, such as a processor, monitor, keyboard, and printer that accept

data and information, processes them, and displays them.

Software: a set of computer programs that enable the hardware to process data.
Database: an organized collection of related files, records, etc. that stores data and the

associations among them.

Network: a connecting system that permits the sharing of resources among different

computers.
Procedures: the strategies, policies, methods, and rules for using the information system.
People: the most important element in information systems; include those persons who work
with the information system or use its output.

Capabilities of Information Systems

Provide fast and accurate transaction processing

Provide large capacity, fast access storage
Provide fast communications (machine to machine, human to human)
Reduce information overload
Span boundaries
Provide support for decision making
Provide a competitive weapon

General Technological Trends for IT

As

CHAPTER 2

computer
technology continues to leapfrog forward, computer-based information systems are changing rapidly.
These changes are having enormous impact on the capabilities of organizational information
systems.

FRIETA BELLA QUAMILA JANVIER | IR 2| 016201200012

.1 INFORMATION SYSTEMS
INFRASTRUCTURE AND ARCHITECTURE
Information Infrastructure
An information infrastructure consists of the physical facilities, services, and management that
support all computing resources in an organization. There are five components of infrastructure:
computer hardware, general-purpose software, networks and communication facilities, databases,
and information management personnel.

Information Architecture
An information architecture is a high-level map or plan of the information requirements in an
organization and the manner in which these requirements are being satisfied.
In preparing information architecture, the designer needs similar information, which can be divided
into two parts:
1. The business needs for information.
2. The existing and planned information infrastructure and applications in the organization.

Traditional Architectures

Mainframe environment
PC environment
Distributed environment

New Architectures

Client/server architecture
Enterprisewide architecture
Internet-based architectures

.2 ORGANIZATIONS: STRUCTURE AND

IT SUPPORT
Organizational Structure

The hierarchical structure

Project management and matrix organization

Departmental structure is most wisely used in business organizations. Most organizations have, at
minimum, the following departments:

Accounting
Finance
Marketing and Sales
Production or Operations Management (POM)
Human Resources Management
Information Systems

The Corresponding Information Systems

Departmental information systems

Plant information systems
Divisional information systems
Enterprisewide information system
Interorganizational information systems

.3 THE EVOLUTION AND TYPES OF

INFORMATION SYSTEMS
Transaction Processing Systems
A Transaction Processing Systems (TPS) supports the monitoring, collection, storage, processing, and
dissemination of the organizations basic business transactions.

Management information systems

Functional information systems are put in place to ensure that business activities are done in an
efficient manner.

Support systems
Managers are not the only organizational employees who can benefit from information systems.
Support systems for office employees began to emerge in the late 1960s and early 1970s when
networked computing and electronic communication became more prevalent.

.4 IT

SUPPORT

AT

ORGANIZATIONAL LEVELS
Managers
Knowledge Workers
Clerical Staff

Chapter 3

DIFFERENT

COMPUTER HARDWARE
By : Angelini / 016201200020 / IR 2
Computer-based information systems (CBIS) are composed of hardware, software,
databases, telecommunications, people, and procedures. The components are organized to
input, process, and output data and information. The hardware components of a computer
system consists of the following:
1.
2.
3.
4.
5.

Central Processing Unit (CPU)

Memory
Input Technologies
Output Technologies
Communication Technologies

The Central Processing Unit

The CPU is a microprocessor made up of millions of microscopic transistors embedded
in a circuit on a silicon water orchip. The CPU is made up of the arithmetic-logic unit that
performs the calculations, the registers that store minute amounts of data and isntructions
immediately before and after processing, and the control unit that controls the flow of
information on the microprocessor chip.

Memory
Memory Capacity:
a.
b.
c.
d.

Kilobyte: one thousand bytes

Megabyte: one million bytes
Gigabyte: one billion bytes
Terrabyte: One trillion bytes

There are 2 basic categories of memory:

Primary Storage: small amounts of data and information that will be immediately
used by CPU are stored here. 4 types of primary storage:
- Registers: have the least capacity. This is analogous to your pocket in the Swiss
Army Knife example.
- Random Access Memory (RAM): analogous to the kitchen toolbox. It stores more
information than the registers and is farther away from the CPU, but it stores less
than secondary storage and is much closer to the CPU than is secondary storage.
- Cache Memory: is the place closer to the CPU where the computer can temporarily
store those blocks used most often. In tool analogy, cache memory might represent
a box with a selected set of needed tools from the kitchen toolbox ad the garage.

Read-only Memory (ROM): is the place where certain critical instructions are
safeguard. These instructions can be read only by the computer and cannot be
changed by the user.
Secondary Storage: where much larger amounts of data and information are stored
for extended periods of time
- Magnetic Media: magnetic tape (is kept on a large open reel or in a smaller
cartridge or cassette), magnetic disks (is like a phonograph record in that it has
tracks), hard drives (hard disks), magnetic diskettes (not rigid, much slower than
hard drives, much less capacity).
- Optical storage devices: CD-ROM (can only be read and not written on), WORM (can
be written on, but requires the laser technology to do so.
Primary storage has much less capacity than secondary storage, and is faster and
more expensive per byte stored. Primary storage is located much closer to the CPU than os
secondary storage. Sequential-access secondary storage media such as magnetic tape is
much slower and less expensive than direct-access media

Input Technologies
1. Human Data Entry Devices: allow people to communicate with the computer, such
as keyboards, mouse, mice and trackballs, stylus, joy stick, microphone.
2. Source Data Automation: to input data with minimal human intervention. Bellow are
the common types:
- Cash transaction device: Automated Teller Machines (ATMs), Point-of-sale (POS)
terminals.
- Optical scanners: Bar code scanners, optical mark reader, optical character
recognition (OCR).
- Other source data automation devices: Sensors, cameras.

Output Technologies
The output generated by a computer can be transmitted to the user via several devices
and media. Bellow is a discussion of common types of output technologies:

Monitors
Printers (impact printers, nonimpact printers, plotters)
Voice output
Multifunction devices
Multimedia

Supercomputers are the most powerful, designed to handle the maximum computional
demands of science and the military. Mainframes are not as powerful as supercomputers, but
are powerful enough for use by large organization for centralized data processing and large
databases. Minicomputers are smaller and less powerful versions of mainframes, often

devoted to handling specific subsystems. Workstations are in between minicomputers amd

personal computers in speed, capacity, and graphics capability.
Desktop Personal Computers (PCs) are the most common personal and business
computers. Network computers have less computing power and storage, relying on
connection to a network for communication, data, processing, and storage resources. Laptop
or notebook computers are small, easily transportable PCs. Palmtop computers are handheld microcomputers. Palmtops are usually configured for specific apllications and limited in
the number of ways they can accept user input and provide output.

Chapter 4

COMPUTER SOFTWARE
By : Angelini / 016201200020 / IR 2
Software Fundamentals
Software consists of computer programs that control the functions of computer
hardware. The process of writing programs is called programming, and individuals who
perform this task are called programmers. There are two main categories of software:

1. Systems Software: manages the hardware resources of the computer system and
functions between the hardware and the application software. System software
includes the system control programs and system support programs.
2. Application Software: enables users to perform specific tasks and information
processing activities. Application software may be proprietary or off the shelf.

System Control Programs

System Control Programs control the use of the hardware, software, and data
resources of a computer system.
Operating systems manage the actual computer resources. Operating systems
schedule and process applications, manage and protect memory, ensure cache consistency,
manage the input and output functions and hardware, manage data and files, and provide
clustering support, security, fault tolerance, interapplication communications, graphical user
interfaces, and windowing.
There are 3 types of operating systems: desktop, departmental, and enterprise.
Desktop operating systems have the least functionally and enterprise operating systems the
most, with departmental operating systems in the middle. Desktop operating systems are
typically designed for one user, departmental operating systems for up to several hundred
users, and enterprise operating systems can handle thousands of users and millions of
transactions simultaneously.
The operating system provides services that include:
Process Management: managing the program or programs running on the processor
at a given time.
Time-Sharing: an extension of multiprogramming.
Multiprocessing: occurs when a computer system with two or more processors can
run more than one program, or thread, at a given time by assigning them to different
processors.
Virtual Memory: allows a program to behave as if had access to the full storage
capacity of a computer, rather than just access to the amount of primary storage
installed on the computer.
Fault Tolerance: ability of a system to produce correct results and to continue to
operate even in the presence of faults or errors.

Application Software
Proprietary software can be developed in house to address the specific needs of an
organization. Existing software programs can be purchased off the shelf from vendors that
sell programs to many organizations and individuals. Or a combination of these two methods

can be used, by purchasing off-the-shelf programs and customizing them for an

organizations specific needs.
The major types of application software are:
Spreadsheat: transforms a computer screen into a ledger sheet, or grid, of coded
rows and columns.
Data Management: supports the storage, retrieval, and manipulation of related data.
Word Processing: allows the user to manipulate text rather than just numbers.
Desktop Publishing: represents a level of sophistication beyond regular word
processing.
Graphics: allows the user create, store, and display or printcharts, graphs, maps, and
drawings.
Multimedia: the combination of spatial-based media (text and images) with timebased media (sound and video).
Communications: whether they are located close together or far apart, to exchange
data over dedicated or public cables, telephone lines, satellite relay systems, or
microwave circuits.
Speech Recognition:
- Discrete speech recognition: can interpret only one word at a time, so users must
place distinct pauses between words.
- Continuous speech recognition: can interpret a continuing stream of words.
Groupware: a class of software products that facilities communication, coordination,
and collaborating among people.

Programming Languages
Software and programming languages continue to become more user-oriented.
Programming languages have evolved from the first generation of machine languages that is
directly understandable to the CPU to higher levels that use more natural language and that
do not require users to specify the detailed procedures for achieving desired results. This
trend ensures that end users and the information systems staff will become more productive.
In addition, software is becoming much more complex, expensive, and time-consuming to
develop. As a result, the trend is toward purchasing off-the-shelf software rather than
developing it in house. In the future, organizations will tend to buy component-based
software modules to reduce costs and development time.

Enterprise Software
Organizations want packaged applications that support integration between functional
modules, that can be quickly changed or enchanced, and that present a common graphical
look and feel. In addition, organizations want individual components that can be combined as
necessary to meet changing business needs. Enterprise software consists of programs that
manage a companys vital operations, such as supply-chain management, inventory

replenishment, ordering, logistics coordination, human resource management,

manufacturing, operations, accounting, and financial management.

CHAPTER 5
By : Cornelius Susanto / 016201200005 / IR 2

5.1 Data Arrangement and Access

A system of computer manages data in a hierarchy that starts from bits, bytes, fields, records, files, and finally
databases. Which also can be illustrated like a chart below :
Data Arrangement within a Database

File

Record

Field

Byte

Record

Field

Field

Byte

Byte

Bit

Field

Bit

Bit

Byte

Bit

Which in addition some parts can be assumed as another same meaning, such as :

Replace File with Table

Replace Field with Column

Every record in a file should contain at least one field that uniquely identifies that record so that the record can be
retrieved, updated, and sorted, which this kind of field is called as the primary key, for example: every
student in university has a different number of student number. And also there are Secondary keys that are
other fields that have some identifying information, for example: every students has a last name that might be
same with other students.
Also in Storing and accessing records, there are 2 ways of accessing method, they are:

1. Indexed sequential access method (ISAM) that uses an index of key fields to locate individual
records
2. Direct file access method that uses the key field to locate the physical address of a record.

5.2 The Traditional File Environment

Over time, organizations developed many applications, each with an associated, application-specific data file. For
example: a university has many kind of application, which every administration need has their own specific
application, such as an application involving students, that including registration, fee payment, grades, and others.
Whereas, in a file management environment, each of these applications has a specific data file related to it, and this
kind of approach is considered as traditional approach or also can be called as approach 1.
There are some problems related to this traditional approach, such as :
1. Data redundancy which this problem caused a duplication of the same piece of information in a several
places, for example in university there will be a data that contain records about students whom will be also
represented in other data files.
2. Data inconsistency means that the various copies of the data is no longer agreed.
3. Data isolation which means that file organization also leads to difficulty in accessing data from different
applications.

5.3 The Modern Approach of Databases

Unlike the traditional approach, in which different programs access the different data files, the database is arranged
so that one set of software programs (called as Database Management System or DBMS) provides access to all the
data. So finally those problems such as data redundancy, inconsistency, and isolation are minimized and the security
and data integrity will be increased.
The modern approach or also considered as approach 2 has some points, such as :
1. One file consists more than one tables
2. One table can used in many files
3. Table = collection of records

5.4 Database Management System

The software program that provides access to a database is known as DBMS, which DBMS permits an organization
to store data in one location from which it can be updated and retrieved. There are four main components in DBMS:
the data model, data definition language, data dictionary, and data manipulation
language (DML)

Also, many people are confused the different between database and DBMS, heres a different between it
Database
Collection of file
Using one name

DBMS
Database Management System (the Software)
A SOFTWARE to manage database ex: Ms.
Word
Users INSTALL DBMS
The managing one

Users CREATE database

The managed ones

DBMS bring many advantages to the organization, such as: improved strategic use of corporate
data, improved security, enhanced data integrity, and etc.

5.5 Logical Data Models

There are 3 most common data models: hierarchical, network, and relational. Using these models,
database designers can build logical or conceptual views of data that can then be physically implemented into
virtually any database with any DBMS.

Hierarchical Database Model rigidly structures data into an inverted tree in which records contain a key
field and a number of other fields. All records have only one parent and each parent may have many children.
This structure characterized by one to many relationships among data.
In Network Model records can be linked to more than one parent, allowing many-to-many relationship among
the data.
And the Relational Model uses tables to capitalize on characteristics of rows and columns of data that are
consistent with real world business situations.
Hierarchical and Network
Database Model

Relational Database

Advantage
Processing Efficiency,
which means that database
model relatively easy for users
to understand because they
reflect the pattern of many real
world business relationships.
High Flexibility in regard
to ad hoc queries, power to
combine information from
different sources,
simplicity of design and
maintenance.

Disadvantage
Have low flexibility,
time-consuming,
difficult to install,
difficult to remedy if
design errors occur.
They are relatively low
processing efficiency.

5.6 Data Warehouse

Data warehousing approaches can range from simple, the data mart, to complex, the enterprise data warehouse.
These approaches differ in scale and complexity. A data mart is a scaled won version or a data warehouse that
focuses on a business requirement of a specific department or business process. The enterprise data
warehouse provides an enterprise wide, consistent, and comprehensive view of the company with business users
employing common terminology and data standards throughout the firm.

CHAPTER 6
By : Cornelius Susanto / 016201200005 / IR 2

6.1 The Telecommunication System

Telecommunications systems are composed of computers (both client on the desktop and host computers, such
as servers and mainframes), communications processors, communications media, and
communications software.
There are five basic types of communications media. Those media are:

Twisted-pair wire
Coaxial cable
Fiber optic cable
Microwave
Satellite transmission

Hardware
Level

CO M PUTER

1.
2.
3.
4.
5.

Cable Media

Broadcast
Media
Hierarchy
of Computer and Host

HOST
HOST

Software
Level

HOST

6.2 Network
Network Categorization

Networ
k

Networ
k

Networ
k

Public

Global

Wired

Private

Local

Wirele
ss

Network can be also categorized into more than categorization, such as public and global, private and
local, and so on. For example: Internet is a public and global network because it can be used by many
people and its available for people from around the world. But Wifi network isnt a global, its a local
network even its a public network, because it can only used in specific areas.
Heres some list of network hardware:
1.
2.
3.
4.

Antenna
Bluetooth hardware
SIM Card
Cellphone

5.
6.
7.
8.

Tablet
Telephone
Access Point
Router

9. Switch
10. Network Wire
11. Network Board

12.

13. 6.3 Network Communications Software

14. Communications software provides many functions in a network, including message formatting, error checking,
data security and privacy, and etc.
15. These functions are performed by various parts of network communications software which inludes:
16.
17. Network Operating Systems is systems software that controls the hardware devices, software, and
communications media and channels across a network.
18. Network Management Software reduce time spent on routine tasks, such as remote, electronic installation of
new software, and etc.
19. Protocol is a set of rules and procedures governing transmission across a network, and it works in a formal way.
20. Whereas, protocol has stacks that refer to some points, they are:

Collection of protocols in several layers

Several layers (stacks)
Several protocols in the same layer dont constitute a protocol stack

21. Finally protocols are made in layers because it is too complex if protocols are in one layer.
22.

The 7 layer of OPI Model

23.

Application Layer
Transport Layer

Software
Layers

Network Layer
Data Link Layer
Physical Layer
24.

Hardware
Layers

25. Chapter 7
26. THE INTERNET AND INTRANETS
27. By : Sharen Nataha Putri / 016201200039/ IR 2
28.
29.

A.WHAT IS THE INTERNET

30.
The internet is largest computer network in the world ( a network ofnetwrks),
connecting millions of computers to exchange information seamlessly by open, nonpropretary standards and protocols. A network is a group of two or more computer
systems linked togethers.
31.

B. THE EVOLUTION OF THE INTERNET

32.
The Internet in frist time called ARPANET in 1969. ARPANET originally linked a
lagrgely technical audience composed of the military, government agencies, and
academic research and scientist. Original ARPANET split into two networks in early 1980
(ARPANET and milnet)
33.

1. The internet today

34.
The number of computers and networks connected to the internet continues to
grow rapidly. In the early days, most people just used the internet to search for
information. Todays internet is a constantly envolving tool, that not only contains an
amazing variety of information, but also provides new ways of accessing, interacting and
connecting with people and content. As a result, new terms are constantly appearing as
new tochnologies are introduced.
35.

2. The infrastructure of the Internet

36.
The infrastructure of the Internet is supplied by network service providers, such
as UUNET, and MCI WorldCom company, GTE Internetworking, sprint, and others.
Businesses and individual subscribers connect to the internet through these and other
smaller Internet service providers.Backbone providers charge customers for various
combinations of bandwidth, traffic, and access time.
37.
Backbone providers must be connected to oe another and to access providers,
and this is done over banckbone network.
38.

C. THE OPERATION OF THE INTERNET

39.
The set of rues used to send and receive pakets from one machine to another
over the internet is known as the internet protocol (IP). Best known of which is the
transport control protocol (TCP). IP and TCP are commonly used together that they
are referred to as the TCP/IP.
40.

1. Addresses on the Internet

41.
Each computer on the internet has an assigned address, called the IP address,
that uniquely identifies it from the other computers. The IP numbers have four parts,
separated by dots. For example, the IP address on one computer may be 125.62.128.91.
42. Easier peope to remember IP addresses. These names are derived from naming system
called the domain name system (DNS).
43.

2. accessing the Internet

44.

There are three main ways to connect to the Internet :

via LAN server,

connecting via SLIP/PPP,
connecting via an online service.

45.
46.

D. SERVICES PROVIDED BY INTERNET

Communications services
Information retrieval
and the World Wide Web.

47.
48.

E. THE WORLD WIDE WEB

49.

Browser
Offline Browserr
search Engines
Push Technology
Information filters
Clipping services
Personalized Web Services
Collaborative filtering
Web Authoring

F. INTERNET CHALLENGES

New Technologies
Internet Regulation
Internet Expansion
Internet Privacy

50.
51.
52.

G. INTRANETS

53.
An internet is a private network that uses Internet software and TCP/IP protocols.
In essence, an internet is a private Internet, or group of private segments of the public

Internet network, reserved for use bt people who havee been given the authority to use
that network.
a Team
ware
is an add- on to group ware, used for team building, sharing ideas and documents,
brainstorming, scheduling, and archiving decisions to facilitate productivity. Intranets
present an alternative to existng groupware products such as Lotus Notes.
b Security
with this number and variety of applications, intranet security is critically important.
Companies can prevent unwanted intrusion into their intranets in several ways.Public
key security is used to broker authorization to enter into a privete internet. Another
important way for companies to protect their intranets is with the use of firewalls. A
firewalls is device located between a firms internal network and external networks.
54.
55.
56.
57.

58. Chapter 8
59. INTERORGANIZATION AND GLOBAL INFORMATION
SYSTEMS
60. By : Sharen Nataha Putri / 016201200039/ IR 2
61.
62.

A.INTERORGANIZATIONAL INFORMATION SYSTEMS

63.
An interorganizational information system (IOS) involves information flow
among two or more organization.

Interorganixational systems response to business pressures

a Reduce the costs of routine business transactions
b Improve the quality of the information flow by reducing or eliminating errors
c Compress cycle time in the fulfillment of business transactions, regardless of
geographical distance
d Eliminate paper processing and its associated inefficiencies and costs
e Make the transfer and processing of information easy for users.
Types of Interorganizational systems
64.
Types of Interorganizational systems include a variety of business
activities, form data interchange to messaging services to funds transfer.
a Global system * information systems connecting two or more companies in two
or more countries.
b Electronic data interchange (EDI) * the electronic movement of business
documents between business partners.

c Electronic funds transfer (EFT) * the transfer of money using telecommunication

network
d Extranets * extended intranets that link business partners
e Share databases * databases that can be shared by trading partners, often used
to reduce time in communicating information between parties as well as
arranging coperative activities
f Intergrated messanging * delivery of electronic mail and fax documents through
a single transmission system that can combine electronic mail and electronic
business documents.
65. B. ELECTRONIC DATA INTERCHANGE (EDI) AND ELECTRONIC FUNDS TRANSFER
(EFT)
66.
Two major mechanisms for supporting IOSs are electronic data intercharge and
electronic funds transfer. Both have been in use since the 1970s, greatly facilitating
electronic transfer of data among organizations.
1 EDI and Interorganizational systems
Electronic and data interchage (EDI)
can be defined as a process of electronically moving specially formatted standard
business document, such as order, bill, and confirmation, between business partners.
The Element of EDI
EDI is used primarily to electronically transfer repetitive business messages. These
include purchase orders, invoices, approvals of credit, shippingnitices, confirmations,
and so on.
Data Formatting Standards
Since EDI messages are repetitive, it is sensible to use some formatting standards.
Standards can shorten the lenght of the the messages, reducing long distance
telephone charges and elimiting data entry errors, since data must fit the format. Also,
because standards are understood by everyone in the organization, they make it easier
to detect error.
EDI translator
An EDI translator converts data into the standard format.
Network: private lines versus the EDI/Internet
67.
2 Electronic funds transfer (EFT) and Interorganizational systems
68.
Electronic funds transfer (EFT) refer to transfer money to and from financial
institutions using telecommunication networks. Electronic funds transfer is now widelyused with funds, debits and credits, and chargers and payments electronically routed
among banks and between banks and customers.
69.
70.

C. EXTRANETS

EXTRANETS enable people who are located outside a company to work together with
the companys internally located employees. Although extranets continue to evolve,
they are generally understood to be networks that link business partners to one another
over the internet by providing access to certain areas of each others corporate intranets.