ITISA1 - Introduction to Information

Systems (Week 1-3 Summary)

Week 1: Information Systems Foundations
- Key management responsibilities: managers identify and use IS for competitive advantage.
- Leavitt’s Diamond Model: four components (People, Technology, Processes, Structure).
- Types of IS: Personal, Workgroup, Enterprise, Interorganizational.
- Value Chain: inbound logistics → operations → outbound logistics → marketing & sales → services.
- Strategic Planning: identifies initiatives to achieve objectives; provides direction, proactive
communication.
- IS Careers: skills in data analysis, programming, cloud, security, project management, networking.
- Roles: CIO, Software Developer, Security Analyst, Systems Analyst, Programmer, Web Developer,
Business Analyst.
- Certifications: Cloud (AWS, Azure, Google Cloud), Cybersecurity (CompTIA, CEH, CISSP).
- Networks: Fundamentals, Topology (Star, Bus, Mesh), Types (PAN, LAN, MAN, WAN).
- Internet: WWW, TCP/IP, IP & MAC addresses, routing, client-server model, HTML/XML/CSS.
- Cloud Computing: Public, Private, Hybrid clouds; IaaS, PaaS, SaaS.
- IoT: Sensors, smart cities, autonomous vehicles; benefits include reduced costs, improved service &
safety.

Week 2: E-Commerce and M-Commerce

- E-Commerce: conducting business electronically over networks.
- Types: B2B, B2C, C2C, M-Commerce.
- E-Government: improves citizen & government interaction (G2C, G2B, G2G).
- Advantages: reach new customers, reduce costs, speed goods/information, improve accuracy &
service.
- Multistage Model: search, select, purchase, deliver, after-sales.
- Social Media Commerce: sales via Facebook, Twitter, Instagram, etc.
- Challenges: consumer privacy, trust, global issues (culture, law, currency).
- Applications: wholesale, manufacturing, marketing, banking, online shopping.
- Strategies: effective websites must be easy, secure, affordable.
- Infrastructure: reliable hardware, scalable servers, e-commerce software (catalogs, carts,
payments).
- Payment Systems: TLS, electronic cash, credit/debit/smart cards, certificates, verification systems.

Week 3: Enterprise & Transaction Systems

- Enterprise Systems: central for managing all functions; includes ERP, SCM, CRM, PLM.
- ERP: integrates business processes; benefits include improved decisions, cost savings,
standardization.
- SCM: plans raw materials, warehousing, delivery; activities include forecasting, scheduling,
production.
- CRM: manages customer interactions; features: contact management, sales, support, marketing
automation.
- PLM: manages product info across lifecycle; tools include CAD, CAE, CAM.
- Transaction Processing Systems (TPS): record day-to-day activities; methods: batch & OLTP.
- TPS Cycle: data collection, editing, correction, processing, storage, reporting.
- Importance: mission-critical, avoids fraud, ensures data accuracy, improves service &
competitiveness.
- Implementation Challenges: need training, executive support, avoiding scope creep, managing
risks.

Key Diagrams and Tables

Comparison of B2B, B2C, and C2C
Factor B2B B2C C2C Typical Length of
Value of Sales
Sale Process

Overview Large- Moderate Simple, Thousands Months /

scale, complexity, one-off or millions Weeks /
complex customized transactions of dollars / Days
processes products Tens-
hundreds
of dollars /
Tens of
dollars

Multistage Model for E-Commerce

The multistage model shows the flow of an online purchase:
1. Search and identification
2. Selection and negotiation
3. Purchasing
4. Product and service delivery
5. After-sales service
It highlights both electronic distribution and traditional delivery.

Value Chain Model

The Value Chain outlines key activities for competitive advantage:
- Inbound logistics
- Operations
- Outbound logistics
- Marketing & sales
- Services
Supported by: technology infrastructure, HR management, accounting & finance, procurement.

Product Lifecycle Management (PLM)

PLM supports the product lifecycle:
1. Concept development
2. Product design
3. Prototype & test
4. Process design
5. Production & assembly
6. Delivery & installation
7. Service & support
8. Retire & replace

Electronic Payment Systems Comparison

Payment System Description Advantages Disadvantages

Credit Card Spending limit User can pay Accumulates

based on user’s all/part; builds interest charges;
credit history credit history unpaid balance
risk

Charge Card Similar to credit No interest Full balance must

card but no preset charges; must be paid monthly
spending limit pay in full

Debit Card Linked directly to Operates like Funds deducted

user’s bank cash or personal immediately
account check

Smart Card Embedded More secure; Adoption is

microchip stores encrypted data; slower; less
cardholder data less misuse risk common in some
regions

Practice Questions and Activities

Week 1
1. Draw three examples of physical network topologies and explain how each works.
2. Discuss the role of network-management software including mobile device management software.
3. Discuss how Web 2.0 differs from Web 1.0.
4. In what ways has the internet changed the ways that businesses operate?

Week 2
1. Discuss the advantages and disadvantages of E-commerce and M-commerce.
2. What is identity theft? Provide several tips for online shoppers to avoid identity theft.
3. Explain different types of E-commerce (EC) and M-commerce (MC) with respect to customers and
vendors.
4. What is a web server? What data is held in a web server in the context of EC?
5. Identify three key challenges organizations must overcome to convert from traditional to e-
commerce processes.
6. Visit a social media platform of your choice and analyze how businesses make their sales. What
are the benefits of social media commerce compared to general e-commerce platforms?

Week 3
1. What is the goal of a customer relationship management (CRM) system? Discuss the benefits
of CRM software.
2. Describe product lifecycle management (PLM) software and identify the type of data stored
in such a system.
3. Determine the risk that an ERP implementation project will fail. What organizational
characteristics will you focus on?
4. Many ERP benefits come from the implementation and change process. How can updating
and integrating processes provide benefits? Give examples.
5. Assume you own a bicycle sales and repair shop. Identify the customer information your
CRM should capture. How might this data improve service or revenue? Where would you
capture it?

ITISA1 - Quick Revision Cheat Sheet

(Weeks 1–3)
Use this for last-minute test prep. Focuses on key definitions, models, and lists.

Week 1 Essentials
- Leavitt’s Diamond: People, Technology, Processes, Structure.
- Types of IS: Personal, Workgroup, Enterprise, Interorganizational.
- Value Chain: Inbound logistics → Operations → Outbound logistics → Marketing & sales →
Services.
- Networks:
Star = central hub, Bus = single backbone, Mesh = all connected.
- Internet Basics: TCP/IP, IP & MAC addresses, Client-Server model.
- Cloud Models: Public, Private, Hybrid; Services = IaaS, PaaS, SaaS.
- IoT: Sensors, smart cities, vehicles → Benefits: cost savings, safety, efficiency.
Week 2 Essentials
- E-Commerce Types:
B2B (businesses), B2C (consumers), C2C (consumers), M-Commerce (mobile).
- E-Government: G2C, G2B, G2G.
- Advantages: reach, cost reduction, speed, accuracy, service.
- Multistage Model: Search → Select → Purchase → Deliver → After-sales.
- Challenges: privacy, trust, culture, legal, currency.
- Social Media Commerce: direct sales via Facebook/Instagram/Twitter.
- Payment Systems:
Credit Card (borrow + interest), Debit Card (direct funds), Smart Card (chip, secure).

Week 3 Essentials
- Enterprise Systems: ERP, SCM, CRM, PLM.
- ERP: integrates processes; benefits = efficiency, cost savings.
- SCM: forecasting, scheduling, production, delivery.
- CRM: contact mgmt, sales, support, marketing automation.
- PLM: product info lifecycle (concept → retire).
- TPS: record daily operations (batch vs OLTP).
- TPS Cycle: Data collection → Editing → Correction → Processing → Storage → Reporting.

Introduction to Information Systems

Information Systems (IS) are foundational tools that enable organizations to collect, store, analyze,
and share information across various domains. These systems drive everything from online retail and
collaborative workspaces to financial oversight, manufacturing, and healthcare delivery. At their core,
IS process raw data—like numbers, images, and video—to generate meaningful insights tailored to
specific contexts.

Types of Information Systems

• Personal IS – Designed for individual productivity, offering tools like Word and Excel.
• Group IS – Facilitate team collaboration via platforms such as Microsoft Teams.
• Enterprise IS – Provide organization-wide management, following standardized structures and
protocols.

Successful implementation of IS requires skilled personnel, reliable support systems, motivated

teams, redesigned business processes, and robust access controls.

Examples of Information Systems

• Eduvos LMS: Student authentication, enrolment, and record management.
 • Takealot: Supplier and customer payment/delivery data.
• Hospitals: Patient records, appointment scheduling, and medical histories.

Information Technology Concepts

Hardware includes devices for input, processing, storage, and output, while software encompasses
both applications and operating systems. Databases organize complex collections of files, enabling
efficient data management. Networks connect devices, facilitating communication and resource
sharing.

Cloud Computing
Cloud computing refers to the delivery of software and storage through online services, with models
that include:

• Public Cloud (e.g., Google Drive)

• Private Cloud (exclusive use within an organization)
• Hybrid Cloud (combining public and private models)

Planning, Acquisition, and Development of Systems

• Off-the-Shelf Solutions: Ready-made software like MS Office or FIFA.
• Custom Solutions: Internally developed systems tailored to organizational needs (e.g., Eduvos
LMS on Moodle).
• Software-as-a-Service (SaaS): Subscription-based services such as Netflix or PlayStation
Plus.

Information Systems in Business & Society

• Cybercriminals: Target systems for financial gain.
• Cyberterrorism: Attack infrastructure for ideological motives.
• Internet Censorship: Restricts and controls user access.
• Digital Divide: Highlights ICT access disparities.
• Ethics: Addresses moral standards and conduct in digital environments.
• Net Neutrality: Ensures equal treatment of internet traffic by ISPs.

Networks and the Internet

Computer networks comprise various media, devices, and software. Common topologies include star,
bus, and mesh configurations. Access is provided by ISPs (e.g., Telkom), and each site is identified
by a unique URL and IP address. The internet backbone supports global connectivity, while tools like
HTML define page structure for browsers such as Chrome, Firefox, Edge, and Safari. Search engines
help locate information, with SEO practices improving site visibility.
Internet of Things (IoT) & Internet of Everything (IoE)
IoT connects physical objects with sensors and software for seamless data exchange—examples
include smart homes and automated factories. IoE expands this concept, encompassing interactions
between machines, people, and their combinations.

Cloud Computing Models

Cloud computing offers a variety of services:

• Public Cloud: Google Calendar, Salesforce.

• Private Cloud: Internal organizational use.
• Hybrid Cloud: Mixed deployment.

Key service types include Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and
Software as a Service (SaaS)—delivering platforms like Google Workspace and Netflix.

E-Commerce & Mobile Commerce (M-Commerce)

E-commerce encompasses business activities conducted electronically. Types include:

• B2B: Business-to-business transactions (e.g., Nike to Total Sports).

• B2C: Business-to-consumer sales (e.g., Takealot to buyer).
• C2C: Consumer-to-consumer exchanges (e.g., Gumtree, OLX).

E-government sectors include G2C (citizen services), G2B (business compliance), and G2G (agency
data sharing). Key advantages are a broader customer base, quicker transactions, reduced costs,
and enhanced service quality. The sales cycle covers awareness, purchase, and aftersales support.
Market segmentation and mobile advertising help target audiences more effectively.

E-Commerce Strategies & Challenges

Success in e-commerce depends on compelling content, effective commerce mechanisms, and
active communities. Storefront brokers like Shopify and Magento support online stores. Traffic
generation relies on meta tags, keywords, updates, and backlinks, while infrastructure needs include
secure web servers and fast connections. Security is maintained via TLS encryption, and payment
systems support a range of card types. Social commerce occurs on platforms like Facebook and
TikTok. Challenges include privacy, security, consumer trust, and global issues like culture, language,
legal frameworks, currency, and infrastructure.

Transaction Processing Systems (TPS)

TPS underpin routine operations such as order fulfillment, payroll, billing, and accounting. Online
Transaction Processing (OLTP) enables real-time data handling, while batch processing aggregates
data for scheduled intervals. Key benefits are stronger supplier relationships, cost savings, improved
loyalty, and enhanced data quality. Objectives focus on accurate data capture, fraud prevention, labor
efficiency, and timely reporting. Core activities include collection, editing, correction, processing,
storage, and report generation.

Enterprise Systems
Enterprise Resource Planning (ERP) integrates business functions across the organization,
supporting strategic decision-making and eliminating outdated legacy systems. Benefits include
standardized technology, streamlined workflows, and optimized processes. Examples are SAP,
Oracle, and Mie Trak PRO. Subsidiary systems include:

• Supply Chain Management (SCM): Manages sourcing, production, and delivery.

• Customer Relationship Management (CRM): Oversees marketing, sales, service, and
accounting.
• Product Lifecycle Management (PLM): Tracks products from inception to retirement,
accelerating time-to-market, reducing costs, and ensuring regulatory compliance.

Key Takeaways
Information Systems facilitate communication, commerce, healthcare, education, and governance.
Core IT concepts include hardware, software, databases, networking, and cloud technologies. IS help
organizations prevent cybercrime, bridge the digital divide, uphold ethical standards, and support net
neutrality. E-commerce spans multiple sectors, while TPS provide operational support and ERP
delivers comprehensive integration. The future is connected through IoT and IoE, shaping a global
society.