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Adapted from James A. Senn’sInformation Technology, 3rd Edition

Chapter 1

Information Technology: Principles, Practices, and

Opportunities

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Objectives

• Describe the characteristics of the Information Age and discuss the role of information technology as the principal tool of the Information Age.

• Explain the primary components of information technology.

• Identify the information-handling functions and the benefits of information technology.

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Objectives

• Summarize the principles of business reengineering, while emphasizing the potential benefits to people and business.

• Discuss the types of opportunities that information technology offers to people.

• Describe the responsibilities of people who use information technology.

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Welcome to the Information Age The Evolution of the Information Age: Typical Example, USA

• Agricultural Age: The period up to the 1800s, when the majority of workers were farmers whose lives revolved around agriculture.

• Industrial Age: The period from the 1800s to 1957, when work processes were simplified through mechanization and automation.

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Welcome to the Information Age The Evolution of the Information Age : Typical Example, USA (Continued)

• Information Age: The period that began in 1957, in which the majority of workers are involved in the creation, distribution, and application of information.– Knowledge Workers: Workers involved in the

creation, distribution, and application of information.

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Welcome to the Information AgeThe Evolution of the Information Age: Typical Example, USA (Continued)

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Welcome to the Information AgeThe Characteristics of the Information Age (Continued)

• An information-based society has arisen.– Information Society: A society in which more

people work at handling information than at agriculture and manufacturing combined.

• Businesses depend on information technology to get their work done.

WHY?

What has caused this?

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Welcome to the Information AgeThe Characteristics of the Information Age (Continued)

What happened?

Information and knowledge became assets.

Those assets require:

Generation/development

Management (how to distribute, assign quality/quantity …etc)

Storage

Sell/buy

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Welcome to the Information AgeThe Characteristics of the Information Age (Continued)

• Work processes are being transformed to increase productivity.– Work Processes: The combination of activities

that workers perform, the way they perform those activities, and the tools they use.

– Productivity: The relationship between the results of an activity (output) and the resources used to create those results (inputs).

– Effectiveness: The extent to which desirable results are achieved.

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Welcome to the Information AgeThe Characteristics of the Information Age : Typical Example, USA (Continued)

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• Information technology provides the means to rethink/recreate/reengineer conventional business processes.

– Reengineering: The reshaping of business processes to remove barriers that prohibit an organization from providing better products and services and to help the organization capitalize on its strengths.

– Business Processes: Collections of activities, often spanning several departments, that take one or more kinds of input and create a result that is of value to a company’s customers.

Welcome to the Information AgeThe Characteristics of the Information Age (Continued)

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Welcome to the Information AgeThe Characteristics of the Information Age (Continued)

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• Success in business is largely determined by the effectiveness with which information technology is used.

• Information technology is embedded in many products and services.

Welcome to the Information AgeThe Characteristics of the Information Age

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• Reengineering efforts to attain greater productivity:– Industrial Age - Division of Labor: Separation

of work process into component task, with different workers specializing in each of the tasks.

– Information Age – Teamwork, Interconnection, and Shared Information.

Welcome to the Information AgeThe Characteristics of the Information Age (Continued)

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Welcome to the Information AgeThe Characteristics of the Information Age (Continued)

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Turkey

• In 2003 IT market is $10.3b• 2007 $21.7b• Recent figure belongs to 2008

– roughly around $26b– 79% is telecommunication

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What is happening in Turkey, on the government side?

• www.bilgitoplumu.gov.tr - Bilgi Toplumu Dairesi, 2003• Bilişim ve Ekonomik Modernizasyonu, 1993• Türkiye Ulusal Enformasyon Altyapısı Anaplanı (TUENA)

– Ulaştırma Bakanlığı + TÜBİTAK, 1999• e-Ticaret Koordinasyon Kurulu by Dış Ticaret

Müsteşarlığı, 1998-2002• KamuNET, 1998-2002• e-Türkiye Girişimi, 2001• e-DÖNÜŞÜM TÜRKİYE, 2003

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What is Information Technology?Definition

• A term used to refer to a wide variety of items and abilities used in the creation, storage, and dispersal of data and information. Its three main components are computers, communications networks, and know-how.

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What is Information Technology?Definition (Continued)

• Data: Raw facts, figures, and details; the values physically recorded in the system.

• Information: An organized, meaningful, and useful interpretation of data; the meaning of those values as understood by some user of the system.

• Knowledge: An awareness and understanding of a set of information and how that information can be put to the best use.

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What is Information Technology?Definition (Continued)

From Bellinger et al

20 customers bought bread, 10 of them asked butter – Data

30 was expected and also we don’t have butter – Information

Next door sells both of them with promotion and runs better business – Knowledge

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What is Information Technology?Definition (Continued)

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What is Information Technology? Computers

• An electronic system that can be instructed to accept, process, store, and present data and information.

• Computers come in four sizes:– Microcomputers– Midrange computers– Mainframes– Supercomputers

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What is Information Technology? Computers (Continued)

• Microcomputers: A relatively compact type of computer, the most common of all, easily outsells all other types of computers annually for use in business and at home.

• Five types of Microcomputers:– Desktop Computers– Notebook Computers/Laptop Computers– Tablet PCs– Personal Digital Assistants– Palm PCs

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What is Information Technology? Computers (Continued)

• Midrange computers and Mainframes: A computer uses to interconnect people and large sets of information. More powerful than a microcomputer, the minicomputer is usually dedicated to performing specific functions.

• Supercomputers: The most powerful of all computers, supercomputers were designed to solve problems consisting of long and difficult calculations.

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What is Information Technology? Computers (Continued)

• Hardware: The computer and its associated equipment.

• Program: A set of instructions that directs a computer to perform certain tasks and produce certain results.

• Software: The general term for a set of instructions that controls a computer or a communications network.

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What is Information Technology? Computers (Continued)

• System: A set of components that interact to accomplish a purpose.

• Information System: A business information system designed to produce the information needed for successful management of a structured problem, process, department, or business.

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What is Information Technology? Computers (Continued)

System Input Processing Output Goal

Fast Foodrestaurant

Food,labourDrinksMgmt

CookingServingHeating

ChipsDrinksHmbrgrs

Quicklypreparedfoodprofit

Bicycleassembly

FrameParts

WeldingAssemblyPainting

Bicycles Qualitybicycles

Movie Actors,directorsets etc

Acting, filmingEditing

FinishedFilm

Good reviewsProfits

System: A set of components that interact to accomplish a purpose (input – process – output)

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What is Information Technology? Computers (Continued)

• Information System: A business information system designed to produce the information needed for successful management of a structured problem, process, department, or business.

• input: data – the values physically recorded in the system

• output: information – the meaning of those values as understood by some user

• process: a set of logically related tasks performed to achieve a defined outcome

• objective: to further the goals of the organisation within which it functions, by transforming the data into information that is useful to the organization

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What is Information Technology? Computers (Computers)

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What is Information Technology? Communications Networks

• Communication: The sending and receiving of data and information over a communications network.

• Communications Network: A set of locations, or nodes, consisting of hardware, programs, and information linked together as a system that transmits and receives data and information.

• Data Communication: The transmission of data and information through a communications medium.

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What is Information Technology? Know-How

• The capability to do something well.

• Information technology know-how consists of:– Familiarity with the tools of IT; including the

Internet– Possession of the skills needed to use these

tools– An understanding of when to use IT to solve a

problem or create an opportunity

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The Principles of Information TechnologyThe Functions of Information Technology

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• Capture: The process of compiling detailed records of activities.

• Processing: The process of converting, analyzing, computing, and synthesizing all forms of data or information.– Data Processing– Information Processing– Word Processing– Image Processing– Voice Processing

The Principles of Information TechnologyThe Functions of Information Technology(Continued)

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• Generation: The process of organizing information into a useful form, whether as numbers, text, sound, or visual image.

• Storage and Retrieval: Storage is the computer process of retaining information for future use. Retrieval is the process by which a computer locates and copies stored data or information for further processing or for transmission to another user.

The Principles of Information TechnologyThe Functions of Information Technology(Continued)

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• Transmission: The computer process of distributing information over a communications network.– Electronic Mail, or E-Mail– Voice Messaging, or Voice Mail

The Principles of Information TechnologyThe Functions of Information Technology(Continued)

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The Principles of Information TechnologyThe Benefits of Information Technology

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• Helping People

• Solving Problems– Problem: A perceived difference between an

existing condition and a desired condition.– Problem Solving: The process of recognizing a

problem, identifying alternatives for solving it, and successfully implementing the chosen solution.

The Principles of Information TechnologyThe Opportunities of Information Technology

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The Principles of Information TechnologyInformation Technology Is All Around Us,Improving Our Lives

• Television

• Education

• Training

• Entertainment

• Shipping

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• Paperwork

• Money and Investments

• Agriculture

• Taxation and Accounting

• Health and Medicine

The Principles of Information TechnologyInformation Technology Is All Around Us, Improving Our Lives (Continued)

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• Manufacturing

• Journalism

• Energy

• Sports

The Principles of Information TechnologyInformation Technology Is All Around Us, Improving Our Lives (Continued)

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The Principles of Information TechnologyThe Responsibilities of Using Information Technology

• To be Informed

• To Make Proper Use of IT

• To Safeguard