The lecture notes on Management Information Systems (MIS) provide an in-depth understanding of the role of information systems in modern organizations. The notes cover a range of topics, including the basics of information systems, the types of information systems, the role of information systems in decision-making, and the impact of information systems on organizational performance. The notes begin by introducing the concept of information systems and their importance in modern organizations. They then cover the different types of information systems, including transaction processing systems, management information systems, decision support systems, and executive information systems. The notes also discuss the role of information systems in decision-making, including the use of data analytics and business intelligence tools. The lecture notes also cover the impact of information systems on organizational performance. This includes the benefits of information systems, such as increased efficiency, improved decision-making, and enhanced communication. The notes also discuss the challenges of implementing information systems, such as the need for training and support, and the potential for security breaches. Throughout the lecture notes, real-world examples and case studies are used to illustrate the concepts and theories discussed. This helps students to understand how information systems are used in practice and how they can be applied in different organizational contexts. Overall, the lecture notes on Management Information Systems provide a comprehensive overview of the role of information systems in modern organizations. They are an essential resource for students studying business, management, and information technology, as well as for professionals looking to enhance their knowledge and skills in this area.

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MIS Lecture Notes for MBA students
By Yihune Ephrem Kassahun
Chapter One
THE ROLE OF INFORMATION SYSTEMS
IN BUSINESS TODAY
An information system is a set of interconnected components that work together to
collect, process, store, and disseminate information to support decision-making,
coordination, control, analysis, and visualization in an organization.
An information system can be composed of hardware, software, data, people, and
procedures. The hardware includes computers, servers, networks, and other devices that
are used to process and store data. The software includes applications, operating systems,
and other programs that are used to manage and manipulate data. The data includes all
the information that is collected, stored, and processed by the system. The people include
the users, managers, and other stakeholders who interact with the system. The
procedures include the rules, policies, and processes that govern how the system is used
and managed.
Information systems can be classified into different types based on their purpose and
scope. Some common types of information systems include transaction processing
systems, management information systems, decision support systems, expert systems,
and executive information systems.
Overall, information systems are essential tools for organizations to manage and leverage
information to achieve their goals and objectives. They help organizations to improve

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efficiency, effectiveness, and competitiveness by providing timely, accurate, and relevant
information to support decision-making and other business processes.
Information systems (IS) play a critical role in business today. They are used to manage
and process data, support decision-making, and improve business operations. Here are
some of the key roles that information systems play in business:
1. Data management: Information systems are used to manage and process data,
including customer information, sales data, inventory data, and financial data. This data
can be used to support decision-making and improve business operations.
2. Decision-making: Information systems provide decision-makers with the data and
information they need to make informed decisions. This includes data on sales, customer
behavior, market trends, and more.
3. Communication and collaboration: Information systems enable communication and
collaboration between employees, customers, and suppliers. This can include email,
instant messaging, video conferencing, and other tools.
4. Automation: Information systems can automate many business processes, including
inventory management, order processing, and accounting. This can help to improve
efficiency and reduce errors.
5. Competitive advantage: Information systems can provide businesses with a
competitive advantage by enabling them to make better decisions, improve operations,
and respond more quickly to changes in the market.
Overall, information systems are essential to the success of businesses today. They enable
businesses to manage and process data, support decision-making, and improve
operations, which can help to drive growth and profitability.

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Business Transformation Vs Information Systems
Business transformation and information systems are closely related, but they are not the
same thing. Business transformation refers to the process of fundamentally changing the
way a business operates in order to achieve new goals or objectives. This can involve
changes to the business model, organizational structure, processes, and culture.
Information systems, on the other hand, are the tools and technologies that businesses
use to manage and process data, support decision-making, and improve operations.
Information systems can play a critical role in business transformation by enabling
businesses to collect and analyze data, automate processes, and support new business
models.
Here are some of the key differences between business transformation and information
systems:
1. Scope: Business transformation involves a broad range of changes to the business,
while information systems are focused on the tools and technologies used to manage and
process data.
2. Goals: Business transformation is focused on achieving new goals or objectives, while
information systems are focused on supporting existing goals and objectives.
3. Timeframe: Business transformation is typically a long-term process that can take years
to complete, while information systems can be implemented relatively quickly.
4. Complexity: Business transformation can be a complex process that involves changes
to multiple areas of the business, while information systems are typically more
straightforward to implement.
Overall, while business transformation and information systems are closely related, they
are not the same thing. Information systems can play a critical role in supporting business
transformation, but they are just one part of the broader process of transforming a
business.

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PERSPECTIVES ON INFORMATION SYSTEMS
Information systems and its components
Information systems (IS) are composed of several components that work together to
manage and process data, support decision-making, and improve business operations.
Here are the main components of an information system:
1. Hardware: This includes the physical components of the system, such as computers,
servers, and other devices.
2. Software: This includes the programs and applications that run on the hardware, such
as operating systems, databases, and productivity software.
3. Data: This includes the information that is stored and processed by the system, such as
customer data, sales data, and financial data.
4. Procedures: This includes the rules and procedures that govern how the system is used,
such as data entry procedures, backup procedures, and security procedures.
5. People: This includes the individuals who use and manage the system, such as IT staff,
end-users, and managers.
6. Networks: This includes the communication networks that connect the hardware and
software components of the system, such as local area networks (LANs) and wide area
networks (WANs).
Together, these components work together to enable businesses to manage and process
data, support decision-making, and improve operations. By leveraging information
systems, businesses can gain a competitive advantage by making better decisions,
improving efficiency, and responding more quickly to changes in the market.

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Dimensions of Information Systems
There are several dimensions of information systems (IS) that are important to consider
when designing, implementing, and managing these systems. Here are some of the key
dimensions of IS:
1. Organizational dimension: This refers to the role that IS plays within the organization,
including how it supports business processes, decision-making, and strategic goals.
2. Technical dimension: This refers to the hardware, software, and other technical
components of the IS, including how they are designed, implemented, and maintained.
3. Data dimension: This refers to the data that is managed and processed by the IS,
including how it is collected, stored, analyzed, and used.
4. Process dimension: This refers to the business processes that are supported by the IS,
including how they are designed, implemented, and optimized.
5. People dimension: This refers to the people who use and manage the IS, including how
they are trained, supported, and incentivized.
6. Cultural dimension: This refers to the organizational culture and values that influence
how the IS is used and managed, including how it is perceived by employees and
stakeholders.
7. Legal and ethical dimension: This refers to the legal and ethical considerations that
must be taken into account when designing, implementing, and managing the IS,
including issues related to privacy, security, and intellectual property.

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By considering these dimensions of IS, organizations can ensure that their systems are
designed and managed in a way that supports their business goals, meets the needs of
their users, and complies with legal and ethical standards.
Economic Values of Information System
Information systems (IS) can provide significant economic value to organizations in
several ways:
1. Improved efficiency: IS can automate and streamline business processes, reducing the
time and resources required to complete tasks. This can lead to cost savings and
increased productivity.
2. Better decision-making: IS can provide real-time access to data and analytics,
enabling managers to make more informed and data-driven decisions. This can lead to
better outcomes and increased profitability.
3. Enhanced customer service: IS can enable organizations to provide better customer
service by improving communication, providing faster response times, and
personalizing interactions.
4. Increased innovation: IS can enable organizations to develop new products and
services, enter new markets, and innovate in other ways that can lead to increased
revenue and profitability.
5. Competitive advantage: IS can provide organizations with a competitive advantage
by enabling them to respond more quickly to changes in the market, differentiate
themselves from competitors, and improve their overall performance.
Overall, the economic value of IS depends on how effectively they are designed,
implemented, and managed. By leveraging IS to improve efficiency, decision-making,
customer service, innovation, and competitive advantage, organizations can achieve
significant economic benefits and improve their bottom line.

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Information vs. data?
Information and data are related concepts, but they are not the same thing. Data refers to
raw facts and figures that are collected and stored, while information is the result of
processing and analyzing that data to make it meaningful and useful.
Data can be structured or unstructured, and it can come in many different forms, such as
numbers, text, images, or audio. Examples of data include customer names and
addresses, sales figures, inventory levels, and website traffic statistics.
Information, on the other hand, is the result of processing and analyzing that data to
make it meaningful and useful. Information provides context and insights that can be
used to make decisions or take action. For example, if you analyze sales figures over time,
you might discover that certain products sell better during certain seasons or in certain
regions. This information can be used to make decisions about inventory management,
marketing, and sales strategies.
In summary, data is the raw material that is collected and stored, while information is the
result of processing and analyzing that data to make it meaningful and useful.
Evolution of Information
Information age/ Information
Society/ Information Economy
The evolution of information can be traced through three key stages: the information
age, the information society, and the information economy.
1. Information Age: The information age began in the mid-20th century with the
development of electronic computers and the internet. This era was characterized by the
widespread use of computers and digital technologies to store, process, and transmit
information. The information age transformed the way we work, communicate, and
access information, and it paved the way for the development of the information
society.
2. Information Society: The information society emerged in the late 20th century as a
result of the widespread adoption of digital technologies and the internet. This era was
characterized by the democratization of information, as people gained access to vast
amounts of information through the internet. The information society also saw the rise
of social media, which enabled people to connect and share information on a global
scale.

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3. Information Economy: The information economy is the current stage of the evolution
of information. It is characterized by the increasing importance of information as a key
driver of economic growth and development. In the information economy, information
is seen as a valuable commodity that can be bought, sold, and traded. This has led to the
development of new industries, such as data analytics, artificial intelligence, and
cybersecurity.
Overall, the evolution of information has transformed the way we live, work, and
communicate. It has created new opportunities and challenges, and it continues to
shape our world today.
CHAPTER TWO
BUSINESS PROCESS AND TYPES OF IS
 Business Processes and Information Systems
Business processes and information systems are closely related and interdependent.
Business processes are the set of activities and tasks that an organization performs to
achieve its goals and objectives. Information systems are the tools and technologies that
support and automate these business processes.
Information systems can be used to improve business processes in several ways:
1. Automation: Information systems can automate routine and repetitive tasks, such as
data entry, processing, and reporting, which can save time and reduce errors.
2. Integration: Information systems can integrate different business processes and
functions, such as sales, marketing, finance, and operations, to improve coordination
and collaboration.
3. Standardization: Information systems can standardize business processes and
procedures, which can improve consistency, quality, and efficiency.

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4. Analysis: Information systems can provide data and analytics to support decision-
making and performance monitoring, which can help organizations to identify
opportunities for improvement and optimize their business processes.
5. Innovation: Information systems can enable organizations to develop new products,
services, and business models, which can create new opportunities and competitive
advantages.
Overall, information systems play a critical role in supporting and improving business
processes. They help organizations to streamline operations, reduce costs, improve
quality, and enhance customer satisfaction, which can lead to increased profitability
and growth.
 Types of Information Systems
There are several types of information systems that organizations use to support their
business processes and operations. Here are some of the most common types:
1. Transaction Processing Systems (TPS): TPS are used to process and record routine
transactions, such as sales, purchases, and payments. They are designed to be fast,
accurate, and reliable, and are typically used by operational staff.
2. Management Information Systems (MIS): MIS are used to provide managers with
information to support decision-making and planning. They typically provide reports
and dashboards that summarize data from different sources and help managers to
monitor performance and identify trends.
3. Decision Support Systems (DSS): DSS are used to support complex and non-routine
decision-making. They typically provide analytical tools and models that help
managers to analyze data, evaluate alternatives, and make decisions.
4. Executive Information Systems (EIS): EIS are used by top-level executives to provide
strategic information and support decision-making. They typically provide high-level

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summaries of data and trends, and allow executives to drill down into details as
needed.
5. Expert Systems: Expert systems are used to provide specialized knowledge and
expertise to support decision-making. They typically use artificial intelligence and
machine learning techniques to simulate the decision-making process of human experts.
6. Enterprise Resource Planning (ERP) Systems: ERP systems are used to integrate and
manage different business processes and functions, such as finance, human resources,
and supply chain management. They typically provide a centralized database and a
suite of applications that support different business processes.
7. Customer Relationship Management (CRM) Systems: CRM systems are used to
manage customer interactions and relationships. They typically provide tools for sales,
marketing, and customer service, and help organizations to improve customer
satisfaction and loyalty.
Overall, information systems are essential tools for organizations to manage and
leverage information to achieve their goals and objectives. They help organizations to
improve efficiency, effectiveness, and competitiveness by providing timely, accurate,
and relevant information to support decision-making and other business processes.
 Systems for Collaboration and Teamwork
Collaboration and teamwork are essential for organizations to achieve their goals and
objectives. Information systems can play a critical role in supporting collaboration and
teamwork by providing tools and technologies that enable people to work together
more effectively. Here are some of the most common types of systems for collaboration
and teamwork:
1. Groupware: Groupware is a type of software that supports collaboration and
communication among groups of people. It includes tools such as email, instant
messaging, video conferencing, and shared calendars.

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2. Document Management Systems (DMS): DMS are used to manage and share
documents and other files among team members. They typically provide version
control, access control, and collaboration features, such as commenting and annotation.
3. Project Management Systems: Project management systems are used to plan,
organize, and track projects and tasks. They typically provide tools for scheduling,
resource allocation, and progress monitoring, and allow team members to collaborate
and communicate on project-related tasks.
4. Social Media: Social media platforms, such as Facebook, Twitter, and LinkedIn, can
be used to support collaboration and communication among team members. They
provide tools for sharing information, ideas, and feedback, and can help to build a sense
of community and engagement among team members.
5. Knowledge Management Systems (KMS): KMS are used to capture, store, and share
knowledge and expertise among team members. They typically provide tools for
creating and sharing knowledge, such as wikis, blogs, and discussion forums, and allow
team members to collaborate and learn from each other.
Overall, systems for collaboration and teamwork are essential for organizations to
achieve their goals and objectives. They help to improve communication, coordination,
and productivity among team members, and can lead to better decision-making,
innovation, and performance.
 The Information Systems Function in Business
The information systems (IS) function in business is responsible for managing the
organization's information technology (IT) infrastructure, applications, and data to
support business processes and operations. The IS function plays a critical role in
enabling organizations to achieve their goals and objectives by providing timely,
accurate, and relevant information to support decision-making and other business
processes. Here are some of the key functions of the IS function in business:

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1. IT Infrastructure Management: The IS function is responsible for managing the
organization's IT infrastructure, including hardware, software, networks, and databases.
This includes ensuring that the infrastructure is secure, reliable, and scalable to meet the
organization's needs.
2. Application Development and Management: The IS function is responsible for
developing and managing the organization's applications, such as enterprise resource
planning (ERP) systems, customer relationship management (CRM) systems, and other
business applications. This includes ensuring that the applications are aligned with the
organization's business processes and objectives, and that they are reliable, secure, and
scalable.
3. Data Management: The IS function is responsible for managing the organization's data,
including data storage, retrieval, and analysis. This includes ensuring that the data is
accurate, complete, and secure, and that it is available to support decision-making and
other business processes.
4. IT Governance and Compliance: The IS function is responsible for ensuring that the
organization's IT activities are aligned with its business objectives and comply with
relevant laws and regulations. This includes developing and implementing IT policies
and procedures, and monitoring and reporting on IT performance and compliance.
5. IT Strategy and Planning: The IS function is responsible for developing and
implementing the organization's IT strategy and plans. This includes identifying
opportunities to leverage technology to improve business processes and operations, and
ensuring that the organization's IT investments are aligned with its business objectives.
Overall, the IS function plays a critical role in enabling organizations to achieve their
goals and objectives by providing timely, accurate, and relevant information to support
decision-making and other business processes. The IS function must work closely with
other functions in the organization, such as finance, marketing, and operations, to ensure
that IT investments are aligned with business objectives and priorities.

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Business processes and their relationship to information systems
Business processes are a set of activities that are performed by an organization to achieve
a specific goal or objective. These processes can be manual or automated and involve
people, technology, and resources. Business processes can be categorized into three types:
operational processes, management processes, and supporting processes.
Operational processes are those that are directly related to the production of goods or
services. Examples of operational processes include manufacturing, sales, and customer
service. Management processes are those that are used to manage the organization's
resources and operations. Examples of management processes include budgeting,
planning, and performance management. Supporting processes are those that are used
to support the organization's operations. Examples of supporting processes include
human resources, accounting, and IT support.
Information systems play a critical role in supporting business processes by providing
timely, accurate, and relevant information to support decision-making and other
business activities. Information systems can be used to automate and streamline business
processes, improve communication and collaboration among employees, and provide
real-time data and analytics to support decision-making.
For example, an organization's sales process may involve several steps, such as lead
generation, qualification, and closing the sale. An information system can be used to
automate and streamline these steps by providing tools for lead tracking, customer
relationship management, and sales forecasting. This can help to improve the efficiency
and effectiveness of the sales process, reduce errors and delays, and provide real-time
data and analytics to support decision-making.
Overall, business processes and information systems are closely related, with information
systems playing a critical role in supporting and improving business processes.
Organizations must carefully design and manage their business processes and

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information systems to ensure that they are aligned with their goals and objectives and
support their overall strategy.
The role played by Information Systems serving the various levels of
management in a business and their relationship to each other.
Information systems (IS) play a critical role in supporting the various levels of
management in a business, including operational, tactical, and strategic management.
Here is an evaluation of the role played by IS serving the various levels of management
in a business and their relationship to each other:
1. Operational Management: Operational management is responsible for the day-to-day
operations of the business. Information systems that support operational management
are designed to automate and streamline routine tasks and processes, such as inventory
management, order processing, and production scheduling. These systems are typically
transactional in nature and provide real-time data to support decision-making at the
operational level.
2. Tactical Management: Tactical management is responsible for planning and
implementing strategies to achieve the organization's goals and objectives. Information
systems that support tactical management are designed to provide data and analytics to
support decision-making related to resource allocation, budgeting, and performance
management. These systems are typically analytical in nature and provide data at a
more aggregated level than operational systems.
3. Strategic Management: Strategic management is responsible for setting the overall
direction and strategy of the organization. Information systems that support strategic
management are designed to provide data and analytics to support decision-making
related to long-term planning, market analysis, and competitive positioning. These
systems are typically strategic in nature and provide data at a highly aggregated level.

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The relationship between these levels of management and their corresponding
information systems is hierarchical, with each level building on the data and analytics
provided by the level below it. Operational systems provide data to tactical systems,
which in turn provide data to strategic systems. This hierarchical relationship ensures
that decision-making at each level is informed by the data and analytics provided by
the level below it.
Overall, information systems play a critical role in supporting the various levels of
management in a business, providing real-time data and analytics to support decision-
making at each level. The relationship between these levels and their corresponding
information systems is hierarchical, with each level building on the data and analytics
provided by the level below it.
• How enterprise applications improve organizational performance.
Enterprise applications are software systems that are designed to support and automate
business processes across an entire organization. These applications can include
enterprise resource planning (ERP), customer relationship management (CRM), supply
chain management (SCM), and human resource management (HRM) systems. Here are
some ways in which enterprise applications can improve organizational performance:
1. Streamlined Processes: Enterprise applications can help to streamline business
processes by automating routine tasks and reducing manual data entry. This can help to
reduce errors, improve efficiency, and free up employees to focus on more strategic tasks.
2. Improved Collaboration: Enterprise applications can improve collaboration among
employees by providing a centralized platform for sharing information and
communicating. This can help to break down silos between departments and improve
communication and coordination across the organization.
3. Real-Time Data: Enterprise applications can provide real-time data and analytics to
support decision-making at all levels of the organization. This can help to improve the

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accuracy and timeliness of decision-making, and enable organizations to respond more
quickly to changing market conditions.
4. Better Customer Service: Enterprise applications such as CRM systems can help to
improve customer service by providing a centralized platform for managing customer
interactions and tracking customer data. This can help to improve customer satisfaction
and loyalty, and enable organizations to identify and respond to customer needs more
effectively.
5. Improved Supply Chain Management: Enterprise applications such as SCM systems
can help to improve supply chain management by providing real-time visibility into
inventory levels, production schedules, and shipping status. This can help to reduce
inventory costs, improve delivery times, and increase customer satisfaction.
Overall, enterprise applications can help to improve organizational performance by
streamlining processes, improving collaboration, providing real-time data, improving
customer service, and improving supply chain management. By leveraging these
applications, organizations can become more efficient, agile, and responsive to changing
market conditions, and ultimately achieve their strategic goals and objectives.
CHAPTER THREE
INFORMATION TECHNOLOGY
Information Technology refers to the use of computers, software, and networking
technologies to manage, process, and communicate information. It encompasses a wide
range of technologies and applications, including hardware, software, databases,
networks, and the internet.
IT Infrastructure
IT infrastructure refers to the underlying foundation of hardware, software, and
networking components that support the delivery of IT services within an organization.

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It includes all the physical and virtual components that are required to support the
storage, processing, and transmission of data and information across an organization's
network.
The components of IT infrastructure can include:
1. Hardware: This includes servers, storage devices, desktops, laptops, mobile devices,
and other physical components that are required to support the delivery of IT services.
2. Software: This includes operating systems, applications, databases, and other software
components that are required to support the delivery of IT services.
3. Networking: This includes routers, switches, firewalls, and other networking
components that are required to support the transmission of data and information across
an organization's network.
4. Data Centers: This includes the physical facilities that house the servers, storage
devices, and other IT infrastructure components.
5. Cloud Services: This includes the use of cloud-based services such as Infrastructure as
a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS) to support
the delivery of IT services.
The importance of IT infrastructure lies in its ability to support the delivery of IT services
that are critical to the success of an organization. A well-designed and well-maintained
IT infrastructure can help to improve the efficiency and effectiveness of business
processes, reduce costs, and improve the overall performance of an organization. It can
also help to support the adoption of new technologies and enable organizations to
respond more quickly to changing market conditions.
EVOLUTION OF IT INFRASTRUCTURE
The evolution of IT infrastructure can be traced back to the early days of computing,
when computers were large, expensive, and primarily used by government agencies and

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large corporations. Over time, advances in technology and changes in business needs
have led to the development of increasingly sophisticated IT infrastructure.
Here are some of the key stages in the evolution of IT infrastructure:
1. Mainframe computing: In the 1950s and 1960s, mainframe computers were the
dominant form of computing. These large, expensive machines were primarily used by
government agencies and large corporations to process large amounts of data.
2. Client-server computing: In the 1980s and 1990s, client-server computing emerged as
a new model for IT infrastructure. This model involved the use of smaller, less expensive
servers that could be connected to desktop computers, allowing users to access data and
applications from their own machines.
3. Internet computing: In the 1990s and 2000s, the rise of the internet led to a new era of
IT infrastructure. This included the development of web-based applications and services,
as well as the use of cloud computing to provide on-demand access to computing
resources.
4. Mobile computing: In the 2010s, the widespread adoption of smartphones and tablets
led to a new era of mobile computing. This included the development of mobile apps and
services, as well as the use of mobile devices to access cloud-based applications and data.
5. Edge computing: In recent years, the growth of the Internet of Things (IoT) has led to
the development of edge computing, which involves processing data closer to the source
of the data, rather than sending it to a centralized data center. This can help reduce
latency and improve performance for IoT applications.
Overall, the evolution of IT infrastructure has been driven by advances in technology,
changes in business needs, and the growing demand for faster, more reliable, and more
secure computing resources.

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Application Service Providers (ASP)
Application Service Providers (ASP) are companies that provide software applications
and related services to customers over the internet. ASPs host and manage software
applications on their own servers, and customers access these applications through a
web browser or other client software.
The ASP model allows customers to access software applications without having to
install and maintain the software on their own computers or servers. This can be
particularly beneficial for small and medium-sized businesses that may not have the
resources to manage their own IT infrastructure.
Some of the key benefits of using an ASP include:
1. Cost savings: Customers can avoid the upfront costs of purchasing and installing
software, as well as the ongoing costs of maintaining and upgrading the software.
2. Scalability: ASPs can provide customers with access to software applications that can
scale up or down as needed, depending on the customer's needs.
3. Accessibility: Customers can access software applications from anywhere with an
internet connection, making it easier to work remotely or collaborate with others.
4. Security: ASPs can provide customers with enhanced security features, such as data
encryption and secure access controls, to help protect sensitive data.
5. Support: ASPs can provide customers with technical support and maintenance
services, freeing up the customer's IT staff to focus on other tasks.
Some examples of ASPs include Salesforce.com, Google Apps, and Microsoft Office 365.
SOFTWARE OUTSOURCING
 There are three external sources for software:
1. software packages and Enterprise software

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2. software package is a prewritten commercially available set of software
programs
3. This eliminates the need for a firm to write its own software programs for
certain functions, such as payroll processing or order handling.
4. Ex companies like SAP and Oracle-PeopleSoft develop enterprise level
software's like warehousing, customer relationship management, supply
chain management, and finance to human resources.
2. Software outsourcing to an external vendor
 Software outsourcing enables a firm to contract custom software
development or maintenance of existing legacy programs to outside firms
3. Cloud-based software services
 In the past, software such as Microsoft Word came in a box and was
designed to operate on a single machine.
 Today, you’re more likely to download the software from the vendor’s
Web site, or to use the software as a cloud service delivered over the
Internet.
 Enterprise software and other complex business functions are available
as services from the major commercial software vendors.
 Instead of buying and installing software programs, subscribing
companies that rent the same functions from these services, with users
paying either on a subscription or per-transaction basis
 Services for delivering and providing access to software remotely as a
Web-based service are now referred to as software as a service (SaaS)

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INFORMATION SYSTEM THEORIES
1. Information Systems Success Model (DeLone & McLean 1992)
Theory
The Information Systems Success Model (ISSM) was developed by DeLone and McLean
in 1992 to provide a framework for evaluating the success of information systems. The
model identifies six dimensions of information system success:
1. System quality: This dimension refers to the technical quality of the information
system, including factors such as reliability, usability, and functionality.
2. Information quality: This dimension refers to the quality of the information provided
by the system, including factors such as accuracy, completeness, and relevance.
3. Use: This dimension refers to the extent to which the system is used by its intended
users.
4. User satisfaction: This dimension refers to the satisfaction of the system's users with
the system and its performance.
5. Individual impact: This dimension refers to the impact of the system on individual
users, including factors such as productivity, job satisfaction, and decision-making
effectiveness.
6. Organizational impact: This dimension refers to the impact of the system on the
organization as a whole, including factors such as cost savings, revenue generation, and
competitive advantage.
According to the ISSM, these dimensions are interrelated and influence each other. For
example, system quality and information quality can influence user satisfaction and use,
which in turn can impact individual and organizational impact.
The ISSM has been widely used in research and practice to evaluate the success of
information systems. It provides a comprehensive framework for evaluating the success

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of information systems that takes into account both technical and non-technical factors.
However, some critics have argued that the model is too complex and difficult to apply
in practice.
Updated Information Systems Success Model (DeLone & McLean 2002, 2003)
The Updated Information Systems Success Model (UISSM) was developed by DeLone
and McLean in 2002 and 2003 to address some of the limitations of the original
Information Systems Success Model (ISSM). The UISSM builds on the six dimensions of
the ISSM and adds two new dimensions:
1. Service quality: This dimension refers to the quality of the service provided by the
information system, including factors such as responsiveness, reliability, and security.
2. Net benefits: This dimension refers to the overall benefits of the information system,
including both tangible and intangible benefits such as cost savings, revenue generation,
and improved decision-making.
The UISSM also emphasizes the importance of understanding the relationships between
the dimensions of information system success. For example, service quality can influence
system quality, which in turn can impact information quality and user satisfaction.
The UISSM has been widely used in research and practice to evaluate the success of
information systems. It provides a more comprehensive framework for evaluating the
success of information systems that takes into account both technical and non-technical
factors, as well as the overall benefits of the system. However, some critics have argued
that the model is still too complex and difficult to apply in practice.
2. Technology acceptance model Theory(TAM)
The Technology Acceptance Model (TAM) is a theoretical framework developed by
Fred Davis in 1989 to explain how users come to accept and use new technologies. The
model is based on the assumption that users' attitudes and beliefs about a technology

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will influence their intention to use it, which in turn will influence their actual use of the
technology.
The TAM consists of two main components:
1. Perceived usefulness (PU): This refers to the extent to which a user believes that a
technology will improve their performance or productivity.
2. Perceived ease of use (PEOU): This refers to the extent to which a user believes that a
technology is easy to use and understand.
According to the TAM, these two factors are the primary determinants of users'
attitudes and intentions towards a technology. Users who perceive a technology as
useful and easy to use are more likely to have a positive attitude towards it and to
intend to use it. In turn, users who intend to use a technology are more likely to actually
use it.
The TAM has been widely used in research and practice to understand and predict
users' acceptance and use of new technologies. It provides a simple and intuitive
framework for understanding the factors that influence users' attitudes and intentions
towards a technology. However, some critics have argued that the model is too
simplistic and does not take into account other important factors that may influence
technology acceptance, such as social and cultural factors.
Diffusion of Innovation Theory
The Diffusion of Innovation Theory is a theoretical framework developed by Everett
Rogers in 1962 to explain how new ideas, products, and technologies spread through a
social system. The theory is based on the assumption that the adoption of new
innovations is a social process that involves the interaction of different groups of people.
The Diffusion of Innovation Theory identifies five key stages in the adoption process:

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1. Knowledge: In this stage, individuals become aware of the existence of a new
innovation and its potential benefits.
2. Persuasion: In this stage, individuals seek more information about the innovation and
evaluate its potential benefits and drawbacks.
3. Decision: In this stage, individuals decide whether to adopt or reject the innovation
based on their evaluation of its potential benefits and drawbacks.
4. Implementation: In this stage, individuals begin to use the innovation and integrate it
into their daily lives.
5. Confirmation: In this stage, individuals evaluate the outcomes of their adoption
decision and either continue to use the innovation or discontinue its use.
The Diffusion of Innovation Theory also identifies five key factors that influence the
adoption of new innovations:
1. Relative advantage: The degree to which an innovation is perceived as better than the
existing alternatives.
2. Compatibility: The degree to which an innovation is perceived as consistent with
existing values, experiences, and needs.
3. Complexity: The degree to which an innovation is perceived as difficult to understand
and use.
4. Trialability: The degree to which an innovation can be tried out on a limited basis before
making a full commitment.
5. Observability: The degree to which the results of an innovation are visible to others.
The Diffusion of Innovation Theory has been widely used in research and practice to
understand and predict the adoption of new innovations. It provides a comprehensive
framework for understanding the social and psychological factors that influence the
adoption process. However, some critics have argued that the theory does not take into

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account the role of power and politics in the adoption process, and that it may not be
applicable to all types of innovations or social contexts.
CHAPTER 4
INFORMATION SYSTEM DEVELOPMENT PROJECTS
Information System Development (ISD) projects are projects that involve the
development of new or improved information systems to support business processes and
operations. These projects typically involve a team of developers, analysts, and
stakeholders who work together to design, develop, and implement the new system.
ISD projects typically follow a structured process that includes several phases:
1. Planning: In this phase, the project team defines the scope of the project, identifies the
stakeholders, and develops a project plan that outlines the project objectives, timeline,
and budget.
2. Analysis: In this phase, the project team analyzes the existing business processes and
identifies the requirements for the new system. This may involve conducting interviews
with stakeholders, reviewing existing documentation, and analyzing data.
3. Design: In this phase, the project team designs the new system based on the
requirements identified in the analysis phase. This may involve developing system
architecture, creating user interfaces, and designing the database schema.
4. Development: In this phase, the project team develops the new system based on the
design specifications. This may involve coding, testing, and debugging the system.
5. Implementation: In this phase, the project team deploys the new system and integrates
it with existing systems and processes. This may involve training users, migrating data,
and testing the system in a production environment.

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6. Maintenance: In this phase, the project team provides ongoing support and
maintenance for the new system. This may involve fixing bugs, adding new features, and
providing technical support to users.
ISD projects can be complex and challenging, and they require careful planning,
management, and execution to ensure success. Effective communication, stakeholder
engagement, and project management are critical to the success of ISD projects.
Additionally, the use of agile development methodologies and continuous improvement
practices can help to ensure that the new system meets the needs of stakeholders and is
adaptable to changing business requirements.
Software Life Cycle
The Software Life Cycle is a process that software development teams follow to design,
develop, test, and maintain software applications. The Software Life Cycle consists of
several phases, each with its own set of activities and deliverables. The most common
Software Life Cycle model is the Waterfall model, which consists of the following phases:
1. Requirements Gathering: In this phase, the software development team works with
stakeholders to gather and document the requirements for the software application.
2. Design: In this phase, the software development team creates a detailed design of the
software application based on the requirements gathered in the previous phase.
3. Implementation: In this phase, the software development team writes the code for the
software application based on the design created in the previous phase.
4. Testing: In this phase, the software development team tests the software application to
ensure that it meets the requirements and functions as expected.
5. Deployment: In this phase, the software application is deployed to the production
environment.

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6. Maintenance: In this phase, the software development team provides ongoing support
and maintenance for the software application.
The Waterfall model is a linear model, which means that each phase must be completed
before moving on to the next phase. However, there are other Software Life Cycle models,
such as the Agile model, which is an iterative model that allows for more flexibility and
collaboration between the development team and stakeholders.
The Software Life Cycle is an important process for software development teams to
follow to ensure that software applications are developed efficiently, effectively, and
meet the needs of stakeholders. By following a structured Software Life Cycle, software
development teams can reduce the risk of errors, improve the quality of the software
application, and ensure that the software application is delivered on time and within
budget.
Software requirements
Software requirements are the functional and non-functional specifications that define
what a software application should do and how it should perform. Software
requirements are typically gathered during the requirements gathering phase of the
Software Life Cycle and are used to guide the design, development, and testing of the
software application.
There are two main types of software requirements:
1. Functional Requirements: These are the requirements that define what the software
application should do. Functional requirements describe the features, functions, and
capabilities of the software application. Examples of functional requirements include user
interface design, data input and output, and system performance.
2. Non-functional Requirements: These are the requirements that define how the software
application should perform. Non-functional requirements describe the quality attributes

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of the software application, such as reliability, scalability, and security. Examples of non-
functional requirements include response time, system availability, and data security.
Software requirements should be clear, concise, and unambiguous. They should be
written in a way that is easy to understand by all stakeholders, including developers,
testers, and end-users. Requirements should also be testable, meaning that they can be
verified through testing to ensure that they have been met.
Effective requirements gathering is critical to the success of software development
projects. By gathering and documenting clear and comprehensive software requirements,
software development teams can ensure that the software application meets the needs of
stakeholders, is developed efficiently, and performs as expected.
The Process of Coding, Testing, and Installation
• Coding
– Physical design specifications are turned into working computer code.
• Testing
– Tests are performed using various strategies.
– Testing is performed in parallel with coding.
• Installation
– The current system is replaced by a new system.

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CHAPTER FIVE
IT GOVERNANCE AND IS SECURITY
What Is Information Security?
Information security is the practice of protecting information from unauthorized access,
use, disclosure, disruption, modification, or destruction. Information security is
important because it ensures the confidentiality, integrity, and availability of
information.
Confidentiality refers to the protection of sensitive information from unauthorized
disclosure. This includes personal information, financial information, and other sensitive
data that should only be accessed by authorized individuals.
Integrity refers to the protection of information from unauthorized modification. This
includes ensuring that information is accurate, complete, and reliable.
Availability refers to the protection of information from unauthorized disruption. This
includes ensuring that information is accessible to authorized individuals when needed.
Information security is achieved through a combination of technical, administrative, and
physical controls. Technical controls include firewalls, encryption, and access controls.
Administrative controls include policies, procedures, and training. Physical controls
include locks, security cameras, and access controls.
Information security is important for individuals, organizations, and governments. It
helps to protect sensitive information from cyber threats, such as hacking, malware, and
phishing attacks. It also helps to ensure that information is available when needed, which
is critical for business operations and government services.
Overall, information security is a critical component of modern society, and it is essential
for protecting sensitive information and ensuring the confidentiality, integrity, and
availability of information.

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What Is a Security Policy?
• A security policy is a directive that defines a specific behavior for one or more
individuals within your agency.
• Each security policy is designed to reduce a specific set of security risks to a level
acceptable to management
Basic Security Policy Process
• Identify what assets you need to protect.
• Identify the threats to those assets.
• Use frameworks and guidelines to select and implement controls to mitigate the
threats.
• Policies and procedures.
• Technical controls.
• Human controls.
• Monitor compliance and effectiveness of controls (metrics).
• Periodically review and update controls.
KEY POINTS FROM THE ASSIGNMENT
Customer Relationship Management (CRM) is a strategy that businesses use to manage
interactions with customers and potential customers. It involves collecting and analyzing
data on customer behavior, preferences, and needs, and using that data to improve
customer satisfaction and loyalty.
Data analytics is the process of analyzing data to gain insights and make data-driven
decisions. In the context of CRM, data analytics involves analyzing customer data to gain

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insights into customer behavior, preferences, and needs. This can help businesses to
identify patterns and trends, and to make data-driven decisions about how to improve
their CRM strategy.
Big data refers to large and complex data sets that are difficult to process using traditional
data processing methods. In the context of CRM, big data may include data from a variety
of sources, such as social media, customer feedback, and transactional data. Analyzing
big data can provide businesses with a more comprehensive view of customer behavior
and preferences, which can help them to improve their CRM strategy.
Business intelligence (BI) refers to the tools and processes that businesses use to analyze
data and gain insights. In the context of CRM, BI may involve using dashboards, reports,
and other tools to analyze customer data and gain insights into customer behavior and
preferences. This can help businesses to make data-driven decisions about how to
improve their CRM strategy.