Chapter 1
1.1 Information Technology (IT)
Definition: Combination of hardware, software, and services to manage and share
information.
Business Importance:
o Boosts productivity.
o Delivers quality products/services.
o Maintains customer loyalty.
o Supports sound decision-making.
Economic Impact:
o Critical in both economic growth and downturns.
o Used to stay competitive or reduce costs and increase efficiency.
Role in Society:
o Affects data privacy, mobile usage, and social media.
o Raises concerns about surveillance and personal data security.
o Challenge: Balancing privacy with functionality and business value.
1.1.1 The Changing Nature of IT
Historical Evolution:
o IT progress is continuous and transformative.
o Past marvels: TV, space flight, early computing.
IBM Example:
o Started as a typewriter and office equipment company.
o Early innovation: Punch card system (Hollerith, 1896).
o Evolved into a global leader in software, services, and R&D.
o Known for adaptability and hiring top talent.
o Holds most patents and Nobel Prize winners among IT companies.
1.1.2 Systems Analysis and Design
Definition:
A structured, step-by-step process used to develop high-quality information systems.
ICT2601 – Systems Analysis and Design 12th Edition Notes
by The Note Nook
, Purpose of Information Systems:
o Combine technology, people, and data.
o Support key business functions like:
Order processing
Inventory control
Human resources
Accounting
Decision-making & trend analysis
Types of Systems:
o Handle routine, daily operations.
o Assist managers in:
Making informed decisions
Identifying market trends
Revealing hidden patterns in data
Development Team Includes:
o Managers
o End users
o Network administrators
o Web designers
o Programmers
o Systems analysts
Job Market:
o Skilled IT professionals are consistently in demand, regardless of economic
conditions.
o Numerous job opportunities exist in cities like Melbourne and beyond.
1.1.3 What Does a Systems Analyst Do?
Role:
o Helps plan, develop, and maintain information systems.
o Bridges the gap between business needs and IT solutions.
Key Skills Required:
o Strong communication, analytical, and critical thinking skills.
ICT2601 – Systems Analysis and Design 12th Edition Notes
by The Note Nook
, o Must be business-savvy and technically competent.
o Able to work with both managers and programmers.
Organizational Placement:
o Usually part of the IT department.
o May also be assigned to specific user areas (e.g., marketing, sales,
accounting) for better alignment.
o Consultants often fill this role in smaller companies.
Typical Tasks:
o Documenting business processes.
o Testing hardware/software.
o Designing input screens.
o Training users.
o Planning e-commerce websites.
o Occasionally managing IT projects (tasks, resources, schedules, costs).
Communication Duties:
o Conducting meetings.
o Delivering presentations.
o Writing memos, reports, and documentation.
1.2 Information Systems
Definition of a System:
o A set of related components working together to produce specific results.
Examples of Systems:
o Systems that:
Route Internet traffic
Manufacture microchips
Control complex entities (e.g., the Hubble telescope)
Key Idea:
o Systems are designed with a clear purpose and consist of interconnected
elements that function together to achieve a goal.
ICT2601 – Systems Analysis and Design 12th Edition Notes
by The Note Nook
, 1.2.1 Hardware
Definition: Physical layer of the information system.
Examples: Servers, workstations, networks, mobile devices, scanners, data centers.
Trends:
o Increasing power and decreasing cost (Moore’s Law: chip capacity doubles
every 24 months).
o Rise of cloud computing—less reliance on in-house infrastructure.
Purpose: Captures, stores, and processes data.
1.2.2 Software
Definition: Programs that control hardware and produce desired results.
Types:
1. System Software: Controls hardware (e.g., operating systems).
2. Application Software: Supports business functions (e.g., payroll, order
processing, databases, productivity tools).
Trends:
o Modern apps run on networks/clouds.
o Software is essential for company-wide automation and integration.
Horizontal systems:
o General-purpose (e.g., payroll, inventory).
o Adaptable for various companies.
Vertical systems:
o Designed for specific industries (e.g., healthcare, automotive).
o Tailored to unique business needs.
Software Considerations:
o Businesses often use a mix of new and old software.
o New systems must interact with legacy systems (older software still in use).
o Example: HR systems linking with legacy payroll software.
1.2.3 Data
Definition:
o Raw material transformed into useful information by an information system.
Data Management:
o Stored in relational databases across linked tables (data normalization).
o Example: Payroll system with 4 linked tables showing:
Employees working in a specific city
ICT2601 – Systems Analysis and Design 12th Edition Notes
by The Note Nook
1.1 Information Technology (IT)
Definition: Combination of hardware, software, and services to manage and share
information.
Business Importance:
o Boosts productivity.
o Delivers quality products/services.
o Maintains customer loyalty.
o Supports sound decision-making.
Economic Impact:
o Critical in both economic growth and downturns.
o Used to stay competitive or reduce costs and increase efficiency.
Role in Society:
o Affects data privacy, mobile usage, and social media.
o Raises concerns about surveillance and personal data security.
o Challenge: Balancing privacy with functionality and business value.
1.1.1 The Changing Nature of IT
Historical Evolution:
o IT progress is continuous and transformative.
o Past marvels: TV, space flight, early computing.
IBM Example:
o Started as a typewriter and office equipment company.
o Early innovation: Punch card system (Hollerith, 1896).
o Evolved into a global leader in software, services, and R&D.
o Known for adaptability and hiring top talent.
o Holds most patents and Nobel Prize winners among IT companies.
1.1.2 Systems Analysis and Design
Definition:
A structured, step-by-step process used to develop high-quality information systems.
ICT2601 – Systems Analysis and Design 12th Edition Notes
by The Note Nook
, Purpose of Information Systems:
o Combine technology, people, and data.
o Support key business functions like:
Order processing
Inventory control
Human resources
Accounting
Decision-making & trend analysis
Types of Systems:
o Handle routine, daily operations.
o Assist managers in:
Making informed decisions
Identifying market trends
Revealing hidden patterns in data
Development Team Includes:
o Managers
o End users
o Network administrators
o Web designers
o Programmers
o Systems analysts
Job Market:
o Skilled IT professionals are consistently in demand, regardless of economic
conditions.
o Numerous job opportunities exist in cities like Melbourne and beyond.
1.1.3 What Does a Systems Analyst Do?
Role:
o Helps plan, develop, and maintain information systems.
o Bridges the gap between business needs and IT solutions.
Key Skills Required:
o Strong communication, analytical, and critical thinking skills.
ICT2601 – Systems Analysis and Design 12th Edition Notes
by The Note Nook
, o Must be business-savvy and technically competent.
o Able to work with both managers and programmers.
Organizational Placement:
o Usually part of the IT department.
o May also be assigned to specific user areas (e.g., marketing, sales,
accounting) for better alignment.
o Consultants often fill this role in smaller companies.
Typical Tasks:
o Documenting business processes.
o Testing hardware/software.
o Designing input screens.
o Training users.
o Planning e-commerce websites.
o Occasionally managing IT projects (tasks, resources, schedules, costs).
Communication Duties:
o Conducting meetings.
o Delivering presentations.
o Writing memos, reports, and documentation.
1.2 Information Systems
Definition of a System:
o A set of related components working together to produce specific results.
Examples of Systems:
o Systems that:
Route Internet traffic
Manufacture microchips
Control complex entities (e.g., the Hubble telescope)
Key Idea:
o Systems are designed with a clear purpose and consist of interconnected
elements that function together to achieve a goal.
ICT2601 – Systems Analysis and Design 12th Edition Notes
by The Note Nook
, 1.2.1 Hardware
Definition: Physical layer of the information system.
Examples: Servers, workstations, networks, mobile devices, scanners, data centers.
Trends:
o Increasing power and decreasing cost (Moore’s Law: chip capacity doubles
every 24 months).
o Rise of cloud computing—less reliance on in-house infrastructure.
Purpose: Captures, stores, and processes data.
1.2.2 Software
Definition: Programs that control hardware and produce desired results.
Types:
1. System Software: Controls hardware (e.g., operating systems).
2. Application Software: Supports business functions (e.g., payroll, order
processing, databases, productivity tools).
Trends:
o Modern apps run on networks/clouds.
o Software is essential for company-wide automation and integration.
Horizontal systems:
o General-purpose (e.g., payroll, inventory).
o Adaptable for various companies.
Vertical systems:
o Designed for specific industries (e.g., healthcare, automotive).
o Tailored to unique business needs.
Software Considerations:
o Businesses often use a mix of new and old software.
o New systems must interact with legacy systems (older software still in use).
o Example: HR systems linking with legacy payroll software.
1.2.3 Data
Definition:
o Raw material transformed into useful information by an information system.
Data Management:
o Stored in relational databases across linked tables (data normalization).
o Example: Payroll system with 4 linked tables showing:
Employees working in a specific city
ICT2601 – Systems Analysis and Design 12th Edition Notes
by The Note Nook
