Lesson 1: The Modern Types of Information Systems &

Examples
Organization – Functioning in a
Global Environment 1. Transaction Processing System (TPS)
– handles daily routine operations.
I. Lesson Objectives
Example: School Grading System
At the end of the lesson, students will be (computes and records grades
able to: automatically).

1. Define Information Systems and explain Example: Supermarket Point-of-Sale (POS)

their purpose. cash register.

2. Describe the Global Web-Based Platform 2. Management Information System (MIS)

and its impact on organizations. – provides summarized reports for
managers.
3. Identify business pressures and
organizational responses supported by IT. Example: Monthly sales reports of Jollibee
branches.
4. Explain why Information Systems are Example: Attendance reports of students.
important in daily life.
3. Decision Support System (DSS) –
Information Systems: Concepts and helps managers make decisions by
Definition analyzing data.
An Information System (IS) is an organized
set of people, processes, hardware, Example: Forecasting student enrollment for
software, and data that work together to: next semester
Example: Choosing the best location for a
●​ Collect information (gather raw new McDonald’s branch.
data),
●​ Process it (turn data into meaningful 4. Enterprise Systems (ERP, CRM, SCM)
information), – integrate all functions of the organization.
●​ Store it (keep for future use),
●​ Distribute it (share to the right Example: Hospital Patient Record System
people), (tracks appointments, diagnoses, and
treatments).
for decision-making, coordination, and Example: SAP used by multinational
control in an organization. companies to manage HR, finance, and
supply chain
In simple terms: An Information System is a
tool that helps people and organizations The Global Web-Based Platform
manage information efficiently so they can
work smarter and make better decisions. The Global Web-Based Platform is a digital
environment created by the internet that
allows people, businesses, and
organizations to communicate, collaborate, Business Pressures, Organizational
trade, and operate worldwide without Responses, and IT Support
physical limitations. It is the online world
that connects everyone, everywhere, Business Pressures
anytime Business pressures are the challenges,
problems, or external forces that
Importance organizations face while trying to survive
• Eliminates geographical barriers – people and succeed. These pressures come from
can interact and transact across borders. competition, customers, government, and
• Enables businesses to work 24/7 – technological changes.
operations continue anytime, anywhere.
• Supports real-time interaction – These are the difficulties businesses must
communication and teamwork happen overcome to keep running and growing.
instantly.
• Provides equal opportunities – even small Types & Expanded Explanation
businesses can compete globally.
• Drives innovation – enables new products, • Global Competition – Companies no
services, and digital solutions longer just compete locally but with
businesses worldwide.
Features
1. Global Reach – anyone with internet Example: A local coffee shop competes with
access can connect. Starbucks through delivery apps.
2. E-commerce and Digital Markets –
buying and selling online. • Technology Change – New tools and
3. Collaboration Tools – teamwork across systems appear quickly, forcing businesses
different countries. to adapt or risk being left behind.
4. Cloud Computing – online storage and
services. Example: Traditional banks adopting mobile
5. Social Networking – connecting and apps to compete with digital wallets like
promoting through social media GCash.

Examples • Customer Demands – Customers expect

• E-commerce Platforms – Shopee, Lazada, faster service, better quality, and cheaper
Amazon (connects sellers and buyers prices.
globally).
• Collaboration Tools – Google Meet, Zoom, Example: Online shoppers expecting
Microsoft Teams (for online classes and same-day delivery.
meetings worldwide).
• Social Media Platforms – Facebook, • Government Regulations – Laws and rules
Instagram, TikTok (global communication that businesses must follow to remain legal
and marketing and ethical.
Cloud Services – Google Drive, Dropbox
(sharing and storing files anywhere)
Example: Data Privacy Act requiring • Data Management – Using databases and
companies to protect customer information information systems to organize and
process large amounts of information.
Organizational Responses Example: Hospitals storing patient records
in a computer system.
Organizational responses are the strategies
and actions companies take to overcome • Communication Tools – Enabling real-time
business pressures and remain connection between employees, customers,
competitive. The way companies fight back and partners.
against challenges. Example: Zoom meetings, company emails,
Slack chat groups
Types & Expanded Explanation
Why are Information Systems Important to
• Innovation – Creating new products, You?
services, or processes to attract customers. • Improves learning and productivity.
Example: GCash introducing QR code • Supports research and problem-solving.
payments to make transactions faster. • Helps in communication and collaboration.
• Prepares you for careers in a
• Better Service – Focusing on customer technology-driven world
satisfaction and loyalty.
Example: FoodPanda providing real-time Information Systems are essential in
delivery tracking to improve experience. modern organizations because they help
manage information efficiently, allow global
• Cost Reduction – Using technology to cut operations, and help organizations respond
expenses and operate efficiently to business pressures effectively. For
Example: Factories using machines instead individuals, IS makes learning,
of manual labor to save costs communication, and decision-making faster
and easier
IT Support
Information Technology (IT) provides the
tools and systems that help organizations Lesson 2: Information Systems
deal with pressures and implement their
in Modern Organizations and
responses. It acts as the backbone of
modern business [Link] is the Information Security
weapon businesses use to solve problems
and stay competitive. I. Lesson Objectives

Types & Expanded Explanation By the end of this lesson, students will be
able to:
• Automation – Technology replaces 1. Identify and explain the different types of
repetitive manual work, making operations information systems used in organizations.
faster and more accurate. 2. Describe how information systems can
Example: ATMs replacing manual bank provide competitive advantage.
withdrawals.
3. Explain why information systems are 3. Decision Support System (DSS)
important to individuals and organizations. • Purpose: Helps managers make
4. Understand how to manage information non-routine, complex decisions using data,
resources effectively. models, and
5. Recognize ethical issues, identify threats analysis.
to information security, and suggest ways to • Users: Senior managers, analysts.
protect information resources
Example:
II. Lesson Content o A bank’s loan approval system that uses
credit score analysis.
Types of Information Systems (IS) o A weather forecasting system using
An Information System (IS) is a structured simulations.
combination of people, hardware, software,
data, and processes that work together to 4. Knowledge Management System (KMS)
collect, process, store, and distribute • Purpose: Captures, stores, and shares
information in order to support knowledge and best practices within an
decision-making, operations, and control in organization.
an organization. • Users: All employees who need to share
expertise.
Major Types of Information Systems
Example:
1. Transaction Processing System (TPS) o Wikipedia (open knowledge base).
• Purpose: Automates and records o A company’s internal training and policy
day-to-day routine business transactions. portal.
• Users: Operational staff, cashiers,
front-liners. 5. Enterprise Systems (ERP – Enterprise
Resource Planning)
Example: • Purpose: Integrates all departments and
o Point-of-Sale (POS) system in functions into a single IT system so they can
McDonald’s recording every order. work together.
o ATM machines processing deposits and • Users: All departments – finance, HR,
withdrawals. operations, logistics, etc.

2. Management Information System (MIS) Example:

• Purpose: Collects data from TPS, o SAP used by Toyota for finance, HR, and
summarizes and reports for middle supply chain management.
managers. o Oracle ERP used in multinational
• Users: Managers, supervisors. companies.

Example [Link] Relationship Management

Monthly sales report for a retail store. (CRM)
o HR system generating employee • Purpose: Manages interactions with
attendance reports. current and potential customers.
Example: Salesforce tracking customer Example: Apple ecosystem (iCloud, iTunes,
purchases and preferences. App Store).

[Link] Chain Management (SCM Why Are Information Systems So Important

Purpose: Optimizes flow of products, to Us?
services, and information from supplier to • For Organizations:
customer. o Increase productivity and efficiency.
o Improve decision-making.
Example: Amazon using SCM to ensure fast o Reach global markets.
delivery o Enable remote work.
• For Individuals:
Competitive Advantage and Strategic o Easier access to knowledge (Google,
Information Systems online learning
A competitive advantage is a condition that
allows a company to produce goods or Communication tools (Messenger, Zoom).
services better or more cheaply than its o Entertainment (Spotify, YouTube).
rivals, giving it an edge in the market. o Personal finance management (GCash,
Strategic Information Systems (SIS) are PayMaya).
designed to support or shape an Example Question: How has online banking
organization’s competitive strategy. changed the way people manage money

Ways IS Gives Competitive Advantage: Managing Information Resources The

1. Cost Leadership – Use IS to reduce process of planning, organizing, and
production or operational costs. controlling an organization’s information
Example: Amazon’s automated warehouses assets and ensuring they are used
reduce labor costs. efficiently and securely.
Best Practices:
2. Differentiation – Offer unique • Data governance (rules for handling data).
products/services. • Assigning responsibilities (IT managers,
Example: Netflix uses recommendation data owners).
algorithms to personalize user experience. • Backups and recovery plans.
• Training employees on proper use.
3. Innovation – Create new Example: A hospital’s IT department
products/services. maintains patient records, ensures backup
Example: Uber’s ride-booking app changed copies, and controls access to sensitive
the taxi industry. information

4. Operational Effectiveness – Improve Information Systems: Ethics, Privacy, and

internal processes. Security
Example: FedEx’s package tracking system. Ethics refers to the principles of right and
wrong that guide how people use
5. Customer/ Supplier Lock-in – Make it technology and information.
harder for customers or suppliers to switch.
• In IS, ethics focuses on how data, 5. Misuse of Technology at Work/School -
software, and digital tools are collected, Using organizational computers for personal
shared, and used responsibly. gain.
Example: An employee gaming or shopping
Why is Ethics Important in IS? online during work hours.
1. Protects privacy of individuals and
organizations. Ethical Guidelines in IS
2. Ensures fair use of technology and • Always ask permission before sharing
intellectual property. someone’s information.
3. Builds trust between businesses, • Give credit to authors, developers, or
customers, and employees. content creators.
4. Prevents abuse such as hacking, fraud, • Do not use software or digital tools
and cyberbullying. illegally.
5. Supports compliance with laws and • Respect others in online communication.
regulations • Report unethical or harmful activities

Common Ethical Issues in Information Threats to Information Security

Systems A threat to information security is any
potential danger, event, or action that could
1. Privacy Violation - Using or selling harm an information system, damage its
personal data without consent. data, disrupt operations, or compromise
Example: A company selling customer confidentiality, integrity, and availability
phone numbers to advertisers without (CIA) of information.
permission.
Major Types of Threats
2. Intellectual Property Theft - Copying or 1. Human Threats (Internal & External)
distributing software, music, videos, or -​ Hackers & Cybercriminals – break
books without a license. into systems to steal or destroy data.
Example: Downloading pirated movies or -​ Insider Threats – employees
cracked Microsoft Office. misusing access to leak or steal
data.
3. Cyberbullying and Online Harassment - Example: An employee stealing customer
Using social media or messaging apps to credit card information.
harm or threaten others.
Example: Spreading false rumors about a 2. Malware (Malicious Software) - Programs
classmate online. designed to disrupt, damage, or gain
unauthorized access.
4. Digital Divide (Unfair Access) - Unequal
access to technology between rich and poor Types of Malware
communities. ●​ Viruses - Attaches itself to files or
Example: Students in remote areas with no programs and spreads when the file
internet cannot access online classes. is shared.
 ●​ Worms - Self-replicates and spreads • Damage to reputation and customer trust.
through networks without needing • Legal consequences for not protecting
human action. information.
●​ Trojan Horse - Disguises itself as • Disruption of business operations
legitimate software but secretly
harms the system. Protecting Information Resources
●​ Ransomware - Encrypts files and Protecting information resources is the
demands payment (ransom) to process of safeguarding an organization’s
unlock them. data, hardware, software, and networks
●​ Spyware - Secretly monitors user from threats such as hacking, malware,
activity and steals sensitive unauthorized access, theft, or natural
information. disasters. Its goal is to maintain the CIA
●​ Adware - Displays unwanted ads, triad:
sometimes leading to malicious • Confidentiality → keeping information
websites. private.
• Integrity → ensuring data is accurate and
[Link] & Social Engineering - Tricking unchanged.
users into revealing confidential info • Availability → making sure data is
(passwords, bank details). accessible when needed
Example: Fake emails pretending to be from
a bank asking for login details. Types of Protection
1. Technical Measures - Use of
[Link] of Service (DoS) Attacks - technology-based tools to secure systems.
Overloading a server with requests so it Examples: firewalls, antivirus, intrusion
crashes and becomes unavailable. detection systems, encryption.
Example: A company’s website goes offline
during a cyberattack 2. Administrative Measures - Policies, rules,
and procedures that control how people use
[Link] Threats - Damage from natural information.
disasters, accidents, or theft of devices. Examples: user access control, password
Example: Fire destroying a company’s data policies, staff training, security audits.
center.
3. Physical Measures - Physical safeguards
6. Software & Network Vulnerabilities - to protect IT assets from theft, vandalism, or
Weaknesses in applications or systems that disasters.
attackers exploit. Examples: locked server rooms, CCTV
Example: Outdated operating system not monitoring, biometric access, backup
updated with security patches. facilities

Consequences of Security Threats

• Loss of confidential data (e.g., customer
information).
• Financial losses due to fraud or ransom
payments.
Lesson 3: Managing Knowledge • A hospital storing patient medical records
for treatment and billing.
and Data
• A school organizing student grades,
schedules, and attendance in a
Managing Data
system
Managing Data is the process of collecting,
storing, organizing, protecting, and
Shopee/Lazada tracking inventory, orders,
maintaining data so that it is accurate,
and customer feedback
reliable, secure, and available when
needed. It ensures that raw facts are
The Database Approach
transformed into useful information for
The Database Approach is a method of
decision-making.
managing data where all data is stored in a
centralized and structured collection called
Importance of Managing Data:
a database instead of multiple isolated files.
1. Accuracy – prevents errors and
This approach allows data to be integrated,
duplication.
consistent, secure, and easily shared
2. Security – protects data from
across the organization.
unauthorized access.
3. Accessibility – ensures the right people
Importance of the Database Approach:
can access data when needed.
1. Reduces Data Redundancy – avoids
4. Decision-Making – provides reliable
storing the same data in many files.
information for managers.
2. Ensures Data Consistency – updates in
5. Efficiency – saves time and resources by
one place reflect everywhere.
organizing data properly.
3. Improves Data Sharing – different
departments can access the same
Types of Data (for management):
database.
1. Master Data – core business entities.
4. Enhances Security – access can be
o Example: Student names in a school,
restricted to authorized users.
product catalog in a store.
5. Supports Better Decision-Making –
2. Transactional Data – records of daily
managers rely on accurate, organized
business activities.
data.
o Example: Sales receipts, online orders,
class attendance records.
Types of Database Approach (Based on
3. Reference Data – standards and codes
Usage):
used for classification.
1. Centralized Database – all data stored in
o Example: Country codes, currency codes,
one central location.
grading scales.
2. Distributed Database – data stored
4. Metadata – “data about data.”
across multiple locations but
o Example: File name, date created, author
connected.
of a Word document.
3. Relational Database – data stored in
tables with rows and columns.
Examples of Managing Data in Action:
Example:
• A bank maintaining customer accounts,
• File-based Approach: Each department in
transactions, and balances.
a company keeps its own
Excel file of employee information (HR, Uses a network structure where data can
payroll, training). This leads to duplication have many-to-many relationships. Records
and inconsistency. are connected by “pointers” (links).
• Database Approach: A single centralized • Best for: Complex relationships like
database is used where all telecoms and engineering
departments can access the same updated applications. • Examples:
employee record o IDMS (Integrated Data Management
Database Management Systems (DBMS) System) o TurboIMAGE
Meaning - A Database Management 3. Relational DBMS (RDBMS) Stores data
System (DBMS) is software that allows in tables (rows and columns). Uses SQL
users to create, manage, organize, retrieve, (Structured Query Language) to manage
and update data in a database efficiently and query data. Most widely used today.
and securely. It acts as a bridge between • Best for: General business applications,
the database (where data is stored) and the websites, and modern apps
users or applications that need the data
Examples:
Key Functions of a DBMS o MySQL – used in WordPress websites. o
1. Data Storage & Retrieval – Saves large Oracle Database – used by large
volumes of data and fetches it corporations like banks. o Microsoft SQL
quickly. Server – popular in enterprises.
2. Data Integrity – Ensures accuracy and o PostgreSQL – open-source, widely used
consistency of data. in apps.
3. Data Security – Protects data from
unauthorized access. 4. Object-Oriented DBMS (OODBMS)
4. Backup & Recovery – Restores data after Stores data in the form of objects (similar to
crashes or failures. object-oriented programming). Can handle
5. Multi-User Access – Allows many users multimedia like images, videos, and audio.
to access data simultaneously. • Best for: Applications needing multimedia
or complex data types.
Types of Database Management Systems • Examples: o db4o (Database for Objects)
(DBMS) o ObjectDB
1. Hierarchical DBMS Organizes data in a o Versant Object Database
tree-like structure with parent-child
relationships. One parent can have many 5. Document-Oriented DBMS (a type of
children, but each child only belongs to one NoSQL) Stores data in document formats
parent. (like JSON or XML) instead of tables. Very
• Best for: Applications where relationships flexible for unstructured data.
are clear and structured. • Examples: • Best for: Websites, mobile apps, and big
o IBM IMS (Information Management data.
System) – used in banking and • Examples: o MongoDB – used by
finance. o Windows Registry – stores Facebook and eBay. o CouchDB – used for
system and software configurations. web applications.

2. Network DBMS 6. Key-Value DBMS (NoSQL type)

Stores data as key-value pairs (like a o Example: Coca-Cola storing worldwide
dictionary). Very fast and simple. sales and marketing data in
• Best for: Real-time applications like one warehouse.
caching and online shopping carts. •
Examples: o Redis – used for gaming 2. Data Mart
leaderboards. o Amazon DynamoDB – o A smaller, focused version of a warehouse
used by Amazon shopping. for a specific
department.
7. Column-Oriented DBMS (NoSQL type) o Example: HR Data Mart → employee
Stores data by columns instead of rows, attendance & payroll only.
making it faster for big analytical queries.
• Best for: Data warehousing and big data 3. Operational Data Store (ODS)
analytics. o Stores real-time operational data for daily
• Examples: o Apache Cassandra – used by decision-making.
Netflix and Twitter. o HBase – used with o Example: A bank using ODS to track
Hadoop for big data. customer ATM withdrawals
during the day.
Data Warehousing
A data warehouse is a large, centralized 4. Virtual Data Warehouse
storage system that integrates data from o Provides a logical view of data without
multiple sources (databases, applications, physically storing it in one
files) into one place. It is designed for location.
querying, reporting, and analysis—not for o Example: An e-commerce company
day-to-day transactions accessing sales, customer
feedback, and delivery data virtually without
Key Characteristics of a Data Warehouse: combining them physically.
1. Subject-Oriented – Data is organized Data Governance
around key subjects like sales,
customers, or products.
2. Integrated – Combines data from different Key Characteristics of a Data
sources into a consistent Warehouse:
format. 1. Subject-Oriented – Data is organized
3. Time-Variant – Stores historical data for around key subjects like sales,
trend analysis (e.g., sales growth customers, or products.
over 5 years). 2. Integrated – Combines data from different
4. Non-Volatile – Once entered, data is sources into a consistent
stable and not frequently updated format.
or deleted. 3. Time-Variant – Stores historical data for
trend analysis (e.g., sales growth
Types of Data Warehouses: over 5 years).
1. Enterprise Data Warehouse (EDW) 4. Non-Volatile – Once entered, data is
o Centralized warehouse that covers the stable and not frequently updated
entire organization. or deleted.
Types of Data Warehouses: 2. Security & Privacy – Protects sensitive
1. Enterprise Data Warehouse (EDW) data from unauthorized access.
o Centralized warehouse that covers the 3. Regulatory Compliance – Helps
entire organization. organizations follow laws like HIPAA
o Example: Coca-Cola storing worldwide (healthcare) or GDPR (personal data
sales and marketing data in protection).
one warehouse. 4. Improved Decision-Making – Managers
can trust the data when planning
2. Data Mart strategies.
o A smaller, focused version of a warehouse 5. Operational Efficiency – Reduces errors,
for a specific duplication, and confusion across
department. departments.
o Example: HR Data Mart → employee
attendance & payroll only. Key Components of Data Governance:
• Policies & Standards – Rules for how data
3. Operational Data Store (ODS) should be handled.
o Stores real-time operational data for daily • Data Stewardship – Assigning
decision-making. responsibility to people who manage and
o Example: A bank using ODS to track monitor data quality.
customer ATM withdrawals • Access Control – Who can view, edit, or
during the day. delete data.
• Monitoring & Auditing – Regular checks to
4. Virtual Data Warehouse ensure compliance with rules
o Provides a logical view of data without
physically storing it in one Knowledge Management (KM)
location.
o Example: An e-commerce company Knowledge Management (KM) is the
accessing sales, customer process of capturing, organizing, storing,
feedback, and delivery data virtually without sharing, and using an organization’s
combining them physically. knowledge—including both documented
information and employees’ expertise—to
Data Governance - is a framework of enhance decision-making, innovation, and
policies, standards, and procedures that overall performance
ensures data is accurate, consistent,
secure, and used responsibly across an Importance of Knowledge Management:
organization. It defines who can access 1. Improves Decision-Making – Employees
data, how it is maintained, and how it is can access reliable information
protected. when making decisions
2. Encourages Innovation – Sharing ideas
Importance of Data Governance: and best practices leads to new
1. Data Accuracy & Quality – Ensures products or services.
information is correct and reliable for 3. Preserves Organizational Knowledge –
decision-making. Ensures expertise is not lost when
employees leave.
4. Enhances Efficiency – Reduces
duplicated effort and mistakes by
providing clear guidelines.
5. Supports Learning and Development –
Employees learn from documented
knowledge and mentors.

Types of Knowledge:

1. Explicit Knowledge - Knowledge that is

documented and easily shared.
o Examples: Manuals, reports, policies,
databases, intranet guides.

2. Tacit Knowledge - Knowledge gained

from experience, intuition, and
skills, which is harder to document.
o Examples: Problem-solving approaches,
personal tips, mentoring,
on-the-job experience