Part A: Computing foundations
Introduction to information communication technology
Key takeaways
- ICT is the combined use of computing and telecommunications to create, store, process and exchange information.
- Hardware divides into input, processing, output and storage devices; the CPU executes instructions and performs calculations.
- A bit is a single binary digit and a byte is eight bits; storage units step up by 1,000 on product labels, while operating systems often count in steps of 1,024.
- System software, chiefly the operating system, manages the computer; application software performs tasks for the user and must run on the system software already in place.
- Separating the work of analysts, programmers, database administrators and security officers is a control: no single person can both change a system and approve the change.
Introduction to information communication technology
ICT is the combined use of computing and telecommunications technology to create, store, process and exchange information, the infrastructure every later chapter in this paper, and much of modern accounting practice, now depends on.
Computer hardware
Data is measured in bits and bytes, and confusing the two is behind most errors in capacity and transfer calculations. A bit is a single binary digit, 0 or 1. A byte is eight bits and is the unit used for storage. Larger units step up by a thousand in the decimal convention used on product labels, from kilobytes to megabytes, gigabytes and terabytes, while operating systems often report capacity in binary steps of 1,024. The same drive therefore appears slightly smaller once installed than its label suggests, which is a matter of convention rather than a fault.
Planning storage for scanned documents
An accounting firm will scan its archive of 250,000 invoices, each saved as
a 400 KB file, and wants storage for three years of growth plus backups.
Current archive 250,000 x 400 KB = 100,000,000 KB
/ 1,000 = 100,000 MB
/ 1,000 = 100 GB
Growth at 20% a year for three years
100 GB x 1.2 x 1.2 x 1.2
100 GB x 1.728 = 172.8 GB
Copies needed: the working copy plus two backups = 3 copies
172.8 GB x 3 = 518.4 GB
Reading it:
The archive itself is modest; growth and backups more than
quintuple the requirement, from 100 GB to over 500 GB.
Buying storage for today's 100 GB alone would fail within the
period and leave no room for the backups that protect the data.
Computer software
Software divides into system software, which manages the computer itself, and application software, which performs tasks for the user. System software includes the operating system, device drivers and utility programs such as backup and antivirus tools. Application software includes general packages such as word processors and spreadsheets, and specialised packages such as accounting or payroll systems. A business choosing application software must also check that it runs on the system software it already has, since an incompatible package brings upgrade costs that were not in the original budget.
Programming languages and tools
Information systems personnel and hierarchy
- Chief Information Officer, sets IT strategy
- Systems analysts, design information systems
- Programmers, write and maintain code
- Database administrators, manage organisational data
- IT support staff, maintain day-to-day operations
The roles within an information systems function reflect a division of labour that is also a control. Systems analysts establish what users need, programmers build it, database administrators manage the data, network administrators keep communications running, and security officers protect the whole. Separating these duties means no single person can both change a system and approve the change, which is the same segregation principle that underlies accounting controls.
Role of ICT in business environments
- Automates routine transactions and processing
- Enables faster, better-informed decision-making
- Supports communication within and beyond the organisation
- Underpins e-commerce and digital service delivery
Information centres
An information centre (or IT/help desk) provides centralised support for an organisation's technology users, troubleshooting problems, managing access, and maintaining systems.
Impact of ICT in business
- Improved efficiency and reduced operating costs
- Wider market reach through digital channels
- New risks: cyber threats and data security exposure
- Need for continuous staff training as technology changes
Exam tip
The hardware and software distinction, and the system and application software split, are the reference vocabulary the rest of this paper assumes, get comfortable naming which category any described technology falls into.
Self-check
(a) Classify each of the following as system software or application software: (i) an operating system; (ii) a spreadsheet program. (2 marks)
(b) Distinguish a low-level programming language from a high-level programming language. (3 marks)
(c) State three roles typically found in an information systems personnel hierarchy. (3 marks)
(d) State two impacts ICT has had on business, one positive and one presenting a new risk. (2 marks)
Show worked answer
(a) (i) System software; (ii) Application software (2 marks).
(b) A low-level language (machine or assembly language) is close to hardware, fast to execute but hard to write; a high-level language is human-readable, translated into machine code by a compiler or interpreter (3 marks).
(c) Any three of: Chief Information Officer; systems analysts; programmers; database administrators; IT support staff (3 marks).
(d) Positive: improved efficiency and reduced operating costs (or wider market reach). Risk: new cyber threats and data security exposure (2 marks).