1_Foundation of is in Business

8/9/2019 1_Foundation of is in Business

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Management Information SystemsManagement Information Systems

Dr.Orasa TetiwatDr.Orasa Tetiwat

Department of Computer ScienceDepartment of Computer Science

and Information Technologyand Information Technology

Faculty of ScienceFaculty of Science

Naresuan ni!ersityNaresuan ni!ersity



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Foundations ofFoundations ofInformation SystemsInformation Systems

in Businessin Business

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Learning ObjectivesLearning Objectives

$ %&plain why 'nowledge of information%&plain why 'nowledge of information

systems is important for (usinesssystems is important for (usiness

professionals and identify fi!e 'ey areasprofessionals and identify fi!e 'ey areas

of information systems 'nowledge.of information systems 'nowledge.

$ )i!e e&amples to illustrate how the)i!e e&amples to illustrate how the

(usiness applications of information(usiness applications of information

systems can support a firm*s (usinesssystems can support a firm*s (usinessprocesses+ managerial decision ma'ing+processes+ managerial decision ma'ing+

and strategies for competiti!e ad!antage.and strategies for competiti!e ad!antage.

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,

Learning Objectives (Continued)Learning Objectives (Continued)

$ -ro!ide e&amples of the components of-ro!ide e&amples of the components ofreal world information systems.real world information systems.

$ -ro!ide e&amples of se!eral maor types-ro!ide e&amples of se!eral maor typesof information systems.of information systems.

$ Identify se!eral challenges that aIdentify se!eral challenges that a

(usiness manager might face in(usiness manager might face inmanaging the successful and ethicalmanaging the successful and ethicalde!elopment and use of informationde!elopment and use of informationtechnology in a (usiness.technology in a (usiness.

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Information Systems FrameworkInformation Systems Framework11



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Information Systems Concepts (Continued)Information Systems Concepts (Continued)

$ Foundation ConceptsFoundation Concepts

Fundamental concepts a(out theFundamental concepts a(out the

components and roles of informationcomponents and roles of information

systems.systems.

$ Information TechnologiesInformation Technologies

Maor concepts+ de!elopments+ andMaor concepts+ de!elopments+ andmanagement issues in informationmanagement issues in information

technology.technology.

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Information Systems Concepts (Continued)Information Systems Concepts (Continued)

$ 3usiness 4pplications3usiness 4pplications The maor uses of information systems forThe maor uses of information systems for

operations+ management+ and competiti!eoperations+ management+ and competiti!ead!antage.ad!antage.

$ De!elopment -rocessesDe!elopment -rocesses 5ow (usiness professionals and information5ow (usiness professionals and information

specialists plan+ de!elop+ and implement informationspecialists plan+ de!elop+ and implement informationsystems.systems.

$ Management ChallengesManagement Challenges The challenge of managing ethically and effecti!ely.The challenge of managing ethically and effecti!ely.

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!at IS a system"!at IS a system"

$ 4 group of interrelated or interacting 4 group of interrelated or interactingelements forming a unified whole+ O7elements forming a unified whole+ O7

$ 4 group of interrelated components 4 group of interrelated components

wor'ing together toward a common goalwor'ing together toward a common goal(y accepting inputs and producing outputs(y accepting inputs and producing outputsin an organi8ed transformation processin an organi8ed transformation process9dynamic system:.9dynamic system:.

$ Three (asic interacting components;Three (asic interacting components; InputInput -rocessing 9transformation process:-rocessing 9transformation process: OutputOutput

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#dd Feedback and Contro$ Loops%%#dd Feedback and Contro$ Loops%%

$ 4nd the system+ now called a 4nd the system+ now called a

cy(ernetic system+ (ecomes e!ency(ernetic system+ (ecomes e!en

more useful.more useful.

Self=monitoringSelf=monitoring

Self=regulatingSelf=regulating

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Ot!er System C!aracteristicsOt!er System C!aracteristics

$ 4 system e&ists and functions in an 4 system e&ists and functions in anen!ironment containing other systems.en!ironment containing other systems.

$ Su(system a component of a larger system.Su(system a component of a larger system.

$ Systems that share the same en!ironment maySystems that share the same en!ironment may(e connected to one another through a shared(e connected to one another through a shared(oundary+ or interface.(oundary+ or interface.

$ Open !ersus closed system.Open !ersus closed system.

$ 4dapti!e system 4dapti!e system

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Components of an I&FO'#IO& SystemComponents of an I&FO'#IO& System11


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Components of an Information SystemComponents of an Information System

(Continued)(Continued)

$ -eople 7esources-eople 7esources %nd sers%nd sers

IS SpecialistsIS Specialists

$ 5ardware 7esources5ardware 7esources Computer systemsComputer systems

-eripherals-eripherals

$ Software 7esourcesSoftware 7esources System softwareSystem software

4pplication software 4pplication software

-rocedures-rocedures

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Components of an Information SystemComponents of an Information System

(Continued)(Continued)

$ Data 7esourcesData 7esources

Data !ersus InformationData !ersus Information

$ Networ' 7esourcesNetwor' 7esources

Communication mediaCommunication media

Networ' supportNetwor' support

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*ata +ersus Information*ata +ersus Information11

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11 Logica$ *ata -$ementsLogica$ *ata -$ements

&ameFie$d&ameFie$d

.ayro$$'ecord.ayro$$'ecord

.ayro$$Fi$e

.ayro$$Fi$e

.ersonne$*atabase



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Information .roductsInformation .roducts

$ Focus is on the end=user.Focus is on the end=user.

$ They are the result of ISThey are the result of ISacti!itiesAacti!itiesA InputInput

-rocessing-rocessing

OutputOutput StorageStorage

ControlControl

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Section IISection II

$ Foundation Concepts; 3usinessFoundation Concepts; 3usiness 4pplications+ De!elopment+ and 4pplications+ De!elopment+ and

ManagementManagement

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1<

ajor 'o$es of ISajor 'o$es of IS11

SupportCompetitive

#dvantage

SupportBusiness

*ecision aking

Support ofBusiness .rocesses and Operations



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ajor 'o$es of IS (continued)ajor 'o$es of IS (continued)

$ Support 3usiness -rocessesSupport 3usiness -rocesses

$ Support Decision Ma'ingSupport Decision Ma'ing$ Support Competiti!e 4d!antageSupport Competiti!e 4d!antage

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!e .resent and t!e Future!e .resent and t!e Future

$ %=3usiness%=3usiness

The use of Internet technologies toThe use of Internet technologies to

internet wor' and empowerAinternet wor' and empowerA

$ 3usiness processes3usiness processes$ %lectronic commerce+ and%lectronic commerce+ and

$ %nterprise communication B colla(oration%nterprise communication B colla(oration

ithin a company B with its customers+ithin a company B with its customers+suppliers+ B other (usinesssuppliers+ B other (usiness

sta'eholders.sta'eholders.

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IS in t!e -/Business -nterpriseIS in t!e -/Business -nterprise

$ %!ery (usiness competes glo(ally%!ery (usiness competes glo(ally9whether they reali8e it or not:9whether they reali8e it or not:

$ IS supports (usiness operationsIS supports (usiness operationsthrough the use of;through the use of; IntranetsIntranets

%&tranets%&tranets InternetInternet

Other information technologiesOther information technologies

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IS in t!e -/Business -nterprise (continued)IS in t!e -/Business -nterprise (continued)

$ %nterprise Colla(oration Systems%nterprise Colla(oration Systems Support communication+ coordination+Support communication+ coordination+

B colla(oration.B colla(oration.

$ irtual teamsirtual teams

$ %lectronic Commerce%lectronic Commerce

3uying B selling+ and mar'eting B3uying B selling+ and mar'eting Bser!icing of products+ ser!ices+ Bser!icing of products+ ser!ices+ B

information.information.

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rends in Information Systemsrends in Information Systems11



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ypes of Information Systemsypes of Information Systems

$ Operations Support SystemsOperations Support Systems

Transaction processing systemsTransaction processing systems$ 3atch transaction data accumulate o!er3atch transaction data accumulate o!er

time+ processed periodically.time+ processed periodically.$ 7eal=time data processed immediately7eal=time data processed immediately

after a transaction occurs.after a transaction occurs.

-rocess Control Systems monitor B-rocess Control Systems monitor B

control physical processes.control physical processes.

%nterprise Colla(oration Systems%nterprise Colla(oration Systems

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Orasa T.Orasa T.

O T



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ypes of Information Systems (continued)ypes of Information Systems (continued)

$ Management Support SystemsManagement Support Systems

Management Information Systems Management Information Systems

pre=specified reports B displays topre=specified reports B displays to

support decision=ma'ing.support decision=ma'ing. Decision Support Systems pro!ideDecision Support Systems pro!ide

interacti!e ad hoc support.interacti!e ad hoc support.

%&ecuti!e Information Systems %&ecuti!e Information Systems critical information tailored to thecritical information tailored to the

information needs of e&ecuti!es.information needs of e&ecuti!es.

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Orasa T.Orasa T.



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ypes of Information Systems (continued)

$ Other ClassificationsOther Classifications

%&pert systems e&pert ad!ice%&pert systems e&pert ad!ice

Enowledge management systems Enowledge management systems

support the creation+ organi8ation+ Bsupport the creation+ organi8ation+ Bdissemination of (usiness 'nowledgedissemination of (usiness 'nowledge

Functional (usiness systems supportFunctional (usiness systems support

the (asic (usiness functionsthe (asic (usiness functions Strategic information systems Strategic information systems

strategic ad!antagestrategic ad!antage

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*eve$oping IS So$utions to Business*eve$oping IS So$utions to Business

C!a$$engesC!a$$enges11



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-t!ica$ C!a$$enges-t!ica$ C!a$$enges

$ ust (ecause we can+ should weGust (ecause we can+ should weG

$ here do we draw the line (etweenhere do we draw the line (etween

customer pri!acy and collectingcustomer pri!acy and collecting(usiness informationG(usiness informationG

$ Do we owe it to society to use thisDo we owe it to society to use thistechnology wisely and responsi(lyGtechnology wisely and responsi(lyG

hyG Isn*t our o( to ma'e a profitGhyG Isn*t our o( to ma'e a profitG

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In Summary0 t!e IS Function1In Summary0 t!e IS Function1

$ Is a maor functional area of (usiness.Is a maor functional area of (usiness.

$ Is an important contri(utor to operationalIs an important contri(utor to operationalefficiency+ employee producti!ity and morale+efficiency+ employee producti!ity and morale+

and customer ser!ice B satisfaction.and customer ser!ice B satisfaction.

$ Is a maor source of information and support forIs a maor source of information and support fordecision ma'ing.decision ma'ing.

$ -ro!ides a strategic ad!antage in de!eloping-ro!ides a strategic ad!antage in de!elopingcompetiti!e products B ser!ices.competiti!e products B ser!ices.

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*iscussion ,uestions*iscussion ,uestions

$ 5ow can information technology support a5ow can information technology support acompany*s (usiness processes and decisioncompany*s (usiness processes and decisionma'ing+ and gi!e it a competiti!e ad!antageGma'ing+ and gi!e it a competiti!e ad!antageG

$ 5ow does the use of the Internet+ intranets+ and5ow does the use of the Internet+ intranets+ ande&tranets (y an e=(usiness enterprise supporte&tranets (y an e=(usiness enterprise supporttheir e=commerce acti!itiesGtheir e=commerce acti!itiesG

$hy do (ig companies still fail in their use ofhy do (ig companies still fail in their use ofinformation technologyG hat should they (einformation technologyG hat should they (edoing differentlyGdoing differentlyG

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*iscussion ,uestions (continued)*iscussion ,uestions (continued)

$ 5ow can a manager demonstrate that he or she is5ow can a manager demonstrate that he or she isa responsi(le end user of information systemsGa responsi(le end user of information systemsG

$ hat are some of the toughest managementhat are some of the toughest management

challenges in de!eloping IT solutions to sol!echallenges in de!eloping IT solutions to sol!e(usiness pro(lems and meet new e=(usiness(usiness pro(lems and meet new e=(usinessopportunitiesGopportunitiesG

$ hy are there so many conceptual classificationshy are there so many conceptual classifications

of information systemsG hy are they typicallyof information systemsG hy are they typicallyintegrated in information systems found in the realintegrated in information systems found in the realworldGworldG

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*iscussion ,uestions (continued)*iscussion ,uestions (continued)

$ In what maor ways ha!e the roles ofIn what maor ways ha!e the roles of

information systems applications ininformation systems applications in

(usiness e&panded during the last ,>(usiness e&panded during the last ,>

yearsG hat is one maor change youyearsG hat is one maor change youthin' will happen in the ne&t 1> yearsGthin' will happen in the ne&t 1> yearsG

$ Can the (usiness use of InternetCan the (usiness use of Internet

technologies help a company gain atechnologies help a company gain a

competiti!e ad!antageGcompetiti!e ad!antageG

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'eferences'eferences

$ ames 4. OH3rien )eorge M. Mara'as.Management Information Systems;Managing Information Technology in the

3usiness %nterprise 0th %d.+ 3oston;Mc)raw=5illJ Irwin+">>,

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1_Foundation of is in Business

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