[Chapter 1] Foundation of is in Business

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Business Software Application


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Foundations of

Information Systems

in Business

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Learning Objectives

Explain why knowledge of information

systems is important for business

professionals and identify five key areas

of information systems knowledge.

Give examples to illustrate how the

business applications of information

systems can support a firms business

processes, managerial decision making,

and strategies for competitive advantage.

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Learning Objectives (Continued)

Provide examples of the components of

real world information systems.

Provide examples of several major types

of information systems.

Identify several challenges that a

business manager might face in

managing the successful and ethical

development and use of information

technology in a business.

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Information Systems Framework1


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Information Systems Concepts (Continued)

Foundation Concepts

Fundamental concepts about the

components and roles of information

systems.

Information Technologies

Major concepts, developments, and

management issues in information

technology.

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Information Systems Concepts (Continued)

Business Applications The major uses of information systems for

operations, management, and competitiveadvantage.

Development Processes How business professionals and information

specialists plan, develop, and implement informationsystems.

Management Challenges The challenge of managing ethically and effectively.

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What IS a system?

A group of interrelated or interactingelements forming a unified whole, OR

A group of interrelated componentsworking together toward a common goal

by accepting inputs and producing outputsin an organized transformation process(dynamic system).

Three basic interacting components: Input Processing (transformation process) Output

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Add Feedback and Control Loops..

And the system, now called acybernetic system, becomes evenmore useful.

Self-monitoring

Self-regulating

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Other System Characteristics

A system exists and functions in anenvironment containing other systems.

Subsystem a component of a larger system.

Systems that share the same environment maybe connected to one another through a sharedboundary, or interface.

Open versus closed system.

Adaptive system

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Components of an INFORMATION System1


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Components of an Information System(Continued)

People Resources End Users

IS Specialists

Hardware Resources Computer systems

Peripherals

Software Resources System software

Application software

Procedures

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Components of an Information System(Continued)

Data Resources

Data versus Information

Network Resources

Communication media

Network support

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Data Versus Information1

Monthly Sales Report

for West Region

Sales Rep: Charles Mann

Emp No. 79154Item Qty Sold PriceTM Shoes 1200 $100


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Attributes of Information Quality1


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1 Logical Data Elements

NameField

PayrollRecord

PayrollFile

PersonnelDatabase


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Information Products

Focus is on the end-user.

They are the result of IS

activities Input

Processing

Output Storage Control

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Section II

Foundation Concepts: BusinessApplications, Development, andManagement

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Major Roles of IS1

SupportCompetitive

Advantage

SupportBusiness

Decision Making

Support ofBusiness Processes and Operations


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Major Roles of IS (continued)

Support Business Processes

Support Decision Making Support Competitive Advantage

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The Present and the Future

E-Business

The use of Internet technologies tointernet work and empower

Business processes Electronic commerce, and

Enterprise communication & collaboration

Within a company & with its customers,suppliers, & other businessstakeholders.

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IS in the E-Business Enterprise

Every business competes globally(whether they realize it or not)

IS supports business operationsthrough the use of: Intranets

Extranets Internet

Other information technologies

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IS in the E-Business Enterprise (continued)

Enterprise Collaboration Systems Support communication, coordination,

& collaboration.

Virtual teams

Electronic Commerce

Buying & selling, and marketing &servicing of products, services, &information.

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Trends in Information Systems1

O T


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Types of Information Systems

Operations Support Systems

Transaction processing systems

Batch transaction data accumulate over

time, processed periodically. Real-time data processed immediately

after a transaction occurs.

Process Control Systems monitor &

control physical processes.

Enterprise Collaboration Systems

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Orasa T.

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Types of Information Systems (continued)

Management Support Systems

Management Information Systemspre-specified reports & displays to

support decision-making. Decision Support Systems provide

interactive ad hoc support.

Executive Information Systemscritical information tailored to theinformation needs of executives.

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Orasa T.


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Types of Information Systems (continued)

Other Classifications

Expert systems expert advice

Knowledge management systems

support the creation, organization, &dissemination of business knowledge

Functional business systems support

the basic business functions Strategic information systems

strategic advantage

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Developing IS Solutions to BusinessChallenges1


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Ethical Challenges

Just because we can, should we?

Where do we draw the line between

customer privacy and collectingbusiness information?

Do we owe it to society to use thistechnology wisely and responsibly?Why? Isnt our job to make a profit?

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In Summary, the IS Function

Is a major functional area of business.

Is an important contributor to operationalefficiency, employee productivity and morale,

and customer service & satisfaction.

Is a major source of information and support fordecision making.

Provides a strategic advantage in developingcompetitive products & services.

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Discussion Questions

How can information technology support acompanys business processes and decisionmaking, and give it a competitive advantage?

How does the use of the Internet, intranets, andextranets by an e-business enterprise supporttheir e-commerce activities?

Why do big companies still fail in their use of

information technology? What should they bedoing differently?

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Discussion Questions (continued)

How can a manager demonstrate that he or sheis a responsible end user of informationsystems?

What are some of the toughest managementchallenges in developing IT solutions to solvebusiness problems and meet new e-businessopportunities?

Why are there so many conceptualclassifications of information systems? Why arethey typically integrated in information systemsfound in the real world?

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Discussion Questions (continued)

In what major ways have the roles ofinformation systems applications inbusiness expanded during the last 40

years? What is one major change youthink will happen in the next 10 years?

Can the business use of Internettechnologies help a company gain acompetitive advantage?

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References

James A. O'Brien; George M. Marakas.Management Information Systems:Managing Information Technology in the

Business Enterprise 6th Ed., Boston:McGraw-Hill/ Irwin,2004

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[Chapter 1] Foundation of is in Business

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