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• The number in the lower left corner of each slide is the page number in the O’Brien textbook to which the material refers.

• The slides in this presentation are only those containing key information from the chapter.

• Illustrative figures are not included as they can be seen as you review the material in the book.

Students

Foundations of Information Systems in Business

Chapter1

McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

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• Understand the concept of a system and how it relates to information systems.

• Explain why knowledge of information systems is important for business professionals and identify five areas of information systems knowledge they need.

Learning Objectives

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Learning Objectives

• Give examples to illustrate how business applications of information systems can support a firm’s business processes, managerial decision making, and strategies for competitive advantage.

• Provide examples of several major types of information systems from your experiences with business organizations in the real world.

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• Identify several challenges that a business manager might face in managing the successful and ethical development and use of information technology in a business.

• Provide examples of the components of real world information systems

• Demonstrate familiarity with the myriad of career opportunities in information systems.

Learning Objectives

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Competitive Advantage

• “Developing products, services, processes, or capabilities that give a company a superior business position relative to its competitors and other competitive forces.”

Glossary, p. 637

• Attributed to a firm that is … “leading an industry in some identifiable way, such as sales, revenues or new products.” Ch. 2, p. 53

• “…when a firm sustains profits that exceed the average for an industry …”

Ch. 2, p. 53

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What is E-Business?

• An online exchange of value– Conducting business on the Internet

• Using Internet technologies to empower…– Business processes– Electronic commerce– Collaboration within a company– Collaboration with customers, suppliers, and

other business stakeholders

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E-Business Use

• Reengineering– Internal business processes

• Enterprise collaboration systems– Support teams and work groups

• Electronic commerce– Buying, selling, marketing, and servicing of

products and services over networks

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Information systems combine:

• Operations Support Systems (Figure 1.7)

– Transaction Processing systems– Process Control Systems– Enterprise Collaboration Systems

• Management Support Systems (Figure 1.9)

– Management Information Systems– Decision Support Systems– Executive Information Systems

• Other Systems (Figure 1.11)

– Expert Systems– Knowledge Management Systems– Strategic Information Systems

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Types of Management Support Systems

• Management Information Systems (MIS)– Reports and displays – Example: daily sales analysis reports

• Decision Support Systems (DSS)– Interactive and ad hoc support– Example: a what-if analysis to determine

where to spend advertising dollars

• Executive Information Systems (EIS)– Critical information for executives and

managers– Example: easy access to actions of

competitors

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Other Information Systems

• Expert Systems– Example: credit application advisor

• Knowledge Management Systems– Support creation, organization, and

dissemination of business knowledge Example: intranet access to best business practices

• Strategic Information Systems– Help get a strategic advantage over customer– Examples: shipment tracking, e-commerce Web

systems

• Functional Business Systems– Focus on operational and managerial

applications Examples: accounting, finance, or marketing

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Responsibility and Accountability

• IT plays an integral role in every facet of a business

• Failure is often pinned on IT• Cultivate a culture that embraces change• Break projects into pieces• Set realistic expectations• There will always be problems

– “That’s life in IT”

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IT Careers

• IT employment opportunities are strong • Shortages of IT personnel are frequent• Long-term job outlook is positive and

exciting• Starting salaries are high

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Business Analysts serve critical role

• CIO – broker between management and IT• Business Analyst

– In the trenches– Analyzes business need and creates solution– Communicates solution to technicians – Balances IT resources with business needs

• Business Analyst credentials– 5-10 years experience– Technical undergraduate degree and MBA– Process driven through changes to finish– $45,000 to $100,000

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The IS Function

• Major functional area of business

• Important contributor to – Efficiency, productivity, morale, customer

service and satisfaction

• Major source of information for decisions

• Vital ingredient in developing competitive products and services

• Dynamic and challenging career opportunity

• Key component of networked business

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IS Activities

• Input of data resources• Processing of data into information• Output of information products• Storage of data resources• Control of system performance