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Foundations of Information Systems in Business

1. Foundations of Information Systems in Business. Chapter Objectives. Explain why knowledge of information systems is important for business professionals and identify five areas of information systems knowledge they need.

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Foundations of Information Systems in Business

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  1. 1 Foundations of Information Systemsin Business

  2. Chapter Objectives • Explain why knowledge of information systems is important for business professionals and identify five areas of information systems knowledge they need. • Give examples to illustrate how E-business, electronic commerce, or enterprise collaboration systems could support a firm’s business processes, managerial decision making, and strategies for competitive advantage.

  3. Chapter Objectives • Provide examples of real world information systems, including the people, hardware, software, data, and network resources that compose them. • Provide examples of several major types of information systems from your experiences with business organizations in the real world. • Identify several challenges that a business manager might face in managing the successful and ethical development and use of information technology in a business.

  4. An IS Framework for Business Professionals

  5. Control of System Performance Input of Data Resources Processing Data Output of Information Products Storage of Data Resources What is an Information System?

  6. Environment Control by Management Feedback Signals Feedback Signals Control Signals Control Signals Input of Raw Materials Output of Finished Products Manufacturing Process System Boundary Other Systems What is a System?

  7. Components of an Information System

  8. Monthly Sales Report for West Region 1200 100 West Charles Mann 79154 TM Shoes Sales Rep: Charles Mann Emp No. 79154 ItemQty SoldPrice TM Shoes 1200 $100 Data versus Information

  9. Attributes of Information Quality

  10. Name Field Payroll Record Payroll File Personnel Database Logical Data Elements

  11. Support of Strategic Advantage Support of Managerial Decision Making Support of Business Operations Major Roles of Information Systems

  12. 1970-1980 1950-1960 1960-1970 1980-1990 1990-2000 Strategic & End User Management Reporting Data Processing Electronic Commerce Decision Support Electronic Data Processing - TPS Management Information Systems Decision Support Systems - Ad hoc Reports End User Computing Exec Info Sys Expert Systems SIS Electronic Business & Commerce -Internetworked E-Business & Commerce History of the role of Information Systems

  13. The Internet Company Boundary Suppliers and Other Business Partners Procurement, Distribution, and Logistics Extranets Engineering & Research Accounting, Finance, and Management Manufacturing and Production Intranets Advertising Sales Customer Service Extranets Consumer and Business Customers The Internetworked -Business

  14. Information Systems Operations Management Support Support Systems Systems Transaction Process Enterprise Management Decision Executive Processing Control Collaboration Information Support Information Systems Systems Systems Systems Systems Systems Types of Information Systems

  15. Other Categories of Information Systems Expert Systems Knowledge Management Systems Functional Business Systems Strategic Information Systems Cross-Functional Information Systems

  16. The Information Systems Development Process

  17. Business Strategies • Business Processes • Business Needs • IS Human Resources • IS Development • Customer Relationships • Business Partners • Suppliers • Business Customers • IT Infrastructure • IS Performance Ethical Considerations Potential Risks? Potential Laws? Possible Responses? • Organization Structure • and Culture • User Acceptance Management Challenges of the E-Business Enterprise

  18. Chapter Summary • Information Systems play a vital role in the efficient and effective operations of E-Business, E-Commerce and enterprise collaboration. • The business professional must know: • Foundations (fundamentals) of IS • Information Technologies • Business Applications • Development Processes; and • Managerial Challenges

  19. Chapter Summary (cont) • A system is a group of interrelated components working toward the attainment of a common goal by accepting inputs and producing outputs in an organized transformation process. • An information system uses the resources of people, hardware, software, data, and networks to perform input, processing, output, storage and control activities.

  20. Chapter Summary (cont) • IS Resources: • Hardware Resources • Software Resources • People Resources • Data Resources • Network Resources • Products: • Paper Reports • Visual Displays • Multimedia Documents • Electronic Messages • Graphics images • Audio Responses

  21. Chapter Summary (cont) • Information systems perform three vital roles in business firms. They support: • Business processes and operations, • Business decision making; and • Strategic competitive advantage • Major application categories of information systems include: • Operations Support Systems; and • Management Support Systems

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