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    1

    Computer Applications in BusinessEssentials for the Internetworked E-Business Enterprise

    Irwin/McGraw-Hill

    C h a p t e r

    James A. OBrien

    1 Foundationsof Information Systemsin Business

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    James A. OBrien 2Introduction to Information Systems

    Irwin/McGraw-Hill .

    Introduction to the course

    Course Outline

    Marks

    Assignments Hourly

    Project

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    James A. OBrien 3Introduction to Information Systems

    Irwin/McGraw-Hill .

    The Purpose as Core Course in School of Management

    To help, introduce studentbuild up the mindset and thinking methodology on

    modern IT/IS.

    learn how to use and manage IT/IS to revitalize

    business process, to improve business decision

    making, and to gain competitive advantage.

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    James A. OBrien 4Introduction to Information Systems

    Irwin/McGraw-Hill .

    Explain why knowledge of informationsystems is important for businessprofessionals and identify five areas ofinformation systems knowledge they

    need. Give examples to illustrate how

    electronic business, electroniccommerce, or enterprise collaborationsystems could support a firms businessprocesses, managerial decision making,and strategies for competitive advantage.

    Chapter Objectives

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    James A. OBrien 5Introduction to Information Systems

    Irwin/McGraw-Hill .

    Provide examples of the components ofreal world information systems. Illustrate

    that in an information system, people use

    hardware, software, data, and networks

    as resources to perform input,

    processing, output, storage, and control

    activities that transform data resources

    into information products.

    Chapter Objectives

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    James A. OBrien 6Introduction to Information Systems

    Irwin/McGraw-Hill .

    Provide examples of several major typesof information systems from your

    experiences with business organizations

    in the real world.

    Identify several challenges that abusiness manager might face inmanaging the successful and ethical

    development and use of informationtechnology in a business.

    Chapter Objectives

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    James A. OBrien 7Introduction to Information Systems

    Irwin/McGraw-Hill .

    Why Information Systems are Important?

    Worldwide spending on information technology is

    now close to $1 trillion per year, and IT continues to

    transform the world of business.

    But approximately half of all large-scale funding ITand implementations fail. It's not the competence of

    the IT and IT department; it's the ability of business

    management to correctly identify opportunities, find

    appropriate technologies, and lead adoption efforts tosuccess.

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    James A. OBrien 8Introduction to Information Systems

    Irwin/McGraw-Hill .

    Why study Information Systems and Information Technolog

    Vital component of successful businesses andorganization.

    Helps businesses expand and compete

    Businesses use IS and IT To improve efficiency and effectiveness of business

    processes

    For managerial decision making

    For workgroup collaboration

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    James A. OBrien 9Introduction to Information Systems

    Irwin/McGraw-Hill .

    What is an Information System?

    An organized combination of People

    Hardware

    Software

    Communications networks

    Data resources

    Policies and procedures

    That stores, retrieves, transforms, and

    disseminates information in an organization

    J A OB i

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    James A. OBrien 10Introduction to Information Systems

    Irwin/McGraw-Hill .

    InformationSystems

    Resources

    People

    Components of an Information System

    J A OB i I t d ti t I f ti S t

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    James A. OBrien 11Introduction to Information Systems

    Irwin/McGraw-Hill .

    What is Information Technology

    Business rely on many types of information systems that use a

    variety of information technologies

    Computer hardware

    Computer software

    Telecommunication network Data resource management

    IT is hardware, software, networking and data management

    J A OB i I t d ti t I f ti S t

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    James A. OBrien 12Introduction to Information Systems

    Irwin/McGraw-Hill .

    An IS Framework for Business Professionals

    J A OB i I t d ti t I f ti S t

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    James A. OBrien 13Introduction to Information Systems

    Irwin/McGraw-Hill .

    What should a Business Professional know about IS?

    Foundation Concepts: fundamental behavioral,technical, business and managerial concepts

    Information Technology: Hardware, software,networks, data management and Internet-based

    technology Business Applications: Major uses of the IS in

    the organization

    Development Processes: How to plan, developand implement IS to meet business opportunities

    Management Challenges: The challenges ofeffectively and ethically managing IT

    James A OBrien 14I t d ti t I f ti S t

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    James A. O Brien 14Introduction to Information Systems

    Irwin/McGraw-Hill .

    Major Roles of Information Systems

    SupportStrategies for

    Competitive Advantage

    SupportBusiness Decision Making

    SupportBusiness Processes and Operations

    James A OBrien 15Introduction to Information Systems

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    James A. O Brien 15Introduction to Information Systems

    Irwin/McGraw-Hill .

    Fundamental Roles of IS in Business

    Support of business processes and operations. Support of decision making by employees and

    managers.

    Support of strategies for competitive advantage.

    James A OBrien 16Introduction to Information Systems

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    James A. O Brien 16Introduction to Information Systems

    Irwin/McGraw-Hill .

    The e-Business Enterprise

    Manufacturingand

    Production

    Engineering &Research

    Accounting,and Finance

    Suppliers and Other Business Partners

    Supply Chain ManagementProcurement, Distribution, and Logistics

    Customer Relationship ManagementMarketing Sales Customer Service

    Consumer and Business Customers

    Company

    Boundary

    Intranets

    The Internet

    Extranets

    Extranets

    James A OBrien 17Introduction to Information Systems

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    James A. O Brien 17Introduction to Information Systems

    Irwin/McGraw-Hill .

    What is E-business?

    The use of Internet technologies to work and empower business processes, electronic

    commerce, and enterprise collaboration

    within a company and with its customers, suppliers,

    and other business stakeholders.

    An online exchange of value.

    James A OBrien 18Introduction to Information Systems

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    James A. O Brien 18Introduction to Information Systems

    Irwin/McGraw-Hill .

    E-business use

    Reengineer internal business processes Enterprise collaboration systems: support

    communications, coordination and collaboration

    among teams and work groups, e.g., virtual

    teams

    Electronic commerce: buying, selling, marketing

    and servicing of products and services over

    computer networks

    James A OBrien 19Introduction to Information Systems

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    James A. O Brien 19Introduction to Information Systems

    Irwin/McGraw-Hill .

    History of the role of Information Systems

    Data

    Processing

    Management

    ReportingDecision

    Support

    Strategic &

    End UserElectronic

    Commerce

    1950-1960 1960-1970 1970-1980 1980-1990 1990-2000

    Electronic

    Data

    Processing

    - TPS

    Management

    Information

    SystemsDecision

    Support

    Systems

    - Ad hoc

    Reports

    End User

    Computing

    Exec Info Sys

    Expert Systems

    SIS

    ElectronicBusiness &

    Commerce

    -Internetworked

    E-Business &

    Commerce

    James A OBrien 20Introduction to Information Systems

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    James A. O Brien 20Introduction to Information Systems

    Irwin/McGraw-Hill .

    Types of Information Systems

    Transaction

    Processing

    Systems

    Process

    Control

    Systems

    Enterprise

    Collaboration

    Systems

    Operations

    Support

    Systems

    Management

    Information

    Systems

    Decision

    Support

    Systems

    Executive

    Information

    Systems

    Management

    Support

    Systems

    Information Systems

    James A. OBrien 21Introduction to Information Systems

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    James A. O Brien 21Introduction to Information Systems

    Irwin/McGraw-Hill .

    Operations support systems

    What are they? Efficiently process business transactions

    Control industrial processes

    Support communications and collaboration

    Update corporate databases

    James A. OBrien 22Introduction to Information Systems

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    James A. O Brien 22Introduction to Information Systems

    Irwin/McGraw-Hill .

    Types of Operations Support Systems

    Transaction Processing Systems

    Record and process data from business transactions

    Examples: sales processing, inventory systems,accounting systems

    Process Control Systems Monitor and control physical processes

    Example: in a petroleum refinery use sensors tomonitor chemical processes

    Enterprise Collaboration Systems

    Enhance team and work group communications

    Examples: e-mail, videoconferencing

    James A. OBrien 23Introduction to Information Systems

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    23Introduction to Information Systems

    Two ways to process transactions

    Batch Processing: Accumulate transactions over time and process

    periodically

    Example: a bank processes all checks received in a

    batch at night

    Online Processing:

    Process transactions immediately

    Example: a bank processes an ATM withdrawalimmediately