apr 20 2013 computer applciation in business chap 01
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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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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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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
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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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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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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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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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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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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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An IS Framework for Business Professionals
J A OB i I t d ti t I f ti S t
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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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Major Roles of Information Systems
SupportStrategies for
Competitive Advantage
SupportBusiness Decision Making
SupportBusiness Processes and Operations
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James A. O Brien 15Introduction to Information Systems
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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.
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James A. O Brien 16Introduction to Information Systems
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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
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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.
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James A. O Brien 18Introduction to Information Systems
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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
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James A. O Brien 19Introduction to Information Systems
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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
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James A. O Brien 20Introduction to Information Systems
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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
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Operations support systems
What are they? Efficiently process business transactions
Control industrial processes
Support communications and collaboration
Update corporate databases
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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
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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