Eleventh Edition

1

Introduction to Information Systems Essentials for the Internetworked E-Business Enterprise

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

C h a p t e r

James A. O’Brien

1Foundations of Information Systemsin Business

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• Provide foundation of why information systems are important

• Identify major types of information systems

• Identify major types of information systems

Chapter Objectives

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• Define construct of an information system – people, hardware, software, data, and networks

• The above resources perform input, processing, output, storage, and control activities that transform data resources into information products.

• Identify challenges and ethical issues that a business manager might face

Chapter Objectives

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An IS Framework for Business Professionals

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InformationSystems

Resources

People

Software

Har

dwar

e

Networks Data

Components of an Information System

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What is a System?

ManufacturingProcess

Input ofRaw Materials

Output ofFinished Products

Environment

Other Systems

Control byManagement

ControlSignals

ControlSignals

FeedbackSignals

FeedbackSignals

System Boundary

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Components of an Information System

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Data versus Information

1200100

WestCharles Mann

79154 TM Shoes

Monthly Sales Report for West Region

Sales Rep: Charles MannEmp No. 79154Item Qty Sold PriceTM Shoes 1200 $100

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Attributes of Information Quality

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Major Roles of Information Systems

Support Strategies for

Competitive Advantage

SupportBusiness Decision Making

Support Business Processes and Operations

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IT Era’s

• Data Processing (DP)• Micro Era• Network Era• WAN Network Environment

– Client-Server – Thin Client– Web– WAP

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History of the role of Information Systems

Data Processing

ManagementReporting

DecisionSupport

Strategic &End User

Electronic Commerce

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

ElectronicData Processing- TPS

ManagementInformationSystems Decision

SupportSystems- Ad hoc Reports

End UserComputingExec Info SysExpert SystemsSIS

ElectronicBusiness & Commerce-InternetworkedE-Business &Commerce

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The e-Business Enterprise

Manufacturingand

ProductionEngineering &

ResearchAccounting,and Finance

Suppliers and Other Business Partners

Supply Chain ManagementProcurement, Distribution, and Logistics

Customer Relationship ManagementMarketing Sales Customer Service

Consumer and Business Customers

CompanyBoundary

Intranets

The Internet

Extranets

Extr

anet

s

Types of Information Systems

16

Why Organizations need Information Systems

Meeting Global Challenges Capturing opportunities in the Market Place Supporting Corporate Strategy Linking Departments Whose Functions are

different Enhancing Worker Productivity Increasing Quality of Goods and Services

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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

18

Customer

ManufacturingInformation Systems

Quality ControlInformationSystems

MarketingInformationSystemsFinancial

and AccountingSystems

GeographicInformationSystems

HumanResourcesSystems

Functional Business Systems

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Other Categories of Information Systems

Expert Systems

Knowledge Management Systems

Cross-Functional Information Systems

Strategic Information Systems

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Other Categories of Information Systems

Expert Systems

Knowledge Management Systems

Cross-Functional Information Systems

Strategic Information Systems – National Semiconductor – “faster & better” decisions

Global Information Systems- Levi’s

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The Information Systems Development Process

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Management Challenges of the E-business Enterprise

•Business Strategies•Business Processes•Business Needs

•Customer Relationships•Business Partners•Suppliers•Business Customers

Ethical ConsiderationsPotential Risks?Potential Laws? Possible Responses?

•IS Human Resources•IS Development

•IT Infrastructure•IS Performance

•Organization Structure•and Culture•User Acceptance

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• 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: – Components (fundamentals) of IS– Information Technologies– Business Applications and processes– Managerial Challenges

Chapter Summary

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Chapter Summary (cont)

• An information system uses the resources of people, hardware, software, data, and networks to perform input, processing, output, storage and control activities. – Transform organizational processes

• Information systems perform three vital roles in business firms. They support:– Business processes and operations,– Business decision making; and– Strategic competitive advantage