Foundations of Information Systems in Business

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 electronic 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 the components of real 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.

4. Chapter Objectives • 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.

5. An IS Framework for Business Professionals

6. People Information Systems Resources Software Hardware Networks Data Components of an Information System

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

8. 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?

9. Components of an Information System

10. 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

11. Attributes of Information Quality

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

13. Support Strategies for Competitive Advantage Support Business Decision Making Support Business Processes and Operations Major Roles of Information Systems

14. 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

15. The Internet Company Boundary Suppliers and Other Business Partners Supply Chain Management Procurement, Distribution, and Logistics Extranets Engineering & Research Accounting, and Finance Manufacturing and Production Intranets Customer Relationship Management Marketing Sales Customer Service Extranets Consumer and Business Customers The e-Business Enterprise

16. 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

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

18. The Information Systems Development Process

19. 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

20. 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

21. 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.

22. 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

23. 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