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Foundations of Information Systems in Business Chapter 1- section I. Lecture-2. Outline. What is an IS ? The fundamental roles of IS in Business Trends in IS The Role of e-Business in Business Types of IS. Communication networks. Policies and procedures. People. Data resources.

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lecture 2

Foundations of Information

Systems in Business

Chapter 1- section I


  • What is an IS ?
  • The fundamental roles of IS in Business
  • Trends in IS
  • The Role of e-Business in Business
  • Types of IS
what is an information system


Policies andprocedures


Data resources

Hardware andsoftware

Stores, retrieves, transforms, and disseminates informationin an organization

What is an Information System?

Any organizedcombination of…


Why do we need to understand IS?

  • Information systems and technologies are vital components of successful business and organizations.
the roles of is in business
The Roles of IS in Business
  • Information technologies, including Internet-based IS, are playing vital roles in business.
  • Information technology can help all kinds of business improve the efficiency and effectiveness of their business processes, decision making and workgroup collaboration, which strengthens their competitive positions in rapidly changing marketplace.
the roles of is in business1
The Roles of IS in Business

Information systems perform three vital roles in any type of organization:

  • Support of business processes and operations.
  • Examples of supported business processes include activities such as: sales transactions, inventory ordering, and payroll processing.
  • Support of decision making by employees and managers.
  • Make decision about activities such as deciding which product lines to add or discontinue.
  • Support of strategies for competitive advantage.
  • Information systems help provide new types of products and services through which an organization might gain a competitive advantage.
today s focus
Today’s Focus
  • Today’s organizations are constantly striving to achieve integration of their systems to allow information to flow freely through them, which adds even greater flexibility and business support than any of the individual system roles could provide.
the role of e business in business
The Role of E-Business in Business
  • The Internet have changed the ways businesses operate and people work, as well as how information systems support business process, decision making, and competitive advantage.
  • Thus, many business today are using Internet technologies to Web-enable their business processes and create innovative e-business applications.
what is e business
What is e-Business ?

Using Internet technologies to empower…

Business processes

Electronic commerce

Collaboration within a company

Collaboration with customers, suppliers,other business stakeholders

an online exchange of value

e business applications
E-business applications
  • Businesses today are using the Internet, corporate intranets, and inter-organizational extranets to support business activities with suppliers, partners, customers, accounting, finance, research and development, manufacturing, marketing, sales, and customer service.
it in e business applications
IT in E-business applications

The primary Information Technology infrastructure that support the E-business applications of many companies are:

  • Internet
  • Intranet
    • Internet-like networks and websites developed for use within an organization.
  • Extranet
    • Internet-like networks that links selected resources of a company with its customers, suppliers, and other business partners using internet technologies.
e business applications uses in companies


Enterprise collaboration

Electronic commerce

Reengineer Internal business processes

Support communication, coordination among teams and work groups

Buying, selling, marketing, and servicing of products and services over networks

E-Business Applications uses in companies
types of information systems
Types of Information Systems

Transaction processing




Process control

Enterprise collaboration

Management information systems




Decision support systems

Executive information systems

1 operations support systems
1- Operations Support Systems

These systems help enable the day to day operations of an organization

Transaction processing

Process control

Enterprise collaboration

operations support systems
Operations Support Systems
  • Transaction processing systems
    • process routine business transactions, update operational databases, and produce business documents.
    • Examples: sales or purchases.
two ways to process transactions

Process all transactions immediately

Ex: A bank processes ATM withdrawals immediately

Accumulate transactions over time and then process periodically

Ex: Banks process all checks in a batch at night

Two Ways to Process Transactions

Online Processing

Batch Processing

types of operations support systems
Types of Operations Support Systems
  • Process control systems
    • These systems monitor and control physical processes
    • Examples: heating and cooling systems.
  • Enterprise collaboration systems
    • Support team or workgroup communications and productivity.
    • Examples: e-mail, instant messaging, message boards, digital whiteboards, wikis, and videoconferencing.
2 management support systems
2- Management Support Systems

Provide information and support foreffective decision making by managers

Management information systems

Decision support systems

Executive information systems

types of management support systems
Types of Management Support Systems
  • Management Information Systems (MIS)
    • Provide information in the form of reports and displays
    • Example: daily sales analysis reports
  • Decision Support Systems (DSS)
    • Interactive ad hoc support
    • Example: a what-if analysis to determine where to spend advertising dollars
  • Executive Information Systems (EIS)
    • Critical information for executives and managers
    • Example: actions of competitors
other classifications of information systems
Other Classifications of Information Systems

Expert Systems

Provides expert advice

Ex. Credit application advisor

Creation, organization, dissemination of knowledge throughout company

Knowledge Management Systems

Customer problems solutions systems

other classifications of information systems1
Other Classifications of Information Systems

Helps get strategic advantage

Strategic Information Systems

Ex. Shipment tracking

Focus on operational and managerial application of basic business functions

Functional Business Systems

Accounting, finance, marketing

Resources ..
  • Read from Chapter 1 (Section 1)