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Chapter 1

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  1. Chapter1 Foundations of Information Systems in Business

  2. Learning Objectives • Understand the concept of a system and how it relates to information systems • Explain why knowledge of information systems is important for business professionals

  3. Why study information systems and information technology? The changing contemporary business environment 1. Globalization 2. Transformation of Industrial Economics

  4. Why study information systems and information technology? 3. Transformation of the enterprise 4. Emergence of the Digital Firm 5. Other reasons

  5. What is a System? • A system is… • A set of interrelated components • With a clearly defined boundary • Working together • To achieve a common set of objectives • By accepting inputs and producing outputs • In an organized transformation process

  6. System Components • Inputs • Processing • Outputs • Feedback

  7. System Components continued • Environment • System Boundaries

  8. Other Systems Characteristics • Subsystems • Open Systems • Closed Systems

  9. Cybernetic System • All systems have input, processing, and output • A cybernetic system, a self-monitoring, self-regulating system, adds feedback and control • Entropy

  10. A Cybernetic System

  11. What is an Information System? • An organized combination of… • This system is designed to…

  12. Information Technologies • Information Systems versus Information Technologies

  13. Data Versus Information • Data • Information

  14. Fundamental Roles of IS in Business

  15. Types of Information Systems • Operations Support Systems • Management Support Systems

  16. Operations Support Systems • What do they do?

  17. Types of Operations Support Systems • Transaction Processing Systems • Process Control Systems • Enterprise Collaboration Systems

  18. Two Ways to Process Transactions • Batch Processing • Online Processing

  19. Management Support Systems • What do they do?

  20. Types of Management Support Systems • Management Information Systems (MIS) • Decision Support Systems (DSS) • Executive Information Systems (EIS)

  21. Other Information Systems • Strategic Information Systems • Functional Business Systems • Expert Systems • Knowledge Management Systems

  22. Components of an IS

  23. Information System Resources • People Resources • Hardware Resources • Software Resources

  24. Information System Resources • Data Resources • Network Resources • Information Resources

  25. Purposes of Information Systems

  26. A Business as a System

  27. Recognizing Information Systems • Business professionals should be able to look at an information system and identify…

  28. Trends in Information Systems

  29. What is E-Business? • Using Internet technologies to empower… • In essence, an online exchange of value

  30. How E-Business is Being Used

  31. E-Business Use • Reengineering • Enterprise collaboration systems • Electronic commerce

  32. IT Challenges and Opportunities

  33. Measuring IT Success • Efficiency • Effectiveness

  34. Developing IS Solutions

  35. Challenges and Ethics of IT • Application of IT • Potential Harm • Potential Risks • Possible Responses

  36. Ethical Responsibilities • What uses of IT might be considered improper or harmful to other individuals or society? • What is the proper business use of the Internet or a company’s IT resources? • How can you protect yourself from computer crime?

  37. IT Careers • Economic downturns have affected all job sectors, including IT • Rising labor costs are pushing jobs to India, the Middle East, and Asia-Pacific countries • However, IT employment opportunities are strong, with new jobs emerging daily • Shortages of IT personnel are frequent • The long-term job outlook is positive and exciting

  38. IT Careers

  39. IT Careers • Job increases will be driven by… • Rapid growth in computer system design and related services • The need to backfill positions • Information sharing and client/server environments • The need for those with problem-solving skills • Falling hardware and software prices, which will fuel expanded computerization of operations

  40. What Should Business Professionals Know?