Introduction

of Information Systems
in Business

Learning Objectives
Provide foundation of why information systems are
important
Identify major types of information systems
Identify major types of information systems

Chapter Objectives
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

Areas of Knowledge to Understand IS

Components of an Information System

People

Information
Systems
Resources

What is a System?
Environment

Feedback
Signals

Feedback
Signals

Control
Signals

Control by
Management

Control
Signals

Input of
Raw Materials

Manufacturing
Process

Output of
Finished Products

System Boundary

Other Systems

Components of an Information System

Data versus Information

Monthly Sales Report
for West Region

Sales Rep: Charles Mann

Emp No. 79154
Item
Qty Sold Price
TM Shoes 1200
$100

Attributes of Information Quality

Major Roles of Information Systems

Support
Strategies for
Competitive Advantage
Support
Business Decision Making

Support
Business Processes and Operations

IT Eras
Data Processing (DP)
Micro Era
Network Era
WAN Network Environment
Client-Server
Thin Client
Web
WAP

History of the role of Information Systems

1950-1960

1960-1970

Data
Processing

Management
Reporting

Electronic
Data
Processing
- TPS

Management
Information
Systems

1970-1980
Decision
Support

Decision
Support
Systems
- Ad hoc
Reports

1980-1990

1990-2000

Strategic &
End User

Electronic
Commerce

End User
Computing
Exec Info Sys
Expert Systems
SIS

Electronic
Business &
Commerce
-Internetworked
E-Business &
Commerce

The e-Business Enterprise

The Internet
Suppliers and Other Business Partners

Company
Boundary

Extranets

Supply Chain Management

Procurement, Distribution, and Logistics

Engineering &
Research

Manufacturing
and
Production

Accounting,
and Finance

Intranets
Customer Relationship Management
Marketing
Sales
Customer Service
Extranets
Consumer and Business Customers

Types of Information Systems

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

Other Categories of Information Systems

Expert Systems
Knowledge Management Systems
Cross-Functional Information Systems
Strategic Information Systems

Global Information Systems

The Information Systems Development

Process

Management Challenges of the E-business

Enterprise
Business Strategies
IS Human Resources
IS Development

IT Infrastructure
IS Performance

Organization Structure
and Culture
User Acceptance

Business Processes
Business Needs

Customer Relationships
Business Partners
Suppliers
Business Customers

Ethical Considerations
Potential Risks?
Potential Laws?
Possible Responses?

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

Summary (continued)
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