1

Introduction to Information Systems

Essentials for the Internetworked E-Business Enterprise
Eleventh Edition

James A. OBrien

Chapter

1
Foundations
of Information Systems in Business

Irwin/McGraw-Hill

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

James A. OBrien

Introduction to Information Systems

Eleventh Edition

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 firms business processes, managerial decision making, and strategies for competitive advantage.
Irwin/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rights reserved.

James A. OBrien

Introduction to Information Systems

Eleventh Edition

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.

Irwin/McGraw-Hill

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

James A. OBrien

Introduction to Information Systems

Eleventh Edition

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.

Irwin/McGraw-Hill

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

James A. OBrien

Introduction to Information Systems

Eleventh Edition

An IS Framework for Business Professionals

Irwin/McGraw-Hill

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

James A. OBrien

Introduction to Information Systems

Eleventh Edition

Components of an Information System

People

Information Systems Resources

Irwin/McGraw-Hill

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

James A. OBrien

Introduction to Information Systems

Eleventh Edition

What is an Information System?

Control of System Performance

Input of Data Resources

Processing Data

Output of Information Products

Storage of Data Resources

Irwin/McGraw-Hill

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

James A. OBrien

Introduction to Information Systems

Eleventh Edition

What is a System?
Environment

Feedback Signals Control Signals

Feedback Signals

Control by Management

Control Signals

Input of Raw Materials System Boundary

Manufacturing Process

Output of Finished Products

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

James A. OBrien

Introduction to Information Systems

Eleventh Edition

Components of an Information System

Irwin/McGraw-Hill

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

James A. OBrien

Introduction to Information Systems

Eleventh Edition

10

Data versus Information

Monthly Sales Report for West Region

Sales Rep: Charles Mann Emp No. 79154 Item Qty Sold Price TM Shoes 1200 $100

Irwin/McGraw-Hill

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

James A. OBrien

Introduction to Information Systems

Eleventh Edition

11

Attributes of Information Quality

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

James A. OBrien

Introduction to Information Systems

Eleventh Edition

12

Logical Data Elements

Name Field

Payroll Record

Payroll File

Personnel Database

Irwin/McGraw-Hill

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

James A. OBrien

Introduction to Information Systems

Eleventh Edition

13

Major Roles of Information Systems

Support Strategies for Competitive Advantage Support Business Decision Making

Support Business Processes and Operations

Irwin/McGraw-Hill

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

James A. OBrien

Introduction to Information Systems

Eleventh Edition

14

History of the role of Information Systems

1950-1960 Data Processing 1960-1970 Management Reporting 1970-1980 1980-1990 1990-2000 Electronic Commerce

Decision Support

Strategic & End User

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

Irwin/McGraw-Hill

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

James A. OBrien

Introduction to Information Systems

Eleventh Edition

15

The e-Business Enterprise

The Internet Suppliers and Other Business Partners Supply Chain Management Procurement, Distribution, and Logistics Extranets Company Boundary

Engineering & Research

Manufacturing and Production

Accounting, and Finance

Intranets Customer Relationship Management Marketing Sales Customer Service

Extranets Consumer and Business Customers
Irwin/McGraw-Hill
Copyright 2002, The McGraw-Hill Companies, Inc. All rights reserved.

James A. OBrien

Introduction to Information Systems

Eleventh Edition

16

Types of Information Systems

Information Systems

Operations Support

Management Support

Systems

Systems

Transaction

Process

Enterprise

Management

Decision

Executive

Processing
Systems

Control
Systems

Collaboration
Systems

Information
Systems

Support
Systems

Information
Systems

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

James A. OBrien

Introduction to Information Systems

Eleventh Edition

17

Other Categories of Information Systems

Expert Systems

Knowledge Management Systems

Functional Business Systems Strategic Information Systems Cross-Functional Information Systems

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

James A. OBrien

Introduction to Information Systems

Eleventh Edition

18

The Information Systems Development Process

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James A. OBrien

Introduction to Information Systems

Eleventh Edition

19

Management Challenges of the E-business Enterprise

Business Strategies Business Processes Business Needs

IS Human Resources IS Development

IT Infrastructure IS Performance

Customer Relationships Business Partners Suppliers Business Customers

Organization Structure and Culture User Acceptance

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Ethical Considerations Potential Risks? Potential Laws? Possible Responses?

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

James A. OBrien

Introduction to Information Systems

Eleventh Edition

20

Chapter Summary
Information Systems play a vital role in the efficient and effective operations of Ebusiness, E-commerce and enterprise collaboration. The business professional must know:
Foundations (fundamentals) of IS Information Technologies Business Applications Development Processes; and

Managerial Challenges

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

James A. OBrien

Introduction to Information Systems

Eleventh Edition

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.

Irwin/McGraw-Hill

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

James A. OBrien

Introduction to Information Systems

Eleventh Edition

22

Chapter Summary (cont)

IS Resources:
Hardware Resources Software Resources People Resources Data Resources Network Resources Paper Reports Visual Displays Multimedia Documents Electronic Messages Graphics images Audio Responses

Products:

Irwin/McGraw-Hill

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

James A. OBrien

Introduction to Information Systems

Eleventh Edition

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

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