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Introduction to Information Systems

Essentials for the Internetworked E-Business Enterprise

Eleventh Edition

James A. OBrien

Chapter
1
Foundations
of Information Systems
in Business
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 James A. OBrien Introduction to Information Systems Eleventh Edition 2

Management
Information
System
Information System
Management Information System
Importance of MIS
Components of MIS
History of MIS
E-Business Enterprise
Types of MIS
Management Challenges of the E-business
Enterprise
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 James A. OBrien Introduction to Information Systems Eleventh Edition 3

Management

The act, art, or manner of managing, handling,

controlling directing, etc.

Origin: to train (a horse) in his paces; cause to

do exercises of the manage

To control the movement or behavior of; handle;

manipulate

To have charge of; direct; conduct; administer

To get (a person) to do what one wishes

Websters Dictionary

3
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 James A. OBrien Introduction to Information Systems Eleventh Edition 4

Information

Derived from the Latin verb informo, meaning

to give form to

Information etymologically connotes an

imposition of organization upon some
indeterminate mass or substratum, the
imparting form that gives life and meaning to
otherwise lifeless or irrelevant matter

Data that have been shaped by humans into a

meaningful and useful form.

Schoderbek, Schoderbek & Kefalas

4
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 James A. OBrien Introduction to Information Systems Eleventh Edition 5

SYSTEM

A set or arrangement of things so related or

connected as to form a unity or organic whole

A set of facts, principles, rules, etc. classified

or arranged in a regular, orderly form so as to
show a logical plan linking the various parts.

A method or plan of classification or

arrangement

Websters New World Dictionary

5
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 James A. OBrien Introduction to Information Systems Eleventh Edition 6

What is a System?
Environment

Feedback Feedback
Signals Signals
Control Control by Control
Signals Management Signals

Input of Manufacturing Output of

Raw Materials Process Finished Products

System Boundary
Other Systems
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 James A. OBrien Introduction to Information Systems Eleventh Edition 7

Information Systems
An information system is an organized
combination of people, hardware, software,
communications Networks and data resources that
collects, transforms, and disseminates information
in an organization.

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 James A. OBrien Introduction to Information Systems Eleventh Edition 8

Why Organizations need Information Systems

Meeting Global Challenges

Capturing opportunities in the Market Place
Supporting Corporate Strategy
Linking Departments Whose Functions are different
Enhancing Worker Productivity
Increasing Quality of Goods and Services

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 James A. OBrien Introduction to Information Systems Eleventh Edition 9

MANAGEMENT INFORMATION SYSTEM (MIS)

The MIS is defined as a system based on the database of

an organization for the purpose of providing information
to the people in the organization.
MIS is the ONLY major subject that focuses on both
business processes and information technology.

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 James A. OBrien Introduction to Information Systems Eleventh Edition 10

Importance Of MIS

The role of MIS in an organization can be compared

to the role of heart in the body.
The information is the blood and MIS is the heart. In
the body the heart plays the role of supplying pure
blood to all the elements of the body including the
brain.
The MIS plays exactly the same role in the
organization.
The system ensures that an appropriate data is
collected from the various sources, processed, and
sent further to all the needy destinations.

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 James A. OBrien Introduction to Information Systems Eleventh Edition 11

The system is expected to fulfill the information

needs of an individual, a group of individuals, the
management functionaries: the managers and the
top management.
The MIS satisfies the diverse needs through a
variety of systems such as Query Systems,
Analysis Systems, Modeling Systems and
Decision Support Systems.
The MIS helps in Strategic Planning,
Management Control, Operational Control and
Transaction Processing.

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 James A. OBrien Introduction to Information Systems Eleventh Edition 12

Major Roles of Information Systems

Support
Strategies for
Competitive Advantage

Support
Business Decision Making

Support
Business Processes and Operations

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 James A. OBrien Introduction to Information Systems Eleventh Edition 13

Components of an Information System

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 James A. OBrien Introduction to Information Systems Eleventh Edition 14

Data versus Information

Monthly Sales Report

for West Region

Sales Rep: Charles Mann

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

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 James A. OBrien Introduction to Information Systems Eleventh Edition 15

Attributes of Information Quality

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 James A. OBrien Introduction to Information Systems Eleventh Edition 16

History of the role of Information Systems

1950-1960 1960-1970 1970-1980 1980-1990 1990-2000

Data Management Decision Strategic & Electronic

Processing Reporting Support End User Commerce

Electronic
Data Management
Processing Information
- TPS Decision
Systems
Support
Systems End User
- Ad hoc Computing
Reports Exec Info Sys Electronic
Expert Systems Business &
SIS Commerce
-Internetworked
E-Business &
Commerce

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 James A. OBrien Introduction to Information Systems Eleventh Edition 17

The e-Business Enterprise

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

Manufacturing
Engineering & Accounting,
and
Research and Finance
Production

Intranets
Customer Relationship Management
Marketing Sales Customer Service

Extranets

Consumer and Business Customers

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 James A. OBrien Introduction to Information Systems Eleventh Edition 18

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

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 James A. OBrien Introduction to Information Systems Eleventh Edition 19

Other Categories of Information Systems

Expert Systems

Knowledge Management Systems

Cross-Functional Information Systems

Strategic Information Systems

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 James A. OBrien Introduction to Information Systems Eleventh Edition 20

Other Categories of Information Systems

Expert Systems

Knowledge Management Systems

Cross-Functional Information Systems

Strategic Information Systems

National Semiconductor faster & better decisions

Global Information Systems- Levis

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 James A. OBrien Introduction to Information Systems Eleventh Edition 21

Management Challenges of the E-business Enterprise

Business Strategies
Business Processes
IS Human Resources Business Needs
IS Development

Customer Relationships
Business Partners
IT Infrastructure
Suppliers
IS Performance
Business Customers

Organization Structure Ethical Considerations

and Culture Potential Risks?
User Acceptance Potential Laws?
Possible Responses?

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 James A. OBrien Introduction to Information Systems Eleventh Edition 22

What jobs do MIS graduates go into?

Business Analyst
Business Application Developer
IT Consultant
Systems Analyst
IT Project Leader
Database Administrator
Systems Developer
Database Analyst
Web Developer
Network Administrator
Technical Support Specialist
Information Systems Manager
IT User Liaison
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