1

Management Information Systems

ManagIng Information Technology in the EBusiness Enterprise
Fifth 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

Management Information Systems

Fifth 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 Ebusiness, 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

Management Information Systems

Fifth Edition

Chapter Objectives Provide examples of real world information systems, including the people, hardware, software, data, and network resources that compose them.
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

Management Information Systems

Fifth Edition

An IS Framework for Business Professionals

Irwin/McGraw-Hill

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

James A. OBrien

Management Information Systems

Fifth 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

Management Information Systems

Fifth 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

Management Information Systems

Fifth Edition

Components of an Information System

Irwin/McGraw-Hill

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

James A. OBrien

Management Information Systems

Fifth Edition

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

James A. OBrien

Management Information Systems

Fifth Edition

Attributes of Information Quality

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

James A. OBrien

Management Information Systems

Fifth Edition

10

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

Management Information Systems

Fifth Edition

11

Major Roles of Information Systems

Support of Strategic Advantage Support of Managerial Decision Making

Support of Business Operations

Irwin/McGraw-Hill

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

James A. OBrien

Management Information Systems

Fifth Edition

12

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

Management Information Systems

Fifth Edition

13

The Internetworked -Business

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

Engineering & Research

Manufacturing and Production

Accounting, Finance, and Management

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

Sales

Customer Service

James A. OBrien

Management Information Systems

Fifth Edition

14

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

Irwin/McGraw-Hill

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

James A. OBrien

Management Information Systems

Fifth Edition

15

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

Management Information Systems

Fifth Edition

16

The Information Systems Development Process

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James A. OBrien

Management Information Systems

Fifth Edition

17

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

Management Information Systems

Fifth Edition

18

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

Management Information Systems

Fifth Edition

19

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

Management Information Systems

Fifth Edition

20

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

Management Information Systems

Fifth Edition

21

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.