Introduction to Information Systems Lecture 01 Foundations of IS in Business Jaeki Song.
Foundations of Information Systems in Business 1
Transcript of Foundations of Information Systems in Business 1
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Foundations of
Information Systems inBusiness
James A. O'Brien, and George Marakas. ManagementInformation Systems with
MISource 2007, 8th ed. Boston, MA: McGraw-Hill, Inc., 2007. ISBN: 13 9780073323091
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Chapter 1 Foundations of Information Systems in Business2
1. Understand the concept of a system and how it relates to IS2. Explain why knowledge of IS is important for business
professionals; Identify five areas of Is knowledge needed
3. Give examples to illustrate how business applications of IS
can support a firms business processes, managerial
decision making, and strategies for competitive advantage4. Provide examples of IS from your experiences with
business organizations in the real world
5. Identify challenges that a business manager might face in
managing the successful, ethical development anduse of information technology
6. Provide examples of the components of real world IS
7. Become familiar with the myriad of career opportunities in IS
Learning Objectives
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Foundation Concepts
Why study information systems and information
technology?Vital component of successful businesses
Helps businesses expand and competeImproves efficiency and effectiveness of
business processesFacilitates managerial decision making and
workgroup collaboration
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What is a System?
A set of interrelated components With a clearly defined boundary Working together
To achieve a common set of objectives
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What is an Information System?
An organized combination ofPeopleHardware and software
Communication networksData resourcesPolicies and procedures
This systemStores, retrieves, transforms, and
disseminates information in an organization
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What Should Business
Professionals Know?
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Fundamental Roles of IS in
Business
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E-Business Use
ReengineeringInternal business processes
Enterprise collaboration systems
Support communications, coordination andcoordination among teams and work groups
Electronic commerceBuying, selling, marketing, and servicing of
products and services over networks
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Types of Information Systems
Operations Support SystemsEfficiently process business transactionsControl industrial processes
Support communication and collaborationUpdate corporate databases
Management Support SystemsProvide information as reports and displaysGive direct computer support to managers
during decision-making
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Purposes of Information Systems
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Operations Support Systems
What do they do?Efficiently process business transactionsControl industrial processes
Support communications and collaborationUpdate corporate databases
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Types of OSS
Transaction Processing SystemsRecord and process business transactionsExample: sales processing, inventory systems,
accounting systems Process Control SystemsMonitor and control physical processesExample: using sensors to monitor chemical
processes in a petroleum refinery Enterprise Collaboration SystemsEnhance team and workgroup communicationExample: email, video conferencing
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Management Support Systems
What do they do?Provide information and support for effective
decision making by managers
Management information systemsDecision support systemsExecutive information systems
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Types of Management Support Systems
Management Information Systems (MIS)Reports and displaysExample: daily sales analysis reports
Decision Support Systems (DSS)Interactive and ad hoc supportExample: a what-if analysis to determine where
to spend advertising dollars Executive Information Systems (EIS)Critical information for executives and
managersExample: easy access to actions of competitors
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Other Information Systems
Expert Systems - provide expert advice Example: credit application advisor
Knowledge Management Systems - support creation,
organization, and dissemination of business knowledge
throughout company Example: intranet access to best business practices
Strategic Information Systems - help get a strategic
advantage over customer Example: shipment tracking, e-commerce Web
systems Functional Business Systems - focus on operational and
managerial applications of basic business functions Example: accounting, finance, or marketing
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IT Challenges and Opportunities
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Measuring IT Success
EfficiencyMinimize cost, time, and use of information
resources
EffectivenessSupport business strategiesEnable business processes
Enhance organizational structure and cultureIncrease customer and business value
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Challenges and Ethics of IT Application of IT
Customer relationship management Human resources management Business intelligence systems
Potential Harm Infringements on privacy
Inaccurate information Collusion
Potential Risks Consumer boycotts Work stoppages
Government intervention Possible Responses
Codes of ethics Incentives Certification
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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 companys IT resources? How can you protect yourself from computer
crime?
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IT Careers
Economic downturns have affected all jobsectors, including IT
Rising labor costs are pushing jobs to India, theMiddle East, and Asia-Pacific countries
However, IT employment opportunities arestrong, with new jobs emerging daily
Shortages of IT personnel are frequent The long-term job outlook is positive and exciting
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IT Careers
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IT Careers
Job increases will be driven byRapid 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, whichwill fuel expanded computerization of
operations
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The IS Function
The IS function isA major functional area of businessAn important contributor to operational efficiency,
employee productivity, morale, customer service
and satisfactionA major source of information and support for
decision makingA vital ingredient in developing competitive
products and services in the global marketplaceA dynamic and challenging career opportunityA key component of todays networked business
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System Concepts: A Foundation
System concepts help us understandTechnology: hardware, software, data
management, telecommunications networksApplications: to support inter-connected
information systemsDevelopment: developing ways to use
information technology includes designing the
basic components of information systemsManagement: emphasizes the quality,strategic business value, and security of anorganizations information systems
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What is a System?
A system isA set of interrelated componentsWith a clearly defined boundary
Working togetherTo achieve a common set of objectivesBy accepting inputs and producing outputsIn an organized transformation process
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Basic Functions of a System
InputCapturing and assembling elements that enter
the system to be processed
ProcessingTransformation process that converts input
into output Output
Transferring transformed elements to theirultimate destination
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Cybernetic System
All systems have input, processing, and output A cybernetic system, a self-monitoring, self-
regulating system, adds feedback and control:Feedback is data about the performance of a
systemControl involves monitoring and evaluating
feedback to determine whether a system is moving
toward the achievement of its goal
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A Business as a System
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Other System Characteristics
If a system is one of the components of a larger
system, it is a subsystemThe larger system is an environment
Several systems may share the sameenvironmentSome may be connected via a shared
boundary, orinterface
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Components of an IS
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Information System Resources People Resources
Specialists End users
Hardware Resources Machines Media
Software Resources Programs Procedures
Data Resources Product descriptions, customer records, employee files,
inventory databases
Network Resources Communications media, communications processors, networkaccess and control software
Information Resources Management reports and business documents using text and
graphics displays, audio responses, and paper forms
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IS Activities
Input of data resourcesData entry activities
Processing of data into informationCalculations, comparisons, sorting, and so on
Output of information productsMessages, reports, forms, graphic images
Storage of data resourcesData elements and databases
Control of system performanceMonitoring and evaluating feedback
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Ch t 1 F d ti f I f ti S t i B i
Recognizing IS
Business professionals should be able to look atan information system and identifyThe people, hardware, software, data, and
network resources they useThe type of information products they produceThe way they perform input, processing,
output, storage, and control activities