Fifth Edition 1 M a n a g e m e n t I n f o r m a t i o n S y s t e m s M a n a g I n g I n f o r m a t i o n T e c h n o l o g y i n t h e E – B u s i n e s s E n t e r p r i s e Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. C h a p t e r James A. OBrien 1 Foundations of Information Systems in Business

Fifth Edition James A. OBrien 2 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. 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 E- business, electronic commerce, or enterprise collaboration systems could support a firms business processes, managerial decision making, and strategies for competitive advantage. Chapter Objectives

Fifth Edition James A. OBrien 3 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. 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. Chapter Objectives

Fifth Edition James A. OBrien 4 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. An IS Framework for Business Professionals

Fifth Edition James A. OBrien 5 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. What is an Information System? Input of Data Resources Input of Data Resources Processing Data Processing Data Output of Information Products Output of Information Products Control of System Performance Storage of Data Resources

Fifth Edition James A. OBrien 6 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. What is a System? Manufacturing Process Input of Raw Materials Output of Finished Products Environment Other Systems Control by Management Control Signals Control Signals Feedback Signals Feedback Signals System Boundary

Fifth Edition James A. OBrien 7 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Components of an Information System

Fifth Edition James A. OBrien 8 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Data versus Information WestCharles Mann 79154TM Shoes Monthly Sales Report for West Region Sales Rep: Charles Mann Emp No Item Qty Sold Price TM Shoes 1200 $100

Fifth Edition James A. OBrien 9 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Attributes of Information Quality

Fifth Edition James A. OBrien 10 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Name Field Name Field Payroll Record Payroll Record Payroll File Payroll File Personnel Database Logical Data Elements

Fifth Edition James A. OBrien 11 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Major Roles of Information Systems Support of Strategic Advantage Support of Managerial Decision Making Support of Business Operations

Fifth Edition James A. OBrien 12 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. History of the role of Information Systems Data Processing Management Reporting Decision Support Strategic & End User Electronic Commerce 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

Fifth Edition James A. OBrien 13 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. The Internetworked -Business Manufacturing and Production Engineering & Research Accounting, Finance, and Management Suppliers and Other Business Partners Procurement, Distribution, and Logistics Advertising Sales Customer Service Consumer and Business Customers Company Boundary Intranets The Internet Extranets

Fifth Edition James A. OBrien 14 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Types of Information Systems Transaction Processing Systems Process Control Systems Enterprise Collaboration Systems Operations Support Systems Management Information Systems Decision Support Systems Executive Information Systems Management Support Systems Information Systems

Fifth Edition James A. OBrien 15 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Other Categories of Information Systems Expert Systems Knowledge Management Systems Functional Business Systems Strategic Information Systems Cross-Functional Information Systems

Fifth Edition James A. OBrien 16 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. The Information Systems Development Process

Fifth Edition James A. OBrien 17 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Management Challenges of the E-Business Enterprise Business Strategies Business Processes Business Needs Customer Relationships Business Partners Suppliers Business Customers Ethical Considerations Potential Risks? Potential Laws? Possible Responses? IS Human Resources IS Development IT Infrastructure IS Performance Organization Structure and Culture User Acceptance

Fifth Edition James A. OBrien 18 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. 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: –Foundations (fundamentals) of IS –Information Technologies –Business Applications –Development Processes; and –Managerial Challenges Chapter Summary

Fifth Edition James A. OBrien 19 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. 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.

Fifth Edition James A. OBrien 20 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. IS Resources: –Hardware Resources –Software Resources –People Resources –Data Resources –Network Resources Products: –Paper Reports –Visual Displays –Multimedia Documents –Electronic Messages –Graphics images –Audio Responses Chapter Summary (cont)

Fifth Edition James A. OBrien 21 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. 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 Chapter Summary (cont)