Eleventh Edition 1 Introduction to Information Systems Essentials for the Internetworked E-Business Enterprise Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. C h a p t e r James A. O’Brien 1 Foundations of Information Systems in Business

Eleventh Edition James A. O’Brien 2 Introduction to Information Systems 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 electronic business, electronic commerce, or enterprise collaboration systems could support a firm’s business processes, managerial decision making, and strategies for competitive advantage. Chapter Objectives

Eleventh Edition James A. O’Brien 3 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. 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. Chapter Objectives

Eleventh Edition James A. O’Brien 4 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. 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

Eleventh Edition James A. O’Brien 5 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. An IS Framework for Business Professionals The blending of Internet technologies and traditional business concerns is impacting all industries and is really the latest phase in the ongoing evolution of business. All companies need to update their business infrastructures and change the way they respond more immediately to customer needs.

Eleventh Edition James A. O’Brien 6 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. An IS Framework for Business Professionals

Eleventh Edition James A. O’Brien 7 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Foundation Concepts: Fundamental behavioral, technical, business, and managerial concepts about the components and roles of information systems Information Technologies: Major concepts, developments, and management issues in information technology Business Applications: The major uses of information systems for the operations, management, and competitive advantage of an e-business enterprise Development Processes: How business professionals and information specialists plan, develop, and implement information systems to meet e-business opportunities using several application development approaches Management Challenges: The challenges of effectively and ethically managing e-business technologies, strategies, and security at the end user, enterprise, and global levels of a business An IS Framework for Business Professionals

Eleventh Edition James A. O’Brien 8 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Information Systems Resources People Software Hardware Networks Data Components of an Information System Information System: Any organized combination of people, hardware, software, communications networks, and data resources that collects, transforms, and disseminates information in an organization

Eleventh Edition James A. O’Brien 9 Introduction to Information Systems 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

Eleventh Edition James A. O’Brien 10 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Components of an Information System

Eleventh Edition James A. O’Brien 11 Introduction to Information Systems 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

Eleventh Edition James A. O’Brien 12 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Attributes of Information Quality

Eleventh Edition James A. O’Brien 13 Introduction to Information Systems 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

Eleventh Edition James A. O’Brien 14 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Major Roles of Information Systems Support Strategies for Competitive Advantage Support Business Decision Making Support Business Processes and Operations

Eleventh Edition James A. O’Brien 15 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. The e-Business Enterprise Manufacturing and Production Engineering & Research Accounting, and Finance Suppliers and Other Business Partners Supply Chain Management Procurement, Distribution, and Logistics Customer Relationship Management Marketing Sales Customer Service Consumer and Business Customers Company Boundary Intranets The Internet Extranets

Eleventh Edition James A. O’Brien 16 Introduction to Information Systems 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

Eleventh Edition James A. O’Brien 17 Introduction to Information Systems 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

Eleventh Edition James A. O’Brien 18 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. The Information Systems Development Process

Eleventh Edition James A. O’Brien 19 Introduction to Information Systems 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

Eleventh Edition James A. O’Brien 20 Introduction to Information Systems 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

Eleventh Edition James A. O’Brien 21 Introduction to Information Systems 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)