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Foundations of Information Systems in Business

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Presentation on theme: "Foundations of Information Systems in Business"— Presentation transcript:

1 Foundations of Information Systems in Business
Chapter 1 Foundations of Information Systems in Business

2 Content Information Systems in Business
What Is an Information System? The Fundamental Roles of IS in Business Trends in Information Systems The Role of e-Business in Business Types of Information Systems Managerial Challenges of Information Technology The Components of Information Systems What Is a System? Components of Information Systems Information System Resources Information System Activities

3 Information Systems in Business
What Is an Information System? can be any organized combination of people, hardware, software, communications networks, data resources, and policies and procedures that stores, retrieves, transforms, and disseminates information in an organization. Example of IS: Smoke signals for communication: The pattern of smoke transmitted valuable information to others who were too far to see or hear the sender. Card catalogs in a library are designed to store data about the books in an organized manner that allows readers to locate a particular book by its title, author name, subject, or a variety of other approaches. The cash register at your favorite fast-food restaurant is part of a large information system that tracks the products sold, the time of a sale, inventory level, and the amount of money in the cash drawer. A paper-based accounting ledger as used before the advent of computer-based accounting systems is an iconic example of an information system. Your book bag, day planner, notebooks, and file folders are all part of an information system designed to help you organize the inputs provided to you via handouts, lectures, presentations, and discussions.

4 A framework that outlines the major areas of information systems knowledge needed by business professionals 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(hardware, software, networks, data management, and many Internet-based technologies) Business Applications: The major uses of information systems for the operations, management, and competitive advantage of a business. Development Processes: How business professionals and information specialists plan, develop, and implement information systems to meet business opportunities. Management Challenges: The challenges of effectively and ethically managing information technology at the end-user, enterprise, and global levels of a business.

5 The Fundamental Roles of IS in Business
Support of business processes and operations: most retail stores now use it. computer-based information systems to help their employees record customer purchases, keep track of inventory, pay employees, buy new merchandise, and evaluate sales trends. Support of decision making by employees and managers: Information systems also help store managers and other business professionals make better decisions. Support of strategies for competitive advantage: gaining a strategic advantage over competitors requires the innovative application of information technologies(e-commerce Web site).

6 Trends in Information Systems
EDS 1950s–960s MIS 1960s–970s DSS 1970s–980s EIS, AI, ES,SIS 1980s–990s E-Comerce 1990s–2000s ERP 2000s–2010s

7 The Role of e-Business in Business
e-business is the use of Internet technologies to work and empower business processes(online exchange of value). Enterprise collaboration systems involve the use of software tools to support communication, coordination, and collaboration among the members of networked teams and workgroups(use intranets, Internet, extranets).

8 Types of Information Systems
Transaction processing systems: Process data resulting from business transactions, update operational databases, and produce business documents. Process control systems: Monitor and control industrial processes. Ex petroleum refining Enterprise collaboration systems: Support team, workgroup, and enterprise communications and collaborations. Ex , chat, and videoconferencing groupware systems

9 Managerial Challenges of Information Technology

10 Developing IS Solutions

11 Challenges and Ethics of IT

12 What Is a System? System is a set of interrelated components, with a clearly defined boundary, working together to achieve a common set of objectives by accepting inputs and producing outputs in an organized transformation process. The basic functions of system: Input involves capturing and assembling elements that enter the system to be processed. Processing involves transformation processes that convert input into output. Output involves transferring elements that have been produced by a transformation process to their ultimate destination. Subsystem is a system that is a component of large system. To make system more useful we need include two elements are Feedback and Control is called a cybernetic. Feedback is data about the performance of a system. For example, data about sales performance are feedback to a sales manager. Control involves monitoring and evaluating feedback to determine whether a system is moving toward the achievement of its goal.

13 A common cybernetic system is a home temperature control system

14 A business is an example of an organizational system in which economic resources (input) are transformed by various business processes (processing) into goods and services (output). Information systems provide information (feedback) about the operations of the system to management for the direction and maintenance of the system (control) as it exchanges inputs and outputs with its environment.

15 Components of Information Systems
People, hardware, software, data, and networks are the five basic resources of information systems. People resources include end users and IS specialists, hardware resources consist of machines and media, software resources include both programs and procedures, data resources include data and knowledge bases, and network resources include communications media and networks. Data resources are transformed by information processing activities into a variety of information products for end users. Information processing consists of the system activities of input, processing, output, storage, and control.

16 Information System Resources
People Resources: People are the essential ingredient for the successful operation of all information systems(End users, IS specialists). Hardware Resources: It includes all physical devices and materials used in information processing(Computer systems, Computer peripherals). Software Resources: includes all sets of information processing instructions(System software, Application software, Procedures). Data Resources: The concept of data as an organizational resource has resulted in a variety of changes in the modern organization. Network Resources: communications technologies and networks are fundamental resource components of all information systems(Communications media, Network infrastructure).

17 Information System Activities
Input of Data Resources: takes the form of data entry activities such as recording and editing. Processing of Data into Information: refer to analyze, and manipulate data, thus converting them into information for end users. Output of Information Products: Information in various forms is transmitted to end users and made available to them in the output activity. Storage of Data Resources: Storage is the information system activity in which data are retained in an organized manner for later use. Control of System Performance: feedback must be monitored and evaluated to determine whether the system is meeting established performance standards.

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