Foundations of Information Systems in Business

Chapter 1
Foundations of
Information Systems in
Business
I. The Real World of Information Systems
 Information Systems are an essential

field in the study of business
administration and management.
 Improve the effectiveness and

efficiency of business processes,
managerial decision making, and
workgroup collaboration.
2
 What do these pictures have in
common?
3
I. The Real World of Information Systems
 An Information System may be

computerized or not
 Smoke signals for communication
 Card catalogs in a library
 Your book bag, day planner, notebooks, and
file folders
 The cash register at your favorite fast-food
restaurant
 A paper-based accounting ledger
4
II. The Fundamental Roles of IS in Business
 Support of Strategies for Competitive

Advantage
 Support of Business Decision Making
 Support of Business Processes and
Operations
5
Book Structure
 Framework of major areas:
 Foundation Concepts – fundamental behavioral, technical,
business, and managerial concepts about information
systems
 Information Technologies – major concepts, developments,
and management issues in IT
 Business Applications – major uses of IS for operations,
management, and competitive advantage
 Development Process – how an IS is planned, developed, and
implemented to meet business opportunities
 Management Challenges – effectively and ethically managing
IT at the end-user, enterprise, and global levels of a business
6
III. Trends in Information Systems
7
IV. The Role of e-Business in Business
 E-Business – use of Internet technologies to

empower business processes, e-commerce,
and enterprise collaboration within a firm and
its customers, suppliers, and stakeholders
 Enterprise Collaboration Systems – support

communication, coordination, and
collaboration among networked
teams/workgroups
 E-Commerce – buying, selling, marketing,

and servicing products, services, and
information over computer networks
8
IV. The Role of e-Business in Business
9
V. Types of Information Systems
10
 Operation Support Systems – help run

the daily business, but do not provide
much information for managerial
decision-making
 Transaction Processing Systems – record &
process daily transactions
 Process Control Systems - monitor and
control physical processes
 Enterprise Collaboration Systems (Office
Automation Systems) – enhance team and
workgroup communications and productivity
11
 V. Types of Information Systems
 Management Support Systems

 Management Information Systems –
reports and displays for managers to help
them make better business decisions
 Decision Support Systems – direct
computer support for decision-making
 Executive Information Systems – critical
information specifically for executives to
make better decisions; not just a better
MIS
12
 Other Categories of Information

Systems
 Expert Systems – expert advice for operational
decisions
 Knowledge Management Systems – support
creation, organization, and dissemination of
business knowledge
 Strategic Information Systems – apply IT to
products, services, and processes for strategic
advantage
 Functional Business Systems – support basic
business functions
 Cross-Functional Systems – integrate various roles
and outputs into a variety of functions
13
VI. Managerial Challenges of Information Technology
 Challenges and Opportunities

 Business/IT Challenges
 Business/IT Developments
 Business/IT Goals
 Success and Failure with IT

 Effectiveness – does it work?
 Efficiency – how well does it work?
14
Responsibility and Accountability for
Project Success (and Failure)
 If a project involving IT fails, who gets

blamed? Why? Who should be
accountable?
 If the project is successful, who gets

credit?
 How can you go about changing

mindsets about these projects?
15
 Developing IS Solutions – an Information

Systems is a Solution to a Business Problem
 Investigate (Plan) – recognize the problem exists
 Analyze – investigate the current system
 Design – designing the new system
 Implement – put the new system into effect
 Maintain (Use) – use, monitor, and maintain the new
system
16
Modernize (Don’t Replace!) Your Legacy
Applications
 What is a legacy system?
 Why is it a problem?
 What solutions are available?
17
 Challenges and Ethics of IT – what is

improper, irresponsible, or harmful?
18
 Challenges of IS and IT Careers – in

business, if you are not in an IT career,
you will work regularly with IS
professionals
 Employment opportunities in IS are strong
 Business Technologist – a professional competent
in both business and IT
 U.S. Department of Labor – IS positions expected
to be among fastest growing for years to come
19
The Critical Role of Business Analysts
 What is the role of a business analyst?
 Why is a business analyst important?
 What skills should a business analyst

bring to the firm?
 Why are these skills important?
20
 The IS Function
 IS is a major functional area of business, just as
important as any business function
 IS is an important contributor to operational
efficiency, employee productivity and morale, and
customer services and satisfaction
 IS is an important strategic resource
21
The Foundation for Business Processes
22
I. System Concepts: The Foundation for Business
Processes
 Other System Characteristics
 Environment and Subsystems
 Interface – a shared boundary between
systems
 Open (and Closed) Systems – open systems
interact with other systems (closed systems
do not interact with other systems)
 Adaptive Systems – have the ability to change
themselves or their environment
23
II. Components of Information Systems
24
III. Information System Resources
 People Resources
 IS Specialists
 End Users
 Hardware Resources
 Machines – the computing devices
themselves
 Media – where data is stored
25
 Software Resources
 Programs – instructions that tell the
computer what to do
 System Software – runs the computer
 Application Software – a particular use by end
users
 Procedures – instructions on how to use

the system
26
 Data Resources
 Data – unorganized facts and figures
 Information – data organized so that it has
value to the organization
 Network Resources
 Communications Media- the physical
pathways over which signals travel
 Network Infrastructure – hardware,
software, and data technologies needed to
support communications networks
27
IV. Information System Activities
 Input of Data Resources

 Processing of Data into Information –
organize, analyze, and manipulate data
 Output of Information Products –
dissemination of information products to
appropriate end users
 Storage of Data Resources
 Control of System Resources –
monitoring feedback to assure the system
meets its performance standards
28
V. Recognizing Information Systems
 People, Hardware, Software, Data, and

Network Resources
 Types of Information Products Used
 Performance of Input, Processing,

Output, Storage and Control Activities
29

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Chapter 1

 Information Systems are an essential

 Improve the effectiveness and

 An Information System may be

 Support of Strategies for Competitive

 E-Business – use of Internet technologies to

 Enterprise Collaboration Systems – support

 E-Commerce – buying, selling, marketing,

 Operation Support Systems – help run

 Management Support Systems

 Other Categories of Information

 Challenges and Opportunities

 Success and Failure with IT

 If a project involving IT fails, who gets

 If the project is successful, who gets

 How can you go about changing

 Developing IS Solutions – an Information

 Challenges and Ethics of IT – what is

 Challenges of IS and IT Careers – in

 What is the role of a business analyst?

 Why is a business analyst important?

 What skills should a business analyst

 Why are these skills important?

 Procedures – instructions on how to use

 Input of Data Resources

 People, Hardware, Software, Data, and

 Types of Information Products Used

 Performance of Input, Processing,

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