1 Management Information Systems ManagIng Information Technology in the E–Business Enterprise Fifth Edition James A. O’Brien Chapter 1 Foundations of Information Systems in Business Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. James A. O’Brien Management Information Systems Fifth Edition 2 Chapter Objectives • 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 Ebusiness, electronic commerce, or enterprise collaboration systems could support a firm’s business processes, managerial decision making, and strategies for competitive advantage. Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. James A. O’Brien Management Information Systems Fifth Edition 3 Chapter Objectives • 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. Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. James A. O’Brien Management Information Systems Fifth Edition 4 An IS Framework for Business Professionals Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. James A. O’Brien Management Information Systems Fifth Edition 5 What is an Information System? Control of System Performance Input of Data Resources Processing Data Output of Information Products Storage of Data Resources Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. James A. O’Brien Management Information Systems Fifth Edition 6 What is a System? Environment Feedback Signals Feedback Signals Control Signals Control by Management Control Signals Input of Raw Materials Manufacturing Process Output of Finished Products System Boundary Other Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. James A. O’Brien Management Information Systems Fifth Edition 7 Components of an Information System Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. James A. O’Brien Management Information Systems Fifth Edition 8 Data versus Information Monthly Sales Report for West Region Sales Rep: Charles Mann Emp No. 79154 Item Qty Sold Price TM Shoes 1200 $100 Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. James A. O’Brien Management Information Systems Fifth Edition 9 Attributes of Information Quality Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. James A. O’Brien Management Information Systems Fifth Edition 10 Logical Data Elements Name Field Payroll Record Payroll File Personnel Database Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. James A. O’Brien Management Information Systems Fifth Edition 11 Major Roles of Information Systems Support of Strategic Advantage Support of Managerial Decision Making Support of Business Operations Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. James A. O’Brien Management Information Systems Fifth Edition 12 History of the role of Information Systems 1950-1960 1960-1970 Data Processing Management Reporting Electronic Data Processing - TPS Management Information Systems Irwin/McGraw-Hill 1970-1980 Decision Support Decision Support Systems - Ad hoc Reports 1980-1990 1990-2000 Strategic & End User Electronic Commerce End User Computing Exec Info Sys Expert Systems SIS Electronic Business & Commerce -Internetworked E-Business & Commerce Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. James A. O’Brien Management Information Systems Fifth Edition 13 The Internetworked -Business The Internet Suppliers and Other Business Partners Company Boundary Extranets Procurement, Distribution, and Logistics Engineering & Research Manufacturing and Production Accounting, Finance, and Management Intranets Advertising Sales Customer Service Extranets Consumer and Business Customers Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. James A. O’Brien Management Information Systems Fifth Edition 14 Types of Information Systems Information Systems Operations Management Support Support Systems Systems Transaction Process Enterprise Management Decision Executive Processing Control Collaboration Information Support Information Systems Systems Systems Systems Systems Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. James A. O’Brien Management Information Systems Fifth Edition 15 Other Categories of Information Systems Expert Systems Knowledge Management Systems Functional Business Systems Strategic Information Systems Cross-Functional Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. James A. O’Brien Management Information Systems Fifth Edition 16 The Information Systems Development Process Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. James A. O’Brien Management Information Systems Fifth Edition 17 Management Challenges of the E-Business Enterprise •IS Human Resources •IS Development •IT Infrastructure •IS Performance •Organization Structure •and Culture •User Acceptance Irwin/McGraw-Hill •Business Strategies •Business Processes •Business Needs •Customer Relationships •Business Partners •Suppliers •Business Customers Ethical Considerations Potential Risks? Potential Laws? Possible Responses? Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. James A. O’Brien Management Information Systems Fifth Edition 18 Chapter Summary • Information Systems play a vital role in the efficient and effective operations of EBusiness, E-Commerce and enterprise collaboration. • The business professional must know: – – – – Foundations (fundamentals) of IS Information Technologies Business Applications Development Processes; and – Managerial Challenges Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. James A. O’Brien Management Information Systems Fifth Edition 19 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. Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. James A. O’Brien Management Information Systems Fifth Edition 20 Chapter Summary (cont) • 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 Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. James A. O’Brien Management Information Systems Fifth Edition 21 Chapter Summary (cont) • 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 Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.