1
Management Information Systems
ManagIng Information Technology in the E–Business Enterprise
Sixth 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
Why Study of Information Systems?
Pervasive in Business
Linked to Strategy
High-profile Successes
and Failures
Major Business
Functional Area
Leaders Face Difficult
IS Issues
Irwin/McGraw-Hill
Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Management Information Systems
Fifth Edition
3
An IS Framework for Business Professionals
Irwin/McGraw-Hill
Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Management Information Systems
Fifth Edition
4
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 © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Management Information Systems
Fifth Edition
5
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 © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Management Information Systems
Fifth Edition
6
Components of an Information System
Irwin/McGraw-Hill
Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Management Information Systems
Fifth Edition
7
Primary Information System Activities
Input of Data
Processing of Data Into Information
Output of Information Products
Storage of Data Resources
Control of Systems Performance
Irwin/McGraw-Hill
Copyright © 2004, 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 © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Management Information Systems
Fifth Edition
9
Major Roles of Information Systems
Support
Strategies
for Competitive
Advantage
Support of
Business
Decision Making
Support of
Business Process and Operations
Irwin/McGraw-Hill
Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Management Information Systems
Fifth Edition
10
The E-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 © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Management Information Systems
Fifth Edition
11
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 © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Management Information Systems
Fifth Edition
12
Types of Information Systems
Information Systems
(Support
Business
Ops)
Operations
Management
Support
Support
Systems
Systems
(Support of
Managerial
Decision
Making)
Transaction
Process
Enterprise
Management
Decision
Executive
Processing
Control
Collaboration
Information
Support
Information
Systems
Systems
Systems
Systems
Systems
Systems
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Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Management Information Systems
Fifth Edition
13
Other Categories of Information Systems
Expert Systems
Knowledge Management Systems
Functional Business Systems
Strategic Information Systems
Cross-Functional Information Systems
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Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Management Information Systems
Fifth Edition
14
Managerial Challenges of Information Systems
The Extremely Competitive Business Environment
and Rapidly Developing Information Technologies
Create Complex Management Challenges
The High Cost of not Effectively Integrating IT
(example: $1.6 Billion at Boeing 1997)
Developing IS Solutions
Ethical Challenges
Irwin/McGraw-Hill
Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Management Information Systems
Fifth Edition
15
Management Challenges of the E-Business Enterprise
•IS Human Resources
•IS Development
•IT Infrastructure
•IS Performance
•Organization Structure
•and Culture
•User Acceptance
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•Business Strategies
•Business Processes
•Business Needs
•Customer Relationships
•Business Partners
•Suppliers
•Business Customers
Ethical Considerations
Potential Risks?
Potential Laws?
Possible Responses?
Copyright © 2004, 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 © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Management Information Systems
Fifth Edition
17
Increasing Complex Ethical Issues
Many Important Ethical Considerations Must be Addressed
in Information Technology Decisions.
Some Ethical Impacts May Not be Readily Apparent
What IT Uses are Improper, Irresponsible, Harmful to Society
And / or the Individual?
What are Appropriate Uses of Business IT Assets?
What are the Impacts of IT Decisions?: Jobs, Safety, Workplace
How Do We Protect Against Computer Crime and What are the Tradeoffs?
How Do We Assure an Individuals’ Privacy?
How Do We Address Software Piracy?
How Do We Protect Intellectual Property?
Irwin/McGraw-Hill
Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.