FOUNDATIONS OF INFORMATION
SYSTEMS IN BUSINESS
CHAPTER 1- section I
Lecture-2
Outline
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What is an IS ?
The fundamental roles of IS in Business
Trends in IS
The Role of e-Business in Business
Types of IS
What is an Information System?
Communication
networks
Policies and
procedures
People
Any organized
combination of…
Data resources
Hardware and
software
Stores, retrieves, transforms,
and disseminates information
in an organization
Why do we need to understand IS?
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Information systems and technologies are vital
components of successful business and organizations.
The Roles of IS in Business
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Information technologies, including Internet-based IS,
are playing vital roles in business.
Information technology can help all kinds of business
improve the efficiency and effectiveness of their
business processes, decision making and workgroup
collaboration, which strengthens their competitive
positions in rapidly changing marketplace.
The Roles of IS in Business
Information systems perform three vital roles in any type
of organization:
1. Support of business processes and operations.
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2.
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2.
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Examples of supported business processes include activities such as:
sales transactions, inventory ordering, and payroll processing.
Support of decision making by employees and
managers.
Make decision about activities such as deciding which product lines to
add or discontinue.
Support of strategies for competitive advantage.
Information systems help provide new types of products and services
through which an organization might gain a competitive advantage.
Fundamental Roles of IS in Business
Today’s Focus
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Today’s organizations are constantly striving to
achieve integration of their systems to allow
information to flow freely through them, which adds
even greater flexibility and business support than
any of the individual system roles could provide.
Trends in IS
The Role of E-Business in Business
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The Internet have changed the ways businesses operate
and people work, as well as how information systems
support business process, decision making, and
competitive advantage.
Thus, many business today are using Internet
technologies to Web-enable their business processes
and create innovative e-business applications.
What is e-Business ?
Using Internet technologies to empower…
Business processes
Electronic commerce
Collaboration within a company
Collaboration with customers, suppliers,
other business stakeholders
an online exchange of value
E-business applications
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Businesses today are using the Internet, corporate
intranets, and inter-organizational extranets to
support business activities with suppliers, partners,
customers, accounting, finance, research and
development, manufacturing, marketing, sales, and
customer service.
How E-Business is Being Used
IT in E-business applications
The primary Information Technology infrastructure
that support the E-business applications of many
companies are:
1. Internet
2. Intranet
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Internet-like networks and websites developed for use within
an organization.
Extranet
3.
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Internet-like networks that links selected resources of a
company with its customers, suppliers, and other business
partners using internet technologies.
E-Business Applications uses in companies
Reengineering
Reengineer
Internal business
processes
Enterprise
collaboration
Electronic
commerce
Support
communication,
coordination
among teams
and work
groups
Buying, selling,
marketing, and
servicing of
products and
services over
networks
Questions ..
Type of Information Systems
Types of Information Systems
Operations
Support
systems
Transaction processing
Process control
Enterprise collaboration
Management information systems
Management
Support
systems
Decision support systems
Executive information systems
1- Operations Support Systems
These systems help enable the day
to day operations of an organization
Transaction processing
Process control
Enterprise collaboration
Operations Support Systems
Transaction processing systems
1.
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process routine business transactions, update
operational databases, and produce business
documents.
Examples: sales or purchases.
Two Ways to Process Transactions
Batch Processing
Online Processing
Accumulate
transactions over time
and then process
periodically
Process all
transactions
immediately
Ex: Banks process all
checks in a batch at night
Ex: A bank processes
ATM withdrawals
immediately
Types of Operations Support Systems
Process control systems
2.
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These systems monitor and control physical processes
Examples: heating and cooling systems.
Enterprise collaboration systems
3.
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Support team or workgroup communications and
productivity.
Examples: e-mail, instant messaging, message boards,
digital whiteboards, wikis, and videoconferencing.
2- Management Support Systems
Provide information and support for
effective decision making by managers
Management information systems
Decision support systems
Executive information systems
Types of Management Support Systems
Management Information Systems (MIS)
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Provide information in the form of reports and displays
Example: daily sales analysis reports
Decision Support Systems (DSS)
2.
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Interactive ad hoc support
Example: a what-if analysis to determine where to spend
advertising dollars
Executive Information Systems (EIS)
3.
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Critical information for executives and managers
Example: actions of competitors
Other Classifications of Information Systems
Expert
Systems
Knowledge
Management
Systems
Provides expert advice
Ex. Credit application advisor
Creation, organization, dissemination of
knowledge throughout company
Customer problems solutions systems
Other Classifications of Information Systems
Strategic
Information
Systems
Helps get strategic advantage
Functional
Business
Systems
Focus on operational and managerial
application of basic business functions
Ex. Shipment tracking
Accounting, finance, marketing
Classifications of Information Systems
Questions ..
Resources ..
Read from Chapter 1 (Section 1)