1
Introduction to Information Systems
Essentials for the Internetworked E-Business Enterprise
Eleventh 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
Introduction to Information Systems
Eleventh Edition
2
Chapter Objectives
• Provide foundation of why information
systems are important
• Identify major types of information
systems
• Identify major types of information
systems
Irwin/McGraw-Hill
Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Introduction to Information Systems
Eleventh Edition
3
Chapter Objectives
• Define construct of an information
system – people, hardware, software,
data, and networks
• The above resources perform input,
processing, output, storage, and control
activities that transform data resources
into information products.
• Identify challenges and ethical issues
that a business manager might face
Irwin/McGraw-Hill
Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Introduction to Information Systems
Eleventh 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
Introduction to Information Systems
Eleventh Edition
5
Components of an Information System
People
Information
Systems
Resources
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Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Eleventh Edition
Introduction to Information Systems
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
Introduction to Information Systems
Eleventh Edition
8
Components of an Information System
Irwin/McGraw-Hill
Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Introduction to Information Systems
Eleventh Edition
9
Data versus Information
Monthly Sales Report
for West Region
Sales Rep: Charles Mann
Emp No. 79154
Item
Qty Sold Price
TM Shoes 1200
$100
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Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Introduction to Information Systems
Eleventh Edition
10
Attributes of Information Quality
Irwin/McGraw-Hill
Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Introduction to Information Systems
Eleventh Edition
11
Major Roles of Information Systems
Support
Strategies for
Competitive Advantage
Support
Business Decision Making
Support
Business Processes and Operations
Irwin/McGraw-Hill
Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Introduction to Information Systems
Eleventh Edition
12
IT Era’s
•
•
•
•
Data Processing (DP)
Micro Era
Network Era
WAN Network Environment
–
–
–
–
Client-Server
Thin Client
Web
WAP
Irwin/McGraw-Hill
Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Eleventh Edition
Introduction to Information Systems
13
History of the role of Information Systems
1950-1960
1960-1970
Data
Processing
Management
Reporting
Electronic
Data
Processing
- TPS
Management
Information
Systems
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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
Eleventh Edition
Introduction to Information Systems
14
The e-Business Enterprise
The Internet
Suppliers and Other Business Partners
Company
Boundary
Extranets
Supply Chain Management
Procurement, Distribution, and Logistics
Engineering &
Research
Manufacturing
and
Production
Accounting,
and Finance
Intranets
Customer Relationship Management
Marketing
Sales
Customer Service
Extranets
Consumer and Business Customers
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Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
Types of Information Systems
Why Organizations need
Information Systems
 Meeting Global Challenges
 Capturing opportunities in the Market Place
 Supporting Corporate Strategy
 Linking Departments Whose Functions are
different
 Enhancing Worker Productivity
 Increasing Quality of Goods and Services
16
James A. O’Brien
Eleventh Edition
Introduction to Information Systems
17
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
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Functional Business Systems
Human
Resources
Systems
Manufacturing
Information
Systems
Quality Control
Information
Systems
Customer
Geographic
Information
Systems
Financial
and Accounting
Systems
Marketing
Information
Systems
18
James A. O’Brien
Introduction to Information Systems
Eleventh Edition
19
Other Categories of Information Systems
Expert Systems
Knowledge Management Systems
Cross-Functional Information Systems
Strategic Information Systems
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Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Introduction to Information Systems
Eleventh Edition
22
Other Categories of Information Systems
Expert Systems
Knowledge Management Systems
Cross-Functional Information Systems
Strategic Information Systems –
National Semiconductor – “faster & better” decisions
Global Information Systems- Levi’s
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Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Introduction to Information Systems
Eleventh Edition
23
The Information Systems Development Process
Irwin/McGraw-Hill
Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Introduction to Information Systems
Eleventh Edition
24
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
Introduction to Information Systems
Eleventh Edition
26
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:
– Components (fundamentals) of IS
– Information Technologies
– Business Applications and processes
– Managerial Challenges
Irwin/McGraw-Hill
Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien
Introduction to Information Systems
Eleventh Edition
27
Chapter Summary (cont)
• An information system uses the resources of
people, hardware, software, data, and networks
to perform input, processing, output, storage
and control activities. – Transform
organizational processes
• Information systems perform three vital roles in
business firms. They support:
– Business processes and operations,
– Business decision making; and
– Strategic competitive advantage
Irwin/McGraw-Hill
Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.