IT in Business -- Chapter 1 20111

8/3/2019 IT in Business -- Chapter 1 20111

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Copyright 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Foundations ofInformation Systems in

Business

Chapter 1


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Foundation Concepts

Improves efficiency andeffectiveness of

business processes

Facilitates managerialdecision making& workgroupcollaboration

Strengthenscompetitive position inrapidly changing

marketplaces

Vital component ofsuccessful businesses

Why studyinformation systems andinformation technology?


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What is an Information System?

Any organizedcombination of

Policies andprocedures

Data resources

Communicationnetworks

Hardware and

software

Stores, retrieves, transforms,and disseminates information

in an organization

People


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What Should Business Professionals Know?


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Fundamental Roles of IS in Business


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Trends in Information Systems


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What is E-Business?

Using Internet technologies to empower

Business processes

Electronic commerceCollaboration within a company

Collaboration with customers, suppliers,

other business stakeholders

In essence, an online exchange of value


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How E-Business is Being Used


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E-Business Use

Internalbusiness

processes

Reengineering

Supportcommunication,

coordination,coordination

among teamsand work

groups

Enterprisecollaboration

Buying,selling,

marketing,and servicingof products

and servicesover networks

Electroniccommerce


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Types of Information Systems

OperationsTransaction processing

Process control

Enterprise collaboration

Updating of corporate databases

ManagementDecision support systems

Executive information systems


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Types of Operations Support Systems

Transaction Processing SystemsRecord and process business transactions

Sales, inventory, and accounting

Process Control Systems

Monitor and control physical processes

Using sensors to monitor refinery processes

Enterprise Collaboration Systems

Enhance team/workgroup communication

Email, video conferencing


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Two Ways to Process Transactions

Batch Processing

Accumulatetransactions over time

and then processperiodically

Ex: Banks process allchecks in a batch at night

Online Processing

Process alltransactionsimmediately

Ex: A bank processesATM withdrawalsimmediately


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Management Support Systems

What do they do?

Provide information and support foreffective decision making by managers

Management

informationsystems

Decision

supportsystems

Executive

informationsystems


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Types of Management Support Systems

Management Information Systems (MIS) Reports and displays Example: daily sales analysis reports

Decision Support Systems (DSS) Interactive and ad hoc support Example: a what-if analysis to determine where to

spend advertising dollars

Executive Information Systems (EIS) Critical information for executives and managers Example: easy access to actions of competitors


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Measuring IT Success

Efficiency Minimizes cost, time,

use of informationresources

Effectiveness Supports business strategies

Enables business processes Enhances organizational structure and culture Increases customer and business value


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Developing IS Solutions


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Ethical Responsibilities

What uses of IT might be considered improperor harmful to other individuals or society?

What is the proper business use of the Internetor a companys IT resources?

How can you protect yourself from computer

crime?


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IT Careers

Economic downturns affecting all jobsectors, including IT

Rising labor costs are pushing jobs toIndia, the Middle East, Asia-Pacific

Negative

IT employment opportunities strong,with new jobs emerging daily

Frequent shortages of IT personnelLong-term job outlook is positive

and exciting

Positive


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IT Careers

The need to backfill positions

Information sharing andclient/server environments

Rapid growth in computer systemdesign and related services

Need for those with problem-solving skills

Falling hardware and software prices, whichfuel expanded computerization of operations

Job increases will be driven by


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What is a System?

A system is A set of interrelated components

With a clearly defined boundary

Working together

To achieve a common set of objectives

By accepting inputs and producing outputs

In an organized transformation process


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Basic Functions of a System

Input

Capturingandassembling

elementsthat enter

the systemto be

processed

Processing

Transforma-tion processconvertsinput into

output

Output

Transferringtransformedelements to

theirultimate

destination


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Cybernetic System

All systems have input , processing , output

A cybernetic system , a self-monitoring, self-regulating system, adds

Feedback system performance data Control monitoring and evaluating feedback

to determine whether a system is movingtoward the achievement of its goal


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Other System Characteristics

A system that is a component of a largersystem is a subsystem

The larger system is an environment

Several systems may share one environment Connected via a shared boundary (interface)

Types of systems Open and Adaptive


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Components of an IS


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Information System Resources

InformationSystem Resources

People Information

Hardware Networks

Software Data


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Data Versus Information

Data are raw facts, typically about physicalphenomena or business transactions

Specifically, objective measurements of theattributes of entities

Information is data that was converted intomeaningful and useful context for end users

Aggregated, manipulated, and organized Analyzed and evaluated Placed in proper context for a human user


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Basic IS Activities

Output

Input

Processing

Storage

Control

f


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Recognizing Information Systems

Business professionals should be able to lookat an information system and identify The people, hardware, software, data, and

network resources they use The type of information products they produce The way they perform input, processing,

output, storage, and control activities

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IT in Business -- Chapter 1 20111