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Business Software Application
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Foundations of
Information Systems
in Business
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Learning Objectives
Explain why knowledge of information
systems is important for business
professionals and identify five key areas
of information systems knowledge.
Give examples to illustrate how the
business applications of information
systems can support a firms business
processes, managerial decision making,
and strategies for competitive advantage.
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Learning Objectives (Continued)
Provide examples of the components of
real world information systems.
Provide examples of several major types
of information systems.
Identify several challenges that a
business manager might face in
managing the successful and ethical
development and use of information
technology in a business.
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Information Systems Framework1
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Information Systems Concepts (Continued)
Foundation Concepts
Fundamental concepts about the
components and roles of information
systems.
Information Technologies
Major concepts, developments, and
management issues in information
technology.
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Information Systems Concepts (Continued)
Business Applications The major uses of information systems for
operations, management, and competitiveadvantage.
Development Processes How business professionals and information
specialists plan, develop, and implement informationsystems.
Management Challenges The challenge of managing ethically and effectively.
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What IS a system?
A group of interrelated or interactingelements forming a unified whole, OR
A group of interrelated componentsworking together toward a common goal
by accepting inputs and producing outputsin an organized transformation process(dynamic system).
Three basic interacting components: Input Processing (transformation process) Output
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Add Feedback and Control Loops..
And the system, now called acybernetic system, becomes evenmore useful.
Self-monitoring
Self-regulating
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Other System Characteristics
A system exists and functions in anenvironment containing other systems.
Subsystem a component of a larger system.
Systems that share the same environment maybe connected to one another through a sharedboundary, or interface.
Open versus closed system.
Adaptive system
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Components of an INFORMATION System1
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Components of an Information System(Continued)
People Resources End Users
IS Specialists
Hardware Resources Computer systems
Peripherals
Software Resources System software
Application software
Procedures
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Components of an Information System(Continued)
Data Resources
Data versus Information
Network Resources
Communication media
Network support
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Data Versus Information1
Monthly Sales Report
for West Region
Sales Rep: Charles Mann
Emp No. 79154Item Qty Sold PriceTM Shoes 1200 $100
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Attributes of Information Quality1
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1 Logical Data Elements
NameField
PayrollRecord
PayrollFile
PersonnelDatabase
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Information Products
Focus is on the end-user.
They are the result of IS
activities Input
Processing
Output Storage Control
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Section II
Foundation Concepts: BusinessApplications, Development, andManagement
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Major Roles of IS1
SupportCompetitive
Advantage
SupportBusiness
Decision Making
Support ofBusiness Processes and Operations
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Major Roles of IS (continued)
Support Business Processes
Support Decision Making Support Competitive Advantage
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The Present and the Future
E-Business
The use of Internet technologies tointernet work and empower
Business processes Electronic commerce, and
Enterprise communication & collaboration
Within a company & with its customers,suppliers, & other businessstakeholders.
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IS in the E-Business Enterprise
Every business competes globally(whether they realize it or not)
IS supports business operationsthrough the use of: Intranets
Extranets Internet
Other information technologies
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IS in the E-Business Enterprise (continued)
Enterprise Collaboration Systems Support communication, coordination,
& collaboration.
Virtual teams
Electronic Commerce
Buying & selling, and marketing &servicing of products, services, &information.
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Trends in Information Systems1
O T
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Types of Information Systems
Operations Support Systems
Transaction processing systems
Batch transaction data accumulate over
time, processed periodically. Real-time data processed immediately
after a transaction occurs.
Process Control Systems monitor &
control physical processes.
Enterprise Collaboration Systems
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Orasa T.
O T
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Types of Information Systems (continued)
Management Support Systems
Management Information Systemspre-specified reports & displays to
support decision-making. Decision Support Systems provide
interactive ad hoc support.
Executive Information Systemscritical information tailored to theinformation needs of executives.
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Orasa T.
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Types of Information Systems (continued)
Other Classifications
Expert systems expert advice
Knowledge management systems
support the creation, organization, &dissemination of business knowledge
Functional business systems support
the basic business functions Strategic information systems
strategic advantage
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Developing IS Solutions to BusinessChallenges1
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Ethical Challenges
Just because we can, should we?
Where do we draw the line between
customer privacy and collectingbusiness information?
Do we owe it to society to use thistechnology wisely and responsibly?Why? Isnt our job to make a profit?
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In Summary, the IS Function
Is a major functional area of business.
Is an important contributor to operationalefficiency, employee productivity and morale,
and customer service & satisfaction.
Is a major source of information and support fordecision making.
Provides a strategic advantage in developingcompetitive products & services.
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Discussion Questions
How can information technology support acompanys business processes and decisionmaking, and give it a competitive advantage?
How does the use of the Internet, intranets, andextranets by an e-business enterprise supporttheir e-commerce activities?
Why do big companies still fail in their use of
information technology? What should they bedoing differently?
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Discussion Questions (continued)
How can a manager demonstrate that he or sheis a responsible end user of informationsystems?
What are some of the toughest managementchallenges in developing IT solutions to solvebusiness problems and meet new e-businessopportunities?
Why are there so many conceptualclassifications of information systems? Why arethey typically integrated in information systemsfound in the real world?
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Discussion Questions (continued)
In what major ways have the roles ofinformation systems applications inbusiness expanded during the last 40
years? What is one major change youthink will happen in the next 10 years?
Can the business use of Internettechnologies help a company gain acompetitive advantage?
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References
James A. O'Brien; George M. Marakas.Management Information Systems:Managing Information Technology in the
Business Enterprise 6th Ed., Boston:McGraw-Hill/ Irwin,2004
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