Sixth Edition 1 M a n a g e m e n t I n f o r m a t i o n S y s t e m s M a n a g I n g I n f o r m a t i o n T e c h n o l o g y i n t h e E – B u s i n e s s E n t e r p r i s e Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. C h a p t e r James A. O’Brien 1 Foundations of Information Systems in Business

Fifth Edition James A. O’Brien 2 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Why Study of Information Systems? Pervasive in Business High-profile Successes and Failures Leaders Face Difficult IS Issues Major Business Functional Area Linked to Strategy

Fifth Edition James A. O’Brien 3 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. An IS Framework for Business Professionals

Fifth Edition James A. O’Brien 4 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. What is an Information System? Input of Data Resources Input of Data Resources Processing Data Processing Data Output of Information Products Output of Information Products Control of System Performance Storage of Data Resources

Fifth Edition James A. O’Brien 5 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. What is a System? Manufacturing Process Input of Raw Materials Output of Finished Products Environment Other Systems Control by Management Control Signals Control Signals Feedback Signals Feedback Signals System Boundary

Fifth Edition James A. O’Brien 6 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Components of an Information System

Fifth Edition James A. O’Brien 7 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Primary Information System Activities Input of Data Processing of Data Into Information Output of Information Products Storage of Data Resources Control of Systems Performance

Fifth Edition James A. O’Brien 8 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Data versus Information WestCharles Mann 79154TM Shoes Monthly Sales Report for West Region Sales Rep: Charles Mann Emp No Item Qty Sold Price TM Shoes 1200 $100

Fifth Edition James A. O’Brien 9 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Major Roles of Information Systems Support Strategies for Competitive Advantage Support of Business Decision Making Support of Business Process and Operations

Fifth Edition James A. O’Brien 10 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. The E-Business Manufacturing and Production Engineering & Research Accounting, Finance, and Management Suppliers and Other Business Partners Procurement, Distribution, and Logistics Advertising Sales Customer Service Consumer and Business Customers Company Boundary Intranets The Internet Extranets

Fifth Edition James A. O’Brien 11 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. History of the role of Information Systems Data Processing Management Reporting Decision Support Strategic & End User Electronic Commerce Electronic Data Processing - TPS Management Information Systems Decision Support Systems - Ad hoc Reports End User Computing Exec Info Sys Expert Systems SIS Electronic Business & Commerce -Internetworked E-Business & Commerce

Fifth Edition James A. O’Brien 12 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Types of Information Systems Transaction Processing Systems Process Control Systems Enterprise Collaboration Systems Operations Support Systems Management Information Systems Decision Support Systems Executive Information Systems Management Support Systems Information Systems (Support Business Ops) (Support of Managerial Decision Making)

Fifth Edition James A. O’Brien 13 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Other Categories of Information Systems Expert Systems Knowledge Management Systems Functional Business Systems Strategic Information Systems Cross-Functional Information Systems

Fifth Edition James A. O’Brien 14 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. 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

Fifth Edition James A. O’Brien 15 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. Management Challenges of the E-Business Enterprise Business Strategies Business Processes Business Needs Customer Relationships Business Partners Suppliers Business Customers Ethical Considerations Potential Risks? Potential Laws? Possible Responses? IS Human Resources IS Development IT Infrastructure IS Performance Organization Structure and Culture User Acceptance

Fifth Edition James A. O’Brien 16 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. The Information Systems Development Process

Fifth Edition James A. O’Brien 17 M a n a g e m e n t I n f o r m a t i o n S y s t e m s Irwin/McGraw-Hill Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved. 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? How Do We Protect Against Computer Crime and What are the Tradeoffs? What are the Impacts of IT Decisions?: Jobs, Safety, Workplace How Do We Assure an Individuals’ Privacy? How Do We Address Software Piracy? How Do We Protect Intellectual Property?