Students The number in the lower left corner of each slide is the page number in the O’Brien textbook to which the material refers. The slides in this presentation are only those containing key information from the chapter. Illustrative figures are not included as they can be seen as you review the material in the book.

Foundations of Information Systems in Business Chapter 1 Foundations of Information Systems in Business McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives Understand the concept of a system and how it relates to information systems. Explain why knowledge of information systems is important for business professionals and identify five areas of information systems knowledge they need.

Learning Objectives Give examples to illustrate how business applications of information systems can support a firm’s business processes, managerial decision making, and strategies for competitive advantage. Provide examples of several major types of information systems from your experiences with business organizations in the real world.

Learning Objectives Identify several challenges that a business manager might face in managing the successful and ethical development and use of information technology in a business. Provide examples of the components of real world information systems Demonstrate familiarity with the myriad of career opportunities in information systems.

Competitive Advantage “Developing products, services, processes, or capabilities that give a company a superior business position relative to its competitors and other competitive forces.” Glossary, p. 637 Attributed to a firm that is … “leading an industry in some identifiable way, such as sales, revenues or new products.” Ch. 2, p. 53 “…when a firm sustains profits that exceed the average for an industry …” Ch. 2, p. 53

An online exchange of value Using Internet technologies to empower… What is E-Business? An online exchange of value Conducting business on the Internet Using Internet technologies to empower… Business processes Electronic commerce Collaboration within a company Collaboration with customers, suppliers, and other business stakeholders

Enterprise collaboration systems Electronic commerce E-Business Use Reengineering Internal business processes Enterprise collaboration systems Support teams and work groups Electronic commerce Buying, selling, marketing, and servicing of products and services over networks

Information systems combine: Operations Support Systems (Figure 1.7) Transaction Processing systems Process Control Systems Enterprise Collaboration Systems Management Support Systems (Figure 1.9) Management Information Systems Decision Support Systems Executive Information Systems Other Systems (Figure 1.11) Expert Systems Knowledge Management Systems Strategic Information Systems There is much overlapping with these systems. Information systems are typically integrated combinations of several types of these systems

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

Other Information Systems Expert Systems Example: credit application advisor Knowledge Management Systems Support creation, organization, and dissemination of business knowledge Example: intranet access to best business practices Strategic Information Systems Help get a strategic advantage over customer Examples: shipment tracking, e-commerce Web systems Functional Business Systems Focus on operational and managerial applications Examples: accounting, finance, or marketing

Responsibility and Accountability IT plays an integral role in every facet of a business Failure is often pinned on IT Cultivate a culture that embraces change Break projects into pieces Set realistic expectations There will always be problems “That’s life in IT” What are the ethical responsibilities? What are the risks? How can you protect yourself and your company from computer crime?

IT employment opportunities are strong IT Careers IT employment opportunities are strong Shortages of IT personnel are frequent Long-term job outlook is positive and exciting Starting salaries are high Job increases will be driven by… Rapid growth Backfilling positions Information sharing environments Need for problem-solving skills Falling hardware and software prices

Business Analysts serve critical role CIO – broker between management and IT Business Analyst In the trenches Analyzes business need and creates solution Communicates solution to technicians Balances IT resources with business needs Business Analyst credentials 5-10 years experience Technical undergraduate degree and MBA Process driven through changes to finish $45,000 to $100,000

Major functional area of business Important contributor to The IS Function Major functional area of business Important contributor to Efficiency, productivity, morale, customer service and satisfaction Major source of information for decisions Vital ingredient in developing competitive products and services Dynamic and challenging career opportunity Key component of networked business

Input of data resources Processing of data into information IS Activities Input of data resources Processing of data into information Output of information products Storage of data resources Control of system performance Input of data resources Data entry activities Processing of data into information Calculations, comparisons, sorting, and so on Output of information products Messages, reports, forms, graphic images Storage of data resources Data elements and databases Control of system performance Monitoring and evaluating feedback