Eleventh Edition 1 Introduction to Information Systems Essentials for the Internetworked E-Business Enterprise 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

Eleventh Edition James A. O’Brien 2 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Provide foundation of why information systems are important Identify major types of information systems Chapter Objectives

Eleventh Edition James A. O’Brien 3 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. 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 Chapter Objectives

Eleventh Edition James A. O’Brien 4 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. An IS Framework for Business Professionals

Eleventh Edition James A. O’Brien 5 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Information Systems Resources People Software Hardware Networks Data Components of an Information System

Eleventh Edition James A. O’Brien 6 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, 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

Eleventh Edition James A. O’Brien 7 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Information Age – Control Systems Transform the corporation enabled by information technology The goal should not just be cost control but the dramatic and profound transformation of customer service, responsiveness, and innovation

Eleventh Edition James A. O’Brien 8 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Components of an Information System

Eleventh Edition James A. O’Brien 9 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, 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

Eleventh Edition James A. O’Brien 10 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Attributes of Information Quality

Eleventh Edition James A. O’Brien 11 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Major Roles of Information Systems Support Strategies for Competitive Advantage Support Business Decision Making Support Business Processes and Operations

Eleventh Edition James A. O’Brien 12 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. IT Era’s Data Processing (DP) Micro Era Network Era WAN Network Environment –Client-Server –Thin Client –Web –WAP

Eleventh Edition James A. O’Brien 13 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, 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

Eleventh Edition James A. O’Brien 14 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. The e-Business Enterprise Manufacturing and Production Engineering & Research Accounting, and Finance Suppliers and Other Business Partners Supply Chain Management Procurement, Distribution, and Logistics Customer Relationship Management Marketing Sales Customer Service Consumer and Business Customers Company Boundary Intranets The Internet Extranets

Types of Information Systems

16 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

Eleventh Edition James A. O’Brien 17 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, 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

18 Customer Manufacturing Information Systems Quality Control Information Systems Marketing Information Systems Financial and Accounting Systems Geographic Information Systems Human Resources Systems Functional Business Systems

Eleventh Edition James A. O’Brien 19 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Other Categories of Information Systems Expert Systems Knowledge Management Systems Cross-Functional Information Systems Strategic Information Systems

20 Strategic Information Systems (SIS) Creates applications that provide direct strategic advantage Differentiation Cost Leadership Supports strategic changes – like reengineering Provide business intelligence by collecting and analyzing information Improve internal efficiency

21 SIS – (cont.) Customer-oriented approaches Innovative Support or Shape a business unit Growth Alliances

Eleventh Edition James A. O’Brien 22 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Other Categories of Information Systems Expert Systems Knowledge Management Systems Cross-Functional Information Systems Strategic Information Systems – National Semiconductor – “faster & better” decisions Strategic Information Systems – National Semiconductor – “faster & better” decisions Global Information Systems- Levi’s Levi’s Global Information Systems- Levi’s Levi’s

Eleventh Edition James A. O’Brien 23 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. The Information Systems Development Process

Eleventh Edition James A. O’Brien 24 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, 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

25 Top 5 Reasons of … Success (or failure) Lack of user input Incomplete requirements and specifications Changes Lack of executive support Technological incompetence User involvement Executive support Clear statement of requirements Proper Planning Realistic expectations

Eleventh Edition James A. O’Brien 26 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Information Systems play a vital role in the efficient and effective operations of E- business, E-commerce and enterprise collaboration. The business professional must know: –Components (fundamentals) of IS –Information Technologies –Business Applications and processes –Managerial Challenges Chapter Summary

Eleventh Edition James A. O’Brien 27 Introduction to Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. 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