1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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?

13. 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

14. 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

15. 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

16. 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