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Foundations of Information Systems in Business

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Raheel Punjwani
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59 views28 pages

Foundations of Information Systems in Business

Uploaded by

Raheel Punjwani
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 28

Chapter

1
Foundations of
Information Systems in Business

McGraw-Hill/Irwin Copyright © 2008, The McGraw-Hill Companies, Inc. All rights reserved.
Foundation Concepts

• Why study information systems and information


technology?
• Vital component of successful businesses
• Helps businesses expand and compete
• Improves efficiency and effectiveness of
business processes
• Facilitates managerial decision making and
workgroup collaboration

1-2
What is a System?

• A set of interrelated components


• With a clearly defined boundary
• Working together
• To achieve a common set of objectives

1-3
What is an Information System?

• An organized combination of…


• People
• Hardware and software
• Communication networks
• Data resources
• Policies and procedures
• This system…
• Stores, retrieves, transforms, and disseminates
information in an organization

1-4
Information Technologies

• Information Technologies
• Hardware
• Software
• Networking
• Data management

• Our focus will be on computer-based


information systems (CBIS)

1-5
What Should Business Professionals Know
About Information Systems?

1-6
Roles of IS in Business

1-7
Trends in Information Systems

1-8
What is E-Business?

• Using Internet technologies to empower…

• Business processes
• Electronic commerce
• Collaboration within a company
• Collaboration with customers, suppliers, and
other business stakeholders

1-9
How E-Business is Being Used

1-10
E-Business Use

• Reengineering
• Re-engineer Internal business processes
• Enterprise collaboration systems
• Support communications, coordination and
coordination among teams and work groups
• Electronic commerce
• Buying, selling, marketing, and servicing of
products and services over networks

1-11
Types of Information Systems

• Operations Support Systems


• Efficiently process business transactions
• Control industrial processes
• Support communication and collaboration
• Update corporate databases
• Management Support Systems
• Provide information as reports and displays
• Give direct computer support to managers during
decision-making

1-12
Purposes of Information Systems

1-13
Operations Support Systems

• What do they do?


• Efficiently process business transactions
• Control industrial processes
• Support communications and collaboration
• Update corporate databases

1-14
Types of Operations Support Systems

• Transaction Processing Systems


• Record and process business transactions
• Examples: sales processing, inventory systems,
accounting systems
• Process Control Systems
• Monitor and control physical processes
• Example: using sensors to monitor chemical
processes in a petroleum refinery
• Enterprise Collaboration Systems
• Enhance team and workgroup communication
• Examples: email, video conferencing
1-15
Two Ways to Process Transactions

• Batch Processing
• Accumulate transactions over time and process
periodically
• Example: a bank processes all checks received in
a batch at night
• Online Processing
• Process transactions immediately
• Example: a bank processes an ATM withdrawal
immediately

1-16
Management Support Systems

• What do they do?


• Provide information and support for effective
decision making by managers

• Management information systems


• Decision support systems
• Executive information systems

1-17
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

1-18
Other Information Systems

• Expert Systems
• Provide expert advice
• Example: credit application advisor
• Knowledge Management Systems
• Support creation, organization, and dissemination
of business knowledge throughout company
• Example: intranet access to best business
practices

1-19
Developing IS Solutions

1-20
Advanced Applications of IT

• Customer relationship management

• Human resources management

• Business intelligence systems

1-21
What is a System?

• A system is…
• A set of interrelated components
• With a clearly defined boundary
• Working together
• To achieve a common set of objectives
• By accepting inputs and producing outputs
• In an organized transformation process

1-22
Basic Functions of a System

• Input
• Capturing and assembling elements that enter the
system to be processed
• Processing
• Transformation process that converts input into
output
• Output
• Transferring transformed elements to their
ultimate destination

1-23
A Business as a System

1-24
Components of an IS

1-25
Information System Resources

• People Resources
• Specialists
• End users
• Hardware Resources
• Machines
• Media
• Software Resources
• Programs
• Procedures

1-26
Information System Resources

• Data Resources
• Product descriptions, customer records, employee
files, inventory databases
• Network Resources
• Communications media, communications
processors, network access and control software
• Information Resources
• Management reports and business documents
using text and graphics displays, audio responses,
and paper forms

1-27
Data Versus Information

• Data are raw facts about physical phenomena or


business transactions
• Information is data that has been converted into
meaningful and useful context for end users
• Examples:
• Sales data is names, quantities, and dollar
amounts
• Sales information is amount of sales by product
type, sales territory, or salesperson

1-28

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