Foundations of Information Systems in Business

Foundation ConceptsWhy study information systems and information technology?Vital component of successful businessesHelps businesses expand and competeImproves efficiency and effectiveness of business processesFacilitates managerial decision making and workgroup collaboration1-*

What is an Information System?An organized combination ofPeopleHardware and softwareCommunication networksData resourcesPolicies and proceduresThis systemStores, retrieves, transforms, and disseminates information in an organization1-*

Information TechnologiesInformation SystemsAll the components and resources necessary to deliver information and functions to the organizationCould be paper basedInformation TechnologiesHardware, software, networking, data managementOur focus will be on computer-based information systems (CBIS)1-*

What Should Business Professionals Know?1-*

Fundamental Roles of IS in Business1-*

Trends in Information Systems 1-*

What is E-Business?Using Internet technologies to empowerBusiness processesElectronic commerceCollaboration within a companyCollaboration with customers, suppliers, and other business stakeholdersIn essence, an online exchange of value

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How E-Business is Being Used1-*

E-Business UseReengineeringInternal business processesEnterprise collaboration systemsSupport communications, coordination and coordination among teams and work groupsElectronic commerceBuying, selling, marketing, and servicing of products and services over networks1-*

Types of Information SystemsOperations Support SystemsEfficiently process business transactionsControl industrial processesSupport communication and collaborationUpdate corporate databasesManagement Support SystemsProvide information as reports and displaysGive direct computer support to managers during decision-making

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Purposes of Information Systems1-*

Operations Support SystemsWhat do they do?Efficiently process business transactionsControl industrial processesSupport communications and collaborationUpdate corporate databases1-*

Types of Operations Support SystemsTransaction Processing SystemsRecord and process business transactionsExamples: sales processing, inventory systems, accounting systemsProcess Control SystemsMonitor and control physical processesExample: using sensors to monitor chemical processes in a petroleum refineryEnterprise Collaboration SystemsEnhance team and workgroup communicationExamples: email, video conferencing1-*

Two Ways to Process TransactionsBatch ProcessingAccumulate transactions over time and process periodicallyExample: a bank processes all checks received in a batch at nightOnline ProcessingProcess transactions immediatelyExample: a bank processes an ATM withdrawal immediately1-*

Management Support SystemsWhat do they do?Provide information and support for effective decision making by managersManagement information systemsDecision support systemsExecutive information systems1-*

Types of Management Support SystemsManagement Information Systems (MIS)Reports and displays Example: daily sales analysis reportsDecision Support Systems (DSS)Interactive and ad hoc supportExample: a what-if analysis to determine where to spend advertising dollarsExecutive Information Systems (EIS)Critical information for executives and managersExample: easy access to actions of competitors1-*

Other Information SystemsExpert SystemsProvide expert adviceExample: credit application advisorKnowledge Management SystemsSupport creation, organization, and dissemination of business knowledge throughout companyExample: intranet access to best business practices1-*

Other Information SystemsStrategic Information SystemsHelp get a strategic advantage over customerExamples: shipment tracking, e-commerce Web systemsFunctional Business SystemsFocus on operational and managerial applications of basic business functionsExamples: accounting, finance, or marketing1-*

What is a System?A system isA set of interrelated componentsWith a clearly defined boundaryWorking togetherTo achieve a common set of objectivesBy accepting inputs and producing outputsIn an organized transformation process1-*

Basic Functions of a SystemInputCapturing and assembling elements that enter the system to be processedProcessingTransformation process that converts input into outputOutputTransferring transformed elements to their ultimate destination1-*

Information System ResourcesPeople ResourcesSpecialistsEnd usersHardware ResourcesMachinesMediaSoftware ResourcesProgramsProcedures1-*

Information System ResourcesData ResourcesProduct descriptions, customer records, employee files, inventory databasesNetwork ResourcesCommunications media, communications processors, network access and control softwareInformation ResourcesManagement reports and business documents using text and graphics displays, audio responses, and paper forms1-*

Data Versus InformationData are raw facts about physical phenomena or business transactionsInformation is data that has been converted into meaningful and useful context for end usersExamples:Sales data is names, quantities, and dollar amountsSales information is amount of sales by product type, sales territory, or salesperson1-*

IS ActivitiesInput of data resourcesData entry activitiesProcessing of data into informationCalculations, comparisons, sorting, and so onOutput of information productsMessages, reports, forms, graphic imagesStorage of data resourcesData elements and databasesControl of system performanceMonitoring and evaluating feedback1-*